MINUTES OF THE SENATE COMMITTEE ON GOVERNMENT AFFAIRS Sixty-eighth Session June 28, 1995 The Senate Committee on Government Affairs was called to order by Chairman Ann O'Connell, at 2:45 p.m., on Wednesday, June 28, 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 J. Raggio Senator William R. O'Donnell Senator Dina Titus Senator Raymond C. Shaffer GUEST LEGISLATORS PRESENT: Assemblyman John Carpenter, Assembly District Number 33 Assemblywoman Barbara Buckley, Assembly District Number 8 STAFF MEMBERS PRESENT: Dana Bennett, Principal Research Analyst Teri J. Spraggins, Committee Secretary OTHERS PRESENT: Phyllis Peterson, Executive Director, Elko Convention and Visitors Authority Jane Stephens, Past Chairman of the Board, Elko Convention and Visitors Authority Jennifer Stern, Bond Counsel, Elko Convention and Visitors Authority and Bond Counsel, City of Sparks Rita Hambleton, Vice Chairperson, State Legislative Committee, American Association of Retired Persons Martin Bibb, Executive Director, Retired Public Employees of Nevada George Pyne, Executive Officer, Public Employees' Retirement System Nancy Howard, Lobbyist, Nevada League of Cities Irene Porter, Executive Director, Southern Nevada Home Builders Association Paul Gowins, Concerned Citizen Betsy Sanchez, Chief, Prosthetics Services, Veterans' Medical Center Linn Thom‚, Manager, Assistive Technology Center Ande Engleman, Lobbyist, Freedom of Information Pat Coward, Lobbyist, Economic Development Association of Western Nevada Bob Shriver, Past President, Nevada Development Association of Western Nevada Robert Hadfield, Executive Director, Nevada Association of Counties Don Ham, Lobbyist, Nevada Press Association Mary Henderson, Director of Government Affairs, Washoe County Stephanie Tyler, Lobbyist, City of Sparks Joseph Arton, Senior Vice President, M & S Self Insurance Group Raymond F. Sibley, Risk Manager, Washoe County Don Schlesinger, Lobbyist, Common Cause/Nevada Bob Maddox, Attorney, Maddox-Saint Aubin Pat T. Fladager, Lobbyist, Common Cause Senator O'Connell opened the committee meeting as a subcommittee with Assembly Bill (A.B.) 521. ASSEMBLY BILL 521: Revises various changes in provisions governing elections. Assemblyman John Carpenter, Assembly District Number 33, testified A.B. 521 would give the Elko Convention and Visitors Authority Board the authority to sell bonds for future expansion. He explained the need for a larger convention site, and the membership of the board. Senator O'Connell asked how the board is currently funded? She asked if the room tax is the only form of funding or are there other funding mechanisms. Mr. Carpenter explained that the room tax pays for the administrative costs. An ad valorem tax issue is being used to retire the bonds. Additional income is provided from various events. Phyllis Peterson, Executive Director, Elko Convention and Visitors Authority, provided the committee with a handout (Exhibit C). She urged the committee's support of the bill. Jane Stephens, Past Chairman of the Board, Elko Convention and Visitors Authority, stated Elko has grown and the expansion is needed for the good of the community. Jennifer Stern, Bond Counsel, Elko Convention and Visitors Authority, explained the bond issue. She explained bonds were issued in 1977. A.B. 521 would allow the Elko Convention and Visitors Authority to go to a vote of the people when they plan bond issues. Discussion ensued regarding the tax rate for Elko, chapter 350 of the Nevada Revised Statutes, and the general obligation bond authority. Mr. Carpenter told the committee that he did not know the exact tax rate for Elko, but the bond indebtedness was very low. He said they have a "pay as you go" on the school, and the other bond issues for the schools are paid off. The jail will be paid off in 1995 or 1996. He said he was sure there were available taxes to issue the bonds and they are aware of the mandated bond limit. He stated, "Rest assured, we are not going to pull a `White Pine County' on you." Senator O'Connell closed the hearing on A.B. 521 and opened the hearing on A.B. 328. ASSEMBLY BILL 328: Provides periods of open enrollment during which certain retired public employees may join state's program of group insurance. Rita Hambleton, Vice Chairperson, State Legislative Committee, American Association of Retired Persons (AARP), spoke in support of the bill. One of the major goals of AARP is to protect retirement benefits, including health care for retirees. This bill will help people, who are retired public employees and who have no health insurance, have the opportunity to purchase health insurance. She said there are retired teachers with no health