THE ONE HUNDRED AND NINETEENTH DAY

Carson City(Sunday), May 30, 1999

Senate called to order at 1:03 p.m.

President Hunt presiding.

Roll called.

All present.

Prayer by Jenny Cordisco, representing Father Jerry Hanley.

Loving God,

We thank You for the gift of life on this beautiful new day. We thank You for all the many blessings You give us.

Especially those we take for granted.

Now, as we are nearing the end of the session, we ask You Lord who is all powerful and all loving, to open the minds and hearts of these great Senators give them the wisdom, discernment, strength and grace to make decisions that will better the lives of the people of Nevada.

We thank You Lord for who these Senators are and all that they give. Bless them always and keep them close to Your heart.

Amen.

Pledge of allegiance to the Flag.

Senator Raggio moved that further reading of the Journal be dispensed with, and the President and Secretary be authorized to make the necessary corrections and additions.

Motion carried.

REPORTS OF COMMITTEES

Madam President:

Your Committee on Finance, to which were referred Senate Bill No. 548; Assembly Bills Nos. 205, 696, has had the same under consideration, and begs leave to report the same back with the recommendation: Do pass.

William J. Raggio, Chairman

Madam President:

Your Committee on Government Affairs, to which was referred Assembly Bill No. 519, has had the same under consideration, and begs leave to report the same back with the recommendation: Do pass.

Ann O’Connell, Chairman

Madam President:

Your Committee on Judiciary, to which were referred Assembly Bills Nos. 287, 688, has had the same under consideration, and begs leave to report the same back with the recommendation: Do pass.

Mark A. James, Chairman

MESSAGES FROM THE ASSEMBLY

Assembly Chamber, Carson City, May 29, 1999

To the Honorable the Senate:

I have the honor to inform your honorable body that the Assembly on this day passed Senate Bill No. 551; Assembly Bills Nos. 699, 700.

Also, I have the honor to inform your honorable body that the Assembly on this day concurred in the Senate Amendment No. 1202 to Assembly Bill No. 189; Senate Amendment No. 1192 to Assembly Bill No. 220; Senate Amendment No. 1191 to Assembly Bill No. 480.

Also, I have the honor to inform your honorable body that the Assembly on this day respectfully refused to concur in the Senate Amendment No. 1197 to Assembly Bill No. 64.

Also, I have the honor to inform your honorable body that the Assembly on this day respectfully refused to recede from its action on Senate Bill No. 438, Assembly Amendment No. 1150, and requests a conference, and appointed Assemblymen Bache, Hettrick and Dini as a first Conference Committee to meet with a like committee of the Senate.

Also, I have the honor to inform your honorable body that the Assembly on this day adopted the report of the first Conference Committee concerning Senate Bill No. 167.

Also, I have the honor to inform your honorable body that the Assembly on this day adopted the report of the first Conference Committee concerning Senate Bill No. 369.

Also, I have the honor to inform your honorable body that the Assembly on this day adopted the report of the first Conference Committee concerning Senate Bill No. 391.

Also, I have the honor to inform your honorable body that the Assembly on this day adopted the report of the first Conference Committee concerning Senate Bill No. 16.

Also, I have the honor to inform your honorable body that the Assembly on this day adopted the report of the first Conference Committee concerning Assembly Bill No. 109.

Also, I have the honor to inform your honorable body that the Assembly on this day adopted the report of the first Conference Committee concerning Assembly Bill No. 376.

Also, I have the honor to inform your honorable body that the Assembly on this day adopted the report of the first Conference Committee concerning Assembly Bill No. 477.

Also, I have the honor to inform your honorable body that the Assembly on this day adopted the report of the first Conference Committee concerning Assembly Joint Resolution No. 1.

Also, I have the honor to inform your honorable body that the Assembly on this day refused to adopt the report of the first Conference Committee concerning Senate Bill No. 360 and appointed Assemblymen Manendo, Carpenter and Collins as a second Conference Committee to meet with a like committee of the Senate for further consideration of Senate Bill No. 360.

Also, I have the honor to inform your honorable body that the Assembly on this day appointed Assemblymen Price, Mortenson and Berman as a first Conference Committee concerning Assembly Joint Resolution No. 5 of the 69th Session.

Susan Furlong Reil

Assistant Chief Clerk of the Assembly

UNFINISHED BUSINESS

Consideration of Assembly Amendments

Senate Bill No. 279.

