SENATE COMMITTEE ON GOVERNMENT AFFAIRS

MINUTES OF THE

SENATE Committee on Government Affairs

Seventy-First Session

March 12, 2001

The Senate Committee on Government Affairswas called to order by Chairman Ann O'Connell, at 2:00 p.m., on Monday, March 12, 2001, in Room 2149 of the Legislative Building, Carson City, Nevada. The meeting was videoconferenced to the Grant Sawyer Office Building, Room 4412, Las Vegas, 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 Ann O'Connell, Chairman

Senator William J. Raggio, Vice Chairman

Senator William R. O’Donnell

Senator Jon C. Porter

Senator Joseph M. Neal, Jr.

Senator Dina Titus

Senator Terry Care

GUEST LEGISLATORS PRESENT:

Senator Raymond C. Shaffer, Clark County Senatorial District No. 2

Senator Mark E. Amodei, Capital Senatorial District

Assemblyman Joseph (Joe) E. Dini, Jr., Lyon, Storey, Carson City (part) Counties Assembly District No. 38

STAFF MEMBERS PRESENT:

Kimberly Marsh Guinasso, Committee Counsel

Juliann K. Jenson, Committee Policy Analyst

Laura Hale, Committee Secretary

OTHERS PRESENT:

Lenora Vecchiarelli-Sommers, Concerned Citizen

Evelyn Quilici, Concerned Citizen

Max Kuerzi, Proprietor, Mia’s Swiss Restaurant

Nick Galakatos, Concerned Citizen

Charles Haynes, Member, Board of Commissioners, Storey County; Chairman, Comstock Historic District Commission; Chairman, Virginia City Convention and Tourism Agency

Ronald M. James, State Historic Preservation Officer, Office of Historic Preservation, Department of Museums, Library and Arts

Michael A. (Bert) Bedeau, District Administrator, Comstock Historic District Commission

Bob Milz, Chairman, Board of Commissioners, Lyon County; Vice Chairman, Comstock Historic District Commission

Barbara Peck, Dayton Representative, Comstock Historic District Commission

Lucille Lusk, Lobbyist, Nevada Concerned Citizens

Merritt K. Yochum, Lobbyist

Joshua Hansen, Vice Chairman, Independent American Party of Nevada, Las Vegas

Christopher Hollaman Hansen, First Christian Fellowship of Eternal Sovereignty

Jonathan Hansen, Concerned Citizen

Nicholas Alexander Hansen, Concerned Citizen

Janine Hansen, Lobbyist, Independent American Party of Nevada

Jeannine Coward, Assistant State Controller, Office of the State Controller

Bob Gagnier, Lobbyist, State of Nevada Employees Association

Chairman O’Connell opened the hearing on Senate Bill (S.B.) 157.

SENATE BILL 157: Revises provisions governing Comstock historic district. (BDR 33-954)

Senator Raymond C. Shaffer, Clark County Senatorial District No. 2, testified there have been problems between Dayton and Virginia City and that he supported introduction of the bill at the request of Max and Mia Kuerzi, owners of Mia’s Swiss Restaurant in Dayton. He added that, at no time, was it proposed to do away with the Comstock Historic District (CHD), or the Comstock Historic District Commission (CHDC). He explained the bill is to establish a Lyon County historic district and a Virginia City historic district, under the CHD as an advisory commission to both, and the board of county commissioners from each county would oversee their respective districts.

Senator Shaffer expressed his opinion that business and property owners need elected officials to represent them, so that if they are not responsive, they can vote on replacement. He added the bill would also address district boundaries, noting that a “professional engineer” has not stamped current maps. He suggested this could cause a problem because people may buy property without realizing that it is in an historic district.

Senator Shaffer stated a trust fund would be created and placed with the state treasurer, to be administered by the commission. He said the commission would not exercise power of eminent domain, which they are not doing right now. He reported Dayton residents feel like stepchildren because all the grant monies go to Virginia City, and they want to be on their own. He added that a lot of inaccurate information has been disseminated, and the intent is not to destroy the district.

