Journal
of the
SENATE of the
State
of Nevada
TWENTIETH SPECIAL SESSION
THE FIRST DAY
Carson City (Wednesday), June 25, 2003
Senate called to order at 9:55 a.m.
President Hunt presiding.
Prayer by the Chaplain, Pastor Albert Tilstra.
This morning, dear Lord, we are reminded of Your words: “My
thoughts are not your thoughts, neither are your ways My ways.” In this sacred
moment may the Senators realize that You are willing to give them Your thoughts
and Your ways to help in the choices they need to make for this great State.
Thank You for answering our prayer.
Amen.
Pledge of allegiance to the Flag.
MOTIONS,
RESOLUTIONS AND NOTICES
Madam President requested Mrs. Claire J. Clift to serve as temporary Secretary of the Senate and Mr. Charles P. Welsh to serve as temporary Sergeant at Arms.
Madam President instructed the temporary Secretary to call the roll of the Senators.
Roll called.
All Senators present.
Senator Raggio moved that the organization of the Senate of the Seventy‑second Session of the Nevada Legislature be designated as the organization for the Twentieth Special Session of the Nevada Legislature.
Remarks by Senator Raggio.
Motion carried.
Senator Raggio moved that the Secretary of the Senate be instructed to insert the Twentieth Special Session organization in the Journal of the Senate, as outlined in the handout located on each Senator’s desk.
Remarks by Senator Raggio.
Motion carried.
PRESIDENT PRO TEMPORE OF THE
SENATE―
Senator Mark E. Amodei
MAJORITY FLOOR LEADER―
Senator William J. Raggio
ASSISTANT MAJORITY FLOOR
LEADER―
Senator Raymond D. Rawson
MAJORITY WHIP―
Senator Dean A.
Rhoads
ASSISTANT MAJORITY
WHIP―
Senator Sandra J. Tiffany
MINORITY FLOOR LEADER―
Senator Dina Titus
ASSISTANT MINORITY FLOOR
LEADER―
Senator Bernice Mathews
MINORITY WHIP―
Senator Valerie Wiener
SECRETARY OF THE
SENATE―
Claire J. Clift
Madam President appointed Senators Care, Townsend and Mathews as a committee of three to inform the Assembly that the Senate is organized and ready for business.
Madam President appointed Senators Washington, Cegavske and Schneider as a committee of three to inform the Governor that the Senate is organized and ready for business.
A committee from the Assembly composed of Assemblyman Anderson, Assemblywoman Leslie and Assemblyman Hardy appeared before the bar of the Senate and announced that the Assembly was organized and ready for business.
Senator Raggio moved that the following persons be accepted as accredited press representatives, and that they be assigned space at the press table and allowed the use of appropriate media facilities: ASSOCIATED PRESS: Benjamin Kieckhefer, Ryan Pearson; BUREAU OF NATIONAL AFFAIRS: William Carlile; DAILY SPARKS TRIBUNE/KAME/KRXI-TV: Andrew Barbano; ELKO DAILY FREE PRESS: Jerry Blair; FOX 5 NEWS: Garrett Breit, John Huck; KLAS-TV: Matthew Adams, Richard Czarny, George Knapp, Victor Woodall; KLVX-TV: Tom Axtell; KNPB-TV: Erin Breen, Ali Herndon-Ortega, Jack Kelly, Bonnie Maclean, Dennis Myers, Ethan Salter, Dave Santina, Douglas Walters; KOLO-TV CHANNEL 8: Brent Boynton, Jean Casarez, Mark Cronon, Jeff Deitch, Tim Ill, Justin Kanno, Josh Little, Vicky Nguyen, Ed Pearce, Terri Russell, James Steiner; KPTL-RADIO: Cheri D. Flynn, Scott Gahagen, Ron Harrison, Jarvis Kaler, Terrie Q. Sayre; KTNV-TV NEWS 13: Mark Sayre; KVBC-NEWS 3: Alyssa Anderson, Justin Rush, Kendall Tenney; KWNA-RADIO: Torrey Sheen; LAS VEGAS CITYLIFE: Matt O'Brien; LAS VEGAS SUN: Michael Campbell, David Clayton, Dana Gentry, Jeff German, Matt Hufman, Steve Kanigher, Jennifer Knight, Ed Koch, Aaron Mayes, Erin Neff, Judy Odierna, Angla Pilmer, Launce Rake, Jon Ralston, Emily Richmond, Cy Ryan, Susan Snyder; NEVADA APPEAL: Cathleen Allison, Brian Corley, Rhonda Costa-Landers, Kelli Du Fresne, Ray Estrada, Rick Gunn, Brad Horan, Karl Horeis, Jill Keller, Francine Norton, Barry Smith, Teri Vance, Susan Vasquez; NEVADA BROADCASTERS' ASSOCIATION: Robert David Fisher; NKPR NEVADA PUBLIC RADIO: Kyril Pluskon; NORTH LAKE TAHOE BONANZA: Rick Adair; NORTH LAKE TAHOE BONANZA: Kirk Caraway; NORTHERN NEVADA BUSINESS WEEKLY: Anne Knowles; SAM SHAD PRODUCTIONS: Sam Breen, Ande Engleman, Samuel Shad; THE MEDIA CENTER: Don Alexander, Kim Anhalt, John Bankhead, Jeremy Baumann, Nancy Burgess, Carol Cizauskas, Kaye Crawford, Charles M. Evans, Fred Fichman, Mitch Fox, Henry King, David Kizler, John Ponzo, Earl Spriggs; THE UNLV REBEL YELL: Erik Ball, Nick Christensen, Angela Flores; UNIVISION-LAS VEGAS NEWS: Jorge Avila, Sol Binkier, Ricardo Fernandez, Janette Luviano, Joel Romo, Xochitl Sandoval, Johanna Suarez, Brenda Torres, Roger Velado; VARTEK: Marcia Cohen, Michael Vargas; VIRGINIA CITY REGISTER: Gary M. G. Deacon, Scott Phillips, Bill Sjovaugen, Sharon Truehill, Douglas Truehill, Ernst Wipple and WE THE PEOPLE: Shayne Del Cohen.
Motion carried.
Madam President announced that if there were no objections, the Senate would recess subject to the call of the Chair.
Senate in recess at 10:01 a.m.
SENATE IN SESSION
At 10:16 a.m.
President Hunt presiding.
Quorum present.
Senator Care reported that his committee had informed the Assembly that the Senate is organized and ready for business.
Senator Washington reported that his committee had informed the Governor that the Senate is organized and ready for business.
MESSAGES FROM THE GOVERNOR
State
of Nevada
Executive
Chamber
Carson
City, Nevada 89701
June 25, 2003
The Honorable Senator
William J. Raggio, Majority Leader, Nevada State Senate
Legislative
Building, Carson City, Nevada 89701-4747
To the Honorable
Members of the Nevada State Senate:
The Nevada State Constitution, in Article V, Section
9, provides that the Governor may on extraordinary occasions convene a special
session of the Legislature by proclamation. On June 12, 2003, I issued a
proclamation convening the 20th Special Session of the Nevada Legislature.
Within my proclamation, I defined and limited the scope of your legislative
endeavors for the special session. Consider only the matters set forth in this
proclamation.
I feel
compelled to mention that the end of the fiscal year is a mere five days from
today. Because of this, there are consequences being realized by the school
districts of Nevada as each day passes without K-12 education being funded for
the upcoming biennium. Therefore, I wish you well in completing the legislative
business before you; I urge you on behalf of the citizens of Nevada to complete
their business in an expeditious and effective manner.
Sincerely,
Kenny
C. Guinn
Governor
of Nevada
A PROCLAMATION BY THE
GOVERNOR:
WHEREAS, Section 9 of Article V of the
Constitution of the State of Nevada provides that, “The Governor may on
extraordinary occasions, convene the Legislature by Proclamation and shall
state to both houses when organized, the purpose for which they have been
convened, and the Legislature shall transact no legislative business, except
that for which they were specially convened, or such other legislative business
as the Governor may call to the attention of the Legislature while in Session;”
WHEREAS, believing that an extraordinary
occasion now exists which requires action by the Legislature;
NOW, THEREFORE, I, KENNY C. GUINN, GOVERNOR OF THE STATE OF
NEVADA, by virtue of the authority vested in me by the Constitution of the
State of Nevada, do hereby convene the Legislature into a Special Session to
begin at 8:00 a.m., on June 25, 2003.
During the extraordinary session, the Legislature may consider a
tax plan sufficient to meet all of the appropriations and other spending
measures that were passed during the 72nd Session of the Nevada Legislature and
which may be passed during this Special Session. The Legislature may further
consider during this session the matters contained within Assembly Bill 536,
Senate Bill 432, Senate Bill 508 and Senate Bill 509 of the 72nd Session of the
Nevada Legislature.
The Legislature may also consider an appropriation to pay for the
cost of the session and any other matters brought to the attention of the
Legislature by the Governor during the Special Session.
IN
WITNESS WHEREOF, I have hereunto set my hand and caused the Great Seal of the
State of Nevada to be affixed at the State Capitol in Carson City, this 12th
day of June, in the year two thousand three.
Kenny C. Guinn
Governor
Dean Heller
Secretary of State
Renee Parker
Chief Deputy Secretary of State
MOTIONS,
RESOLUTIONS AND NOTICES
By Senators Raggio and Titus:
Senate
Resolution No. 1—Adopting the Rules of the Senate for the 20th Special Session of the Legislature.
Resolved by the Senate of
the State of Nevada, That the following Rules of the Senate for the 20th
Special Session of the Legislature are hereby adopted:
I. APPLICABILITY
Rule No. 1. Generally.
The Rules of the
Senate for the 20th Special Session of the Legislature are applicable only
during the 20th Special Session of the Legislature.
II.
OFFICERS AND EMPLOYEES
Duties of Officers
Rule No. 2. President.
The President
shall take the chair and call the Senate to order precisely at the hour
appointed for meeting. He shall preserve order and decorum, and in case of any
disturbance or disorderly conduct within the Senate Chamber, shall order the
Sergeant at Arms to suppress it, and may order the arrest of any person creating
any disturbance within the Senate Chamber. He may speak to points of order in
preference to members, rising from his seat for that purpose, and shall decide
questions of order without debate, subject to an appeal to the Senate by two
members, on which appeal no member may speak more than once without leave of
the Senate. He shall sign all acts, addresses and joint resolutions, and all
writs, warrants and subpoenas issued by order of the Senate; all of which must
be attested by the Secretary. He has general direction of the Senate Chamber.
Rule No. 3. President
Pro Tem.
The President Pro
Tem has all the power and shall discharge all the duties of the President
during his absence or inability to discharge the duties of his office. In the
absence or inability of the President Pro Tem to discharge the duties of the
President’s office, the Senate shall elect one of its members as the presiding
officer for that occasion.
Rule No. 4. Secretary.
1. The Secretary of the Senate is elected by the
Senate, and shall:
(a) Interview and
recommend persons to be considered for employment to assist the Secretary.
(b) See that these
employees perform their respective duties.
(c) Administer the
daily business of the Senate, including the provision of secretaries as needed.
(d) Unless
otherwise ordered by the Senate, transmit as soon as practicable those bills
and resolutions upon which the next action is to be taken by the Assembly.
2. The Secretary is responsible to the Majority
Leader.
Rule No. 5. Sergeant
at Arms.
1. The Sergeant at Arms shall attend the Senate
during its sittings, and execute its commands and all process issued by its
authority. He must be sworn to keep the secrets of the Senate.
2. The Sergeant at Arms shall:
(a) Superintend
the upkeep of the Senate’s Chamber, private lounge, and meeting rooms.
(b) Interview and
recommend persons to be considered for employment to assist the Sergeant at
Arms.
3. The Sergeant at Arms is responsible to the
Majority Leader.
Rule No. 6. Assistant
Sergeant at Arms.
The Assistant
Sergeant at Arms shall be doorkeeper and shall preserve order in the Senate
Chamber and shall assist the Sergeant at Arms. He shall be sworn to keep the
secrets of the Senate.
III.
SESSIONS AND MEETINGS
Rule No. 7. Call of
Senate—Moved by Three Members.
