MINUTES OF THE SENATE COMMITTEE ON NATURAL RESOURCES Sixty-eighth Session June 26, 1995 The Senate Committee on Natural Resources was called to order by Chairman Dean A. Rhoads, at 2:05 p.m., on Monday, June 26, 1995, in Room 224 of the Legislative Building, Carson City, Nevada. Exhibit A is the Agenda. Exhibit B is the Attendance Roster. COMMITTEE MEMBERS PRESENT: Senator Dean A. Rhoads, Chairman Senator Lawrence E. Jacobsen, Vice Chairman Senator Mark A. James Senator Mike McGinness Senator Ernest E. Adler Senator John B. (Jack) Regan Senator O. C. Lee STAFF MEMBERS PRESENT: Fred Welden, Chief Deputy Research Analyst, Legislative Counsel Bureau Billie Brinkman, Committee Secretary OTHERS PRESENT: Pamela B. Wilcox, Administrator, Division of State Lands Bill Chernock, Representative, Zephyr Cove Resort, Lake Tahoe Frank Forvilly, Concessionaire, Round Hill Pines Beach, Lake Tahoe Verne Rosse, Deputy Administrator, Corrective Action, Division of Environmental Protection John Moore, Lobbyist, Alpha Analytical, Inc. Chairman Rhoads opened the hearing on Assembly Bill (A.B.) 548. ASSEMBLY BILL 548: Makes various changes regarding fees paid to state land registrar for use of state land. Pamela B. Wilcox, Administrator, Division of State Lands, informed the committee this measure is fairly complex. Chairman Rhoads interrupted the hearing on A.B. 548 to take care of committee housekeeping issues while there were five committee members present. Chairman Rhoads informed the members that suspension of Standing Rule 92 (Exhibit C) needed to be adopted by the committee. He called for a motion. SENATOR LEE MOVED TO SUSPEND STANDING RULE 92. SENATOR JACOBSEN SECONDED THE MOTION. THE MOTION CARRIED. (SENATORS ADLER AND JAMES WERE ABSENT FOR THE VOTE.) ***** Chairman Rhoads invited Ms. Wilcox to continue with her testimony on A.B. 548. She said this subject started with two bills, A.B. 548 and Assembly Bill (A.B.) 496. ASSEMBLY BILL 496: Makes various changes regarding fees of state land registrar for use of state land. Ms. Wilcox testified that during the last legislative session, a flat fee schedule was set up and adopted. She emphasized these fees are not use fees or taxes, they are fees in lieu of rentals. She tracked the fees and came back this session for fine tuning, which was done through A.B. 496, an agency bill. Ms. Wilcox talked on the current fee schedule (Exhibit D), a projection for the next biennium. She remarked if all fees were left in place and if everything was under permit and if everybody paid, there will be a revenue total of $293,400. Ms. Wilcox went to the second table (Exhibit E) which shows the fee schedule if A.B. 496 (the agency's bill) had passed as it was originally submitted. The total revenues there are $203,760. Ms. Wilcox stated A.B. 548 was introduced by Assemblyman Lynn C. Hettrick, Assembly District 39, which sought to repeal all the fees in Exhibit D and Exhibit E. The testimony before the Assembly committee indicated everyone was willing to pay reasonable fees and the discussion, according to Ms. Wilcox, centered on the question of a reasonable fee. As a result, the fees in A.B. 548 were decided upon, although Ms. Wilcox believed they are lower than they should be. Ms. Wilcox referred to a document, "Fee Schedule - Subcommittee Amendment" (Exhibit F) which will be the fee schedule if A.B. 548 is processed. That schedule shows the revenue dropping to $29,640. Ms. Wilcox pointed out there will be an overall fee reduction of about 90 percent with the passage of A.B. 548. Ms. Wilcox discussed the executive budget and said the Division of State Lands has projected a budget of $120,000 the first year of the biennium and $150,000 the second year. Ms. Wilcox, in reply to a question by Senator McGinness, said A.B. 496 has been amended into A.B. 548. Ms. Wilcox said the monies generated by the fees goes into the General Fund, and her budget, which comes out of the General Fund, is already set. Ms. Wilcox remarked the General Fund will lose the revenues if the fee schedule is lowered. Chairman Rhoads suggested that if A.B. 548 is processed in its present form, it will have to be re-referred to the Senate Committee on Finance. Ms. Wilcox continued with the explanations of the language in A.B. 548. Ms. Wilcox