MINUTES OF THE ASSEMBLY COMMITTEE ON TAXATION Sixty-Eighth Session April 4, 1995 The Committee on Taxation was called to order at 1:15 p.m., on Tuesday, April 4, 1995, Chairman Bob Price presiding in Room 332 of the Legislative Building, Carson City, Nevada. Exhibit A is the Agenda. Exhibit B is the Attendance Roster. COMMITTEE MEMBERS PRESENT: Mr. Bob Price, Chairman Mrs. Jeannine Stroth, Chairman Mr. Michael A. (Mike) Schneider, Vice Chairman Mrs. Maureen E. Brower Mrs. Joan A. Lambert Mr. Mark Manendo Mr. John W. Marvel Mr. P. M. Roy Neighbors Mr. Brian Sandoval Mr. Larry L. Spitler COMMITTEE MEMBERS NOT PRESENT/EXCUSED: Mr. Morse Arberry, Jr. Mr. Pete Ernaut, Vice Chairman GUEST LEGISLATORS PRESENT: None STAFF MEMBERS PRESENT: Mr. Ted Zuend, Deputy Fiscal Analyst OTHERS PRESENT: Mr. P. Forrest "Woody" Thorne, Deputy Executive Director, Department of Taxation OTHERS PRESENT, cont. Mr. Steve Teshara, Executive Director, Tahoe Gaming Alliance Chairman Bob Price opened the meeting at 1:15 p.m. by having a roll call taken and acknowledging the presence of his "old time friends": Mr. Dan McCorqendale, former Senator from the state of California (who is a current member of the Transportation Users Leadership Alliance), and Mr. Bob Luce of the Nevada Highway Users Association. The first formal order of business was to discuss Assembly Bill 338. Mr. Ted Zuend, Deputy Fiscal Analyst of the Fiscal Analysis Division of the Legislative Counsel Bureau, distributed an explanation for A.B. 338 (Exhibit C), as well as an excerpt from a March 17, 1995 memorandum (that explained the purposes of the bill) from Michael Pitlock, Department of Taxation, to Mary Mattheus, Fiscal Analysis Division (Exhibit D). Chairman Price invited Mr. P. Forrest "Woody" Thorne to testify. ASSEMBLY BILL 338 - Removes certain restrictions governing disposition of certain fees imposed by justices' courts. For the record, Mr. "Woody" Thorne, Deputy Executive Director for the Nevada Department of Taxation introduced and identified himself. He stated the A.B. 338 made modifications to NRS 4.065 concerning the use of justice court fees relative to the state demographer costs. Currently, the state demographer is supported by a combination of add-on charges to the cigarette tax "admin." fee and the justice court fees as in a section in the statutes. The proposed change in subsection 2 eliminates the restriction of the use of the justice court fees from just the township population estimate portion of the state demographer contract to allow application toward the entire state demographer contract. There is an offsetting reduction in the cigarette tax "admin." fee so that it is neutral from that standpoint and it increases the distribution, which would go to local entities. With the proposed changes, the current level of justice court fees generates about 75 percent of the current level of the state demographer contract. With the rate of increase we have been seeing in the justice court and in the state demographer contract, there is a sufficient reserve for refund of this justice court fee to meet that shortfall if the level of the fee rises to the level of the state demographer cost. As a result, that would eliminate the necessity for the refund provision currently in the statute and that is also recommended for deletion. Chairman Price asked if it were agency bill and Mr. Thorne affirmed it was, adding that it was implemented as part of the executive budget. Assemblywoman Joan Lambert requested clarification of some statements Mr. Thorne made. Currently, Ms. Lambert understood that it was limited to just determining the population of townships and the rest was refunded; it eventually got back to the justice court budget. "Are you able to refund any right now?" she inquired. "The current level of the reserve -- if the fees come in at the anticipated levels this year -- is approximately $189,000," replied Mr. Thorne. "The statute, as it is currently written, is permissive on the refunds; it is not a requirement." Chairman Price recognized Assemblyman Roy Neighbors, who wondered what the original thinking was behind the bill. Mr. Neighbors noted the "J.P. used to do it to start with" and asked if an administrative fee had been charged since the county had been collecting. As Mr. Thorne understood the legislative history, the township population estimates were key to determining the number of justice courts and thus the implementation fee to provide for an add-on to the state demographer contract to provide that information. It was an annual contract with the demographer; that information was updated annually. To Mr. Thorne's knowledge, no fee was being imposed by the county since they began collecting the tax. Assemblyman John Marvel asked Mr. Thorne if it would have any impact on the prison administrative assessment fee. Mr. Thorne affirmed it was an add-on and a completely separate thing. The Chair then asked if there were others who wanted to talk, for or against, on A.B. 338. There was no further testimony. ASSEMBLYMAN MARVEL MOVED TO DO PASS A.B. 338. ASSEMBLYMAN NEIGHBORS SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY BY THOSE PRESENT. The second order of business was a work session on Assembly Bill 19. ASSEMBLY BILL 19 - Allows proceeds from optional tax on revenues from rental of transient lodging imposed within transportation district to be used for public transit system. Chairman Price pointed out that Ted Zuend Fiscal Analysis Division had distributed an amendment on A.B. 19 (Exhibit E). A sub-committee, chaired by Assemblyman Schneider, had discussed the bill earlier; Chairman Price requested Mr. Schneider to recap the bill. "This was the one from Lake Tahoe," Mr. Schneider explained. "It was Speaker Hettrick's bill. The sub-committee had received input from "all the Douglas county people, from Speaker Hettrick, from Mr. Ernaut (who represents some of this area), and the Gaming Association that came in who was represented by Mr. Harvey Whittemore." Mr. Schneider said they all agreed and helped to craft the bill so it kept out Clark County and the people who had some real problems with it. The bill related basically to the Lake Tahoe area. "Everybody participated very well at the sub-committee meeting and this was the wording they wanted," Mr. Schneider informed. Chairman Price noted there were people in the audience who had signed on the guest list to speak in favor of A.B. 19 and asked if there was anyone who wanted to say anything "one way or the other" on the bill. He recognized Mr. Steve Teshara. The Executive Director of the Lake Tahoe Gaming Alliance, Mr. Steve Teshara, came forth to testify. He concurred that Mr. Schneider had correctly indicated that the sub-committee meeting was a good one; everyone had participated in crafting the amendments. They had a chance to look at Speaker Hettrick's letter to the Gaming Alliance (dated March 14), which Mr. Teshara believed was the same amendment language the Committee had before them. The Alliance was in support of the amendments and asked the Committee incorporate them into the bill and move the bill forward in the process. ASSEMBLYMAN MARVEL MOVED TO AMEND AND DO PASS A.B. 19. ASSEMBLYMAN SCHNEIDER SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY BY THOSE PRESENT. There being no further business to come before committee, the meeting adjourned at 2:00 p.m. RESPECTFULLY SUBMITTED: Carolyn Grabski, Committee Secretary APPROVED BY: Assemblyman Bob Price, Chairman Assemblyman Jeannine Stroth, Chairman Assembly Committee on Taxation April 4, 1995 Page