The following Assembly Amendment was read:

Amendment No. 1198.

Amend the bill as a whole by renumbering sec. 4 as sec. 5 and adding a new section designated sec. 4, following sec. 3, to read as follows:

“Sec. 4. There is hereby appropriated from the state highway fund to the Department of Motor Vehicles and Public Safety the sum of $10,800 for additional expenses for the registration of motor vehicles. This appropriation is supplemental to the appropriations made by section 27 of chapter 244, Statutes of Nevada 1997, at page 860, and section 1 of Senate Bill No. 517 of this session.”.

Amend the title of the bill, fifth line, after “technologies;” by inserting: “making a supplemental appropriation to the Department for additional expenses for the registration of motor vehicles;”.

Amend the summary of the bill to read as follows:

“SUMMARY—Extends reversion date of prior appropriation to Department of Motor Vehicles and Public Safety for completion of Phase II of Implementation Plan for Business Process Re-Engineering Project and makes appropriations for implementation of Project Genesis Phase II and related enabling technologies and for additional expenses for registration of motor vehicles. (BDR S‑1471)”.

Senator Raggio moved that the Senate concur in the Assembly amendment to Senate Bill No. 279.

Remarks by Senator Raggio.

Motion carried.

Bill ordered enrolled.

Senate Bill No. 481.

The following Assembly Amendment was read:

Amendment No. 893.

Amend the bill as a whole by renumbering sections 1 through 32 as sections 2 through 33, and adding a new section designated section 1, following the enacting clause, to read as follows:

“Section 1. Chapter 50 of NRS is hereby amended by adding thereto a new section to read as follows:

As used in NRS 50.265 to 50.345, inclusive, unless the context otherwise requires, “prohibited substance” has the meaning ascribed to it in section 20 of this act.”.

Amend section 1, page 2, by deleting lines 32 through 34 and inserting: “urine or other tangible evidence that is alleged to contain alcohol or a controlled substance, chemical, poison , [or] organic solvent or another prohibited substance may be admitted in any criminal, civil or administrative proceeding”.

Amend sec. 2, page 3, by deleting lines 21 through 23 and inserting: “expert witness regarding the presence in the breath, blood or urine of a person of alcohol, a controlled substance, or a chemical, poison , [or] organic solvent [,] or another prohibited substance, or the identity or quantity of a”.

Amend sec. 2, page 3, by deleting line 28 and inserting: “substance, chemical, poison , [or] organic solvent [,] or another prohibited substance, as the case may be,”.

Amend sec. 3, page 4, by deleting line 11 and inserting: “, [or] organic solvent [,] or another prohibited substance,”.

Amend sec. 3, page 5, by deleting line 2 and inserting: “poison, organic solvent or another prohibited substance.”.

Amend sec. 11, page 10, line 35, by deleting “10” and inserting “11”.

Amend sec. 18, page 17, by deleting line 29 and inserting: “poison, organic solvent or another prohibited substance.”.

Amend sec. 18, page 17, between lines 38 and 39, by inserting:

“3. As used in this section, “prohibited substance” has the meaning ascribed to it in section 20 of this act.”.

Amend sec. 19, page 18, by deleting lines 4 and 5 and inserting:

“2. Cocaine or cocaine metabolite.

3. Heroin or heroin metabolite (morphine or 6-monoacetyl morphine).”.

Amend sec. 19, page 18, by deleting lines 7 through 11 and inserting:

“5. Marihuana or marihuana metabolite.

6. Methamphetamine.

7. Phencyclidine.”.

Amend sec. 20, page 18, line 15, by deleting “19” and inserting “20”.

Amend sec. 22, page 19, by deleting lines 8 through 11 and inserting:

“3. It is unlawful for any person to drive or be in actual physical control of a vehicle on a highway or on premises to which the public has access with an amount of a prohibited substance in his blood or urine that is equal to or greater than:

Prohibited substance Urine Blood

Nanograms per Nanograms per

milliliter milliliter

(a) Amphetamine........................................... 500.............................. 100

(b) Cocaine.................................................... 150................................. 50

(d) Heroin.................................................... 2,000................................. 50

(e) Heroin metabolite:

(1) Morphine.......................................... 2,000................................. 50

(2) 6-monoacetyl morphine....................... 10................................. 10

(f) Lysergic acid diethylamide...................... 25................................. 10

(g) Marihuana................................................. 10................................... 2

(h) Marihuana metabolite............................. 15................................... 5

(i) Methamphetamine................................... 500.............................. 100

(j) Phencyclidine............................................. 25................................. 10”.