A Call of the
Senate may be moved by three Senators, and if carried by a majority of all
present, the Secretary shall call the roll and note the absentees, after which
the names of the absentees shall again be called over. The doors shall then be
closed and the Sergeant at Arms directed to take into custody all who may be
absent without leave, and all Senators so taken into custody shall be presented
at the bar of the Senate for such action as to the Senate may seem proper.
Rule No. 8. Absence—Leave
Required.
No Senator shall
absent himself from the service of the Senate without leave, except in case of
accident or sickness, and, if any Senator or officer shall so absent himself,
his per diem shall not be allowed him.
Rule No. 9. Open
Meetings.
1. Except as otherwise provided in the
Constitution of the State of Nevada and in subsection 2 of this rule, all
meetings of the Senate and the Committee of the Whole must be open to the
public.
2. A meeting may be closed to consider the
character, alleged misconduct, professional competence, or physical or mental
health of a person.
IV.
DECORUM AND DEBATE
Rule No. 10. Points
of Order.
1. If any Senator, in speaking or otherwise,
transgresses the rules of the Senate, the President shall, or any Senator may,
call him to order. If a Senator is so called to order, he shall not proceed
without leave of the Senate. If such leave is granted, it must be upon the
motion, “That he be allowed to proceed in order,” and the Senator shall confine
himself to the question under consideration and avoid personality.
2. Every decision of points of order made by the
President is subject to appeal, and a discussion of a question of order may be
allowed only upon the appeal of two Senators. In all cases of appeal, the
question must be, “Shall the decision of the Chair stand as the judgment of the
Senate?”
Rule No. 11. Breaches
of Decorum.
1. In cases of breaches of decorum or propriety,
any Senator, officer or other person is liable to such censure or punishment as
the Senate may deem proper.
2. If any Senator is called to order for
offensive or indecorous language or conduct, the person calling him to order
shall report the offensive or indecorous language or conduct to the presiding
officer. No member may be held to answer for any language used on the floor of
the Senate if business has intervened before exception to the language was
taken.
3. Indecorous conduct or boisterous or
unbecoming language is not permitted in the Senate Chamber.
V. QUORUM, VOTING, ELECTIONS
Rule No. 12. Action
Required to be Taken in Senate Chamber.
Any action taken
by the Senate must be taken in the Senate Chamber.
Rule No. 13. Recorded
Vote—Three Required to Call For.
1. A recorded vote must be taken upon final
passage of a bill or joint resolution, and in any other case when called for by
three members. Every Senator within the bar of the Senate shall vote “aye” or
“no” or record himself as “not voting,” unless excused by unanimous vote of the
Senate.
2. The votes and names of those absent or
recorded as “not voting” and the names of Senators demanding the recorded vote
must be entered in the Journal.
Rule No. 14. President
to Decide—Tie Vote.
A question is lost
by a tie vote, but when the Senate is equally divided on any question except
the passage of a bill or joint resolution, the President may give the deciding
vote.
Rule No. 15. Manner
of Election—Voting.
1. In all cases of election by the Senate, the
vote must be taken viva voce. In other cases, if a vote is to be recorded, it
may be taken by oral roll-call or by electronic recording.
2. When a recorded vote is taken, no Senator
may:
(a) Vote except
when at his seat;
(b) Vote upon any
question in which he is in any way personally or directly interested;
(c) Explain his
vote or discuss the question while the voting is in progress; or
(d) Change his
vote after the result is announced.
3. The announcement of the result of any vote
must not be postponed.
VI.
LEGISLATIVE BODIES
Rule No. 16. Committee
of the Whole.
1. All bills and resolutions may be referred
only to the Committee of the Whole.
2. The Majority Leader shall preside as Chairman
of the Committee or name a Chairman to preside.
3. Any meeting of the Committee of the Whole may
be conducted outside the Senate Chamber, as designated by the Chairman of the
Committee.
4. A member of the Committee may speak only once
on an item listed on the Committee’s agenda, for a period of not more than 10
minutes, unless he is granted leave of the Chairman to speak for a longer
period or more than once. If a member is granted leave to speak for a longer
period or more than once, the Chairman may limit the length of additional time
that the member may speak.
5. The Chairman may require any vote of the
Committee to be recorded in the manner designated by the Chairman.
6. All amendments proposed by the Committee:
(a) Must first be
approved by the Committee.
(b) Must be
reported by the Chairman to the Senate.
7. The minutes of the Committee’s meetings must
be entered in the final Journal.
Rule No. 17. Rules
Applicable to Committee of the Whole.
The Rules of the
Senate shall apply to proceedings in Committee of the Whole, except that the
previous question shall not be ordered. The rules of parliamentary practice
contained in Mason’s Manual of Legislative Procedure shall govern the
Committee in all cases in which they are applicable and in which they are not
inconsistent with the rules and orders of the Senate.
Rule No. 18. Motion
to Rise Committee of the Whole.
A motion that the
Committee rise shall always be in order, and shall be decided without debate.
VII.
RULES GOVERNING MOTIONS
A. Motions
Generally
Rule No. 19. Entertaining.
1. No motion may be debated until it is
announced by the President.
2. By consent of the Senate, a motion may be
withdrawn before amendment or decision.
Rule No. 20. Precedence
of Motions.
When a question is
under debate, no motion shall be received but the following, which shall have
precedence in the order named:
1. To adjourn.
2. For a call of the Senate.
3. To lay on the table.
4. For the previous question.
5. To postpone to a day certain.
6. To commit.
7. To amend.
8. To postpone indefinitely.
The first four shall be decided without debate.
Rule No. 21. When
Not Entertained.
1. When a motion to commit, to postpone to a day
certain, or to postpone indefinitely has been decided, it must not be again
entertained on the same day.
2. When a question has been postponed
indefinitely, it must not again be introduced during the Special Session.
3. There must be no reconsideration of a vote on
a motion to postpone indefinitely.
B. Particular
Motions
Rule No. 22. To
Adjourn.
A motion to
adjourn shall always be in order. The name of the Senator moving to adjourn,
and the time when the motion was made, shall be entered in the Journal.
Rule No. 23. Lay on
the Table.
A motion to lay on
or take from the table shall be carried by a majority vote.
Rule No. 24. To
Strike Enacting Clause.
A motion to strike
out the enacting clause of a bill or resolution has precedence over a motion to
commit or amend. If a motion to strike out the enacting clause of a bill or
resolution is carried, the bill or resolution is rejected.
Rule No. 25. Division
of Question.
1. Any Senator may call for a division of a
question.
2. A question must be divided if it embraces
subjects so distinct that if one subject is taken away, a substantive
proposition remains for the decision of the Senate.
3. A motion to strike out and insert must not be
divided.
Rule No. 26. Explanation
of Motion.
Whenever a Senator
moves to change the usual disposition of a bill or resolution, he shall
describe the subject of the bill or resolution and state the reasons for his
requesting the change in the processing of the bill or resolution.
VIII.
DEBATE
Rule No. 27. Speaking
on Question.
1. Every Senator who speaks shall, standing in
his place, address “Mr. or Madam President,” in a courteous manner, and
shall confine himself to the question before the Senate. When he has finished,
he shall sit down.
2. Except as otherwise provided in Senate Rules
Nos. 10 and 45 of the 20th Special Session of the Legislature, a Senator may
speak only once on a question before the Senate, for a period of not more than
10 minutes, unless he is granted leave of the President to speak for a longer
period or more than once. If a Senator is granted leave to speak for a longer
period or more than once, the President may limit the length of additional time
that the member may speak.
3. Incidental and subsidiary questions arising
during debate shall not be considered the same question.
Rule No. 28. Previous
Question.
The previous
question shall not be put unless demanded by three Senators, and it shall be in
this form: “Shall the main question be now put?” When sustained by a majority
of Senators present it shall put an end to all debate and bring the Senate to a
vote on the question or questions before it, and all incidental questions
arising after the motion was made shall be decided without debate. A person who
is speaking on a question shall not while he has the floor move to put that
question.
IX.
CONDUCT OF BUSINESS
A. Generally
Rule No. 29. Mason’s
Manual.
The rules of
parliamentary practice contained in Mason’s Manual of Legislative Procedure
shall govern the Senate in all cases in which they are applicable and in which
they are not inconsistent with the rules and orders of the Senate for the 20th
Special Session of the Legislature, and the Joint Rules of the Senate and
Assembly for the 20th Special Session of the Legislature.
Rule No. 30. Suspension
of Rule.
No rule or order
of the Senate for the 20th Special Session of the Legislature shall be
rescinded or changed without a majority vote of the Senate; but, except as
otherwise provided in Senate Rule No. 39 of the 20th Special Session of the
Legislature, a rule or order may be temporarily suspended for a special purpose
by a majority vote of the members present. When the suspension of a rule is
called for, and after due notice from the President no objection is offered, he
can announce the rule suspended and the Senate may proceed accordingly; but
this shall not apply to that portion of Senate Rule No. 39 of the 20th Special
Session of the Legislature relating to the third reading of bills, which cannot
be suspended.
Rule No. 31. Protest.
Any Senator, or
Senators, may protest against the action of the Senate upon any question, and
have such protest entered in the Journal.
Rule No. 32. Privilege
of the Floor.
1. To preserve decorum and facilitate the
business of the Senate, only the following persons may be present on the floor
of the Senate during formal sessions:
(a) State
officers;
(b) Officers and
members of the Senate;
(c) Employees of
the Legislative Counsel Bureau;
(d) Attaches and
employees of the Senate; and
(e) Members of the
Assembly whose presence is required for the transaction of business.
2. Guests of Senators must be seated in a
section of the upper or lower gallery of the Senate Chamber to be specially
designated by the Sergeant at Arms. The Majority Leader may specify special
occasions when guests may be seated on the floor of the Senate with a Senator.
3. A majority of Senators may authorize the
President to have the Senate Chamber cleared of all persons except Senators and
officers of the Senate.
4. The Senate Chamber may not be used for any
business other than legislative business during a legislative session.
Rule No. 33. Material
Placed on Legislators’ Desks.
1. Only the Sergeant at Arms and officers and
employees of the Senate may place papers, letters, notes, pamphlets and other
written material upon a Senator’s desk. Such material must contain the name of
the Legislator requesting the placement of the material on the desk or a
designation of the origin of the material.
2. This rule does not apply to books containing
the legislative bills and resolutions, the daily histories and daily journals
of the Senate or Assembly, or Legislative Counsel Bureau material.
Rule No. 34. Petitions
and Memorials.
The contents of
any petition or memorial shall be briefly stated by the President or any
Senator presenting it. It shall then lie on the table or be referred, as the
President or Senate may direct.
Rule No. 35. Objection
to Reading of Paper.
Where the reading
of any paper is called for, and is objected to by any Senator, it shall be
determined by a vote of the Senate, and without debate.
Rule No. 36. Questions
Relating to Priority of Business.
All questions
relating to the priority of business shall be decided without debate.
B. Bills
Rule No. 37. Requests
for the Drafting of Bills, Resolutions and Amendments.
The Legislative
Counsel shall not honor a request for the drafting of a bill, resolution or
amendment to be introduced in the Senate unless it is submitted by the
Committee of the Whole, a Conference Committee or the Governor.
Rule No. 38. Introduction
of Bills.
1. Except as otherwise provided in this rule, no
bill or resolution may be introduced in the Senate unless it is first approved
by the Committee of the Whole.
2. The provisions of subsection 1 do not apply
to a bill or resolution that is:
(a) Required to
carry out the business of the Senate or the Legislature; or
(b) Requested by
the Governor.
3. Skeleton bills may not be introduced.
Rule No. 39. Reading
of Bills.
1. Every bill must receive three readings before
its passage, unless, in case of emergency, this rule is suspended by a
two-thirds vote of the members elected to the Senate.
2. The first reading of a bill is for
information, and if there is opposition to the bill, the question must be,
“Shall this bill receive no further consideration?” If there is no opposition
to the bill, or if the question to reject is defeated, the bill must then take
the usual course.
3. No bill may be committed until once read, nor
amended until twice read.
4. The third reading of every bill must be by
sections.
Rule No. 40. Second
Reading File—Consent Calendar.