insurance, because individual rates are costly. Group policies provide better rates. Martin Bibb, Executive Director, Retired Public Employees of Nevada, provided a quick overview of the bill. He said there are 16,000 retired public employees in the state. Section 4 of the bill provides for a 5-month open enrollment period for retired public employees who did not have an opportunity to join a group insurance program at the time of their retirement. He said they will be pooled and rated separately from other retirees and will pay all of their own premiums. Additionally those employees will be able to come into the program on an even-numbered year basis like state employees, if they miss that 5-month window. He said during the first 5-month open enrollment plan, the employee will be allowed in without evidence of insurability. If the retired employee missed that 5-month open enrollment, the employee could enroll during the even year, but would have to provide proof of insurability. SENATE BILL 278 OF THE SIXTY-SEVENTH SESSION: Allows certain additional retired public employees to participate in group insurance plan. Mr. Bibb told the committee that 539 people entered this group insurance program under Senate Bill (S.B.) 278 of the Sixty- Seventh Session. He said they had a 3-month open enrollment period. They are pooled and rated separately. They pay their own premiums. They were attracted by the 3-month period, but several of the retirees felt they did not have enough time to enroll in that 3 months, which is the premise for A.B. 328. He said the bill was amended in the Assembly after a fact-finding session. Proponents and interested parties sat down and agreed to the language contained in the first reprint of the bill. He said the idea of pooling these employees and spreading the risk will make this a more attractive option to the employees, than having to secure individual policies. George Pyne, Executive Officer, Public Employees' Retirement System (PERS), stated support of the bill. He said it is the PERS position that this bill provides a reasonable option for certain retirees who otherwise might find themselves without insurance. The system will be responsible for administering the annual period of open enrollment. The original fiscal note was incorrect. It listed $13,000 to notify employees. He said they could handle that notification in the system newsletter which would eliminate the cost associated with the notification process. PERS received a fiscal note request. He said he forwarded it to the staff to prepare, and then they determined that they could notify via the newsletter. Senator Townsend asked if he had a projection for potential costs for the employees? Mr. Pyne stated they work with the Risk Management Division staff regarding premiums associated with the plan. The PERS staff advises employees who are planning to enroll that it is unknown at this time what the premiums will be. He said the employees have to take that into consideration when making the choice. He said they counsel the employees to take that into consideration. Nancy Howard, Lobbyist, Nevada League of Cities, spoke next. She indicated that they worked on the bill and expressed their support. She also expressed support from the Nevada Association of Counties for the bill. A letter from Assemblyman Dini was entered into the record (Exhibit D). Senator O'Connell closed the hearing on A.B. 328 and opened the hearing on A.B. 532. ASSEMBLY BILL 532: Requires governmental bodies to provide monetary payments for dwellings and business establishments destroyed by governmental acquisition of real property. Assemblywoman Barbara Buckley, Assembly District Number 8, provided the committee with new amendments (Exhibit E). She said all the interested parties reached a consensus on the bill. She assured there is a balance in the bill to protect local government entities which need to use eminent domain, and protection for the home owner or small business owner. She provided a section-by-section analysis of the bill and the amendments. She stated, "This is a bill of rights and protections for home owners and small business owners whose property is taken by eminent domain." Senator O'Connell stated the committee understands that public purpose was removed from the bill. Once a contract has been entered into, there is no ability to go to court for due process. Ms. Buckley told the committee that section 9 addresses the reimbursement costs from a private entity to cover any and all expenses. She stated a small business owner has two choices. He can go to court to challenge the taking of the property, or secondly, receive the benefits under the bill. Senator O'Connell