MINUTES OF THE SENATE COMMITTEE ON LEGISLATIVE AFFAIRS AND OPERATIONS Sixty-eighth Session May 2, 1995 The Senate Committee on Legislative Affairs and Operations was called to order by Chairman Mike McGinness, at 1:30 p.m., on Tuesday, May 2, 1995, in Room 119 of the Legislative Building, Carson City, Nevada. Exhibit A is the Agenda. Exhibit B is the Attendance Roster. COMMITTEE MEMBERS PRESENT: Senator Mike McGinness, Chairman Senator William J. Raggio, Vice Chairman Senator Raymond D. Rawson Senator Mark A. James Senator Dina Titus Senator Bob Coffin Senator Bernice Mathews GUEST LEGISLATORS PRESENT: Senator Maurice E. Washington, Washoe County Senatorial District No. 2 Senator Ann O'Connell, Clark County Senatorial District No. 5 STAFF MEMBERS PRESENT: Robert E. Erickson, Research Director, Legislative Counsel Bureau Mavis Scarff, Committee Secretary OTHERS PRESENT: Lucille Lusk, Lobbyist, Nevada Concerned Citizens Charles Horn, Retired State Senator, Clark County Senatorial District No. 5 Janine Hansen, Lobbyist, State President, Nevada Eagle Forum Philip Meranda, Private Citizen Carole Vilardo, Lobbyist, Nevada Taxpayers Association Robert S. Hadfield, Lobbyist, Executive Director, Nevada Association of Counties Dorothy Orr, Private Citizen Joseph L. Johnson, Lobbyist, Sierra Club Nancy Howard, Lobbyist, Nevada League of Cities Juanita Clark, Member, Independent Party of Clark County & Tenth Amendment Group Leonard Stoute, Private Citizen Richard Klinfelter, Private Citizen Juanita Cox, Lobbyist, People to Protect America Elizabeth Livingston, Lobbyist, Nevada Women's Lobby The chairman announced that Senator Rawson is participating from Las Vegas and he welcomed Senator Washington. Senator McGinness reminded the members that the committee had asked for the bill draft request (BDR) condemning the bombing of the United States Forest Service office and asked for a committee introduction motion for BDR R-1981. BILL DRAFT REQUEST R-1981: Condemning the bombing of the United States Forest Service office in Carson City. SENATOR JAMES MOVED TO INTRODUCE BDR R-1981. SENATOR COFFIN SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. ***** The chairman indicated that he had reviewed the following BDRs: BILL DRAFT REQUEST R-173: Memorializes Gary A. Owen BILL DRAFT REQUEST R-1838: Memorializes former Assemblyman Frank E. "Pete" Walters. BILL DRAFT REQUEST R-1298: Congratulating the Las Vegas Dustdevils on becoming the indoor soccer league champions. Senator Raggio requested an appropriate resolution to honor former Assemblyman and District Judge, Bill Beko. Senator McGinness indicated that he believes that resolution is already being prepared. Chairman McGinness opened the hearing on Senate Bill (S.B.) 342 and introduced Senator O'Connell. SENATE BILL 342: Creates legislative committee on federal and state mandates and establishes policy of taxation for State of Nevada. (BDR 17- 1163) Senator Ann O'Connell, Clark County Senatorial District No. 5, distributed Exhibit C and indicated that S.B. 342 had been requested and was in the works long before Congress took its action. She stated that during the 10 years that she has served in the Senate, no one has ever been able to give her a bottom line total on what, we, as a state, pay in both unfunded and partially funded mandates. Senator O'Connell provided examples of mandates which result in waste and insanity that are perpetuated at the expense of the taxpayers; millions of dollars spent to measure the dust in the air in our Nevada desert; the $30 million fund required in Clark County to protect endangered and threatened species when the federal government has not yet defined what endangered or threatened really is. She discussed the example, written by Carole Valardo in Taxtopics under the title A Matter of Waste (Exhibit D), of the 1991 federal law which required all sewage treatment plants to remove 30 percent of the organic waste from incoming sewage. She said mandates which equal a one-size-fits-all approach to government, not only does it not work, but it probably creates more problems than it attempts to solve; and she continued, that is why it is so important that we have provisions in our law which force the review and effect of demands caused by mandates. Senator O'Connell stated section 5 of the bill, which establishes the criteria of how a mandate would be viewed and reported to the Legislature, is intended to do several things: to provide the Legislature with a comprehensive study which would identify contradictory or inconsistent requirements; to identify duplication or obsolete requirements; to obtain information creating a data base of mandates at all levels of government; to afford the opportunity for the Legislature to develop a level of expertise as it relates to mandates; and to give lawmakers a broader picture as to the effect of mandates at all levels of government. She said section 8 in the bill is there to provide the state with a tax policy, because mandates are probably going to result in a tax increase, and Legislators need to spend more time studying the possible impacts of actions on fiscal matters, as well as having specific guidelines to measure the reason for passing an additional tax. She concluded, noting that S.B. 342 is a method by which the state could be proactive rather than