Referring to a derogatory cartoon that had been circulated by people opposing the bill, Senator Shaffer asserted the fact that a senator from Las Vegas is supporting the bill should not be a negative factor. Senator Neal supported this statement, saying that the derogatory cartoon and negative attitudes related to this bill made him very angry. He added, state senators can and do support issues from all over the state and are here to serve everyone. Chairman O’Connell noted that Senator Neal’s comments reflect the feelings of most of the Legislature. Senator Shaffer added that he had not missed a vote in 16 years to improve budgets for people in Lyon County and will continue to support their cause financially.

Lenora Vecchiarelli-Sommers, Concerned Citizen, submitted a package with written testimony, a copy of the cartoon with a negative depiction of Senator Shaffer, a listing of people purported to oppose the bill, materials relating to CHDC members, CHDC requirements, and CHDC communications (Exhibit C. Original is on file in the Research Library.). Ms. Vecchiarelli-Sommers stated supporters of the bill do not wish to disturb the CHDC, but wish to secede from it, and have a separate entity in Dayton. (Members of the audience indicated this was not a mutually agreed solution.) Ms. Vecchiarelli-Sommers claimed that many of the CHDC supporters at the hearing do not live in Dayton.

Explaining how the bill was brought to Senator Shaffer’s attention, Ms. Vecchiarelli-Sommers said supporters felt they could not gain support from northern Nevada representatives; Assemblyman Dini, Senator Amodei, and Senator Raggio. Senator Raggio noted that he does not represent that area, although he has an affinity for it. He said he was not asked to introduce the bill, and does not want to be included in these kinds of comments. Ms. Vecchiarelli-Sommers agreed to remove his name.

Ms. Vecchiarelli-Sommers claimed the bill was not brought about by two individuals, as has been suggested, but by many property owners who have experienced first-hand inconsistencies and harassment from CHDC. She concluded that it is discriminatory for Dayton to be under the rules and regulations of the CHDC if there is no benefit to Dayton, but rather its citizens are harassed over changes and improvements.

Referencing the controversy over the sign at Mia’s Swiss Restaurant, Ms. Vecchiarelli-Sommers said this was just one incident in a long history of difficulties between Dayton and the CHDC. She claimed thousands of dollars were spent in the restoration of Mia’s Swiss Restaurant, also known as Odeon Hall. She also described a project she had undertaken, saying that costs were increased over $20,000 by the CHDC’s requirement for a certificate of appropriateness, resulting in cancellation of the project. Additional examples are cited in Exhibit C.

According to Ms. Vecchiarelli-Sommers, grants administered by Ronald M. James, State Historic Preservation Officer, go to Virginia City and not Dayton. Although she was told by the CHDC that grants could not go to private individuals, Ms. Vecchiarelli-Sommers claimed a grant was awarded to Piper’s Opera House in Virginia City, which is privately owned. In conclusion, Ms. Vecchiarelli-Sommers testified that at a meeting of the citizens of Dayton, the issue of secession from the CHDC was raised and people were told it was redundant and a farce and that the board would not let this item appear again on CHDC agendas.

Senator Mark E. Amodei, Capital Senatorial District, testified opposition to the bill. He said the CHDC has evolved over 3 decades and although these issues evoke strong emotions, the CHDC, as the decision-maker, should not be abolished. He claimed the review process is deliberative and has input from representatives from each affected area and there is not a division along county lines.

Senator Amodei commented that the Dayton residents did a wonderful job promoting the 150^th anniversary of the discovery of gold in this state, and it is a good example of what the community can do. He said that much of the restoration in the Comstock has come through private efforts and the organization of community efforts in the Comstock has preceded similar organization in Dayton. Senator Amodei asserted Dayton is now getting up to speed to access benefits of the CHDC and available grants. He pointed out the same issue was brought up years ago and architectural review is always controversial, but expressed his hope that things can be worked out.

In response to committee questions, Senator Amodei said CHDC members include county commissioners who are elected, as well as appointed members to fulfill the requirements of chapter 384 of Nevada Revised Statutes (NRS), such as architectural and preservation representatives. Also, he said there is a bill in the Assembly that would place a contractor on the CHDC.

