MINUTES OF THE ASSEMBLY COMMITTEE ON ECONOMIC DEVELOPMENT AND TOURISM Sixty-eighth Session May 3, 1995 The Committee on Economic Development and Tourism was called to order at 6:00 p.m., on Wednesday, May 3, 1995, Chairman Mike Schneider presiding in Room 321 of the Legislative Building, Carson City, Nevada. Exhibit A is the Agenda. Exhibit B is the Attendance Roster. COMMITTEE MEMBERS PRESENT: Mr. Michael A. (Mike) Schneider, Chairman Mrs. Dianne Steel, Chairman Mrs. Maureen E. Brower, Vice Chairman Mr. Mark Manendo, Vice Chairman Mr. Thomas Batten Mr. Jack D. Close Mrs. Gene Wines Segerblom COMMITTEE MEMBERS EXCUSED: Mr. David Goldwater GUEST LEGISLATORS PRESENT: Assemblywoman Jan Evans STAFF MEMBERS PRESENT: Donald O. Williams, Chief Principal Research Analyst OTHERS PRESENT: See attached guest list Chairman Schneider entertained a motion to change the Committee Standing Rules to conform with the March 23, 1995 ruling by Assembly Leadership regarding marking attendance at committee meetings. MR. MANENDO MOVED RULE NUMBER SEVEN OF THE STANDING RULES OF THE ASSEMBLY COMMITTEE ON ECONOMIC DEVELOPMENT AND TOURISM BE CHANGED TO READ: "WHEN THE SECRETARY CALLS THE ROLL, ALL THOSE PRESENT SHALL BE MARKED `PRESENT.' THE COMMITTEE CHAIR SHOULD ANNOUNCE THAT ANYONE ARRIVING LATE SHOULD BE MARKED PRESENT AND THAT BUSINESS CAN BE CONDUCTED BECAUSE THERE IS A QUORUM PRESENT. THOSE WHO ARE EXCUSED SHOULD BE ANNOUNCED `EXCUSED.' ON ROLL CALL VOTES, MEMBERS NOT PRESENT SHALL BE MARKED `NOT PRESENT.' ON OTHER THAN ROLL CALL VOTES, IT IS NOT NECESSARY TO LIST THE INDIVIDUAL NAMES OF THOSE NOT PRESENT." MS. STEEL SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. ASSEMBLY BILL 386 - Provides for confidentiality of documents submitted to organizations for economic development formed by cities or counties. (BDR 20-1256) Assemblywoman Evans testified on behalf of A.B. 386. She explained the bill addressed the issue of client confidentiality and was intended to protect businesses which were within the initial fact-finding phase of their relocation process and have contacted development agencies for information. Projects involving hundreds of jobs and millions of investment dollars have been jeopardized and sometimes lost when confidentiality has been breached. A.B. 386, patterned after the statute protecting clients of the Commission on Economic Development, does not preclude the public's right to know. Once the client initiates any process regarding the location of a business in a Nevada city or county, the decision becomes public record. Mrs. Evans introduced Mr. Bob Shriver, vice-president of the Economic Development Authority of Western Nevada and past president of the Nevada Economic Development Association, a statewide diversification organization, who would present further testimony on behalf of the bill. Mrs. Evans noted there would be several amendments offered for the committee's consideration. Since the original drafting of the bill there has been further discussion with allied groups and organizations who feel the bill needs fine tuning. Mrs. Evans felt the amendments not only expanded but strengthened A.B. 386 and hoped the committee would give them full consideration. Mr. Shriver explained the Nevada Economic Development Association (NEDA) involved civic, business and educational leaders around the state whose goal and one purpose was to promote economic diversification of Nevada's economy. One of the issues resulting from workshops conducted in 1994 was client confidentiality. He stressed his organization's concern involved only the initial site selection inquiry phase. Citing an example, Mr. Shriver recounted the relocation efforts made by the Franklin Fund of San Mateo, California. Due to a press leak, the project was lost to the competing city of Sacramento. He indicated city engineers and public works departments and county Environmental Protection Agency branches needed to have a clearer understanding regarding the need for confidentiality. Mr. Shriver felt the bill would give Nevada an advantage in the competitive nature of economic diversification and development. Mr. Shriver introduced Roben Sellers, Deputy Director, Reno Redevelopment Agency who testified on behalf of the bill. Mr. Sellers presented an amendment under section 2, paragraph one, "an organization for economic development formed by one or more cities." He indicated his organization would like to include, ". . . , or a redevelopment agency formed by a city." He concluded since the agency is a separate legal entity, the clarification would assist them in avoiding confusion over the intent and language of the bill. Ms. Steel asked whether surrounding states had confidentiality laws. It was Mr. Shriver's opinion each state handled confidentiality somewhat similarly. Mr. Doug Dickerson, representing the city of Las Vegas, testified on behalf of the bill and its proposed amendment. He indicated their main concern was that the redevelopment agencies be included. Mr. Warren Hardy, representing the city of North Las Vegas, stated his organization was in full support of the bill. Although he had not yet reviewed the amendment with the city, he felt it would most likely be accepted. Mr. Andrew Urban, representing the city of Henderson, testified the city was in full support of the bill and its amendments. Mr. Larry Struve, Chief of Industrial Development, Department of Business and Industry offered an additional amendment. He distributed a memorandum (Exhibit C) to committee members. He urged the committee to add a new section to the bill to provide the same protection for clients of his agency who apply for industrial development revenue bonds. Mr. Struve explained companies must divulge sensitive financial or proprietary information in order for his agency to determine eligibility for an industrial revenue bond. Once it is determined the company can qualify for a tax-exempt bond, the agency conducts a public hearing and public review process. The process also involves presenting findings to the local governing body for their approval and ultimately to the State Board of Finance. Mr. Struve called the committee's attention to the second page of his memo stating the amendment would add a Section 3 to the bill and would provide that until an application is received and the findings are ready to go public, the agency can maintain the confidentiality, if requested, by a representative of the corporation. Chairman Schneider asked Mr. Struve if he had reviewed the amendment with Mrs. Evans. Mr. Struve replied he had not reviewed the specific language with Mrs. Evans, however, she was aware of the agency's program. Mr. Struve indicated his agency submitted the amendment upon the invitation of the Nevada Economic Development Association as they oftentimes refer clients to them that are looking for industrial revenue bonds. Chairman Schneider stated he believed strongly in the bill, that it would make Nevada one of the most pro-development states in the west. MR. CLOSE MOVED AMEND AND DO PASS ON A.B. 386. MR. MANENDO SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. SENATE BILL 81 - Designates square dance as official folk dance of Nevada. (BDR 19-1069) Mrs. Segerblom reported her intern had researched the various dances of Nevada and due to another commitment would be postponing her report for the following meeting. Mrs. Segerblom requested a BDR for a resolution. MS. STEEL MOVED TO REQUEST THE PREPARATION OF A BDR FOR A RESOLUTION DESIGNATING THE SQUARE DANCE AS THE OFFICIAL FOLK DANCE OF THE STATE OF NEVADA. MR. MANENDO SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. The committee expressed its concerns regarding the meeting scheduled on May 19 at 6:00 p.m. It was decided to postpone the meeting time until 7:00 p.m. in order to allow enough time for certain committee members to fulfill their Assembly Ways and Means Committee obligations and still make it to Las Vegas on time. The meeting adjourned at 6:30 p.m. RESPECTFULLY SUBMITTED: Janine Sprout, Committee Secretary APPROVED BY: Assemblyman Michael A. Schneider, Chairman Assemblyman Dianne Steel, Chairman Assembly Committee on Economic Development and Tourism May 3, 1995 Page