reactive to a very important issue facing the Legislature. Senator Coffin asked if Senator O'Connell could tell the committee about the bill? Senator O'Connell replied that the bill sets up a seven-member standing legislative committee whose primary purpose would be to address mandates. She described briefly the types of procedures for the committee, and indicated that section 5 and section 8 are the two substantive sections of the bill. Referring to section 3, Senator Coffin asked whether it would make a difference to Senator O'Connell if the Legislative Commission could appoint these people as opposed to various individual leaders? Senator O'Connell replied it would not. Senator Coffin indicated that is the structure that the Legislature used for most committees, noting that there might be a committee or two that are appointed in that other fashion. Senator Raggio noted that a number of committees are appointed by the majority leader and the speaker, and some are presently appointed by the Legislative Commission. Senator O'Connell informed the committee that Mr. Michael A. Pitlock, Public Service Commission of Nevada, left a bill with her and indicated that he supports the bill, but suggests, that in the following lines of section 8, the word `should' should replace the word `must': on line 28-29 `government must provide' change to `should provide' on line 36 replace `must' with `should' on line 39 right after `each tax must' use the word `should' on line 41 replace `must' with `should' on line 43, on line 45, and on line 47, replace `must' with `should' on page 6, line 1 replace `must' with `should' Senator McGinness asked if Senator O'Connell would agree with those changes? She indicated she would have no problem with that. Senator Raggio identified a couple of issues which the committee needs to have a definitive answer for under section 8 which, according to the language, would create a tax policy, or a policy for taxation, or establishes the word, and he would like to know the effect of establishing that policy on existing taxes. He stated he knows that section 8 is a directive to a standing committee which is hearing a proposed new tax, or changing provisions governing an existing tax; for example, the restriction in subsection 11 about dedicated taxes. He noted that Nevada presently has some existing dedicated taxes, such as the liquor tax which has a dedication feature, and he would like to know if that would violate the established tax policy. Senator O'Connell agreed with Senator Raggio stating that another one would be taxes on a marriage license that goes to abused women and children, and she thinks that is not retroactive, but is something that would be reviewed. Senator Raggio indicated he thinks the committee should have clarification as he is not certain if this law, which talks about a tax, would apply to the marriage license fee, or the filing fee for litigation. However, he stated, he does know that the one on the liquor tax is a dedicated tax, and he would like to request that the committee get a firm opinion on how this bill affects existing taxes. Continuing, Senator Raggio questioned subsection 3 of section 8 which would establish, as a policy of taxation, that the tax must be a stable and predictable tax and noted there are differences of opinion or interpretation as to what constitutes a stable tax. He said when one asks for someone's perception or definition of a stable tax, one ordinarily gets three answers; income tax, sales tax, and ad valorem property tax. Beyond those three, he said, one usually does not get any response as to whether or not any other kind of tax is stable, but he would not want the Legislature to establish a policy of taxation, which by that subsection, would preclude any existing tax or an extension of an existing tax. He again requested clarification. Senator O'Connell noted she thinks the business tax and the sales tax could probably be put on an equal basis as far as the stability of the tax coming in, but indicated she does understand what Senator Raggio is saying, and she appreciates his comments. Regarding section 5, subsection 5, Senator James asked if the developing recommendations for administrating the provisions of a mandate are transmitted to an agency after it is determined that there is a mandate? Senator O'Connell replied, no to the Legislature. Senator Titus indicated that there is one thing that troubles her, because she sees a trend of a full-time Legislature emerging. She noted it is disingenuous to say the Legislature can get all its work done in 120 days, but then have all of these permanent committees meet during the interim. She asked Senator O'Connell if she sees a trend? Senator O'Connell replied saying that her personal opinion is the only basis from which she can answer the question. She said the interim committees have been set up in the past because they are dealing with issues that are so vast that it is very hard to really grapple with them on a complete basis during the limited time of the session. Because of the growth of the state and the complexity of the issues that we are now being faced with, she said that to have a person come in who has not had prior experience on the committee, and has not dealt with the issue, it is almost impossible for that person to be able