Assemblyman Joseph (Joe) E. Dini, Jr., Lyon, Storey, Carson City (part) Counties Assembly District No. 38, testified the original request for the inclusion of Dayton within the CHDC came from the Lyon County Commissioners when state Senator James M. Slattery, Reno-N.Tahoe-Verdi-Storey Senatorial District, introduced the bill to create the CHDC in 1969. Assemblyman Dini said there have been many ups and downs over the last 20 years, but in terms of public policy, he claimed the CHDC has done its job in preserving the history of the Comstock. He suggested these issues should be resolved outside of the Legislature.

Assemblyman Dini claimed this bill would emasculate the CHDC because two districts would create two sets of standards, and the CHDC needs to be retained as it is. He explained the grant to Piper’s Opera House came from the Commission for Cultural Affairs, Advisory to the Department of Museums, Library and Arts. Senator Raggio added that the Wiegand Foundation, of which he is a board member, also gave a large grant to Piper’s Opera House.

Continuing his testimony, Assemblyman Dini said some of the issues began 20 years ago when the county commissioners ordered the Catholic church be torn down without notifying Dayton residents. He explained the issue involving the sign at Mia’s Swiss Restaurant came about because an historic sign was covered up without the permission of the CHDC. The Office of the Attorney General got involved and eventually there was a settlement, he said.

Evelyn Quilici, Concerned Citizen, testified that she set up the meeting in Dayton for withdrawal from the CHDC. She claimed a group was organized to support this withdrawal, and they were not allowed to vote. Ms. Quilici said the publicity has been that the majority of Dayton residents did not want to withdraw from the CHDC, but she maintained they never got to vote.

Ms. Quilici testified Virginia City was originally set up in the CHDC to receive grant money for tourism and Dayton was never intended to be part of the CHDC. She added there have been inconsistent decisions by the CHDC and no money has come to Dayton. In 1971, Dayton residents tried to set up their own district and it was vehemently opposed, she said.

With regard to district boundaries, Ms. Quilici stated she has not been able to find an official map with certified local government approval. She reported the National Register of Historic Places includes 38 contributing buildings and 14,000 acres from Dayton, and asked if a bigger geographic area gives the CHDC more funds.

Regarding the regulatory actions of the CHDC, Ms. Quilici asserted that painting of a building falls under maintenance and the Kuerzis should not have needed a certificate of appropriateness from the CHDC. Ms. Quilici described another incident involving Compadres, a Mexican restaurant, whose owners were told by the CHDC that the caricatures in the restaurant were too funny for the district. Ms. Quilici stated to the committee, “This is almost Communism. They’re going to tell me I can’t laugh?” A petition with signatures requesting the removal of described properties from the CHDC was submitted by Ms. Quilici (Exhibit D. Original is on file in the Research Library.).

Max Kuerzi, Proprietor, Mia’s Swiss Restaurant, submitted written testimony and related materials (Exhibit E), and presented them to the committee. He described restoration of the building formerly known as Odeon Hall, formerly known as Odd Fellows Hall, with personal funds and labor. Although the building is in the National Register of Historic Places and falls under the regulations of the CHDC, Mr. Kuerzi said he has not been able to access grant funds because he and his wife own the building privately.

With regard to regulatory activities of the CHDC, Mr. Kuerzi said he believes there have been inconsistencies. He described one incident where a chain link fence was put up within the boundaries of the CHD 2 months ago with no prior certificate of appropriateness from the CHDC, but was subsequently approved by the CHDC after the fact. In the case of painting over the sign at his restaurant, he said he has been “persecuted.” In another case, Mr. Kuerzi said, roof repairs were made to the “Old Dayton Assayers Office” property and were approved by the CHDC Chairman in a privately held conversation with the owner, at the end of a public meeting. Mr. Kuerzi made various references to pictures of run-down locations in Dayton. (The pictures were only temporarily submitted to the committee members for their review, and are not a formal exhibit.)