1. All bills or joint resolutions reported by
the Committee of the Whole must be placed on a Second Reading File unless
recommended for placement on the Consent Calendar.
2. The Committee of the Whole shall not
recommend a bill or joint resolution for placement on the Consent Calendar if:
(a) An amendment
of the bill or joint resolution is recommended;
(b) It contains an
appropriation;
(c) It requires a
two-thirds vote of the Senate; or
(d) It is
controversial in nature.
3. A bill or joint resolution must be removed
from the Consent Calendar at the request of any Senator. A bill or joint
resolution so removed must be immediately placed on the Second Reading File for
consideration in the usual order of business.
4. When the Consent Calendar is called, the
bills remaining on the Consent Calendar must be read by number and summary, and
the vote must be taken on their final passage as a group.
Rule No. 41. Reading
of Bills—General File.
1. Upon reading of bills on the Second Reading
File, Senate and Assembly bills reported without amendments must be placed on
the General File.
2. Only amendments proposed by the Committee of
the Whole or a Conference Committee may be considered.
3. Amendments proposed by the Committee of the
Whole and reported with bills may be adopted by a majority vote of the members
present. Bills so amended must be reprinted, engrossed or reengrossed, and
placed on the General File. The File must be posted in the Senate Chamber and
made available to members of the public each day by the Secretary.
Rule No. 42. Reconsideration
of Vote on Bill.
No motion to
reconsider a vote is in order.
C. Resolutions
Rule No. 43. Treated
as Bills.
Resolutions
addressed to Congress, or to either House thereof, or to the President of the
United States, or the heads of any of the national departments, or proposing
amendments to the State Constitution are subject, in all respects, to the
foregoing rules governing the course of bills. A joint resolution proposing an
amendment to the constitution shall be entered in the journal in its entirety.
Rule No. 44. Treated
as Motions.
Resolutions, other
than those referred to in Senate Rule No. 43 of the 20th Special Session of the
Legislature, shall be treated as motions in all proceedings of the Senate.
Rule No. 45. Order
of Business.
1. Roll Call.
2. Prayer and Pledge of allegiance to the Flag.
3. Reading and Approval of the Journal.
4. Reports of the Committee of the Whole.
5. Messages from the Governor.
6. Messages from the Assembly.
7. Communications.
8. [Reserved.]
9. Motions, Resolutions and Notices.
10. Introduction, First Reading and Reference.
11. Consent Calendar.
12. Second Reading and Amendment.
13. General File and Third Reading.
14. Unfinished Business.
15. Special Orders of the Day.
16. Remarks from the Floor; Introduction of
Guests. A member may speak under this order of business for a period of not
more than 5 minutes each day.
Rule No. 46. Privilege.
Any Senator may
rise and explain a matter personal to himself by leave of the President, but he
shall not discuss any pending question in such explanation.
Rule No. 47. Preference
to Speak.
When two or more
Senators rise at the same time the President shall name the one who may first
speak—giving preference, when practicable, to the mover or introducer of the subject
under consideration.
Rule No. 48. Special
Order.
The President shall call the Senate to order
on the arrival of the time fixed for the consideration of a special order, and
announce that the special order is before the Senate, which shall be considered,
unless it be postponed by a two-thirds vote, and any business before the Senate
at the time of the announcement of the special order shall go to Unfinished
Business.
Senator Raggio moved the adoption of the resolution.
Remarks by Senator Raggio.
Resolution adopted unanimously.
By Senators
Raggio and Titus:
Senate Resolution
No. 2—Providing that no allowances will be paid for the 20th Special Session of
the Nevada Legislature for periodicals, stamps, stationery or communications.
Resolved by the Senate of the State of Nevada,
That for the 20th Special Session of the Nevada Legislature,
no allowances will be paid for members of the Senate for periodicals, stamps,
stationery or the use of telephones and no allowances will be paid for the
President Pro Tempore, Majority Leader, Minority Leader or chairman of a
committee of the Senate for postage, telephone tolls or other charges for
communications.
Senator Raggio moved the adoption of the resolution.
Remarks by Senator Raggio.
Resolution adopted unanimously.
Senate Resolution No. 3—Providing for
the appointment of attaches.
Resolved by the Senate of the State of Nevada,
That the following persons are elected as attaches of the Senate for the 20th
Special Session of the Nevada Legislature: Mary Jo Mongelli, Ann-Berit Moyle,
Mary R. Phillips, Molly Dondero, Susan S. Whitford, Charles P. Welsh, Sam A.
Palazzolo, John D. Turner, Ronald Sandoval, Jeanne Baret, Jo Greenslate,
Barbara Moss, Janet Meredith, Dorothy Souza, Marlene Staub and
Patricia Vardakis.
Senator Raggio moved the adoption of the resolution.
Remarks by Senator Raggio.
Resolution adopted unanimously.
INTRODUCTION, FIRST READING AND REFERENCE
By Senators Raggio
and Titus:
Senate Bill No. 1—AN ACT making an appropriation to the Legislative Fund for the costs of the 20th Special Session; and providing other matters properly relating thereto.
Senator Raggio moved that all rules be suspended, reading so far had considered first reading, rules further suspended, Senate Bill No. 1 declared an emergency measure under the Constitution and placed on third reading and final passage.
Remarks by Senator Raggio.
Motion carried unanimously.
GENERAL FILE AND THIRD READING
Senate Bill No. 1.
Bill read third time.
Roll call on Senate Bill No. 1:
Yeas—20.
Nays—None.
Excused—Nolan.
Senate Bill No. 1 having received a constitutional majority, Madam President declared it passed.
Senator Raggio moved that all rules be suspended and that Senate Bill No. 1 be immediately transmitted to the Assembly.
Motion carried unanimously.
MESSAGES FROM THE ASSEMBLY
Assembly
Chamber, Carson
City, June 25, 2003
To the
Honorable the Senate:
I
have the honor to inform your honorable body that the Assembly on this day
adopted Assembly Concurrent Resolution No. 1.
MOTIONS, RESOLUTIONS AND NOTICES
Assembly Concurrent Resolution No. 1—Adopting
the Joint Rules of the Senate and Assembly for the 20th Special Session of the
Legislature.
Resolved by the
Assembly of the State of Nevada, the Senate Concurring, That the
following Joint Rules of the Senate and Assembly for the 20th Special
Session of the Legislature are hereby adopted:
APPLICABILITY OF JOINT RULES
Rule No. 1. Generally.
The Joint Rules for the 20th Special Session of the Legislature are applicable only during the
20th Special Session of the
Legislature.
CONFERENCE COMMITTEES
Rule No. 2. Procedure Concerning.
1. In
every case of an amendment of a bill, or joint or concurrent resolution, agreed
to in one House, dissented from in the other, and not receded from by the one
making the amendment, each House shall appoint a committee to confer with a
like committee to be appointed by the other; and the committee so appointed
shall meet publicly at a convenient hour to be agreed upon by their respective
chairmen and announced publicly, and shall confer upon the differences between
the two Houses as indicated by the amendments made in one and rejected in the
other and report as early as convenient the result of their conference to their
respective Houses. The report shall be made available to all members of both
Houses. The whole subject matter embraced in the bill or resolution shall be
considered by the committee, and it may recommend recession by either House,
new amendments, new bills or resolutions, or other changes as it sees fit. New
bills or resolutions so reported shall be treated as amendments unless the
bills or resolutions are composed entirely of original matter, in which case
they shall receive the treatment required in the respective Houses for original
bills, or resolutions, as the case may be.
2. The
report of a conference committee may be adopted by acclamation, and such action
may be considered equivalent to the adoption of amendments embodied therein.
The report is not subject to amendment. If either House refuses to adopt the
report, or if the first conference committee has so recommended, a second
conference committee may be appointed. No member who served on the first
committee may be appointed to the second.
3. There
shall be but two conference committees on any bill or resolution. A majority of
the members of a conference committee from each House must be members who voted
for the passage of the bill or resolution.
MESSAGES
Rule No. 3. Procedure Concerning.
1. Proclamations by the
Governor convening the Legislature in extra session shall, by direction of the
presiding officer of each House, be read immediately after the convening
thereof, filed and entered in full in the Journal of proceedings.
2. Whenever a message
from the Governor is received, the Sergeant at Arms will announce: “Mr.
President, or Mr. Speaker, the Secretary of the Governor is at the bar.” The
Secretary will, upon being recognized by the presiding officer, announce: “Mr.
President, or Mr. Speaker, a message from His Excellency, the Governor of
Nevada, to the Honorable, the Senate or Assembly,” and hand same to the
Sergeant at Arms for delivery to the Secretary of the Senate or Chief Clerk of
the Assembly. The presiding officer will direct any message from the Governor
to be received, read and entered in full in the Journal of proceedings.
3. Messages
from the Senate to the Assembly shall be delivered by the Secretary or
Assistant Secretary, and messages from the Assembly to the Senate shall be
delivered by the Chief Clerk or Assistant Chief Clerk.
NOTICE OF FINAL ACTION
Rule No. 4. Communications.
Each House shall communicate its final action
on any bill or resolution, or matter in which the other may be interested, by
written notice. Each such notice sent by the Senate must be signed by the
Secretary of the Senate, or a person designated by the Secretary. Each such
notice sent by the Assembly must be signed by the Chief Clerk of the Assembly,
or a person designated by the Chief Clerk.
BILLS AND JOINT RESOLUTIONS
Rule No. 5. Signature.
Each enrolled bill or joint resolution shall
be presented to the presiding officers of both Houses for signature. They
shall, after an announcement of their intention to do so is made in open
session, sign the bill or joint resolution and their signatures shall be
followed by those of the Secretary of the Senate and Chief Clerk of the
Assembly.
Rule No. 6. Joint Sponsorship.
1. A
bill or resolution introduced by a committee of the Senate or Assembly may, at
the direction of the chairman of the committee, set forth the name of a
committee of the other House as a joint sponsor, if a majority of all members
appointed to the committee of the other House votes in favor of becoming a
joint sponsor of the bill or resolution. The name of the committee joint
sponsor must be set forth on the face of the bill or resolution immediately
below the date on which the bill or resolution is introduced.
2. The
Legislative Counsel shall not cause to be printed the name of a committee as a
joint sponsor on the face of a bill or resolution unless the chairman of the
committee has signed his name next to the name of the committee on the colored
back of the introductory copy of the bill or resolution that was submitted to
the front desk of the House of origin or the statement required by subsection 4.
3. Upon
introduction, any bill or resolution that sets forth the names of primary joint
sponsors must be numbered in the same numerical sequence as other bills and
resolutions of the same House of origin are numbered.
4. Once
a bill or resolution has been introduced, a primary joint sponsor or nonprimary
joint sponsor may only be added or removed by amendment of the bill or
resolution. An amendment which proposes to add or remove a primary joint
sponsor must not be considered
by the House of origin of the amendment unless a statement requesting the
addition or removal is attached to the copy of the amendment submitted to the
front desk of the House of origin of the amendment. If the amendment proposes
to add or remove a committee as a primary joint sponsor, the statement must be signed by the chairman
of the committee. A copy of the statement must be transmitted to the
Legislative Counsel if the amendment is adopted.
5. An
amendment that proposes to add or remove a primary joint sponsor may include
additional proposals to change the substantive provisions of the bill or
resolution or may be limited only to the proposal to add or remove a primary
joint sponsor.
PRINTING
Rule No. 7. Ordering and Distribution.
Each House may order the printing of bills
introduced, reports of its own committees, and other matter pertaining to that
House only; but no other printing may be ordered except by a concurrent
resolution passed by both Houses. Each Senator is entitled to the free
distribution of four copies of each bill introduced in each House, and each
Assemblyman to such a distribution of two copies. Additional copies of such
bills may be distributed at a charge to the person to whom they are addressed.
The amount charged for distribution of the additional copies must be determined
by the Director of the Legislative Counsel Bureau to approximate the cost of
handling and postage for the entire session.
RESOLUTIONS
Rule No. 8. Types, Usage and Approval.
1. A
joint resolution must be used to:
(a) Propose an amendment to the Nevada
Constitution.
(b) Ratify a proposed amendment to the United
States Constitution.
(c) Address the President of the United States, Congress, either House or
any committee or member of Congress, any department or agency of the Federal
Government, or any other state of the Union.