to grasp all the things that he needs to know. Senator O'Connell noted that as a state the Legislature is not left with many choices; Legislators do not want to be in session because it costs the taxpayers so much money, and the interim committees seem to be the answer to developing the needed expertise. She concluded stating she does not know how you strike that balance as a citizens' Legislature without having interim studies. Senator Titus confirmed that she supports the interim study committees, but reminded them of the report about the deficiency of the Nevada Legislature, which had ranked 36th out of the 50 states for the cost of the Legislature. She compared that to the cost of the interim study committees which also adds to the cost of government. Senator O'Connell said she understands the fiscal note is around $25,000. Senator McGinness said the Fiscal Year (FY) 1995-1996 is $13,500, FY 1996- 1997 is $5,580, so FY 1995-1997 about $19,000. Senator O'Connell said: The problem is that the mandates and the taxation ... are two subjects that don't stop. The mandates are going on continually from Washington ... affecting both the state and the local governments. In fact, we've just had a situation where a local government, ... who [is] in a very precarious financial situation already, has just lost a suit to the federal government on the landfill issue. So it's unfortunately, it's not something that's limited to when we are in session. And that was really the thinking about the oversight, and so many times we come into session and we'll have an agency coming in and saying ... this is a federal law and we've received the mandate, and we need to have it codified in law; and none of us have ever been aware of the situation prior to them coming in and telling us we now have to do it. We don't know the impact, we don't know why we've been mandated to do this, and if those mandates could first hit a legislative body, and then be presented to the Legislature as to why, then maybe we really don't need to do this. Maybe it really doesn't affect us, and we don't need the supporting funds for a program we don't need in the first place. Senator Coffin stated he would like to echo Senator Titus' comment regarding common sense, noting that it is definitely in this bill and he supports that and the bill. He said he would like to have some means of changing the way the committee members are chosen, because if you put it to the commissions that takes it out of the political arena. He also asked if it is possible to add a charge to this committee that it investigates and report back to the 1997 session on the possibility of home rule for the counties, so that we could give some of that power back to the local governments. Senator O'Connell replied that they have had two subcommittees from government affairs that are currently putting together language for a bill that will deal with an interim study whose purpose is to look at areas of responsibility of the state, of the county, and of the city governments. She said the subcommittee, composed of Senator Porter and Senator O'Connell, with all counties represented, had proposed the language to come back to government affairs to see if they agree with the idea. Lucille Lusk, Lobbyist, Nevada Concerned Citizens, said when this bill was first introduced she concluded that it represented one of the primary purposes of government, which is to safeguard the constitutional rights of the citizens; and that members of the Legislature are in a unique position to be able to perform the review function, to recommend to the Legislature, to Congress, and to Nevada's attorney general, actions that will help the state guard those constitutional rights. She expressed the support of Senate Bill 342 by the Nevada Concerned Citizens, noting that they think there are good criteria written into the bill both for reviewing federal and state mandates. Referring to the previous discussion on home rule, Ms. Lusk reminded the committee that the state is actually the entity, as far as government is concerned, with that ultimate responsibility for guarding those constitutional rights - a right that should not be transferred to any other level. Senator Coffin indicated that it probably would be a good idea to define what `home rule' is, noting that in Nevada, legislators have tended to take the taxing power to the state government in areas that, traditionally, in the first 180 years after the founding of the constitution, were the province of the local governments and not the state government. Ms. Lusk, replied that she thinks having the interim study committee on that issue is an excellent idea. Charles Horn, Retired State Senator, Clark County Senatorial District No. 5, said he was representing the Tenth Amendment Committee of Nevada, which supports Senate Bill 342, particularly the statement on lines 7-8 which states, "The members of the Legislature of Nevada intend to protect the sovereignty of [the] State of Nevada from federal encroachment." He states this summarizes the meaning and message of that which is attempted in this legislation, as well as, putting those same types of restraints or constraints upon state government so that they will not exceed their authorized powers with local governments. He opposed changing the language in section 8 from