Mr. Kuerzi stated his belief that the CHDC is not representative of Dayton. He reported that representatives from the Office of Historic Preservation and the Lyon County Commissioners told him they did not give a damn about the painting over of his sign, but were worried about complaints from troublemakers in Dayton. Continuing, Mr. Kuerzi said there are vacant lots in Dayton, that no one wants because of the CHDC regulations, that should be used for expansion of the courthouse and creation of a public complex. He also reported the Walmsley Estates Project was removed from the historic district by the CHDC for “administrative purposes” so that a federal Housing and Urban Development-funded low-income project could go forward.

Responding to a question from the committee, Mr. Kuerzi explained the dispute regarding the painting over of the sign was settled through meetings between Mr. Kuerzi, his attorney, and the attorney general’s office. He asserted the current issue is how to get money to downtown Dayton.

Nick Galakatos, Concerned Citizen, submitted written testimony (Exhibit F) and presented it to committee members. He said he has experienced difficulty dealing with the CHDC regarding changes to property he owns in Virginia City. Mr. Galakatos claimed he was told privately by the CHDC Chairman, and again by the “secretary inspector,” that he had to use the district’s architect or his request would not be approved. He also claimed he was told by the state historic preservation officer that no state or federal grants were available to private owners as individuals, although Mr. Galakatos said he believes that such grants were made for other projects, interest free.

Mr. Galakatos said he wrote a letter to then-Governor Miller regarding these allegations. In response, he reported, the CHDC filed a report with the attorney general’s office and the Storey County district attorney’s office stating Mr. Galakatos had made threats against Dayton residents, which Mr. Galakatos claims is not true. Mr. Galakatos testified further that the secretary who filed the reports was subsequently promoted to Director of Cultural Affairs and allocated a $45,000 grant to excavate the old Boston Saloon in Virginia City. For a month’s excavation, Mr. Galakatos said, the Director of Cultural Affairs was paid $6930 and everyone else was paid from $400 to $1355.

Mr. Galakatos asserted the CHDC is acting beyond their legislative authority at the expense of the taxpayer and that a conflict of interest exists. He claimed outside agencies cannot compete for work if the CHDC uses their own architect for historic renovations. He also asserted there have been civil rights violations and that the CHDC makes decisions based on personal biases. Prior to Mr. Galakatos’ letter to the Governor, he claims the CHDC was enforcing standards that were not officially adopted or written down.

Mr. Galakatos also maintained that the CHDC members are allowed to reelect each other and ensure “the outcome of their unfair practices on our citizens.” He stated his belief that the county commissioners and the staff from the building inspector’s office are capable and knowledgeable.

Continuing his testimony, Mr. Galakatos claimed Storey County has many economic difficulties with public entities failing, and some areas are “full of junk,” yet hundreds and thousands of dollars are made available to “speculators, carpetbaggers and transient scholars, and they spent it trying to correct the size of windows.” He concluded that the CHDC is a “monster to be destroyed” and that a professional firm should audit the grants that have been made and the work that has been done. Mr. Galakatos also provided a proposed amendment (Exhibit G) to require that state and federal funding of rebuilding or property improvements be in the form of loans that must be repaid.

Charles Haynes, Board of Commissioners, Storey County; Chairman, Comstock Historic District Commission; Chairman, Virginia City Convention and Tourism Agency, testified the CHDC does not grant funds to private or public entities. He said it is a regulatory commission that tries to maintain minimum standards for historical restoration of structures and resources in the district. He pointed out that guidelines are clearly outlined in the Comstock Historic District Construction Standards (Exhibit H. Original is on file in the Research Library.). Mr. Haynes stated the CHDC tries not to be arbitrary or capricious in its decision-making.

Ronald M. James, State Historic Preservation Officer, Office of Historic Preservation, Department of Museums, Library and Arts, testified the owners of Mia’s Swiss Restaurant have done a fine job of preserving an important historic resource in Dayton. He added that much of the work they have done was maintenance, but painting over the sign, which is documented in photographs dating back to 1906 as the “Odeon Hall and Saloon,” was done without approval from the CHDC.

Mr. James explained a public meeting was held to determine a solution, and a majority voted for repainting of the sign. He claimed the Kuerzis were asked to move their sign, “Mia’s Swiss Restaurant,” but were unwilling to do that. A stop-work order was issued and there was discussion of contacting the attorney general’s office, he said. According to Mr. James, at one point, agreement was reached for the Dayton Historical Society to pay for most of the cost of repainting the sign and he said Bob Milz, Chairman, Lyon County Board of Commissioners, offered to pay the rest of the cost. According to Mr. James, this was agreed to by Mrs. Kuerzi at a public meeting, with reported input from Mr. Kuerzi, but later retracted.