2. A
concurrent resolution must be used to:
(a) Amend these joint rules.
(b) Request the return from the Governor of
an enrolled bill for further consideration.
(c) Resolve that the return of a bill from
one House to the other House is necessary and appropriate.
(d) Express facts, principles, opinion and
purposes of the Senate and Assembly.
(e) Establish a joint committee of the two
Houses.
(f) Direct the Legislative Commission to
conduct an interim study.
3. A
concurrent resolution or a resolution of one House may be used to:
(a) Memorialize a former member of the
Legislature or other notable or distinguished person upon his death.
(b) Congratulate or commend any person or
organization for a significant and meritorious accomplishment.
VETOES
Rule No. 9. Special Order.
Bills which have passed a previous Legislature,
and which are transmitted to the Legislature next sitting, accompanied by a
message or statement of the Governor’s disapproval, or veto of the same, shall
become the subject of a special order; and when the special order for their
consideration is reached and called, the said message or statement shall be
read, together with the bill or bills so disposed or vetoed; and the message
and bill shall be read in the Senate by the Secretary of the Senate and in the
Assembly by the Chief Clerk of the Assembly, without interruption,
consecutively, one following the other, and not upon separate occasions; and no
such bill or message shall be referred to any committee, or otherwise acted
upon, save as provided by law and custom; that is to say, that immediately following
such reading the only question (except as hereinafter stated) which shall be
put by the Chair is, “Shall the bill pass, notwithstanding the objections of
the Governor?” It shall not be in order, at any time, to vote upon such vetoed
bill without the same shall have first been read, from the first word of its
title to and including the last word of its final section; and no motion shall
be entertained after the Chair has stated the question save a motion for “The
previous question,” but the merits of the bill itself may be debated.
ADJOURNMENT
Rule No. 10. Limitations and Calculation of Duration.
1. In
calculating the permissible duration of an adjournment for 3 days or less, the
day of adjournment must not be counted but the day of the next meeting must be
counted, and Sunday must not be counted.
2. The
Legislature may adjourn for more than 3 days by motion based on mutual consent
of the houses or by concurrent resolution. One or more such adjournments may be
taken to permit a committee or the Legislative Counsel Bureau to prepare the
matters respectively entrusted to them for the consideration of the Legislature
as a whole.
EXPENDITURES FROM THE LEGISLATIVE FUND
Rule No. 11. Manner of authorization.
Except for routine salary, travel, equipment
and operating expenses, no expenditures shall be made from the Legislative Fund
without the authority of a concurrent resolution regularly adopted by the
Senate and Assembly.
RECORDS OF COMMITTEE PROCEEDINGS
Rule No. 12. Duties of Secretary of Committees and
Director.
1. Each
committee shall cause a record to be made of the proceedings of its meetings.
2. The
secretary of a committee shall:
(a) Label each record with the date, time and
place of the meeting and also indicate on the label the numerical sequence in
which the record was made;
(b) Keep the records in chronological order;
and
(c) Deposit the records immediately following
the final adjournment of the Special Session of the Legislature with the
Director of the Legislative Counsel Bureau.
3. The
Director of the Legislative Counsel Bureau shall:
(a) Index the records;
(b) Make the records available for accessing
by any person during office hours under such reasonable conditions as he may
deem necessary;
(c) Maintain a log as a public record
containing the date, time, name and address of any person accessing any of the
records and identifying the records accessed; and
(d) Retain the records for two bienniums and
at the end of that period keep some form or copy of the record in any manner he
deems reasonable to ensure access to the record in the foreseeable future.
LIMITATIONS ON REQUESTS FOR
DRAFTING OF LEGISLATIVE MEASURES
Rule No. 13. Germaneness Required for Amendments.
1. The
Legislative Counsel shall not honor a request for the drafting of an amendment
to a bill or resolution if the subject matter of the amendment is independent
of, and not specifically related and properly connected to, the subject that is
expressed in the title of the bill or resolution.
2. For
the purposes of this Rule, an amendment is independent of, and not specifically
related and properly connected to, the subject that is expressed in the title
of a bill or resolution if the amendment relates only to the general, single
subject that is expressed in that title and not to the specific whole subject
matter embraced in the bill or resolution.
CONTINUATION OF LEADERSHIP OF THE SENATE
AND ASSEMBLY DURING THE INTERIM
BETWEEN SESSIONS
Rule No. 14. Tenure and Performance of Statutory Duties.
1. Except as otherwise
provided in subsections 2 and 3, the tenure of the President Pro Tem,
Majority Leader and Minority Leader of the Senate and the Speaker, Speaker
Pro Tem, Majority Floor Leader and Minority Floor Leader of the Assembly
extends during the interim between regular sessions of the Legislature.
2. The Senators
designated to be the President Pro Tem, Majority Leader and Minority Leader for
the next succeeding regular session shall perform any statutory duty required
in the period between the time of their designation after the general election
and the organization of the next succeeding regular session of the Legislature
if the Senator formerly holding the respective position is no longer a
Legislator.
3. The
Assemblymen designated to be the Speaker, Speaker Pro Tem, Majority Floor
Leader and Minority Floor Leader for the next succeeding regular session shall
perform any statutory duty required in the period between the time of their
designation after the general election and the organization of the next
succeeding regular session.
POLICY AND PROCEDURES REGARDING
SEXUAL HARASSMENT
Rule No. 15. Maintenance of Working Environment; Procedure
for Filing, Investigating and Taking Remedial Action on Complaints.
1. The
Legislature hereby declares its intention to maintain a working environment
which is free from sexual harassment. This policy applies to all Legislators
and lobbyists. Each member and lobbyist is responsible to conduct himself or
herself in a manner which will ensure that others are able to work in such an
environment.
2. In
accordance with Title VII of the Civil Rights Act, for the purposes of this
rule, “sexual harassment” means unwelcome sexual advances, requests for sexual
favors, and other verbal or physical conduct of a sexual nature when:
(a) Submission to such conduct is made either
explicitly or implicitly a term or condition of a person’s employment;
(b) Submission to or rejection of such
conduct by a person is used as the basis for employment decisions affecting the
person; or
(c) Such conduct has the purpose or effect of
unreasonably interfering with a person’s work performance or creating an
intimidating, hostile or offensive working environment.
3. Each
person subject to these rules must exercise his own good judgment to avoid
engaging in conduct that may be perceived by others as sexual harassment. The
following noninclusive list provides illustrations of conduct that the
Legislature deems to be inappropriate:
(a) Verbal conduct such as epithets,
derogatory comments, slurs or unwanted sexual advances, invitations or
comments;
(b) Visual conduct such as derogatory
posters, photography, cartoons, drawings or gestures;
(c) Physical conduct such as unwanted
touching, blocking normal movement or interfering with the work directed at a
person because of his sex;
(d) Threats and demands to submit to sexual
requests to keep a person’s job or avoid some other loss, and offers of
employment benefits in return for sexual favors; and
(e) Retaliation for opposing, reporting or
threatening to report sexual harassment, or for participating in an
investigation, proceeding or hearing conducted by the Legislature or the Nevada
Equal Rights Commission or the federal Equal Employment Opportunity Commission,
when submission to such conduct
is made either explicitly or implicitly a term or condition of a person’s
employment or submission to or rejection of such conduct by a person is used as
the basis for employment decisions affecting the person or such conduct has the
purpose or effect of unreasonably interfering with a person’s work performance
or creating an intimidating, hostile or offensive working environment.
4. A
person may have a claim of sexual harassment even if he has not lost a job or
some other economic benefit. Conduct that impairs a person’s ability to work or
his emotional well-being at work constitutes sexual harassment.
5. If
a Legislator believes he is being sexually harassed on the job, he may file a
written complaint with:
(a) The Speaker of the Assembly;
(b) The Majority Leader of the Senate; or
(c) The Director of the Legislative Counsel
Bureau, if the complaint involves the conduct of the Speaker of the Assembly or
the Majority Leader of the Senate.
The complaint must include the
details of the incident or incidents, the names of the persons involved and the
names of any witnesses.
6. Except
as otherwise provided in subsection 7, the Speaker of the Assembly or the
Majority Leader of the Senate, as appropriate, shall refer a complaint received
pursuant to subsection 5 to a committee consisting of Legislators of the same
House. A complaint against a lobbyist may be referred to a committee in either
House.
7. If
the complaint involves the conduct of the Speaker of the Assembly or the
Majority Leader of the Senate, the Director of the Legislative Counsel Bureau
shall refer the complaint to the Committee on Elections, Procedures and Ethics
of the Assembly or the Committee of the Whole of the Senate, as appropriate. If
the Speaker of the Assembly or the Majority Leader of the Senate is a member of
one of these committees, the Speaker or the Majority Leader, as the case may
be, shall not participate in the investigation and resolution of the complaint.
8. The
committee to which the complaint is referred shall immediately conduct a
confidential and discreet investigation of the complaint. As a part of the
investigation, the committee shall notify the accused of the allegations. The
committee shall facilitate a meeting between the complainant and the accused to
allow a discussion of the matter, if both agree. If the parties do not agree to
such a meeting, the committee shall request statements regarding the complaint
from each of the parties. Either party may request a hearing before the
committee. The committee shall make its determination and inform the
complainant and the accused of its determination as soon as practicable after
it has completed its investigation.
9. If
the investigation reveals that sexual harassment has occurred, the Legislature
will take appropriate disciplinary or remedial action, or both. The committee
shall inform the complainant of any action taken. The Legislature will also
take any action necessary to deter any future harassment.
10. The
Legislature will not retaliate against a person who files a complaint and will
not knowingly permit any retaliation by the person’s supervisors or coworkers.
11. The
Legislature encourages a person to report any incident of sexual harassment
immediately so that the complaint can be quickly and fairly resolved.
12. Action taken by a complainant
pursuant to this rule does not prohibit the complainant from also filing a
complaint of sexual harassment with the Nevada Equal Rights Commission or the
federal Equal Employment Opportunity Commission.
13. All
Legislators and lobbyists are responsible for adhering to the provisions of
this policy. The prohibitions against engaging in sexual harassment and the protections
against becoming a victim of sexual harassment set forth in this policy apply
to employees, Legislators, lobbyists, vendors, contractors, customers and
visitors to the Legislature.
14. This policy does not create any enforceable legal rights in any person.
Senator Raggio moved the adoption of the resolution.
Remarks by Senator Raggio.
Resolution adopted unanimously.
Resolution ordered transmitted to the Assembly
Senator Raggio moved that all rules be suspended, that for the remainder of the Twentieth Special Session, reading so far had considered second reading, rules further suspended, and that all bills and joint resolutions reported out of Committee of the Whole for floor consideration be declared emergency measures under the Constitution and placed on third reading and final passage, time permitting.
Remarks by Senator Raggio.
Motion carried unanimously.
Senator Raggio moved that all rules be suspended, that for the remainder of the Twentieth Special Session, all bills and joint resolutions returned from reprint be declared emergency measures under the Constitution and immediately placed on third reading and final passage, time permitting.
Remarks by Senator Raggio.
Motion carried unanimously.
Senator Raggio moved that all rules be suspended, that for the remainder of the Twentieth Special Session, all bills and resolutions be immediately transmitted to the Assembly, time permitting.
Remarks by Senator Raggio.
Motion carried.
Senator Raggio moved that for the remainder of the Twentieth Special Session, the Secretary dispense with reading the titles and histories of all bills and resolutions.
Remarks by Senator Raggio.
Motion carried.
Senator Raggio moved that the Senate resolve itself into a Committee of the Whole for the purpose of considering various bill draft requests for introduction, with Senator Raggio as Chairman and Senator McGinness as Vice Chairman of the Committee of the Whole.
Motion carried.
IN COMMITTEE OF THE WHOLE
At 10:28 p.m.
Senator Raggio presiding.
Various bill drafts considered.
The Committee of the Whole was addressed by Senator Raggio; Senator Neal; Brenda Erdoes, Legislative Counsel; Senator Shaffer; Senator Hardy; Senator Townsend; Senator Titus; Senator Mathews and Senator Schneider.
Senator Raggio:
The first order of business should be the adoption of the
committee rules.