told the audience she understands they want to see the vote on the bill. She explained to them there is not a quorum yet, and a vote cannot be taken. She asked if there were one or two persons she could contact regarding the outcome of the vote so almost 75 people could leave the room. The audience told her they planned to stay. Senator O'Connell informed the audience she did not know if she would have a whole committee. She said, "You saw the agenda and we are due back on the floor at 4:00 p.m. A committee vote might be taken on the floor." She asked all of those present for A.B. 532 to please raise their hand so the committee could get a feel for how many people were interested in the bill. Senator O'Connell asked Ms. Buckley if there was any work or comment on the amounts placed in the bill. Ms. Buckley responded extensive time was spent on the amounts. Some individuals wanted caps placed on the amount of money that could be recovered. Most of the small business owners and home owners felt caps were not fair; they should be fully compensated for all of their losses. Ms. Buckley said they eliminated speculation, month-to-month tenancy, and caps from the bill. Senator O'Connell closed the hearing on A.B. 532 and opened the hearing on A.B. 506. ASSEMBLY BILL 506: Requires certain counties adopting any part of a master plan to adopt a housing plan. Ms. Buckley explained the need and purpose of the bill to the committee. This bill will amend the statutes regarding the master plan and require that the master plan include a housing element, which would include, but is not limited to, the items contained on page 2, lines 46 and page 3, lines 1-12. She said the master plan would have to include an inventory of affordable housing available in the community, an analysis of the demographics of the community and their need for housing, an analysis of the impediments to the development of affordable housing and those lands that are most appropriate for affordable housing. She defined affordable housing. Ms. Buckley stated a number of problems occurred in the state, especially in Clark County, with developers who want to get more involved with producing affordable housing. Those private developers' plans are hurt by federal government regulations. She said this bill would get more planning done and provide a realistic look at how to remove impediments and assist with the development of affordable housing. She said there was no opposition testimony in the Assembly. Senator O'Connell asked if the Assembly interim study interacts with this bill. Ms. Buckley stated the interim study will focus on the state's Housing Division, and whether the state's Housing Division has been meeting the needs of the community and if they have been administering the programs. She said the interim study will require counties to examine their internal organization and plan better. Senator O'Connell asked how this would interact with the Nevada Rural Housing Authority. Ms. Buckley stated it is a separate entity to provide housing for individuals with low incomes. She said there is a bill to abolish the Nevada Rural Housing Authority. Senator O'Connell explained the bill does not abolish the Nevada Rural Housing Authority, it separates them from the Department of Business and Industry and out of state control. Irene Porter, Executive Director, Southern Nevada Home Builders Association, stated this bill adds a mandatory element to the master plan. That mandatory element is a housing plan to look at and to access the housing for the total community. As a part of that housing element, there would be a mandatory affordable housing element. She explained how affordable housing is determined. She said first-time home buyers are considered in this housing element of the master plan. She stressed it is a comprehensive general plan for the community. Ms. Hambleton stated support of the bill. Paul Gowins, Concerned Citizen, stated support of the bill. He said housing is a major concern for disabled people. Betsy Sanchez, Chief, Prosthetics Services, Veterans' Medical Center, provided a letter of support (Exhibit F). She stated support of the bill. She explained the fiscal aspect of the bill, in addition to the self-respect and self-dignity aspects of the bill. Linn Thom‚, Manager, Assistive Technology Center, read from a written statement (Exhibit G) and provided letters of support (Exhibits H and I). Exhibits J and K were provided for the committee. Senator O'Connell closed the hearing on A.B. 506 and opened the hearing on A.B. 386. Senators Raggio and O'Donnell arrived at 3:25 p.m. and a quorum was established. ASSEMBLY BILL 386: Provides for confidentiality of documents