Amend sec. 27, page 26, by deleting lines 19 and 20 and inserting:

“(f) Has a prohibited substance in his blood or urine in an amount that is equal to or greater than the amount set forth in subsection 5 of NRS 484.379,”.

Amend sec. 30, page 28, by deleting lines 31 and 32 and inserting: “whether a controlled substance [when] , chemical, poison, organic solvent or another prohibited substance is present, if such a test is administered at the direction of a police”.

Amend sec. 30, page 29, by deleting lines 31 and 32 and inserting:

“5. If the presence of a controlled substance , chemical, poison, organic solvent or another prohibited substance in the blood or urine of the”.

Amend sec. 30, page 30, line 6, after “substance” by inserting: “or another prohibited substance”.

Amend sec. 31, page 30, by deleting lines 16 and 17 and inserting: “his blood or has a detectable amount of a [controlled] prohibited substance in his [system,] blood or urine, if that person is present,”.

Amend sec. 31, page 30, by deleting lines 29 and 30 and inserting: “had a detectable amount of a [controlled] prohibited substance in his [system,] blood or urine, the officer shall immediately prepare and”.

Amend sec. 31, page 30, by deleting lines 35 and 36 and inserting: “blood or with a detectable amount of a [controlled] prohibited substance in his [system,] blood or urine, as determined by a chemical test.”.

Amend sec. 31, page 31, by deleting lines 15 through 43 and inserting:

“[5. As used in this section, “controlled substance” means any of the following substances for which a valid prescription has not been issued to the consumer:

(a) Amphetamine;

(b) Benzoylecgonine;

(d) Heroin;

(e) Lysergic acid diethylamide;

(f) Mecloqualone;

(g) Mescaline;

(h) Methamphetamine;

(i) Methaqualone;

(j) Monoacetylmorphine;

(k) Phencyclidine;

(l) N-ethylamphetamine;

(m) N, N-dimethylamphetamine;

(n) 2, 5-dimethoxyamphetamine;

(o) 3, 4-methylenedioxyamphetamine;

(p) 3, 4, 5-trimethoxyamphetamine;

(q) 4-bromo-2, 5-dimethoxyamphetamine;

(r) 4-methoxyamphetamine;

(s) 4-methyl-2, 5-dimethoxyamphetamine;

(t) 5-dimethoxy-alpha-methylphenethylamine; or

(u) 5-methoxy-3, 4-methylenedioxyamphetamine,

if the substance is classified in schedule I or II pursuant to NRS 453.166 or 453.176 at the time the substance is consumed.]”.

Amend sec. 32, page 32, by deleting lines 15 and 16 and inserting: “alcohol in his blood or a detectable amount of a [controlled] prohibited substance in his [system.] blood or urine. Upon an affirmative”.

Amend the bill as a whole by renumbering sections 33 through 48 as sections 35 through 50 and adding a new section designated sec. 34, following sec. 32, to read as follows:

“Sec. 34. NRS 484.3888 is hereby amended to read as follows:

484.3888 1. The committee on testing for intoxication may adopt regulations that require:

(a) The calibration of devices which are used to test a person’s blood or urine to determine the amount of alcohol or the presence of a controlled substance or another prohibited substance in the person’s blood or urine;

(b) The certification of persons who make those calibrations;

(c) The certification of persons who operate devices for testing a person’s blood or urine to determine the amount of alcohol or presence of a controlled substance or another prohibited substance in the person’s blood or urine; and

(d) The certification of persons who examine those operators.

2. The committee may adopt regulations that prescribe the essential procedures for the proper operation of the various types of devices used to test a person’s blood or urine to determine the amount of alcohol or the presence of a controlled substance or another prohibited substance in the person’s blood or urine.”.

Amend sec. 34, page 33, by deleting lines 18 and 19 and inserting:

“(b) Whether a controlled substance , chemical, poison, organic solvent or another prohibited substance is present in his blood [.] or urine.”.

Amend sec. 37, page 35, line 22, by deleting “19” and inserting “20”.