The rules are as follows:
1. All meetings shall be open to the public.
2. Eleven
members constitute a quorum of the committee.
3. A
majority of the members present is required to pass or reconsider a bill,
budget, or resolution, or to take any other action.
4.
Proponents and opponents of each specific proposal before the committee will
receive uninterrupted equal but limited time to address the committee on the
specific proposal under consideration.
5.
Following presentations by proponents and opponents of each specific proposal,
the members of the majority party and the members of the minority party will be
given equal but limited time to ask questions and make statements about the
specific proposal under consideration.
6.
Matters not within the Governor’s Proclamation or not relevant to the specific
topic under consideration will be ruled out of order.
7.
There will be a period of public comment within specified limits on each
specific proposal then under consideration following the questions and
statements of the members of the committee.
8.
Following public comment, the committee may vote on the specific proposal then
under consideration. A motion to propose action to be taken by the committee will require a second to
that motion. The committee will then proceed to consider the next specific proposal.
9.
Smoking in the committee room is not allowed. All cellular phones and pagers
must be turned off.
10.
The Chairman will convene and adjourn each committee meeting. All recesses
shall be at the call of the Chair.
11.
Although witnesses are presumed to be under oath while testifying, the
committee has the option of requiring a witness to be placed under oath.
The
rules for the Committee of the Whole are located on your desks. The only change
is under rule No. 8 where a motion to propose action to be taken by the
Committee will require a second to that motion. There is no sense in hearing
something when there is no second to the motion.
I
would accept the motion to adopt these as the rules for the Committee of the
Whole.
Senator
Townsend moved to adopt the rules.
Senator
Coffin seconded the motion.
The
motion carried unanimously.
The
Chair will discuss four Bill Draft Requests (BDR) adopted by the Senate during
the 19th Special Session. They are in the order in which they will be
designated as Senate bills.
The
first is BDR 7-11. This BDR makes various changes to provisions governing
business. These are the fees designated for collection by the Secretary of
State’s Office. The Legislative Counsel is present and she has indicated that
this is identical to the measure the Committee of the Whole approved during the
19th Special Session that was passed by the Senate and sent to the Assembly.
There is an explanation of this BDR on your desks. I have been assured this is
identical to the fee bill we passed during the 19th Special Session. Are there
any questions?
Senator Townsend moved to introduce and do pass BDR 7-11.
Senator Care seconded the motion.
Motion carried.
Senator Raggio:
All
the BDRs being discussed this morning were passed out of this House but did not
pass out of the Assembly during the 19th Special Session.
BDR 41-12 is the bill that makes various changes pertaining to
the regulation of gaming and provides for the collection of fees in connection
with the gaming work card. This is the identical bill that was passed by the
Senate and approved by the Committee of the Whole during the 19th Special Session.
Are there any questions?
Senator Neal:
The explanation of the
bill refers to Conference Amendment No. 44 which removed section 6.5 of
the second reprint. What was that?
Brenda J. Erdoes (Legislative Counsel):
That was the change made to S.B. No. 7 of the 19th
Special Session. It deleted section 6.5 about moving or relocating casinos.
Senator Raggio:
Are there any other questions?
Senator Shaffer moved to introduce and do pass BDR 41-12.
Senator Hardy seconded the motion.
Motion carried.
Senator Raggio:
BDR S-9 is the appropriation to the State Distributive School
Account for class-size reduction. This is the same as the bill passed by the
Senate during the 19th Special Session. Do we have questions on this bill
draft?
Senator Townsend moved to introduce and do pass BDR S-9.
Senator Titus seconded the motion.
Motion carried unanimously.
Senator Raggio:
BDR 34-8 is the apportionment of the Distributive School Account
and the appropriations for that purpose. This is the same bill draft we approved
and passed out of the Senate previously. Are there any questions?
Senator Mathews moved to introduce and do pass BDR 34-8.
Senator Schneider seconded the motion.
Senator Neal:
May I have an explanation of section 5 of the bill draft?
Senator Raggio:
This is the section that adds school psychologists to the
retirement credit.
Mrs. Erdoes:
In
the upcoming biennium, section 5 also requires the boards of trustees of
certain school districts to purchase retirement credits for teachers in mathematics,
science, English as a second language, special education and for school
psychologists. Both sections 4 and 5 incrementally amend NRS 391.165 regarding
the purchase of retirement credits for certain educational personnel.
Beginning with the upcoming school year, section 4 requires the
boards of trustees of certain districts to purchase retirement credits for
teachers in at-risk schools.
Senator Raggio:
The Senator will recall that originally we talked about stipends
for teachers who were in at‑risk schools or who were in math and science
fields. The last decision adopted and approved stated instead of stipends, if
the person met certain qualifications, the persons indicated, meaning teachers
or school psychologists, who held special endorsements in fields of
mathematics, science, special education or English as a second language, or a
psychologist who was employed for at least one year and met other requirements
would be allowed a 1/5-retirement credit.
For each year they taught, they would get 1 1/5 credits on their
retirement. That is the purpose of that section.
Senator Mathews:
I read this morning that the Distributive School Account (DSA)
could not be passed unless we pass a tax bill. That was an opinion from the
Legislative Counsel Bureau (LCB). Is that true?
Senator Raggio:
The Legislative Counsel is
present. There are some opinions that indicate the DSA bill, if passed during
the same session under the Constitution, must have sufficient revenue to
support any appropriation bill that is passed by the Legislature
Mrs. Erdoes:
The point of the opinion
is to say that the DSA bill is unfunded at this time. You may pass it
separately or with another bill, but during this session, at some point before
June 30, 2003, you need to pass a revenue plan or in some other manner find a
way to balance the budget. That is what the Constitution requires.
Senator Mathews:
That is what I understood,
but there seems to be a number of interpretations out there. One of which was
that we could not pass it separately. That is why it was bundled in the other
House.
Senator Raggio:
It is not just the DSA, it
is any appropriation bills that we pass.
Mrs. Erdoes:
Yes, that is correct.
Senator Raggio:
They need to be funded
fully in order to meet the requirements of the Nevada State Constitution. Is
there any more discussion on BDR 34-8?
Senator Townsend moved to introduce and do pass BDR 34-8.
Senator Schneider seconded the motion.
Motion carried unanimously.
On the motion of Senator Neal, the committee did rise and report back to the Senate.
SENATE IN SESSION
At 10:48 a.m.
President Hunt presiding.
Quorum present.
INTRODUCTION, FIRST READING AND REFERENCE
By the Committee of the Whole:
Senate Bill No. 2—AN ACT relating to business; providing for the implementation, modification and standardization of certain filing requirements for business entities; requiring a defaulting business entity that wants to reinstate its right to transact business in this state to file with the Secretary of State a certificate of acceptance of appointment signed by its resident agent; changing the exclusive remedy by which a judgment creditor of a member of a limited-liability company or a limited partnership may satisfy a judgment; allowing a limited partnership to register as a limited-liability limited partnership; increasing certain fees and establishing new fees; requiring a resident agent to file with the Secretary of State a certificate of name change of resident agent under certain circumstances; making various other changes to provisions pertaining to business entities; and providing other matters properly relating thereto.
Senator Raggio moved that the bill be referred to the Committee of the Whole.
Motion carried.
By the Committee of the Whole:
Senate Bill No. 3—AN ACT relating to gaming; revising the provisions pertaining to the acquisition or disposition of an interest in a business entity that holds a state gaming license or the option to purchase such an interest; authorizing the Nevada Gaming Commission to adopt regulations prescribing the manner for submission of payments by licensees; requiring a person employed as a gaming employee to be registered as a gaming employee by the State Gaming Control Board; requiring the Board to investigate each person applying for registration or renewal of registration as a gaming employee; providing for a fee for processing an application for registration as a gaming employee; authorizing the Commission to adopt regulations allowing a person who owns antique gaming devices to sell such devices without procuring a license; authorizing a gaming licensee or his officers, employees or agents who have reasonable cause to believe that a person has committed a felony to take into custody and detain such a person; and providing other matters properly relating thereto.
Senator Raggio moved that the bill be referred to the Committee of the Whole.
Motion carried.
By the Committee of the Whole:
Senate Bill No. 4—AN ACT relating to education; making appropriations to the State Distributive School Account for purposes relating to class-size reduction; authorizing certain school districts to adopt a program of alternative pupil-teacher ratios for the 2003-2005 biennium; requiring larger school districts to study current class sizes in certain grades; and providing other matters properly relating thereto.
Senator Raggio moved that the bill be referred to the Committee of the Whole.
Motion carried.
By the Committee of the Whole:
Senate Bill No. 5—AN ACT relating to public schools; requiring the Department of Education to prescribe a minimum amount of money that each school district must expend each year for textbooks, instructional supplies and instructional hardware; requiring that a certain amount of money must be withheld from the basic support allocation to a school district if the school district does not expend the required amount; revising provisions governing the purchase of retirement credit for certain teachers; requiring the boards of trustees of school districts to purchase retirement credit for certain school psychologists under certain circumstances; apportioning the State Distributive School Account in the State General Fund for the 2003‑2005 biennium; authorizing certain expenditures; providing for a final adjustment following the close of a fiscal year; making various other changes concerning the administration of money for public schools; making an appropriation; and providing other matters properly relating thereto.
Senator Raggio moved that the bill be referred to the Committee of the Whole.
Motion carried.
REPORTS
OF COMMITTEES
Madam
President:
Your
Committee of the Whole, to which were referred Senate Bills Nos. 2, 3, 4, 5,
has had the same under consideration, and begs leave to report the same back
with the recommendation: Do pass.
William J. Raggio, Chairman
GENERAL FILE AND THIRD
READING
Senate Bill No. 2.
Bill read third time.
Roll call on Senate Bill No. 2:
Yeas—21.
Nays—None.
Senate Bill No. 2 having received a two-thirds majority, Madam President declared it passed.
Bill ordered transmitted to the Assembly.
Senate Bill No. 3.
Bill read third time.
Roll call on Senate Bill No. 3:
Yeas—20.
Nays—Carlton.
Senate Bill No. 3 having received a two-thirds majority, Madam President declared it passed.
Bill ordered transmitted to the Assembly.
Senate Bill No. 4.
Bill read third time.
Roll call on Senate Bill No. 4:
Yeas—21.
Nays—None.
Senate Bill No. 4 having received a constitutional majority, Madam President declared it passed.
Bill ordered transmitted to the Assembly.
Senate Bill No. 5.
Bill read third time.
Remarks by Senator Raggio.
Roll call on Senate Bill No. 5:
Yeas—21.
Nays—None.
Senate Bill No. 5 having received a constitutional majority, Madam President declared it passed.
Bill ordered transmitted to the Assembly.
MOTIONS, RESOLUTIONS AND NOTICES
Senator Raggio moved that the Senate resolve itself into a Committee of the Whole for the purpose of considering various revenue plans and the unresolved issues of the Seventy-second Legislative Session, with Senator Raggio as Chairman and Senator McGinness as Vice Chairman of the Committee of the Whole.
Motion carried.
IN COMMITTEE OF THE WHOLE
At 1:24 p.m.
Senator Raggio presiding.
Various revenue plans and the unresolved issues of the Seventy-second Legislative Session considered.
The Committee of the Whole was addressed by Senator Raggio; Gary L. Ghiggeri, Senate Fiscal Analyst; Senator Rhoads; Senator Townsend; Senator Coffin; Rick Combs, Deputy Fiscal Analyst; Senator Rawson; Senator Care; Senator Hardy; Senator Washington; Senator Nolan; Senator Amodei; Senator Neal; Senator Mathews; Senator McGinness; Senator Titus; Senator O’Connell; Senator Schneider; Brenda J. Erdoes, Legislative Counsel and Samuel P. McMullen, Nevada Bankers Association.
Senator Raggio:
We are sitting as the Committee of the Whole for the purposes
indicated in the Governor’s call. The Committee will be operating in a
work-session mode. We will invite public testimony if needed, and it should be
offered if it is seen that the Committee is operating under any misinformation
or it is noted that additional information is required.
BDR 32-14 is the bill draft that resulted in what was S.B. No. 5
of the 19th Special Session. I do not know if this is in its pure form. There
was an amendment added that deleted reference to the relocation of a casino.
