MINUTES OF THE ASSEMBLY COMMITTEE ON ECONOMIC DEVELOPMENT AND TOURISM Sixty-eighth Session June 19, 1995 The Committee on Economic Development and Tourism was called to order at 5:30 p.m., on Monday, June 19, 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 Mr. David Goldwater Mrs. Gene Wines Segerblom GUEST LEGISLATORS PRESENT: Senator Raymond Rawson STAFF MEMBERS PRESENT: Mr. Donald O. Williams, Chief Principal Research Analyst OTHERS PRESENT: See attached guest list. ASSEMBLY BILL 386 - Provides for confidentiality of documents submitted to organizations for economic development formed by cities or counties. (BDR 20-1256) Chairman Schneider recounted the committee's previous action on the bill. Due to a problem with the bill's amendment, the chairman suggested it be rescinded. MS. STEEL MOVED TO RESCIND THE AMENDMENT ON A.B. 386. MR. MANENDO SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. Ms. Ande Engleman representing Freedom of Information stated the bill was a compromise between her organization and the Northern Nevada Development Authority. The bill was intended to protect businesses moving to Nevada as well as allowing the public's right to know. She maintained support for the bill without the amendment. MS. STEEL MOVED DO PASS ON A.B. 386. MR. CLOSE SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. SENATE JOINT RESOLUTION 22 - Urges Congress to investigate additional costs incurred for visitor facilities program at Hoover Dam to provide for development of alternative sources of funding for program. Mr. Delmar Leatham with the Overton Power District and Mr. Brandon Fowler representing the Silver State Power Association were present to testify on behalf of the resolution. Mr. Leatham explained the Overton Power District was formed in 1935 along with the Colorado River Commission to take delivery of the power that became available from Hoover Dam. The district serves eastern Clark County, the communities of Overton, Logandale, Moapa, Glendale, Mesquite and Bunkerville. Serving 4,500 customers, the district is growing at a rate of 15 percent annually. He added the organization was a special improvement district created by the Nevada Legislature and governed under the NRS 318 statutes. Mr. Shriver distributed a booklet entitled "Boulder Canyon Project, A Question of Accountability" (Exhibit C) which demonstrated what he termed "a shining example of federal excess." Mr. Shriver said the project's price tag would be approximately $450 million including interest. He noted the previous high water mark for a visitors' center in the park system had been $5.8 million. The mismanagement came to the association's attention when they started experiencing rate increases on Hoover Dam. Mr. Shriver felt the resolution would help his organization's effort in calling for Capitol Hill's full and searching investigation of the activities of both the Bureau of Reclamation and the Western Area Power Administration in their respective capacities over the Boulder Canyon Project. Mrs. Segerblom asked whether Mr. Shriver had discussed the resolution with Ms. Janet Rogers of the Colorado River Commission. Mr. Shriver said all members of the Southern Nevada power community were aware of the problems. He noted the public living in outlying areas that do not get the benefit of water or tourism from the dam find the excesses to be particularly unreasonable. Mrs. Segerblom said she was a resident of Boulder City and supported the resolution. Mr. Leatham indicated the Commission had a different relationship with the Bureau of Reclamation; the responsibility to pay for the visitors' center falls on the utility, not on the Colorado River Commission. Mr. Fowler said the utilities in question are heavily dependent upon Hoover Power; when there is a rate increase at Hoover it is directly passed on to the public power customers. In reference to the $77 million of which $45 million was used for upgrading, Mr. Close asked whether the $45 million was going to be passed through to customers as rate increases. Mr. Leatham said the $45 million would have been passed through, however, the contractors at Hoover Dam felt they could finance the $45 million in a much more economical way than going through the federal government. The contractors produced the funds and upgraded the generators without the allocation from the federal government. Mr. Close asked whether the wording in the resolution was strong enough. Mr. Leatham stated it adequately represented the kind of position that would be helpful in seeking alternative ways of repayment. He said another way needed to be found to absorb the cost. Mr. Leatham handed the secretary a resolution adopted by the Clark County Board of Commissioners demanding the U.S. Bureau of Reclamation to bring cost overruns at the Visitor Center under control. (Exhibit D). SENATE BILL 526 - Revises duties and authorized activities of director of office and science, engineering and technology. (BDR 18- 2093) Senator Raymond Rawson stated the bill was passed during the previous legislative session, however, due to the stipulation which read "the director shall devote his entire time and attention to the business of his office and shall not engage in any other gainful employment or occupation", many applicants declined employment. The following amendment was added to rectify the restriction: "except for consulting and academic pursuits which the governor determines: (a) Do not conflict with the duties of the director; and (b) May further the interests of the State of Nevada." Senator Rawson pointed out the bill was further amended to include "[May] Shall if requested, serve as a member of the board of trustees of the Nevada Industry, Science, Engineering and Technology, Inc., in carrying out the duties of his office." The Senator noted the salary issue was dealt with through the Unclassified Pay Bill. Mrs. Segerblom asked whether there had ever been a Director of Science, Engineering, and Technology. Senator Rawson did not think there had ever been a science advisor in the state. Chairman Schneider perceived the location of the director's office to be in southern Nevada due to the proximity of the UNLV School of Engineering and nuclear test site. Senator Rawson said it was his understanding the position was originally in the State Library budget and the office was to be located close to the Governor's office in Carson City. Mrs. Brower recalled the issue had been extensively discussed in the Assembly Ways and Means Committee. She believed the position was intended to further economic development and wondered whether the position remained open due to the salary factor. Senator Rawson testified the salary had been set at $70,000 and has since been adjusted to $85,000. Mr. Close stated he had philosophical problems with aspects of the bill. He felt there was a duplication of services between the Commission on Economic Development's role and that of the Governor's. Senator Rawson said the policies were included for safety reasons so the director would not become a nuclear person who would be working in opposition to the Governor. The Senator did not see the responsibilities as duplicative. He saw most of the effort being directed toward economic development and toward K-12, trying to stimulate technology transfer into the school systems. Ms. Karen Baggett, Deputy Director, Commission on Economic Development, testified the commission wholeheartedly supported the director's position. She stated a scientific advisor would greatly benefit their office as they are directing their efforts towards technology companies offering high paying jobs. MRS. SEGERBLOM MOVED DO PASS ON S.J.R. 22. MR. MANENDO SECONDED THE MOTION. THE MOTION PASSED UNANIMOUSLY. MR. GOLDWATER MOVED DO PASS ON S.B. 526. MR. BATTEN SECONDED THE MOTION. THE MOTION PASSED UNANIMOUSLY. Mr. Close stated he wanted the record to show he supported the motion, however he thought the position should be within the Commission on Economic Development rather than the Governor's Office. Chairman Schneider announced this would most likely be the committee's last formal meeting and thanked the members for their participation. MR. MANENDO MOVED TO SUSPEND THE COMMITTEE RULES. MR. BATTEN SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. The meeting adjourned at 6:20 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 June 19, 1995 Page