MINUTES OF THE SENATE COMMITTEE ON GOVERNMENT AFFAIRS Sixty-eighth Session June 2, 1995 The Senate Committee on Government Affairs was called to order by Chairman Ann O'Connell, at 1:35 p.m., on Friday, June 2, 1995, in Room 227 of the Legislative Building, Carson City, Nevada. Exhibit A is the Agenda. Exhibit B is the Attendance Roster. COMMITTEE MEMBERS PRESENT: Senator Ann O'Connell, Chairman Senator Randolph J. Townsend, Vice Chairman Senator Jon C. Porter Senator William R. O'Donnell COMMITTEE MEMBERS ABSENT: Senator William J. Raggio (Excused) Senator Dina Titus (Excused) Senator Raymond C. Shaffer (Excused) GUEST LEGISLATORS PRESENT: Senator Dean A. Rhoads Assemblywoman Joan Lambert STAFF MEMBERS PRESENT: Dana Bennett, Principal Research Analyst Teri J. Spraggins, Committee Secretary OTHERS PRESENT: Carole Vilardo, Lobbyist, Nevada Taxpayers Association Paul Mouritsen, Senior Research Analyst, Research Division, Legislative Counsel Bureau Madelyn Shipman, Assistant District Attorney, Washoe County Henry Etchemendy, Executive Director, Nevada Association of School Boards Irene Porter, Executive Director, Nevada Home Builders Association Senator O'Connell opened the committee with the hearing for Senate Bill (S.B.) 535. SENATE BILL 535: Requires certain appointments by Governor to be confirmed by senate. Senator Dean A. Rhoads presented testimony on S.B. 535. He reminded the committee that most of them have seen this bill in previous sessions. He said the bill passed twice in the Senate, but died in the Assembly. He explained only four other states in the United States do not have some kind of confirmation with the appointments for their state. He told the committee the Governor appoints 750 people. He said he narrowed the scope of appointees who require confirmation to the list in the bill. He stated he added the members of the State Board of Parole Commissioners. He stressed some checks and balances are appropriate for this board. He noted they include the Assembly in the bill through a standing committee. He explained the two committees would hear the confirmation in a joint hearing. He added either of the committees could reject an appointee. He stated the Assembly would have the first vote on an appointee and the Senate would have the final vote. Senator O'Connell stated she is aware of how many boards the Governor appoints. She expressed concern that the boards do not have adequate time to look at the qualifications of the Governor's appointees. She said qualifications are being called into question now on the members of the State Board of Parole Commissioners. She stated her support of this legislation. Senator Rhoads told the committee that the state of Oregon brings their Legislature back in every month for confirmation hearings on their Governor's appointments. He said a law on the books in Nevada since 1884, requires the Governor to provide the Legislature, at the beginning of the session, with a list of his appointments since the last legislative session. He said from 1861 to 1961, the Governor accomplished this task; but since 1961 no Governor, Republican or Democrat, has submitted the list to the Legislature. He repeated the Governor appoints 750 people during his term. Senator O'Donnell stated the processing of this bill will allow the Legislature to review the candidates for appointments. He said the Assembly and Senate will review the candidates for these appointments. He said after legislative confirmation of appointments, asking appointees to step down will be more difficult for the Governor. Senator O'Donnell stated: This willy-nilly hire-fire of parole board commissioners, I do not agree with. Just because you [the Governor] have a disagreement with an action, you [the appointee] should not be fired because of your response to a particular release rate. I think what has happened is that the Governor has placed the parole board in a tenuous position . . . If there ever was a bill that needs to be processed this session, this is it. Senator Rhoads agreed with Senator O'Donnell. He stated poor department head appointments have caused havoc with the state budget and with serving the public. He said a big argument against this bill is what to do between sessions. He suggested two options. He said the bill could be amended to provide authority to the legislative commission during the interim period. Or, he suggested, make the person serve as an acting director or acting member until the session meets. He commented many people serve as acting director for 12 months. He stated an amendment will wait until the Assembly hears the bill. Carole Vilardo, Lobbyist, Nevada Taxpayers Association, stated they have supported this bill previously. She said this is a system of checks and balances that is very important. She urged passage of this bill. SENATOR O'DONNELL MOVED TO DO PASS S.B. 535. SENATOR PORTER SECONDED THE MOTION. THE