That was deleted from the final version of S.B. No. 5 of the 19th Special
Session. This would be a good work document to utilize since it received a 16 to 5 vote
in committee. Most of the language contained in the bill could be used as
“boilerplate” language. One section was to be added when it was discussed on
the Senate floor.
Gary L. Ghiggeri (Senate Fiscal Analyst):
The Legislative Counsel Bureau (LCB) has the amendment for the
Committee’s consideration.
Senator Raggio:
This portion of the bill limits the usage of revenues from the
tax components. One amendment needed to be added. In preparing the Executive
Budget, any amount over and above a certain level, not more than 10 percent,
went to the stabilization fund if it exceeded the projections.
Mr. Ghiggeri:
Language would be added to allow the Chief of the
Budget Division to exceed the calculated limit. This allows for expenditures
from the State General Fund to cover expenditures that during the current
biennium were anticipated to be paid for from a source of revenue other than
the State General Fund if such source of revenue was not received or if the
Governor reasonably anticipated such source would not be received during the
next biennium. This would relate to revenue from sources such as the estate
tax. If the limit is placed on the expenditures and the estate tax went away,
you could not increase General Fund expenditures to cover those expenditures
without this amendment.
Senator Raggio:
We will include the amendment for consideration.
Staff has prepared a summary of the various tax plan scenarios considered by
the Senate. They are outlined so the Committee can see the various components
and the revenues that were projected. The summary clearly shows the various
components.
The Committee should act as expeditiously as possible to go
through the issue of developing a revenue plan. It is my hope we can reach a
consensus that will attain a two-thirds majority vote in the Senate. This would
give the Assembly the opportunity to review our plan. Ultimately, there may be
the need to appoint for a conference committee to resolve any differences.
Whatever the conference committee does develop would still require a two-thirds
majority vote on adopting any conference report when it returns to the Senate.
We need to have input as to what might be utilized as a revenue plan. If any of
the Committee members are looking at a particular plan and wish to make changes
then we will look at the plan and see if the Committee supports the changes.
Senator Rhoads:
I would suggest we remove the franchise fee from BDR 32-14 that
is proposed to raise $41.3 million in fiscal year 2004 and $82.5 million
in fiscal year 2005 and replace it by raising the sales tax by 0.25 percent
which would generate $65.6 million the first year and $92.4 million the
second year. There are 50 million people coming into Nevada every year.
Nevadans would pay 38 percent of the tax and the remainder would be paid by
tourism. It is an easy tax to collect, and my constituents have suggested
increasing the sales tax.
Senator Townsend:
Would that proposal include the potential reduction
in employer tax because of the amount of money generated versus what we would
be removing?
Senator Rhoads:
Yes.
Senator Raggio:
In lieu of the franchise fee, the suggestion is to add 0.25
percent to the sales tax. The revenue would flow to the schools under the
local school support tax (LSST). The effect would be to reduce the General Fund
requirement by whatever amount was generated by the increased tax. Does staff
have any figures about this scenario?
Mr. Ghiggeri:
If that plan was implemented, the employer tax could be reduced
from 0.95 percent of capped wages to 0.85 percent of capped wages. This would
be on an average capped wage of $21,500 which would equate to $182.75 on an
annual basis.
Senator Raggio:
What would the sales tax generate?
Mr. Ghiggeri:
A 0.25-percent increase in the sales tax is
projected to generate $65.6 million in fiscal year 2004 for 9 months, and $92.4
million for fiscal year 2005. The collection allowance would increase by an
additional $5 million in fiscal year 2004 and $7 million in fiscal year 2005.
Senator Raggio:
Would that be the collection allowance as reduced?
Mr. Ghiggeri:
I will verify the figures.
Senator Townsend:
Using the Final Plan from the 19th Special Session, I would
suggest replacing the franchise fee of $41.3 million and $82.5 million with a
0.25 percent sales tax, which would generate, with the collection allowance, a
net of $70.6 million the first year and a net of $99.4 in the second year. By
reducing the employer tax from 0.95 percent of capped wages to 0.85 percent,
there needs to be a consideration of General Fund revenue lost in 2004. We
would move the effective date from July 1, 2003, to August 1, 2003. Because of
the one-month loss in the Secretary of State’s fees due to lead-time for
collection purposes, the staff is analyzing whether there would be a one-month
net loss of $15.87 million if we move the effective date for purposes of
allowing agencies and individuals the time for collection. In the proposal made
by Senator Rhoads, there would still be a cushion in the first year to allow
for the revenue loss if the effective date was August 1, 2003.
Senator Coffin:
It troubles me to return to the sales tax because it fluctuates
too much and is not reliable. The last time the sales tax was raised by 0.75
percent was in 1991. We still have a cyclical problem, and the general thrust
of the Task Force by the Governor was to try to stabilize taxes by using
different sources. This may be taking the easy way out of a political
difficulty by putting it on the wrong end of the economic spectrum.
Senator Raggio:
Senator Rhoads made the motion to eliminate the franchise fee
from BDR 32-14 and replace it with a 0.25-percent increase in sales tax for
fiscal year 2004 and fiscal year 2005 with the adjustments necessary for the
LSST. Senator Mathews seconded the motion.
It is my understanding the franchised fee referenced, to be
effective January 1, 2004, was a fixed quarterly fee based on gross
receipts.
Rick Combs (Deputy
Fiscal Analyst):
The franchise fee is not in the BDR.
Senator Raggio:
All those in favor of the motion indicate, aye. All those
opposed, indicate no. Those voting no on the motion were, Senators Titus,
Tiffany, Hardy, Schneider, Carlton, Care, Coffin, Neal, Cegavske, Wiener, and
O’Connell. The motion failed.
Senator Rawson:
We should attempt to freeze the cigarette and liquor tax. I would
suggest a 50-cent increase on cigarettes and 50 percent increase in the liquor
rate.
Senator Raggio:
There are different percentages considered with reference to both
the cigarette and liquor tax.
Senator Rawson:
We should agree on a figure and not revisit those items again. It
would be good to get an agreement on the variables.
Senator Townsend:
Cigarettes had a 50-cent increase and liquor was increased
75 percent. The business license fee (BLF) was a $75-annual fee. There was
the elimination of the business license tax. The Secretary of State fees
increased 100 percent. The casino live entertainment tax, which exempted
competitive athletic events, was consistent as was the room and gaming taxes.
The restricted slots tax was 33 percent. These were the numbers from which I
was working. Do you want to revisit them?
Senator Rawson:
I am looking from the standpoint of what issues were holding up
votes. If we came to an agreement on these issues, then there would be no
reason to revisit them.
Senator Care:
In the Governor’s Task Force report, there are several pages on
how we arrived at this point. One of the reasons for the shortfall was because
there are certain taxes, tobacco and alcohol are examples, that as we grow in
population more people who smoke and drink purchase the commodities and we
receive revenue, but the taxes are not adjusted for inflation. The last time
alcohol was increased was in 1981, which is the reason the Task Force
recommended an 89‑percent increase. The figure should be adjusted for
inflation as of November 2002. It is the reason Senator Amodei and I proposed
an increase of 100 percent. I would be opposed to any figure less then 75
percent, and I feel the figure should be 100 percent for the reasons I have
stated.
Senator Rawson:
Based on the discussion, we should leave the cigarette and liquor
tax alone. The room tax was another issue. Is there any appetite to eliminate
or reduce the room tax increase?
Senator Raggio:
The room tax was part of several scenarios.
Senator Hardy:
I would consider eliminating the room tax from this package due
to the burden gaming will be carrying, especially, the small properties. The
room tax could be replaced with a bank franchise tax.
Senator Raggio:
When we eliminate one entity, we must find some corresponding
revenue to keep in balance.
Senator Hardy:
Based on the numbers I have seen, it would be a straight
replacement.
Senator Raggio:
A 1 percent increase in the room tax would yield $34.4 million a
year. The first year of implementation, it would be less. What would be a
replacement for that tax?
Senator Hardy:
A bank franchise tax of 3 percent would be a replacement.
Senator Washington:
I support the elimination of the room tax. I would suggest
the real estate transfer tax be raised to $1.55 per $500 of value which would
generate $67.9 million.
Senator Raggio:
I would like our Fiscal staff to try to keep up with us and point
out any errors in our thinking.
Mr. Ghiggeri:
Your suggestion was to delete the room tax of $24.8 million in
the first year, $34.4 million in the second year and increase the real estate
transfer tax to $1.55 per $500 of value. The real estate transfer tax would
only increase revenues by $10 million in the second year, which would not
be sufficient to cover the loss.
Senator Washington:
I thought the figure was $67.9 million.
Mr. Ghiggeri:
There is $57 million already calculated into the
revenue projections in the second fiscal year for a 1-percent room tax. By
subtracting that amount from the increased real estate transfer tax, there
would only be an approximate $10-million increase.
Senator Hardy:
Could we generate specific numbers on the bank franchise fee?
Mr. Combs:
A bank franchise fee had been discussed in the Assembly. They
were estimating $24 million per year. In discussing a bank franchise fee, you
should consider whether you would exempt the financial institutions from paying
the normal franchise fee and only require them to pay the bank franchise fee.
If you do, we need to reduce the revenue projection for the franchise fee if
both are included, but no further adjustment would be necessary if only the
bank franchise fee is used.
Senator Hardy:
I am working from the S.B. No. 5 of the 19th Special
Session that does not include a regular franchise fee. The only franchise fee
would be on the banks and the core tax would be an employer tax of 1.1 percent
of capped wages. I propose removing the line item of room tax at 1 percent
and replace it with 3-percent bank franchise fee.
Senator Townsend:
A bank franchise fee at 5 percent in one Assembly tax plan
yielded $20.5 million in 2004 and $22.1 million in 2005.
Senator Care:
I would propose a 0.25 percent increase in the room tax if a
financial institution fee were imposed. The State’s assessed room tax is only 1
percent even though various counties and cities assess more.
Senator Rawson:
Would it be possible to institute the real estate transfer tax
sooner? Perhaps, it could be effective for three-quarters of the first year.
Senator Townsend:
The earliest it could be collected would be September 1, 2003,
for three-quarters of a year in 2004.
Senator Raggio:
We should consider the various scenarios and make whatever
adjustments are necessary to satisfy a sufficient number of the Committee.
Senator Townsend:
On what entity is the 5-percent bank franchise fee based?
Senator Hardy:
The 5 percent would be assessed on net profits.
Senator Townsend:
I wanted to be certain what we are discussing is real, definable
and would include what audit procedures are necessary. We must keep in mind the
Department of Taxation must audit these taxes. There may not have been much
debate about this issue in the various committees.
Senator Hardy:
I agree. We do not have a grasp on this issue. When I mentioned
the 3-percent number to members of the banking industry, they indicated it
would generate close to $50 million a year.
Senator Raggio:
Is the suggestion then that if the banks were assessed a franchise
tax, they would then be exempt from the employer tax?
Senator Hardy:
Many of our major industries have industry specific taxes.
Banking would be the same as other industries in Nevada. I would prefer to
reduce the employer tax for those that do pay industry specific tax.
Senator Raggio:
How many on the Committee would support a room tax component?
There are 14 members in support of a room tax component. What has changed?
Is S.B. No. 5 of the 19th Special Session still viable?
Senator Care:
It is necessary to find increased revenue sources. I voted for
the bill because I made a commitment. My preference would be to include a bank
franchise tax. I believe it would be a better bill with the bank franchise tax
included. In the event there is no bank franchise tax, I would support a
room tax or both.
Senator Raggio:
Senator Townsend has made a motion to do pass S.B. No. 5 of the
19th Special Session as amended with the provision that was objected to be
removed from the bill, with the language we discussed on limiting the use of
taxes as indicated. Senator McGinness has seconded the motion.