referred to another document, "Fee Schedule - Alternative K" (Exhibit G) which is included for the purpose of matching revenue projections made by the Division of State Lands. Ms. Wilcox went to a sheet (Exhibit H) with four suggested amendments and explained each amendment while answering questions from the committee. Bill Chernock, Representative, Zephyr Cove Resort, Lake Tahoe, expressed the issues at hand are pretty basic. He said A.B. 548 was introduced by Assemblyman Hettrick in response to Assembly Bill (A.B.) 430 of the 67th Session. ASSEMBLY BILL 430 OF THE 67TH SESSION: Makes various changes regarding fees of state land registrar and authorization to use state land. Mr. Chernock said, in the case of Zephyr Cove Resort, A.B. 430 of the 67th Session, generated an assessment which came from the U. S. Forest Service in the amount of $30,000 per year. Chairman Rhoads asked Mr. Chernock's opinion of A.B. 548. He replied he supports A.B. 548 without amendments. Frank Forvilly, Concessionaire, Round Hills Pine Beach, Lake Tahoe, expressed his concern for his future at Lake Tahoe and indicated he would like to study A.B. 548 a little further. Chairman Rhoads said the committee would not take action on A.B. 548 during this meeting. He asked Fred Welden, Chief Deputy Research Analyst, Legislative Counsel Bureau, to work with Mr. Chernock and Mr. Forvilly on the language of the bill. Chairman Rhoads closed the hearing on A.B. 548 and opened the hearing on Assembly Bill (A.B.) 717. ASSEMBLY BILL 717: Provides criteria for cleaning up discharged petroleum. Verne Rosse, Deputy Administrator, Corrective Action, Division of Environmental Protection, testified in support of A.B. 717. He said this measure was meant to create a more cost-effective cleanup of leaking underground storage tanks. Further discussion was provided by Mr. Rosse. Chairman Rhoads closed the hearing on A.B. 717. Chairman Rhoads called attention to Assembly Bill (A.B.) 580 which was heard by the committee on June 23, 1995. ASSEMBLY BILL 580: Requires certification of laboratories to analyze water. Chairman Rhoads said if this bill is enacted, to his understanding, it would require the Division of Health to travel to other states for an on-site inspection of an analytical laboratory wanting to do business in Nevada. Chairman Rhoads asked John Moore, Lobbyist, Alpha Analytical, Inc., to come forward and assist with information concerning A.B. 580. Chairman Rhoads said the argument by Ron Lange, Deputy Administrator, Division of Health, concerned the extra paperwork, therefore an increase in staff will be required and a larger budget will be needed. Senator McGinness indicated the only state analytical laboratory is so far behind in its work that people have difficulty getting even a simple water test. Mr. Moore said A.B. 580 would alleviate that problem because other labs would come into Nevada. Chairman Rhoads suggested that A.B. 580 be moved out of committee and he will discuss any possible amendments with Mr. Lange at the appropriate time. SENATOR McGINNESS MOVED TO DO PASS A.B. 580. SENATOR ADLER SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. ***** Chairman Rhoads announced that the Assembly did not concur with the amendment put on Assembly Bill (A.B.)307 by this committee. ASSEMBLY BILL 307: Makes various changes regarding state department of conservation and natural resources. The amendment changed the Clark County representation on the Board of Wildlife Commission from two to three members. The Assembly asked that the Clark County representation be kept at two. Chairman Rhoads said the Assembly committee has agreed to leave the Clark County representation at three, however, they would like new language to allow Mahlon Brown, current chairman, Board of Wildlife Commissioners, to serve another term. Discussion followed. Chairman Rhoads said a conference committee will be meeting on the issue. Senator McGinness and Senator Regan will serve on the conference committee. There being no further business to come before the committee, the chairman adjourned the meeting at 2:50 p.m. RESPECTFULLY SUBMITTED: Billie Brinkman, Committee Secretary APPROVED BY: Senator Dean A. Rhoads, Chairman DATE: Senate Committee on Natural Resources June 26, 1995 Page