Amend sec. 38, page 36, by deleting lines 9 through 12 and inserting:

“3. It is unlawful for any person to operate or be in actual physical control of a vessel under power or sail on the waters of this state with an amount of a prohibited substance in his blood or urine that is equal to or greater than:

Prohibited substance Urine Blood

Nanograms per Nanograms per

Milliliter milliliter

(a) Amphetamine........................................... 500.............................. 100

(b) Cocaine.................................................... 150................................. 50

(d) Heroin.................................................... 2,000................................. 50

(e) Heroin metabolite:

(1) Morphine.......................................... 2,000................................. 50

(2) 6-monoacetyl morphine....................... 10................................. 10

(f) Lysergic acid diethylamide...................... 25................................. 10

(g) Marihuana................................................. 10................................... 2

(h) Marihuana metabolite............................. 15................................... 5

(i) Methamphetamine................................... 500.............................. 100

(j) Phencyclidine............................................. 25................................. 10”.

Amend sec. 39, page 36, by deleting lines 35 and 36 and inserting:

“(f) Has a prohibited substance in his blood or urine in an amount that is equal to or greater than the amount set forth in subsection 3 of NRS 488.410,”.

Amend sec. 41, page 38, by deleting line 8 and inserting: “substance [when] , chemical, poison, organic solvent or another prohibited substance is present, if such”.

Amend sec. 41, page 39, by deleting lines 10 and 11 and inserting:

“5. If the presence of a controlled substance , chemical, poison, organic solvent or another prohibited substance in the blood or urine of the”.

Amend sec. 41, page 39, line 29, after “substance” by inserting: “or another prohibited substance”.

Amend sec. 43, page 40, by deleting lines 39 and 40 and inserting:

“(b) Whether a controlled substance , chemical, poison, organic solvent or another prohibited substance is present in his blood [.] or urine.”.

Amend sec. 45, page 41, by deleting lines 29 and 30 and inserting: “records of a patient which relate to a test of his blood, breath or urine if:”.

Amend sec. 45, page 41, by deleting lines 39 and 40 and inserting: “controlled substance , chemical, poison, organic solvent or another prohibited substance in the blood, breath or urine of the patient.”.

Amend sec. 45, page 42, between lines 9 and 10, by inserting:

“5. As used in this section, “prohibited substance” has the meaning ascribed to it in section 20 of this act.”.

Amend the bill as a whole by renumbering sections 49 and 50 as sections 53 and 54 and adding new sections designated sections 51 and 52, following sec. 48, to read as follows:

“Sec. 51. Section 2 of Assembly Bill No. 620 of this session is hereby amended to read as follows:

Sec. 2. NRS 488.480 is hereby amended to read as follows:

488.480 1. If a person refuses to submit to a required chemical test provided for in NRS488.450 or 488.460, evidence of that refusal is admissible in any criminal action arising out of acts alleged to have been committed while the person was:

(a) Operating or in actual physical control of a vessel under power or sail while under the influence of intoxicating liquor or a controlled substance; or

(b) Engaging in any other conduct prohibited by NRS 488.410 or 488.420.

2. Except as otherwise provided in subsection 3 of NRS 488.450, a court may not exclude evidence of a required test or failure to submit to such a test if the peace officer or other person substantially complied with the provisions of NRS 488.450 to 488.500, inclusive.

3. If a person submits to a chemical test provided for in NRS 488.450 or 488.460, full information concerning that test must be made available, upon his request, to him or his attorney.

4. Evidence of a required test is not admissible in a criminal proceeding unless it is shown by documentary or other evidence that the device for testing breath was certified[,] pursuant to NRS 484.3882 and was calibrated, maintained and operated as provided by the regulations of the committee on testing for intoxication adopted pursuant to NRS [484.3882,] 484.3884, 484.3886 or 484.3888.

5. If the device for testing breath has been certified by the committee on testing for intoxication to be accurate and reliable pursuant to [subsection 1 of] NRS 484.3882, it is presumed that, as designed and manufactured, the device is accurate and reliable for the purpose of testing a person’s breath to determine the percent by weight of alcohol in the person’s breath.

6. A court shall take judicial notice of the certification by the director of a person to operate testing devices of one of the certified types. If a test to determine the amount of alcohol in a person’s breath has been performed with a certified type of device by a person who is certified pursuant to NRS 484.3886 or 484.3888, it is presumed that the person operated the device properly.