Senator Raggio:
I will go through the bill. It reduces the cigarette stamp fee
and all other tobacco allowances, liquor and retail allowances to 0.5 percent. It
includes a 45-cent increase in cigarettes and an additional 5-cent increase in
the second fiscal year. The liquor increase is 75 percent yielding
$15.1 million and $15.5 million respectively. There is a $75 annual
business license fee yielding $17.6 million and $18.4 respectively. The BLT has
been removed. The Secretary of State’s fees are indicated at a 100-percent
increase. There is the live entertainment tax, a 10-percent tax on admissions,
excluding food and beverages in facilities with over 5,000 seats. This tax is
effective July 1, 2003, for gaming properties and January 1, 2004, for
non-gaming establishments. The room tax is included at 1 percent, and the
gaming increase is 0.5 percent each year. The restricted slots at the 33
percent increase are included with a yield of $2.1 million and
$2.4 million respectively. The real estate transfer tax is effective July
1, 2004, at $1.35 per $500 of value. The employer tax at 1.1 percent of
capped wages of $21,500 would equal $236.50.
Senator Nolan:
I have stated many times the live entertainment tax would be
problematic for us. The live entertainment tax in S.B. No. 5 of the 19th
Special Session in the second year was reported to raise $78 million. After
going through this exercise, there were exemptions that were needed. The new
projections are at $30 million generating a $50-million deficit.
Senator Raggio:
Mr. Combs, explain why it was reduced.
Mr. Combs:
There was a detailed discussion on whether to exempt competitive
events, sporting events from the tax base. We indicated it would be difficult
putting together a number. This is a round number because we do not have solid
data to determine how much the base should be reduced. We arrived at the figure
by determining how much of the tax base would be lost. Removing competitive
events lowers the tax base considerably.
Senator Townsend:
I may want to amend this motion. Senator Nolan is correct, that
is the number from which to work. If the bank franchise tax is an issue, when
you look at the Final Plan of the 19th Special Session you still have a
franchise fee of $41.3 million and $82.5 million. Senator Hardy proposed to
delete the room tax and replace it with a bank franchise tax that would
generate $20 million and $22 million respectively. Would we leave this
franchise fee in the plan?
Senator Hardy:
My proposal was to remove the room tax in S.B. No. 5 of the 19th
Special Session and replace it with the bank franchise fee.
Senator Townsend:
It is my understanding that in every scenario we reviewed the
room-tax yield was $24.8 million in the first year and $34.4 in the second
year, at a 1-percent increase. The bank franchise fee of 5 percent would
yield $20.5 million and $22.1 million. There would be a $4.8 million
deficit in the first year and $12.8 million deficit in the second year.
Senator Raggio:
In addition, the deficit caused by the exemptions to the live
entertainment tax would need to be addressed.
Senator Townsend:
Actually, the deficit is an additional $26 million because of the
live entertainment tax. How would that be compensated?
Senator Hardy:
I did not consider the reduction in the live entertainment tax. I do
believe $22 million for the bank franchise tax may be a low figure.
Senator Nolan:
With the difference between the reduction of the live
entertainment tax and the elimination of the room tax, that would be a net loss
of approximately $83 million. It is possible to make up the net loss with the
proposed franchise fee that would generate about $82.5 million.
Senator Amodei:
In any franchise-fee implementation scenario, there would be
infrastructure and implementation costs that would be significant. The room tax
has an existing infrastructure, and there has been no dispute concerning its
collection by the hoteliers as it is not paid by them. It represents an
expansion of the State’s General Fund revenue base because 3/8 of the amount
collected is used for county activities. It represents a revenue source that is
paid. You can take the Task Force report on the amusement tax and talk about
its exportability. It is more exportable than the sales tax provision. It is at
an amount that is de minimis regardless of where you are in the State. The room
tax fluctuates with the price of the room.
When we talk about eliminating something that does not require
any infrastructure investment, I would hope we would consider an alternative
that does not require millions of dollars in infrastructure investment and is
easy to implement. Those are the strengths of having the room tax be a component
in funding the State’s General Fund. There is no need for infrastructure. There
is a strong market. It is a small percentage rate. It is something already
collected. It is not paid by the Nevada taxpayers. Whatever is substituted
should not be as large an investment as this would have collected just to get
it started.
Senator Neal:
I would recommend we create a fourth tier in the gaming
structure, leaving the existing structure as it presently is, and propose that
all casinos making $100 million or more would be taxed at a rate of 20 percent
thereafter. This would resolve the problem.
Senator Raggio:
Is there any discussion on Senator Neal’s proposal?
Senator Townsend:
In reviewing S.B. No. 5 of the 19th Special Session, I have
concluded Senators Nolan and Coffin are correct concerning the proposed live
entertainment tax does include all competitive athletic events. Those in the
Final Plan of the 19th Special Session had been removed. If the two numbers are
equated, and there was a consensus of exempting the competitive athletic
events, this budget under S.B. No. 5 of the 19th Special Session would be $26.5
million short in the first year and $48.7 million short in the
second year. I thought there was a sense that the final number on the live
entertainment tax should be used to eliminate these competitive events.
Senator Raggio:
If we utilize S.B. No. 5 of the 19th Special Session, which had
significant support, how would you address the difference in the live
entertainment tax numbers? In the second year, there would be a loss of $48.7
million. Am I correct?
Senator Townsend:
Yes. One way would be to increase the employer tax and have a
bank franchise tax in the second year to make up the difference. The gap in the
second year is the problem. Because of the live entertainment tax, there would
be a loss of $26.5 million in the first year and $48.7 million in the second
year.
Senator Rawson:
Would the Committee consider taking the franchise fee at half the
rate? It would raise, approximately, the funds needed.
Senator Raggio:
Are you referring to the generic franchise fee or the bank
franchise fee?
Senator Rawson:
I was referring to the generic franchise fee.
Senator Raggio:
Senator Amodei said there would be a large cost to implement that
fee. In addition, we heard in the Interim Finance Committee meeting it would
require 45 full-time-equivalents to implement the franchise fee.
Senator Washington:
Using S.B. No. 5 of the 19th Special Session, if we kept the
employer tax of 1.1 percent of capped wages, which would generate $140 million
and $219 million, and implemented a banking franchise fee of 3 percent,
would the banking industry be required to pay both taxes?
Mr. Ghiggeri:
They would pay both taxes unless they are exempted.
Senator Raggio:
Is that correct, Mr. Combs?
Mr. Combs:
Yes.
Senator Raggio:
The existing business license tax would be removed.
Senator Townsend:
Since we were talking about losing $26.5 million and $48.7
million off the live entertainment tax, the employer’s tax could be raised to
1.25 percent, which leaves $6.5 million in the first year, and
$18.7 million in the second year. The real estate transfer tax could be
adjusted to $1.55 per $500 of value, which would make up the difference.
Senator Mathews:
I want to remind Senator Townsend there are a great number of
small businesses. Even with the capped wages, every time you move a number from
one place to another you hurt a whole new group of people. I am here to speak
for the small business people.
Senator McGinness:
Looking at the live entertainment tax, the taxation committee has
frowned on exemptions. If we exempt competitive events, it would place the
burden on others. You also reach the point if the rate is lowered too much,
then it may not be worth instituting the tax. Our committee discussed removing
the exemptions from the casino entertainment tax, which generates a tremendous
amount of revenue without creating an infrastructure.
Senator Rhoads:
Are nonprofits exempt in S.B. No. 5 of the 19th Special Session?
Senator Townsend:
All nonprofit activities under the live entertainment
tax would be exempt. Competitive athletic events, as defined by our Legal
Counsel, motor-racing events at the speedway and in the desert, the major
Grande Prix horse-jumping event, Reno Rodeo―all those types of events
would be excluded. Many of those events have a longstanding history in the
State and contracts. Las Vegas has an ongoing struggle with Oklahoma City
to keep the NFR (National Finals Rodeo) event. It took years of effort to get
the Grande Prix horse-jumping event to be held in Las Vegas. There is an
extensive investment made to get these events.
Senator Titus:
When we are discussing manipulating the numbers, we forget, real
people are going to pay these taxes. Senator Mathews made that point. We need
to realize the consequences of our actions. Increasing the real estate transfer
tax and payroll tax in order to give the speedway a break on an entertainment
tax on its ticket is getting things out of kilter. They are already getting a
break by not paying a tax on the food and drink they sell because they have
more than 5,000 seats.
Senator Nolan:
The event does not necessarily generate revenue for itself. These
competitive events bring in thousands of people that spend hundreds of millions
of dollars. The events are coordinated to fill rooms when conventions are not
taking place. We try to offset that in our competitive entertainment
environment with these large events. The venues are being sought after all over
the country. Most of them are being promoted through organizers whose portion
is based on the cost of the venue. An additional 10 percent might cause them to
go to another city.
Senator Raggio:
In other jurisdictions, are events of this nature subject to an
entertainment tax? Everywhere I go in this country, I see something about an
entertainment tax. Is an entertainment tax unusual?
Senator Coffin:
There was an article in the Las Vegas Review Journal about
this issue. It was not a comprehensive list. The states that were selected were
not the states where these types of events take place. It showed entertainment
taxes of 7 to 10 percent. I looked for states that held competitive events such
as Oklahoma, Texas and North Carolina, but they were not listed.
I concluded those types of events were not taxed. Compared to other
states, Nevada is in a battle, and the 10-percent live entertainment tax could
be a “killer.” Staff has given us numbers which are soft, not low or high,
because they do not know the amount of revenue that could be lost if exemptions
are put in place. I do not believe the income gained by the live entertainment
tax is a solid figure. We have tried not to erode our tax base by keeping
exemptions out of our tax bills.
Senator Raggio:
We could ask that the issue be researched, but that would take
time.
Senator Mathews:
The staff does not have much time, but this information is
necessary so we are not just guessing about the numbers. When I go to other
states, I pay this type of tax.
Senator Titus:
Looking at just the tax rate across the board should not be a
deciding factor. Taxes would not be the only consideration; room rates, the
draw of Las Vegas and other issues would help make their decision. We should
not arrive at a spurious conclusion based on faulty research.
Senator Raggio:
Senator Townsend has made a motion to do pass S.B. No. 5 of the
19th Special Session as amended. Senator McGinness seconded the motion.
Are there any other changes? I understand the motion is to
recommend to do pass S.B. No. 5 of the 19th Special Session with the addition
on the Executive Budget language recommended by the Fiscal Analysis Division.
Senators Townsend, Care, Rawson, Amodei, Shaffer, Mathews,
Rhoads, McGinness, and Raggio vote in favor of the motion. The motion failed.
Senator Townsend:
Two of our members were not present when Final Plan of the 19th
Special Session was discussed. This plan includes the exemption for competitive
athletic events, the implementation of the real estate transfer tax in the
second year of the biennium, a franchise fee effective January 1, 2004,
and an employer tax of 0.95 percent of capped wages.
Senator Raggio:
What is the cap?
Senator Townsend:
The cap is at $30,000 per quarter, or $120,000 annually, for
every business. However, gaming, insurance and mining receive a partial
exemption and public utilities receive a complete exemption from the employer
tax.
Senator Raggio:
Senator Townsend moved to do pass the Final Plan of the 19th
Special Session. Senator Titus seconded the motion.
Senator Titus:
I was not here when some of the details of this plan were
discussed. Could we have some time in caucus to discuss this proposal?
Senator Raggio:
Before the recess, we were reviewing the proposal to amend S.B.
No. 5 of the 19th Special Session. One of the elements was the franchise tax.
During the recess, the Fiscal Analysis Division called our attention to a
difficulty with that issue.
Mr. Ghiggeri:
The concerns that were expressed to the Legislators during the
break were the Fiscal Division’s uncertainty of the estimates of a franchise
tax. These taxes are projected on best‑known information for which there
is no historical basis where the State has collected that tax in the past. This
would be our best estimate. If for some reason, the tax comes in lower than
projected, the State would have a significant problem. The tax estimate
indicated a yield of $41.3 million in the first year, and $82.5 million in
the second year. In the other taxes the State is currently collecting, we have
a basis for projecting increases.
Senator Raggio:
Senator Townsend has withdrawn the motion regarding the Final
Plan of the 19th Special Session. Senator Titus has withdrawn the second on the
motion.