submitted to organizations for economic development formed by cities or counties. Ande Engleman, Lobbyist, Freedom of Information, stated her support of the bill. She said this prevents new companies who are determining if they want to become established in Nevada from having the name of the company exposed until they have the opportunity to make a decision. She urged the committee to pass the bill. Senator O'Connell asked if a particular instance caused this bill? Ms. Engleman responded that one instance occurred in Reno where a company was going to relocate to Nevada, and a story was done. Since the company was exposed in the press, they chose not to locate in Nevada. She said that has been the only time this has occurred. Pat Coward, Lobbyist, Economic Development Association of Western Nevada, stated support of the bill. Bob Shriver, Past President, Development Association of Western Nevada, stated this bill will provide support to the rural communities. Senator O'Connell closed the hearing on A.B. 386 and opened the hearing on A.B. 499. ASSEMBLY BILL 499: Revises requirements for publication of certain information by counties. Robert Hadfield, Executive Director, Nevada Association of Counties, provided a handout (Exhibit L) explaining the bill. He said it is permissive. The counties can publish the list, or provide it free of charge to interested persons. Don Ham, Lobbyist, Nevada Press Association, admitted they opposed the bill before it was amended. He said a good compromise has been reached and the bill is acceptable. Senator O'Connell asked about fiscal note. Mr. Hadfield responded that all the counties currently publish voter registration lists. He said the fiscal note for $130,000 was statewide. He said the way the bill is worded, the county can still publish the voter registration list if it so desires, but it is no longer mandatory. He stressed they support counties having a choice. Ms. Engleman stated the prices in the old statutes for printing the voter registration lists are antiquated. She said the public can still pick up a copy of the voter registration list from the registrar of voters. The public would still have easy access to public information. Mary Henderson, Director of Government Affairs, Washoe County, explained this bill is different from S.B. 450. She explained there are two ways to print the list, the short version, and then the longer version which is printed in the paper. She said they can meet the needs of the bill, but it was important to them not to have to publish the list anymore. No newspapers in Washoe County would bid on the project. They published the list in a Spanish language newspaper, which was circulated at grocery stores and mini marts. Senator O'Connell asked why would an individual want the voter registration list. Ms. Engleman stressed there could be little demand for it, which would save the counties a fiscal impact. The list which is normally published in the paper is different from the list that political parties get. If someone wanted to organize a precinct meeting, he or she may want the list. Counties usually just provide the name, the precinct, and the political party registration of the voter. Senator O'Connell closed the hearing on A.B. 499 and opened the hearing on A.B. 144. ASSEMBLY BILL 144: Revises provisions relating to cooperative agreements concerning insurance. Stephanie Tyler, Lobbyist, City of Sparks, stated this bill came from the bond counsel. She said it allows local governments, once they have qualified under all of the rules and regulations, to pool their resources together and insure as a larger group. This would allow better coverage and deeper insurance levels for local governments. Jennifer Stern, Bond Counsel, City of Sparks, read from a written statement (Exhibit M). Joseph Arton, Senior Vice President, M & S Self Insurance Group, explained the financial benefits of the bill. He said the bill provides three advantages to counties, school districts, special districts, and cities. The accounting standard for governmental entities requires public entities to note on their financial statements what their reserve funding situations are for liability, workers' compensation, etc. This would allow them to run the program more efficiently and this would show in the financial statements that they are running these programs in a fiscally responsible and effective manner. The second item is cash management. Municipalities are on a "pay as you go" basis. They receive money in and pay it out immediately in claims. There is no opportunity to do the things that are important for a self-insurance program. Claims incurred this year are paid out over a