MINUTES OF THE ASSEMBLY COMMITTEE ON NATURAL RESOURCES, AGRICULTURE AND MINING Sixty-eighth Session June 21, 1995 The Committee on Natural Resources, Agriculture and Mining was called to order at 1:15 p.m., on Wednesday, June 21, 1995, Chairman Carpenter presiding in Room 321 of the Legislative Building, Carson City, Nevada. Exhibit A is the Agenda. COMMITTEE MEMBERS PRESENT: Mr. John C. Carpenter, Chairman Mrs. Marcia de Braga, Chairman Mr. Max Bennett, Vice Chairman Ms. Genie Ohrenschall, Vice Chairman Mr. Douglas A. Bache Mr. Thomas A. Fettic Mr. David E. Humke Mr. P.M. Roy Neighbors Mrs. Gene Wines Segerblom COMMITTEE MEMBERS EXCUSED: Mr. Brian Sandoval STAFF MEMBERS PRESENT: David Ziegler, Senior Research Analyst Christine Shaw, Committee Secretary OTHERS PRESENT: Ray Bacon, NV Manufacturers Association, Verne Ross, EPA Joe Johnson, Sierra Club WORK SESSION ASSEMBLY BILL 591 - Provides in skeleton form for voluntary disclosure of certain hazards. Ray Bacon, Nevada Manufacturers Association, explained the basic concern of the subcommittee involved the issue of the Whistle-blower Act. He noted the change on Page 4, paragraph 3 of amendment 1158 (Exhibit B) solves that problem and they are supportive of moving the bill forward. Verne Ross, EPA, stated the bill has provided whisle-blower protection. The one missing item is coverage for the local air district and the definition of regulatory agency. However, the division is still opposed to the privilege part of the bill and any secrecy that may be involved. Joe Johnson, Sierra Club, speaking in opposition to A.B. 591, stated there was no need for this legislation presently. He expressed appreciation for the fact the whisleblower part of the bill was greatly softened; however, they were strongly opposed to the privilege portion of the bill. Committee discussion ensued. Mr. Humke commented in state government the legislature has created a Whistle-blower statute for its public employees, but that right did not exist generally for private employees in labor relations, outside of environmental regulations. He added, "So this is a departure in our statute if we pass this, and I would think it would present some pretty good balance." Mr. Bacon concurred. He noted the fundamental driving issue behind A.B. 591 is to move the environmental arena from the punitive nature into the nature where it fundamentally provides a positive reason for companies to move forward and move into the cleanup mind-set. He cited the Super Fund Act as the most egregious piece of legislation ever passed. Ninety percent of its money has gone not to cleanup, but to consultants, studies, litigation, etc. Mr. Johnson maintained the privilege portion of A.B. 591 would throw a monkey wrench into what has been a reasonable operation. The complexity of the ordinances, regulations and bills are something that should be addressed locally and nationally. Mr. Humke interjected that privilege is a concept created in the law for a good public policy purpose. In this instance privilege is a way to protect a business from the benefits of the most liberal law, the Bankruptcy Act. It provides a very positive function. Mr. Bennett stated they had reviewed the private sector of Whistle-blower protection with Kim Morgan, Legislative Counsel, and she felt they were as well protected in statute with this wording as the public sector. Responding to Mrs. Segerblom's inquiry as to whether the EPA could come in if an operator was doing his own audit, Mr. Bacon assured her nothing could preclude the EPA from doing its own audits. Mr. Johnson stated this bill prevents an employee who performed an audit from going forward and testifying about the content of the audit. He reiterated his opposition to the privilege portion of the bill and recommended, if the bill was processed, to just go with the immunity portion. He stated they would prefer working with a committee of industry and environmentalists in order to propose mutually agreed upon language for the next session. Mr. Carpenter entertained a motion on A.B. 591. MR. NEIGHBORS MOVED AMEND AND DO PASS A.B. 591. MR. BENNETT SECONDED THE MOTION. Mr. Ziegler mentioned there was a comment from Mr. Ross relative to language in the amendment indicating air districts in Washoe and Clark are regulatory agencies under statute that are cited under the applicability part of this. Mr. Carpenter said they would be added in and that would be part of the motion. Mr. Bache, expressing opposition, noted the opinion from Legal relative to the effect of the bill on the Chemical Catastrophe Act. He said it did not affect the Act per se but it blunts the enforcement of that act. Mrs. Segerblom also expressed opposition to the bill. Due to a lack of voting members, Mr. Carpenter said a committee meeting would be held on the floor the following day for a re-vote. The meeting adjourned at 3:30 p.m. RESPECTFULLY SUBMITTED: Christine Shaw, Committee Secretary Assembly Committee on Natural Resources, Agriculture and Mining June 21, 1995 Page