a mandatory `must' to a permissive `should' because Nevadans want good government by law, and that change would simply make it a suggestion. Janine Hansen, Lobbyist, State President, Nevada Eagle Forum, indicated their support for Senate Bill 342 and said she is encouraged that Senator O'Connell would bring this forth as another opportunity to establish and assert state sovereignty. She described the concern of many states and the movement nationally, to reassert state sovereignty. Ms. Hansen said Colorado, Oklahoma, and Ohio, have recently brought forth bills which would help to implement the idea of asserting state sovereignty by creating escrow accounts to escrow federal taxes, in order to avoid the federal government from blackmailing the state, if the state does not comply with federal mandates. She stated there is an increasing interest on the part of the federal courts in upholding state sovereignty. She noted that on page 3, line 25 of the bill where it says "the committee shall determine whether: (a) the federal mandate is within the powers enumerated by and delegated to the Federal Government by the Constitution of the United States," that this is the whole genesis of the problem of federal mandates; that the federal government has gone far beyond the specific enumerated and limited powers identified in the United States Constitution and the states have, up until now, had no mechanism to oppose federal mandates. She concluded stating that every state is feeling the burden, and she thinks this is an appropriate means to begin to identify, and to oppose those federal mandates which we do not find appropriate, but it does not eliminate the opportunity for the Legislature to choose those with which they wish to comply. Phil Meranda, Private Citizen, commended Senator O'Connell and her supporters on this legislation. He stated he believes the word "must" should stay the way it is, because this particular situation would probably require court action; and Blacks' law dictionary states the word "shall" may be construed to mean "may" in a constitutional controversy, and the Legislature would not want anyone to construe this word to mean "may;" it must be a mandatory "must." Senator Titus stated that some federal mandates come with penalties attached. She suggested that the committee needs to look at what is going to be the adverse impact of not going along with the sanction: How will the state be hurt if the Legislature does not comply, in terms of the sanctions that might be imposed, and recommendations should be included. She asked where are we going to come up with the money to pay for those penalties if they are levied? Senator McGinness indicated that is a valid observation. Carole Vilardo, Lobbyist, Nevada Taxpayers Association, spoke in support of Senate Bill 342 and stated that the regulatory environment, which has been in part created by mandates, has made it necessary for some legislation to be drafted. She said that not only are the feds (federal government) mandating to the state, and the state is passing it onto the local governments, but ultimately what happens is that the taxpayer foots the bill. She discussed the costs that, were actually charted by Carson City, and were mandated on local governments. Relative to the second part of the bill, Ms. Vilardo stated the taxpayers' association has no problem if some of the provisions within the policy statement become more permissive than mandatory. She noted that most of the principles that are used in that point of policy taxation were derived from Samuel Adams "Wealth of Nations" which were then modified in 1920 by a British economist. She stated these principles are used worldwide as benchmarks: one cannot meet every one of them within one tax or one fee, but if a mandate requires funding and the level of funding will be a tax or fee on the general public, then this goes hand-in-hand with establishing these policies as part of your standing rules. Robert S. Hadfield, Lobbyist, Executive Director, Nevada Association of Counties, indicated that Nevada counties have had a keen interest in this issue, and he discussed previous actions by the counties, noting that there is still no mechanism to respond instead of react. He stated he believes that Senate Bill 342 has the outline of a process whereby people can actually evaluate and understand better the impacts of proposed unfunded mandates. Mr. Hadfield expressed support for the committee's efforts to take a look at this and to establish some formal mechanism to have in place to review the impact. However, he added, some of the questions mentioned today, regarding clarification, need to be taken into account, and he pledged his group's support to work with the committee on establishing a process that will clear up and eliminate a lot of the difficulties that have been identified in evaluating whether something is an unfunded or funded mandate. Dorothy Orr, Private Citizen, stated that there are a lot of the people in Las Vegas who are very concerned and very happy to learn of this bill. She expressed concern about the United Nations' mandates, and asked if the committee would investigate if, in fact, between 1940 and 1945, the Nevada State Legislature did sanction and approve the United Nations Organization prior to ratification by the President