Mr. James continued, testifying that the attorney general’s office worked with Mr. Kuerzi and his attorney to arrive at a consensus that it would be better to repaint the sign than to go to court. As stated by Mr. James, at that point, the Dayton Historical Society withdrew its interest in funding any of the cost of repainting. The CHDC has to implement chapter 384 of NRS, and according to Mr. James, Dayton property owners and CHDC members who have invested in their own buildings want their neighbors to follow the same rules.

Mr. James said the CHDC does not participate in recommending grants and the Office of Historic Preservation has statewide obligations and is distinct from the CHDC. He said there are two available sources of funding: the National Park Service and the Commission for Cultural Affairs, for which the Office of Historic Preservation provides staff support. He explained that both funding sources restrict against grant making to businesses, and because of the limited amount of federal funds available, no funds have gone to private parties during his tenure. He explained the Commission for Cultural Affairs makes funding available to public agencies and nonprofits only and the Office of Historic Preservation implements the grants.

In response to committee questions, Mr. James said he asked a staff member to replace him, last July, on the CHDC because chapter 384 of NRS requires that his office be represented on the nine-member commission. He said the requirements administered by the CHDC have been in place for a number of years, although the handbook (Exhibit H) was redone recently to make it more legible, readable, and consistent. Mr. James concluded, when the Kuerzis chose to locate their business in an historic district, the requirements to be met were clear.

Michael A. “Bert” Bedeau, District Administrator, Comstock Historic District Commission, testified section 1 of NRS 384.110 provides that no historic structure may be altered. He said the CHDC has interpreted “altered” to include painting that changes the exterior appearance. Further, he said, the CHDC has been given authority to establish guidelines under chapter 284 of NRS.

Mr. Bedeau stated that the derogatory cartoon shown (in Exhibit C) did not come from his office, and he suggested it might have come from the Virginia City Chamber of Commerce.

Chairman O’Connell reported that she had been contacted by many people whose names were listed on the back of the derogatory cartoon as being opposed to the bill, although they had not given any authorization to be associated with the cartoon or the bill. Senator Titus added that her name was listed although she had not been asked if her name could be used, and she stated that she would not be associated with something that demeaned one of her colleagues. She said she sent a letter stating that she did not appreciate being listed.

Bob Milz, Chairman, Board of Commissioners, Lyon County; Vice Chairman, Comstock Historic District Commission, testified Lyon County is also listed on the flyer, but did not authorize the listing, nor does Mr. Milz know where the flyer originated. He said, as commissioners appointed by the Governor, the CHDC swear to uphold the NRS as written by the Legislature and their decisions are not arbitrary or capricious. He said the CHDC tries to be consistent in its decision-making and receives counsel from the attorney general’s office.

Mr. Milz explained the nine-member commission is composed of two citizens from Storey and Lyon Counties, one commissioner from each county, two architects, and one representative from the Office of Historic Preservation. Further, he said, one of the Lyon County representatives is also an architect and the Director from the Office of Historic Preservation is also an attorney, and takes care of day-to-day business. Mr. Milz said there is also an assistant who serves as inspector and clerk.

Continuing, Mr. Milz said the purpose of the CHDC is to maintain historic preservation of the district as it was in the late 1860s, according to the standards set forth in Exhibit H. He explained that consistent decisions help to maintain property values and give added attraction for tourism, and suggested it is not in the best interest of the district or the state to have each county with separate commissions making final decisions and moving the current commission into an advisory position where appeals would go to the state Office of Historic Preservation.

Mr. Milz claimed counties do not have the resources or talent to handle the administration of a commission. Further, he said, the nature of the CHDC is regulatory; county commissioners set policy and budgets, they are not regulatory in nature and do not want to be. He concluded the bill is a bad idea and cannot resolve the issues in question. In response to committee questions, he pointed out there is a map on page 3 of Exhibit H that shows the boundaries of the district.