MOTION CARRIED. (SENATORS TITUS, RAGGIO AND SHAFFER WERE ABSENT FOR THE VOTE.) ***** Senator O'Connell closed the hearing on S.B. 535 and opened the hearing on Assembly Bill (A.B.) 356. ASSEMBLY BILL 356: Revises provisions governing issuances of municipal obligations. Assemblywoman Joan Lambert testified in favor of A.B. 356. She explained the bill clarifies the duties of the General Obligation Bond Commission. She told the bill includes legislation regarding general obligation backed revenue bonds. She explained the bill changes the petition time from 30 days to 60 days. She said it improves the notice of intent and the resolution of intent. She said a display ad is printed in the newspaper 10 days before the open meeting to notify the public. Ms. Vilardo spoke in support of the bill. She said the bill will clarify that the General Obligation Bond Commission will not look at public purpose when analyzing the fiscal impact, unless the overlapping entities within the county exceed 90 percent of the $3.64 tax cap. She stressed this legislation would have helped in the White Pine County situation. She said when an entity submits a request, if it were within 90 percent of $3.64, then the General Obligation Bond Commission must consider public purpose. She said if it were something that was nice to have, but not an immediate necessity, the General Obligation Bond Commission could decide and refuse to certify that the issue was to go for general obligation bonds. Senator O'Connell stated that the bond counsel does not have to look at the impact of other entities. She stressed this bill will make them look at the impact of other entities. Senator O'Connell closed the hearing on A.B. 356 and opened the hearing on A.B. 47. ASSEMBLY BILL 47: Revises provisions relating to impact fees. Paul Mouritsen, Senior Research Analyst, Research Division, Legislative Counsel Bureau, explained this bill came from an interim study. He told the committee the City of Reno is the only jurisdiction in the state that uses impact fees. He said they only use it for street improvements. He said the bill adds two new types of facilities that can be financed by impact fees. It would allow the city to finance fire protection projects and police projects. He said the bill also proposes changes in the procedure to access impact fees. He said the intent is to streamline the procedure to make it easier for local governments to implement. He tried to explain the changes to schools because of the impact fees. Madelyn Shipman, Assistant District Attorney, Washoe County, provided a handout (Exhibit C) which explains the school district impact fees. She explained the makeup of the interim committee. She said the primary purpose for the removal of the school districts is that no one should be exempt. She noted the school districts do not approve of the bill. Ms. Shipman said the bill removes the requirement of the local governments to pay on the behalf of the school districts. She explained impact fees occur because either the first developer or the last developer always had to build the infrastructure. She said if the school district is the first developer in a territory, they should be eligible for the same kind of reimbursement aspect that a private developer has. She noted the school district is not paying impact fees, the revenue gathered is different. She defined the handout. A discussion regarding potential amendments ensued. Lucille Lusk, Lobbyist, Nevada Concerned Citizens, expressed opposition to the bill. She said, "Extending uses of a bad and sneaky tax only validates that tax." Henry Etchemendy, Executive Director, Nevada Association of School Boards (NASB), testified in favor of the bill. He said he agreed with Ms. Shipman's explanation of the bill. He told the committee this bill only impacts the Washoe County School District. He said they are interested in lines 5-8 which take out the obligation of the local government to pay any school district fees. He stated they should not have to do that. He stressed NASB also supports lines 17-34. Irene Porter, Executive Director, Nevada Home Builders Association, testified in favor of the bill. She said that Washoe County has used the impact fees successfully. She questioned adding the police and fire departments to the bill. Senator O'Connell closed the hearing on A.B. 47. She told the audience that the committee was asked to hold Senate Bill 521 until Wednesday, June 7, 1995, for the hearing. She stated it would be posted for next Wednesday. SENATE BILL 521: Authorizes certain small cities in larger counties to elect not to participate in county fair and recreation board. Hearing no further testimony on any bills, Senator O'Connell adjourned the meeting at 2:10 p.m. RESPECTFULLY SUBMITTED: Teri J. Spraggins, Committee Secretary APPROVED BY: Senator Ann O'Connell, Chairman DATE: Senate Committee on Government Affairs June 2, 1995 Page