MINUTES OF THE SENATE COMMITTEE ON TAXATION Sixty-eighth Session June 19, 1995 The Senate Committee on Taxation was called to order by Chairman Sue Lowden, at 4:30 p.m., on Monday, June 19, 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 Sue Lowden, Chairman Senator Kathy M. Augustine, Vice Chairman Senator Ann O'Connell Senator Dean A. Rhoads Senator Randolph J. Townsend Senator John B. (Jack) Regan Senator Ernest E. Adler GUEST LEGISLATORS PRESENT: Assemblyman Peter G. Ernaut, Assembly District No. 37 STAFF MEMBERS PRESENT: Kevin Welsh, Research Analyst, Fiscal Analysis Division Kathy E. Cole, Committee Secretary OTHERS PRESENT: Dick Murray, Freelance Writer Chairman Lowden opened the hearing on Assembly Bill (A.B.) 594. ASSEMBLY BILL 594: Revises provisions relating to sale of alcoholic beverages. (BDR 32-1271) Dick Murray, Freelance Writer, said, "This is the third session that I have had the opportunity to come talk about brew pubs. The first time...everyone said that is a great idea...[So,] we made brew pubs legal in Nevada with some strings attached..." Mr. Murray handed out a production limitation handout (Exhibit C). Continuing his testimony Mr. Murray referred to the letter that he had sent to the chairman dated June 16, 1995 (Exhibit D). Mr. Murray ended his testimony by suggesting to the committee that they amend the bill to include "sunsetting limits within some reasonable period and also if the brew pubs wished to make more than 5,000 barrels than we could escalate the fees [accordingly]... Some states do that [escalate the fees depending on the amount of barrels produced]..." A general discussion ensued with regard to the language of the bill and how best to amend the bill. Senator Lowden said there were three basic proposed amendments to be attached to the bill. Each amendment was read and discussed by the committee. Assemblyman Peter G. Ernaut, Assembly District No. 37, listened to each proposed amendment and asked to comment on each one. Mr. Ernaut said, "The way I see it there are three different proposals. Senator Adler's is opening up brew pubs without regulations... Senator Augustine wants to get rid of `good cause' and do what Senator Adler recommended... Senator O'Connell wants to legalize the whole thing out... From my standpoint the amendment that Senator Adler has proposed it is the one that I support..." SENATOR ADLER INTRODUCED A MOTION TO AMEND AND DO PASS A.B. 594. SENATOR TOWNSEND SECONDED THE MOTION. Chairman Lowden asked, "Is there any other discussion on Senator Adler's amendment?" THE MOTION CARRIED. (SENATORS AUGUSTINE, O'CONNELL, AND RHOADS VOTED NO.) ***** Senator Augustine said for the record that she has "no financial interest in a winery." Chairman Lowden adjourned the meeting at 4:50 p.m. RESPECTFULLY SUBMITTED: Kathy Cole Committee Secretary APPROVED BY: Senator Sue Lowden, Chairman DATE: Senate Committee on Taxation June 19, 1995 Page