number of years. It would be advantageous for the entities to be able to have bond proceeds or loan proceeds and be able to reinvest the proceeds so that they are matching their assets with known liabilities. The third item is savings. Depending upon how the entity runs its program, there could be substantial savings enured over the years. He projected that the City of Sparks could save $250,000 to $500,000 per year in their self-insurance program. Ms. Henderson proposed some amendments to the bill (Exhibit N). Senator O'Connell explained that it has been taking a week to get amendments back from the bill drafters. She asked if Washoe County could live with the bill without the amendment? Ms. Henderson stated it would be good for the entities to have the amendments. She stated it would save them about $1 million if they could amend. She explained the history of the amendment and the need for the amendment. Discussion ensued regarding the bill and the amendment. Ms. Tyler stated concurrence with the Washoe County amendment, but stated she does not want to jeopardize the bill. Ms. Henderson stated there is no financial relationship in the insurance pool because of the separate contracts, but it will bring a large pool of employees to the group. Raymond F. Sibley, Risk Manager, Washoe County, said this would allow private and public employers to join together and purchase services. He said they do it individually, but if 10 employers came together with a total of 20,000 employees, it would enable them to engage better programs. He said there would be no commingling of resources. Each group would sign their own insurance contract. He stressed that this bill will enable the public and private sector employers to pool together. Senator O'Connell closed the hearing on A.B. 144 and reopened the hearing on A.B. 532. Don Schlesinger, Lobbyist, Common Cause/Nevada, explained who was involved in drafting the proposed amendment. Bob Maddox, Attorney, Maddox-Saint Aubin, explained how the Federal Relocation Act deals with relocating residential tenants in a redevelopment/eminent domain action where federal monies are used in the redevelopment. Mr. Schlesinger stated that the proponents of the bill wanted to adopt the provisions of the Federal Relocation Act and add a section of provisions for displaced business owners. The federal act does not address business owners. Section 5 sets forth the provisions that each governmental body shall adopt policy equal or greater than the Federal Relocation Act. Section 6 says, in addition to that basic policy, there are additional benefits for displaced businesses. Any agencies which already use federal funds must follow the Federal Relocation Act. Now the bill states all local government bodies must follow the federal act, but there are additional provisions. He opined, "This bill completes a package that provides for the federal act to be the governing act, except with respect to displaced businesses." Discussion of section 10 and nonrestrictive gaming licenses ensued. Senator Raggio asked why section 11 says effective upon passage and approval, but section 6, the business section, has a different effective date? Mr. Schlesinger stated this provision prevents speculation and is an attempt to protect the longtime business owner/operator. New businesses who relocate to a proposed redevelopment area could not reap a windfall. Senator Raggio asked if this meant that a business owner must have been in the location for more than a year? Mr. Maddox responded in the affirmative. Senator O'Connell announced since there was a full committee present, she would take a vote on the bill. SENATOR TOWNSEND MOVED TO AMEND AND DO PASS A.B. 532, WITH THE PROPOSED AMENDMENT LANGUAGE AS PRESENTED BY MS. BUCKLEY. SENATOR RAGGIO SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. ***** Senator O'Connell closed the hearing on A.B. 532. She announced that because all of the senators were due on the floor, A.B. 517, A.B. 618, and A.B. 728 would be rescheduled for another date. ASSEMBLY BILL 517: Revises provisions governing reporting campaign contributions and expenses. Pat T. Fladager, Lobbyist, Common Cause/Nevada, submitted a handout (Exhibit O) to be included in the minutes. ASSEMBLY BILL 618: Makes various changes in provisions governing elections. ASSEMBLY BILL 728: Revises provisions governing local financial administration. Hearing no further testimony forthcoming on any of the bills, Senator O'Connell adjourned the committee meeting at 5:55 p.m. RESPECTFULLY SUBMITTED: Teri J. Spraggins, Committee Secretary APPROVED BY: Senator Ann O'Connell, Chairman DATE: Senate Committee on Government Affairs June 28, 1995 Page