and Senate, thereby giving the United Nations top priority over the constitutional government? Joseph L. Johnson, Lobbyist, Sierra Club, stated he was speaking neither in favor or in opposition to the bill, but called attention to some environmental issues. He noted that in section 5, the committee will review all of the existing statutes and commented that simply the issue of rural treatment of solid waste impact upon rural communities could take the entire time of this committee during the interim session. He said the bill sets policy about unfunded mandates going to the county, and the issue of local home rule, and of how much or how little taxation, are all issues that should be addressed; but he maintained that this authorization under the statutory provisions of section 5 is overly broad and would indeed simply be a political forum and a pulpit to talk of sovereignty, but do little. Mr. Johnson concluded saying it is either a major venture and the committee is going to attack it seriously, or this is an effort to address a problem that is out there, in a very superficial method. Senator Raggio stated: I guess anybody's viewpoint from day to day differs on what is a state issue, and I think the concern, that many of us have, is that the definition of state issue by practical operation of the federal process, and that includes all three, the legislative, executive and judicial branches of the federal government, have certainly compressed the original concept of state issues and what was envisioned when the constitution was framed, and the residual power of the Tenth Amendment was set in place. ... I think it was Mrs. Hansen, perhaps, who addressed one of the trends, and whether or not one agrees with the basic concern about gun control; I think the recent supreme court decision, that she alluded to, is going to bring forth some very strong debate, and I'm using debate because I'm using it in a civil sense. I want to say parenthetically, I don't endorse violent objection or violent change by anyone regardless of their position, but I think that decision is going to bring forth some major change in what has been considered to be a state issue. I would [say], based on my legal background and my study of constitutional law, much of what has passed as federal issues, vis-a-vis state issues, has been based upon the utilization of the commerce clause of the federal constitution. I mean whether it's environmental laws or whether it's dealing in any other subject, most of those have been based upon, and countenanced, and sustained upon, what I think many people feel is a strained interpretation of the commerce clause of the United Stated Constitution. And so I only raise this because I think it's important to this discussion, that that decision, whether it was based on gun control or something else, certainly portends a change of direction at that appellate level of what is or is not a state issue. So I guess that is a strong argument for the state, whether it's the legislative branch, and perhaps we're the proper one, to at least have in place a mechanism, such as this oversight committee, to let us pass our judgment, we're elected officials, upon what is an invasion into a state's right. Now, I would comment parenthetically, that some who testified here read into this, I think, some strength ... which is not accommodated here. For example, I don't read in this bill that we can mandate the attorney general to take any specific action, and I'm saying that to you, because you expressed some concern along those lines. We can recommend to the attorney general, who's a constitutional officer, that he or she do certain things, that we can recommend, too, when we're dealing with a federal mandate, in that case, or otherwise we can recommend to our congressional delegation that they attempt some amelioratory action at their level, but I don't think anybody should be deluded. We recognize practical as well as legal limitations on what a state legislature can do, but I think to do nothing is really inappropriate and I think that's one reason that the federal system, again I'm including all three branches, and this is not a partisan point because it's occurred under all administrations, has encouraged by inaction that kind of enlargement of what is a federal power. What I'm saying in a long way because I want to establish my belief here, is that this, I think, is a necessary step and there may have to be some adjustments here, but it's a necessary step for the state, through its Legislature, and we're the closest to the people overall, to take some position, indicating, one, that we want to preserve, to the extent fully possible, the powers that are in the Tenth Amendment reserved to states, and secondly, that we create this mechanism for some review at the state level, in order that we can properly express our point of view. Mr. Johnson expressed appreciation for the senator's comments about being in simple opposition to violence and indicated the Sierra Club has a similar position. He said he just wanted to express that he thinks this is a little burdensome and overly broad. He said the states are experiencing a time of decentralization and reassessment of where the authority and responsibility lies; it is a broad agenda about federal mandates and the proper place