7. This section does not preclude the admission of evidence of a test of a person’s breath where the:

(a) Information is obtained through the use of a device other than one of a type certified by the committee on testing for intoxication.

(b) Test has been performed by a person other than one who is certified by the director.

Sec. 52. Section 2 of Assembly Bill No. 678 of this session is hereby amended to read as follows:

Sec. 2. NRS 483.020 is hereby amended to read as follows:

483.020 As used in NRS 483.010 to 483.630, inclusive, and section 1 of this act, unless the context otherwise requires, the words and terms defined in NRS 483.025 to 483.190, inclusive, section 1 of this act and section 11 of [this act] Senate Bill No. 481 of this session have the meanings ascribed to them in those sections.”.

Amend the title of the bill, third line, by deleting: “blood, urine or other bodily substance;” and inserting: “blood or urine;”.

Senator James moved that the Senate concur in the Assembly amendment to Senate Bill No. 481.

Remarks by Senator James.

Motion carried.

Bill ordered enrolled.

Senate Bill No. 544.

The following Assembly Amendment was read:

Amendment No. 873.

Amend the bill as a whole by adding new sections designated sections 2.3 and 2.6, following sec. 2, to read as follows:

“Sec. 2.3. NRS 286.160 is hereby amended to read as follows:

286.160 1. The board shall employ an executive officer who serves at the pleasure of the board. The executive officer shall select an operations officer, investment officer, manager of information systems, administrative assistant and administrative analyst whose appointments are effective upon confirmation by the board. The operations officer, investment officer, manager of information systems, administrative assistant and administrative analyst serve at the pleasure of the executive officer.

2. The executive officer, operations officer, investment officer, manager of information systems, administrative assistant and administrative analyst are entitled to annual salaries fixed by the board with the approval of the interim retirement and benefits committee of the legislature[.] created pursuant to section 36.5 of this act. The salaries of these employees are exempt from the limitations of NRS 281.123.

3. The executive officer must:

(a) Be a graduate of a 4‑year college or university with a degree in business administration or public administration or equivalent degree.

(b) Possess at least 5 years’ experience in a high level administrative or executive capacity, including responsibility for a variety of administrative functions such as retirement, insurance, investment or fiscal operations.

4. The operations officer and the investment officer must each be a graduate of a 4‑year college or university with a degree in business administration or public administration or an equivalent degree.

5. Except as otherwise provided in NRS 284.143, the executive officer shall not pursue any other business or occupation or perform the duties of any other office of profit during normal office hours unless on leave approved in advance. The executive officer shall not participate in any business enterprise or investment in real or personal property if the system owns or has a direct financial interest in that enterprise or property.

Sec. 2.6. NRS 286.211 is hereby amended to read as follows:

286.211 1. The board shall, with the advice of the interim retirement and benefits committee[:] of the legislature created pursuant to section 36.5 of this act:

(a) Adopt regulations for the evaluation of requests for enrollment under the police and firemen’s retirement fund; and

(b) Determine those positions eligible under the early retirement provisions for police officers and firemen.

2. Service in any position which has not been determined by the board to be eligible does not entitle a member to early retirement as a fireman or police officer.”.

Amend sec. 10, page 5, by deleting lines 26 and 27 and inserting: “board with the approval of the interim retirement and benefits committee of the legislature created pursuant to section 36.5 of this act. The salary of the executive officer is”.

Amend the bill as a whole by adding a new section designated sec. 11.5, following sec. 11, to read as follows:

“Sec. 11.5. 1. A participating state employee whose position is only authorized for 4 to 6 months every other year and who plans to return to the same or a similar position for the next period during which such a position is authorized may retain his membership in and his dependents’ coverage by the program after his employment ceases for:

(a) Three full calendar months in addition to the period of extended coverage required by federal law following the termination of employment; or

(b) Twenty-one full calendar months, if no period of extended coverage is required by federal law.

2. An employee who elects to continue his participation in the program pursuant to subsection 1 shall pay the entire premium or contribution for his insurance until the date on which he is reemployed.

3. Failure to return to the same or a similar position for any reason, whether the decision was made by the former employee or the state, does not affect the application of this section.”.

Amend sec. 12, pages 5 and 6, by deleting sec. 12 and inserting:

“Sec. 12. (Deleted by amendment.)”.