Mr. James responded to additional committee questions. He said there have been two instances where the CHDC determined that it was no longer actively interested in certain architecture shown in the shaded area of the map on page 3 of Exhibit H. He explained this property was removed from the CHD for administrative purposes to avoid imposing on new development. He said the CHDC reviewed and was satisfied with the overall design of this development for single story structures that were generally compatible with the area, and the developers were asked to continue along the lines they had been going. Mr. James assured the committee the review process and decision-making were done in public meetings, and agreed to provide the committee with minutes from those meetings.

With regard to the incident with the Kuerzi’s, Mr. James said he was not sure whether the front sign that had been painted over prior to the creation of the CHDC was older than the sign on the side of the building that was at issue. He said the CHDC does not ask property owners to restore property back to former appearances, but does ask them not to remove historic elements that exist at that time. He said the CHDC asked the Kuerzis to restore the side sign with block letters, similar to those that were on the front sign.

Barbara Peck, Dayton Representative, Comstock Historic District Commission, submitted written testimony (Exhibit I), and reiterated earlier testimony that the agreement reached in a public meeting for repainting of the sign was later privately retracted by the Kuerzis. She said the side of the building has more than enough space to display the name of the business below the original sign, but the Kuerzis did not want to do that.

Mr. Milz explained the Kuerzis are now going to pay for the repainting of the sign and Mr. Milz will pay for the moving of the other two signs. He said the Kuerzis were friends of his prior to this incident and he hopes that they will be friends again in the future. Mr. Milz reiterated earlier testimony that the CHDC makes decisions based on NRS requirements. In response to Senator Neal’s inquiry as to how to get funds to Dayton, Mr. Milz stated that next session, he would come to Senator Neal.

Responding to a question from Chairman O’Connell, Mr. Bedeau stated that he is unclear about the location and installation date of the chain link fence mentioned in Mr. Kuerzi’s testimony, but he will look into this in a future meeting.

Mr. James stated for the record that subsection 2 of NRS 384.030 includes signs and color as items that fall under the regulatory review of the CHDC. He stated regret for misrepresentations in the flyer (Exhibit C) and added that people in the CHD are spontaneous and independent-minded. He clarified the Bluestone Building was a privately owned building given to the CHDC along with some other properties in Dayton with the understanding that it would be returned to Lyon County for use as a district court. He said adjustments were made to the architecture for structural integrity, and the CHDC did provide funds for a small percentage of the total cost for the restoration of this building. He also noted that staff from the CHDC volunteered their time and labor to sew drapes for this building.

Clarifying earlier testimony, Mr. James said two grants totaling $60,000 were awarded to the Dayton Historical Society by the Commission for Cultural Affairs, and every time the Dayton Historical Society has applied for grants, they have been awarded. He explained awards are made all over the state and everyone is encouraged to apply, but only nonprofits or public agencies can receive funds. Mr. James also noted that following the resignation of a Virginia City CHDC member, additional representation from Dayton was requested by the CHDC.

Mr. James said the CHDC is composed of two representatives from Dayton, one from Silver City, two architects from outside the district, one representative from the Office of Historic Preservation, two Lyon County Commissioners, and two representatives from Virginia City. He explained that Silver City is within the CHD and predates Virginia City. He added that Assembly Bill 102 proposes to allow for architects or building contractors to serve on the CHDC to allow more representation from within the district.

ASSEMBLY BILL 102: Revises qualifications for membership on Comstock historic district commission. (BDR 33-546)

Mr. James concluded that if a majority of the people from Dayton wanted ‘out’ of the CHDC, he would support the proposal, but he believes that a majority of the people from Dayton wants to stay within the CHDC.

Senator Raggio said the best part of Dayton was dredged and a lot has been lost to vandalism and arson. He remarked the Kuerzis have done a great job of remodeling Odeon Hall and there does not seem to be much else in Dayton that has been preserved. He pointed out there is an appearance of heavy-handedness when a lot of property is not being maintained at all, there is not sufficient funding available to foster preservation, but the painting over of a sign comes under this much scrutiny. Senator Raggio suggested that if Dayton is designated as part of an historic district, it should be preserved, including possible authority over private property.