for them, and he stated the Sierra Club would welcome entering into a future debate. Senator James stated: I just want to state, really for the record, I'm a sponsor of this bill and reviewed it in some detail before it was even introduced. ... you mentioned that being a judicial role to review whether something was constitutional or not as an exercise of authority, particularly under federal constitution. Section 5 embodies the review and evaluation of proposed laws both state and federal, as to whether they are constitutional, but that is in no sense a judicial type of a review. So we're not seeking to usurp any other role of government, so I want to make sure that there's not that interpretation added to this bill that would be declared unconstitutional as a usurpation of another branch's authority. That's review with a view to a legislative response, recommendations to the Legislature to respond legislatively to areas where there's a role, maybe it would be a resolution, maybe it would be a bill, maybe it would be a way of directing an agency to administer a mandate through legislation. That's the key here and the courts can go about their business and judicial review, but then this will be our own way of addressing it. Mr. Johnson indicated that the Sierra Club understands that also. Nancy Howard, Lobbyist, Nevada League of Cities, stated she was here today in support of S.B. 342 and said they concur with the other proponents of this bill and what has been stated here today, and they would like to offer their support and assistance in helping the committee work on any problems that arise with these bills. Juanita Clark, Member, Independent Party of Clark County and the Tenth Amendment Group, said she was here to speak for Senate Bill 342. (This testimony from Las Vegas was garbled.) Leonard Stoute, Private Citizen testified from Las Vegas. (This testimony from Las Vegas was garbled.) Mr. Stoute described his feelings as a Vietnam veteran and his concern for our country. He stated, "... We're looking to you to make a statement that this is our state, we have a constitution. We feel like it has been taken from us in a way, and there's many like me that are very fearful [of[ what's happening with the federal government. We want the freedoms of this country and of our state preserved, and we call upon you to have compassion, to recognize your obligation as leaders to support the constitution, and fulfill the intent of the forefathers." Richard Klinfelter, Private Citizen, (This testimony from Las Vegas was garbled.), discussed taxes and said that as members of the state Legislature it is their responsibility to make sure that state citizens are not being ripped off on any taxes that they are not required to pay. He stated he supports this bill, emphasizing that the federal government has practically no jurisdiction within the state, that the founding fathers will prove that the states are sovereign. Senator Titus said that Mr. Klinfelter seems familiar to her, and thought he was in the 4 hour testimony on S.J.R. 1 down in Las Vegas, and indicated that Mr. Stoute was there. She asked if Mr. Klinfelter had been into that group of people who are so distressed about having federal intervention in their lives that they might be willing to take up arms against that intervention here in the states? Mr. Klinfelter replied: (This testimony from Las Vegas was garbled.): Well, I believe that we should be able to ... in a responsible way we should be able to vote people out. There has been a big turnover in Congress and let's hope it continues. Thomas Jefferson said ... that [to] keep these politicians straight we need a revolution every 20 years. We're probably well overdue. But I don't believe a revolution is going to occur by the people. I believe that certain people in the federal government, not all of them, most of them are honest people you know just doing their job and stuff like this, but you have some people here ... that ... are ... powerful, you know hungry for power and I don't [think] they believe in the republic themselves. ... but I've studied law and stuff like that for a long time as an ex-veteran, you know, it's my duty to uphold and defend the Constitution and you know, I've got a responsibility to ... my family, I've got a responsibility to my neighbors, I've got a responsibility to my state, and to my country. I am an American, I'm also a Nevadan, and if I'm forced to do something that I don't particularly want to do, cause the only thing I want to do is retire and live happily ever after. But I think these people, certain people like Janet Reno and Bill Clinton and a few other ones, they have a different agenda and ... And it might disrupt my plans for retirement. I hope it doesn't happen, but I'm willing to do whatever I have to do to make Patrick Henry proud of me. Since his name was mentioned, Mr. Stoute returned to testify regarding his military experience in Vietnam, indicating that he was trained to do things that are not natural and are not pleasant, but he wants his children and grandchildren to know that he stood up for freedom of their lives. He concluded saying that it is terrible what goes on in other countries, and God help us if we cannot get the help from the legislators at the state level. Senator McGinness thanked Mr. Stoute and