Senator Townsend has made a motion to amend S.B. No. 5 of the
19th Special Session by changing the employer tax of 1.1 percent of capped
wages to 1 percent of capped wages. This would change the figure of $140.8
million in the first year to $128 million and would change the $219.5 million
in the second year to $199.6 million. Included in the motion would be a
financial institution fee of 3 percent implemented January, 2004, collected in
March, 2005. The first revenue generated from the financial institution fee
would be $13.2 million in fiscal year 2005. The real estate transfer tax
would change from $1.35 per $500 of value to $1.40 per $500 of value causing a
revenue increase from $59.2 million to $61.3 million. Increasing the
cigarette tax from 50 cents to 55 cents would generate $81.3 million in the first
year and $84.7 million in the second year. By reducing the cigarette stamp fee
to 0.5 percent, the revenue would be adjusted to $3.1 million in the first
year and $3.3 in the second year. This is an amendment to S.B. No. 5 of the
19th Special Session.
Senator Rhoads seconded
the motion.
Senator O’Connell:
I will abstain from the vote on this measure due to my financial
interest in a bank.
Senator Mathews:
I want to disclose I also sit on a bank board, but I will vote.
Senator Townsend:
I also sit on the board of a bank and am a shareholder in that
same bank. I will vote.
Senator Hardy:
I work in the construction industry. Members of the construction
trade association have lobbied against the real estate transfer and commercial
lease taxes, which would not impact my members any more than anyone else.
Senator Coffin:
I am a group insurance broker with a client in the gaming
industry and one client not in the gaming industry. My wife is an instructor at
the university, has stock in a bank and is a director of a bank. I will vote.
Senator Raggio:
I am on the board of Arcon Corporation, a company that operates
gaming. I am on the board of Sierra Health Services that has insurance
coverage. I also have overdrafts in several banks.
Senator Care:
Assuming alcohol and cigarettes should be treated in the same
manner, we keep hammering the smokers but have not kept alcohol up with
inflation which should be 89 percent. This would equate to about the same
amount of revenue.
Senator Townsend:
I would entertain any adjustments that would accommodate my
colleagues.
Senator Raggio:
This is a motion on the amendment only, not the entire bill.
Senator Schneider:
I have a concern with the real estate transfer tax. I would agree
to raise alcohol and reduce the transfer tax to $1.30 per $500 of value.
Senator Raggio:
Would you accept the proposal as part of your amendment?
Senator Townsend:
Yes.
Senator Raggio:
Let us discuss the concept. The motion would be in lieu of any
increase in the real estate transfer tax from the proposed $1.35 per $500 of
value to increase the liquor tax.
Senator Townsend:
Yes.
Senator Raggio:
Let us vote on the concept of the amendment. Would this be
agreeable to the parties who proposed the amendment and seconded it? The parties
are agreeable.
Senator Neal:
I request a roll call vote.
Senator Raggio:
This vote will be on the amendment to S.B. No. 5 of the 19th
Special Session and not on the bill. If this were accepted as an amendment, we
would ask that a bill be drafted.
Senator Hardy:
I would support the motion for the amendment. It improves the
bill. I have concerns regarding the room tax being included. When this bill
returns to us, I would like to have a discussion concerning the removal of the
room tax.
Senator Raggio:
If this amendment is adopted, there may be additional amendments.
This would amend S.B. No. 5 of the 19th Special Session by reducing the
employer tax to 1 percent of capped wages, to impose a bank franchise fee of 3
percent, implemented on January 1, 2004, and collected in March 2005, and the
liquor tax would be increased to the desired amount.
Senator Townsend:
What level was proposed for the real estate transfer tax?
Senator Schneider:
It should be $1.30 per $500 of value.
Senator Raggio:
This would be part of the motion. In addition, whatever would be
necessary to increase the liquor tax? Does everyone understand the motion?
Senator Titus:
I do not understand why the bank franchise tax is effective in
January, 2004, and collected in March, 2005.
Senator Townsend:
It is my understanding that the Department of Taxation may have
difficulty implementing the tax sooner.
Mr. Combs:
The bank franchise tax has not been discussed in the Senate
often. The testimony in the Assembly was that for financial institutions this
concept is similar to the net profits tax. It would be desirable for a full tax
year to have occurred before the collections would take place, thereby, having
a full tax year’s revenue.
Brenda J. Erdoes
(Legislative Counsel):
The timing is based on the federal income tax form; otherwise,
the tax form would need to be filed separately.
Senator Amodei:
To what is the 3 percent attached?
Mrs. Erdoes:
It is 3 percent of the Nevada taxable income, which is the
apportioned net income to Nevada. The net income from the federal income tax
form apportioned to Nevada pursuant to a formula that is in the bill.
Senator Amodei:
Was there any testimony concerning start-up costs or
infrastructure costs of administering the tax? How was the Department of
Taxation going to coordinate with the financial institutions?
Mrs. Erdoes:
This would be a tax for the Department of Taxation
to collect. The Department had discussions with a professor who is an
income-tax specialist at the University of Nevada in Reno concerning what
infrastructure was needed.
Senator Amodei:
Mr. Combs, do you know what infrastructure would be necessary?
Senator Townsend:
The question is an important one. The Division of Financial
Institutions audits every institution for which there is a license. They have
access and are required to analyze all of those for federal and State purposes.
I think it would require a minimal amount of infrastructure given the current
request that is in the budget for the Department of Taxation. There should be a
line of communication between those entities which should be easy to implement.
Mr. Ghiggeri:
On May 30, 2003, the Department of Taxation provided an estimate
of the implementation cost of various scenarios. They advised it would require
six positions to implement such a tax at a cost of $80,000 to $90,000 over the
biennium.
Samuel P. McMullen
(Nevada Bankers Association):
I would offer a suggestion. The way to facilitate this would be
to assess a payroll-based tax on banks, triple it for banks instead of a
1-percent tax rate on base payroll. In 2001, there were 22,500 employees at
$21,500 equating to $14.5 million. It would be easier to collect and would
accelerate the revenue. We believe we could pay faster, beginning when the
payroll tax is implemented. It would drive additional revenue, be easier to
implement and be the way we would prefer to pay the tax.
Senator McGinness:
Putting a franchise fee on any one industry without hearing the
full background makes me uneasy. We have discussed cigarettes, liquor and now
financial institutions. We do not want to single out any one entity and drive
them out of business.
Senator Coffin:
Would it be marginally constitutional to triple the amount of
payroll tax for one institution? I am concerned about creating different
levels for different entities.
Mrs. Erdoes:
Yes, as long as it is done by an industry or by a
nondiscriminatory grouping. Financial institutions meet the criteria. There are
existing examples in our tax structure.
Senator Coffin:
Could you give us examples?
Mrs. Erdoes:
Slot machines are taxed differently for slot routes
than for unrestricted gaming licensees. It is a different amount of the tax. It
is not exactly the same tax but a different rate. It becomes different amounts
for different industries which has been upheld in court.
Senator Raggio:
The motion before us is to propose an amendment to S.B. No. 5 of
the 19th Special Session for consideration. We will have a roll call vote.
The vote is 16 ayes, 4 nays and 1 abstention. The motion
carries. Is there an additional motion?
Senator Nolan:
I am purposing an amendment that will have two components. The
concerns about the live entertainment tax and possible exemptions have been
discussed at length. Going back to BDR 32-14 also brought us back to the
original numbers that the LCB had produced regarding the limited number of
existing exemptions. This amendment would request, the Committee on Taxation,
Public Revenue and Tax Policy to complete the following purposes in respect to
the live entertainment tax. They shall review and study: (a) the impact and
imposition of the tax on amounts paid for live entertainment; (b) whether
promoters of special events are contracting with entities in other states because
of the imposition of the tax; (c) the loss of revenue, if any, from the special
events from the tax; (d) the feasibility and need for exempting such special
events from the tax; (e) standards and procedures that may be adopted for
determining whether special events should be exempt from the tax and the
qualifications for those exemption.
The other component of the amendment is the exemption of a
special event if the promoter of the special event, before January 1, 2004,
contracted with a public or private entity in this State to conduct the special
event in this State after that date.
Senator Raggio:
Would your proposal exempt events such as the Celine Dion show?
Senator Nolan:
Yes, if there is an existing contract that has been negotiated
for a particular price for a venue. If a tax were imposed, a business would
have no ability to absorb the additional cost of the tax, which is bad policy.
Senator Titus:
I can support the section of the amendment calling for the
Committee on Taxation, Public Revenue and Tax Policy to study this issue
because it is their job. This is something they should look at, and it is
reasonable. I cannot support the part of the amendment that provides for
the exemptions. If you were going to exempt someone who has entered into a
contract for an individual event, maybe the language could be worded more
narrowly. I believe it gives some people an unfair advantage.
Senator Care:
The exemption language in the amendment is problematic. We could
be talking of the existence of an executed 5-, 10-, or 20-year contract. This
language could be interpreted to mean there would be no application of a live
entertainment tax for the term of that contract. The language “need for
exempting such events,” should not be interpreted to mean it is a forgone
conclusion there is going to be an exemption in the future.
Senator Raggio:
Were you not trying to address a situation where it
affected tickets sold?
Senator Nolan:
The language already exists for tickets sold. What we were trying
to address was for those events already contracted. The ticket, sales price and
other aspects of retail sales for which this provision applies have already
been negotiated and contracted. Now, we would be returning and saying this tax
will apply. This would put the promoter at odds with the venue resulting in a
court challenge as to who is going to absorb this tax. I understand the concern
with tenure and long contracts, but I am more concerned about the single venues
and concerts which have already been contracted.
Senator Raggio:
We should bifurcate the amendment, discuss whether we can adopt
the later part of the amendment, and replace the language causing objections.
Senator Nolan:
It is agreeable.
Senator Coffin:
I do not consider it an exemption when new tax situations are
found that cast some people at an advantage and others at a disadvantage. I do
not see the need to bifurcate the amendment. What would be the reason?
Senator Neal:
I can support the language that the act does not apply to any taxable
amount paid for live entertainment collected before January 1, 2004. I cannot
support the language that it does not apply to a promoter that contracted with
a public or private entity in this State before January 1, 2004, to
hold the special event after that date. This is an exemption through a long‑term
contract.
Senator Nolan:
I will continue to work on defining better language.
Senator Raggio:
Senator Nolan has moved to amend his motion to adopt the proposed
amendment omitting the language objected to by Senator Neal.
I believe the language, “this act does not apply to any taxable
amount paid for live entertainment collected before January 1, 2004,” is
currently in the BDR.
Senator Nolan moved to adopt the new language referring to the
Committee on Taxation, Public Revenue and Tax Policy and the authority of the
committee. Senator Amodei seconded the motion. The motion carried.
The amendment will be added to the BDR. The bill drafter should
ask our Legal Counsel to draft a bill with the amendments agreed to by the
Committee. In addition, there is the amendment requested by the Fiscal Analysis
Division. Are there any other proposed amendments? We will meet in the morning
to review the bill draft.
Senator Rawson:
The way the BDR is written we would be limited to inflation and
future growth. There could be a positive or negative growth, and there could be
inflation or deflation. I understand this to mean the State would expect to
hold a status quo from this point forward. Education would always be funded to
a certain percent plus whatever growth and inflation would bring to bear. It is
important for us to weigh those prospects and consider whether we have the
basic infrastructure necessary for the duration of the tax.
Senator Neal:
What do you think the proposal does?
Senator Rawson:
A number of our systems are in last place in the country and in
10 or 20 years they will still be in last place. I have concerns about the
language. Because of deflation during hard economic times, we might see welfare
rise. This seems to be restrictive, and I understand the desire to put
limits in place, but we may be over limiting the capabilities of future
Legislatures.
Senator Neal:
Future Legislatures cannot be bound by the acts of this
Legislature. Under our Constitution, they would have the right to do whatever
they deem necessary.
Senator Raggio:
Are there any further comments? I will ask the bill drafter and
the Legislative Counsel to draft a bill based on the actions of this Committee.
On the motion of Senator Townsend, the Senate did rise and return to the Senate Chamber.
Motion carried.
SENATE IN SESSION
At 7:30 p.m.
President Hunt presiding.
Quorum present.
Senator Raggio moved that the Senate adjourn until Thursday, June 26, 2003 at 8 a.m.
Motion carried.
Senate adjourned at 7:31 p.m.
Approved: Lorraine
T. Hunt
President of the Senate
Attest: Claire J. Clift
Secretary of the Senate