Responding to Senator Raggio’s concerns, Ms. Peck said prior to the sesquicentennial celebration in 1999, Levi-Strauss and Company provided funds and labor for the restoration of a sign on the side of the Loftus Braun Mercantile building. Also, she said, a local painting company and parishioners of a local church repainted the front of the Union Hotel. She concluded the progress of preservation projects has been slow, but in the last 10 years there has been some progress. She added that without the protection of the CHDC, all of these buildings would be lost, noting that the old train depot was saved by the CHDC and has been used as a residence since the 1950s.

Mr. Milz mentioned the Dayton Valley Days event is held every year to raise funds to restore historic buildings. He said the Lyon County Board of Commissioners has no regulatory function and there are no ordinances to deal with the appearances of private residences.

Mr. James explained that a gentleman not testifying, but present, at the hearing had a concern about how to deal with the deteriorating nature of an historic resource. According to Mr. James, he has “rehabbed” many buildings in Virginia City where things are starting to turn around. Mr. James concluded there has to be some effort from the private sector and that kind of effort is starting to emerge in Dayton, as well as in all the surrounding communities.

Responding to concerns from Senator O’Donnell, Mr. Haynes stated that the process with the Kuerzis was “long, tedious, and very gingerly approached.” With regard to people’s property rights, Mr. Haynes asserted, “when you live in an historical district, you have certain custodial responsibilities.”

Additional exhibits were provided to the secretary, but were not part of the testimony to the committee. A petition in opposition to the bill is shown in (Exhibit J. Original is on file in the Research Library.) Three letters were also submitted (Exhibits K, L and M).

Chairman O’Connell closed the hearing on S.B. 157 and opened the hearing on S. B. 98.

SENATE BILL 98: Requires candidate to disclose record of arrests for felonies and gross misdemeanors when filing for office and prohibits certain deceptive campaign materials. (BDR 24-237)

Senator Shaffer testified his introduction of this bill was prompted by the criminal actions of an opponent of his who has no public record because he pleaded no contest. According to Senator Shaffer, his opponent had been fencing stolen goods and was actually caught with a stereo in his arms, but was able to plead no contest and pay $250 restitution.

Senator Shaffer said this bill proposes to add a question about arrests to the application for public office. He said, if there is a history of arrests that are explained, there is not a problem; but if the question is not answered truthfully, it could cause a problem.

Senator Shaffer said the other part of this bill has to do with campaign materials. He explained a candidate running for justice of the peace distributed flyers that appeared so much like Senator Shaffer’s, including a picture that resembled him, that his supporters were confused.

Chairman O’Connell read written testimony from Juanita Cox (Exhibit N) questioning why the bill reads “arrested” rather than “convicted” under section 1, line 9. Senator Shaffer responded, if the word “convicted” were entered, the public would never know about someone who pleads no contest, thereby avoiding a felony charge. He concluded it is a matter of verifying a person’s character.

Lucille Lusk, Lobbyist, Nevada Concerned Citizens, testified opposition to the bill with an “innocent until proven guilty objection.” She said deal making is an unfortunate element of the justice system, but there cannot be an automatic assumption that people are guilty of more than what they were convicted on. She added that to force candidates to show charges that may not have had any merit seems wrong. With regard to the second part of the bill, Ms. Lusk suggested these kinds of issues should come under fraud laws, and a whole separate section should not be needed.

Kimberly Marsh Guinasso, Committee Counsel, explained a correction that was made to the third column of the tabular information on page 2 of the bill. She said the corrected language is shown in the reprint of the bill (Exhibit O) to read “Final Disposition Within System of Criminal Justice of Charge Resulting from Arrest.”

Merritt K. Yochum, Lobbyist, representing Independent American Party of Nevada, testified opposition to the bill because it would create more mazes and hoops to jump through and would discourage people from running for public office.

Joshua Hansen, Vice Chairman, Independent American Party of Nevada, Las Vegas, testified support for the bill because, he said, “such laws only affect people who do not study the law and the Constitution.” He declared members of his party ignore such laws because they are unconstitutional. He suggested that such laws hurt Republicans and Democrats who think they have to follow them and decide not to run for office, and therefore, there is less competition.