said the committee appreciated his comments. Juanita Cox, Lobbyist, People to Protect America, requested that her written statement (Exhibit E) be entered into the record. The chairman closed the hearing on Senate Bill 342 and opened the hearing on Senate Concurrent Resolution (S.C.R.) 20. SENATE CONCURRENT RESOLUTION 20: Amends Joint Rules of the Senate and Assembly to establish policy regarding sexual harassment and procedures for administration of related claims. (BDR R-543) Senator Dina Titus, Clark County Senatorial District No. 7 stated: S.C.R. 20 is very simple. It amends the joint rules of the Senate and Assembly to firmly establish a policy regarding sexual harassment. The purpose of the amendment is to bring the Legislature in line with other state agencies and make laws that apply to everyone else apply to us as well. The Legislature is a place where power is a commodity, a commodity that can be used or abused, and power is the key to harassment. It's not about sex; it's about power. The power to threaten someone, the power to coerce them into doing something perhaps they don't want to do. And so, it's very highly appropriate for us to consider this within the legislative body. ... Several years ago the legislative commission approved an LCB [Legislative Counsel Bureau] policy on sexual harassment, but if you look closely at it you'd find that it applies to staff only. It sets up an informal method of dealing with problems that relate between one attache and another, or between an attache and a supervisor. After this was adopted, however, leadership in both houses issued a memo which stated that the Legislature had a policy against sexual harassment that applies not only to staff members, but also to lobbyists and legislators. This rule change would simply be a way of formalizing that memo, because, I think, as a memo that carries less weight than a rule; it has less symbolic significance, it says that this is something that is important to us, it should be formalized and it should be institutionalized. And the way to do that is not with a memo at the beginning of every session, but with an adjustment to the joint rules. So I would ask for your support. Also, when the bill was introduced, I believe every member of the Senate joined on as a sponsor. Raggio stated: Senator Titus is correct. I think every member of the Senate has signed on; I agreed to cosponsor the measure because I agree that this is an issue of concern not only in legislatures but in private sectors and other areas of government at any level, and it's a situation that must be clearly defined, and there must be a clear policy and procedure for dealing with complaints of this nature. That is the reason that Speaker Dini and I, in the last session, set forth a formal policy on sexual harassment. That was renewed, and I'm going to ask that the existing policy be made a part of the record. This bill models, I think, mirrors, the established policy on sexual harassment that was established by the speaker and me, and again this session by both co-speakers and myself as majority leader. This policy has applied, as Senator Titus points out, to all legislators, lobbyists, and employees of the Legislature including supervisors and coworkers. We wanted to make a clear statement that it applied to all who come in contact with one another in this session or in any session. The reason that it's a memorandum policy, of course, is because we can only do it as to any one session. Even if we pass this resolution amending the joint rules, we must again adopt at each session these joint rules, but I want to go on record as saying we should do so at each session when we adopt the joint rules; this should be an integral part of that. I guess as a legislator, as one who's been in business, and as a professional in an office, I held an elective county office, I know that these thing occur in varying degrees, and sometimes if they don't occur they're perceived, and there should be a procedure where someone can go in an easy, unembarrassing manner, and report a complaint, and have it dealt with objectively and carefully. So I want to join with all of the senators in this, and I think it's an appropriate action for us to take. Senator Coffin indicated that he wanted to understand clearly what some of the terms are, particularly in section 2 and in subsection 3b, where the terms "derogatory posters, photography, cartoons, drawings" are used: Noting that the members have to be careful to make sure that they do not impress upon themselves a political correctness that would inhibit a legislator's ability to display things on their walls which might be personal in nature to a person who chooses to enjoy those things. Senator Coffin said he could probably understand if the committee could define it to make sure that derogatory posters mean derogatory in terms of people of the opposite sex. He said he wants to make sure they are not talking about art. Senator Titus stated they discussed this with the Legislature's legal counsel and with the attorney general, and neither of them had any problems with how those definitions would be interrupted. Continuing, Senator Coffin said that he wanted to know what a derogatory poster is, noting that he has some 19th century political cartoons on the walls of his office that