Christopher Hollaman Hansen, First Christian Fellowship of Eternal Sovereignty, quoted from James Madison as follows:

It is proper to take alarm at the first experiment of our liberties. We hold this prudent jealousy to be the first duty of citizens and one of the noblest characteristics of the late revolution. The free men of America did not wait ‘til usurped power had strengthened itself by exercise and entangled the question in precedence. They saw all the consequences in the principle and they avoided the consequences by denying the principle. We revere this lesson too much to forget it.

Mr. C. Hansen explained the First Christian Fellowship of Eternal Sovereignty is a political religion that has made the “Constitution the political religion of America,” as first suggested by then-President Abraham Lincoln. He said the founding documents of Nevada proscribe that Nevada must have a perfect toleration of religious beliefs. He claimed this bill violates the religious beliefs of the fellowship and, if passed, will be fought in court and “we will refuse to obey it.” He said the fellowship has fought other similar legislation and defied the secretary of state and is still waiting for responses from that office.

With regard to the second part of the bill, Mr. C. Hansen claimed voters should be educated enough to comprehend what is going on in a situation such as the one described by Senator Shaffer. He concluded if similar campaign materials were shared among family members to reduce costs, it would be a crime under this bill. However, he said, there is apparently no penalty under this bill. He said if a law is passed, there has to be a penalty for violation.

Jonathan Hansen, Concerned Citizen, testified due process means being fair to those accused, and common law rules of evidence were incorporated to guarantee fundamental fairness. He said Senator Shaffer’s bill includes some of the rules of due process and leaves out others. Nicholas Alexander Hansen, Concerned Citizen, described several incidents where he was wrongly accused and arrested and stated that not everyone who is arrested is guilty. Janine Hansen, Lobbyist, Independent American Party of Nevada, testified opposition to the bill.

Chairman O’Connell closed the hearing on S.B. 98 and opened the hearing on Bill Draft Request S-604.

BILL DRAFT REQUEST S-604: Expands and changes name of Tricounty Railway Commission. (Later introduced as Senate Bill 334.)

SENATOR O’DONNELL MOVED TO INTRODUCE BDR S-604.

SENATOR NEAL SECONDED THE MOTION.

THE MOTION CARRIED UNANIMOUSLY.

*****

Chairman O’Connell opened the hearing on S.B. 228.

SENATE BILL 228: Authorizes state controller to appoint persons to certain positions in unclassified service of state. (BDR 18-663)

SENATOR RAGGIO MOVED TO RECONSIDER S.B. 228.

SENATOR O’DONNELL SECONDED THE MOTION.

THE MOTION CARRIED. (SENATOR NEAL ABSTAINED FROM THE VOTE.)

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Jeannine Coward, Assistant State Controller, Office of the State Controller, submitted a copy of a proposed amendment (Exhibit P). Ms. Coward reported to the committee that she had worked with Bob Gagnier on the amendment to remove some of the provisions. She stated that without this bill, the manager of operations and the executive assistant would not get raises they deserve, unless they were moved to unclassified positions. She explained her office is trying to bring the assistant up to parity with the administrative assistant of the state treasurer, and there is currently a $10,000 disparity.

Ms. Coward said the proposed amendment also deletes the chief accountants from the bill, and to be consistent, it includes a change to the assistant controller, so that all four unclassified positions would be in statute. Bob Gagnier, Lobbyist, State of Nevada Employees Association, testified the amendment would revert the bill to original language in subsection 1, except to insert “chief” in front of “deputy.” He confirmed his support for the amendment that would allow chief accountants to remain as classified employees.

SENATOR RAGGIO MOVED TO AMEND AND DO PASS S.B. 228.

SENATOR O’DONNELL SECONDED THE MOTION.

THE MOTION WAS CARRIED UNANIMOUSLY.

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Chairman O’Connell adjourned the meeting at 5:28 pm.

RESPECTFULLY SUBMITTED:

Laura Hale,

Committee Secretary

APPROVED BY:

Senator Ann O'Connell, Chairman

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