are rather harsh, and someone might think they are derogatory. He wanted to make sure that he does not violate this legislation. Senator McGinness said the committee would ask Mr. Erickson if there is anything in the record. Senator Titus asked Senator Coffin if these posters would cause unwelcome sexual advances, requests for favors, etc. Senator Coffin said, "The ones in my office are mostly political in nature and kind of fun because they poke fun at political entities both parties and things. As long as we are clearly defined so we don't trespass into free speech, I certainly can support this." Senator James stated: I do have two questions or concerns I want to understand how it works. First thing is that the bill seems to have two definitions of sexual harassment. In subsection 2 it says, "`Sexual harassment' is defined as unwelcome sexual advances, requests for sexual favors, other verbal or physical conduct of a sexual nature," and then with a qualifier, when, colon, it does one of three things: it is in context of a condition of employment; it affects decisions concerning the person; or it creates [an] intimidating or hostile environment. I understand all of that. But then it says in subsection 3, "sexual harassment includes" and then it gives another definition, or set of definitions, through category e; it doesn't qualify it as being in the context of those three things. My question is, are there two definitions here of sexual harassment; one of which is qualified by the three things and one of which is not? And then I have another question. Senator Titus stated there is not an intention for there to be two separate definitions, and if there is a need to clean up that definitional language, she does not have a problem doing that. Senator James stated: I was going to say, senator, that the ambiguity can be clarified by saying that sexual harassment, as the thing that this goes at, is what is identified in subsection 2, but the conduct which is directed toward those conditions of employment, etc. is what's defined in subsection 3. So we could make a change there which would clarify that ambiguity. The second thing I'm concerned about is that the bill provides that the committee that is referred to the speaker or the majority leader or the Legislative Counsel Bureau director is acted upon in a confidential and discrete investigation of the complaint by the appointed committee. But nowhere, that I see in the bill, does it provide that the person against whom the complaint is made has a right to anything but notice of the final decision of the committee. And so in the interest of a due process there should be something in here that the person is entitled to come before the committee, and have some kind of a due process, because, I think, almost as reprehensible as sexual harassment itself, and it certainly is extremely reprehensible, would be a false allegation of sexual harassment; and then if the person had no ability, and this star chamber was going listen to evidence outside their hearing, it could be unfair. And so I would just think maybe we could put something in there that they could be present and entitled to speak in their own behalf. Senator Titus said, "I agree with you Senator James. We don't want to create a star chamber. We want it to be very fair. We want people to know that this is the procedure, this is what will be followed if you report a complaint, it's not just going to be pooh-poohed or we'll look into it, or we'll take care of it. You know that there is a formal procedure and certainly both sides deserve to be represented in that procedure." Senator Raggio stated: I could comment further on that. This policy that was established emanated from a seminar which the Legislature's leadership agreed was essential, and we conducted that seminar, and we utilized the services of an attorney from ... Sacramento. It was a very well attended and well presented seminar, and it was clear the intent in the appointment of a committee, that the committee would operate under the procedure whereby there would be notification to the person against whom the complaint was lodged, and that person would have the fullest opportunity to present any other side to this issue. So that probably was understood and has always been intended. I might say to you that, in the last two sessions ... in which I have served as the majority leader, I have not received a complaint of this nature. So we have not actually had to put that into effect. But that would be the intent, certainly under the existing policy, and should be the intent under a similar rule. Elizabeth Livingston, Lobbyist, Nevada Women's Lobby, stated their support of this bill and noted that its passage will bring this body into compliance with most other bodies in the state. Senator McGinness indicated to Senator Titus that everyone is pretty much in agreement on S.C.R. 20, and that it is just a matter of getting Mr. Erickson to work with her on some language. He indicated that it would be put on a work session at next Tuesday's meeting, along with S.B. 342 and S.B. 246. The chairman adjourned the committee at 3:25 p.m. RESPECTFULLY SUBMITTED: Mavis Scarff, Committee Secretary APPROVED BY: Senator Mike McGinness, Chairman DATE: Senate Committee on Legislative Affairs and Operations May 2, 1995 Page