Amend sec. 12.5, page 6, line 38, by deleting “10” and inserting “5”.

Amend sec. 12.5, page 6, line 39, after “program.” by inserting: “In determining whether to approve a proposed contract, the board shall follow the criteria set forth in the regulations adopted by the board pursuant to subsection 4 and may consider the cumulative impact of groups that have left or are proposing to leave the program. Except as otherwise provided in this section, the board has discretion in determining whether to approve a contract. If the board approves a proposed contract pursuant to this subsection, the group that submitted the proposed contract is not authorized to leave the program until 120 days after the date on which the board approves the proposed contract.”.

Amend sec. 12.5, page 7, between lines 4 and 5, by inserting:

“4. The board shall adopt regulations establishing the criteria pursuant to which the board will approve proposed contracts pursuant to subsection 2.”.

Amend sec. 15, page 9, by deleting lines 20 through 25 and inserting:

“2. To secure group health , [~~or]~~ life or workers’ compensation insurance for its officers and employees and their dependents, participate as a member of a nonprofit cooperative association or nonprofit corporation that has been established in this state to secure such insurance for its members from an insurer licensed pursuant to the provisions of Title 57 of NRS.

3. In addition to the provisions of subsection 2, participate as a member of a nonprofit cooperative association or nonprofit corporation that has been established in this state to:

(a) Facilitate contractual arrangements for the provision of medical services to its members’ officers and employees and their dependents and for related administrative services.

(b) Procure health-related information and disseminate that information to its members’ officers and employees and their dependents.”.

Amend sec. 18, pages 10 and 11, by deleting lines 11 through 42 on page 10 and lines 1 through 7 on page 11 and inserting:

“(a) One member who is an employee of the University and Community College System of Nevada, appointed by the governor upon consideration of any recommendations of organizations that represent employees of the University and Community College System of Nevada.

(b) One member who is retired from public employment, appointed by the governor upon consideration of any recommendations of organizations that represent retired public employees.

(c) Two members who are employees of the state, appointed by the governor upon consideration of any recommendations of organizations that represent state employees.

(d) One member appointed by the governor upon consideration of any recommendations of organizations that represent employees of local governments that participate in the program.

(e) One member who is employed by this state in a managerial capacity and has substantial and demonstrated experience in risk management, portfolio investment strategies or employee benefits programs appointed by the governor. The governor may appoint the executive officer of the public employees’ retirement system to fill this position.

(f) Two members who have substantial and demonstrated experience in risk management, portfolio investment strategies or employee benefits programs appointed by the governor.

(g) The director of the department of administration or his designee.

2. Of the six persons appointed to the board pursuant to paragraphs (a) to (e), inclusive, of subsection 1, at least one member must have an advanced degree in business administration, economics, accounting, insurance, risk management or health care administration, and at least two members must have education or proven experience in the management of employees’ benefits, insurance, risk management, health care administration or business administration.

3. Each person appointed as a member of the board must:

(a) Except for a member appointed pursuant to paragraph (f) of subsection 1, have been a participant in the program for at least 1 year before his appointment;

(b) Except for a member appointed pursuant to paragraph (f) of subsection 1, be a current employee of the State of Nevada or another public employer that participates in the program or a retired public employee who is a participant in the program; and”.

Amend sec. 18, page 11, line 13, by deleting “section.” and inserting: “section or is removed by the governor.”.

Amend sec. 18, page 11, by deleting line 19 and inserting: “governor. If the governor wishes to remove a member from the board for any reason other than malfeasance or misdemeanor, the governor shall provide the member with written notice which states the reason for and the effective date of the removal.”.

Amend sec. 20, page 13, line 9, by deleting “all applicable”.

Amend sec. 20, page 13, by deleting lines 12 and 13 and inserting: “~~commission. For the purposes of]~~ interim retirement and benefits committee of the legislature created pursuant to section 36.5 of this act.”.

Amend sec. 24, page 15, by deleting line 17 and inserting: “interim retirement and benefits committee of the legislature created pursuant to section 36.5 of this act. The salaries”.

Amend the bill as a whole by adding a new section designated sec. 36.5, following sec. 36, to read as follows:

“Sec. 36.5. Chapter 218 of NRS is hereby amended by adding thereto a new section to read as follows:

1. There is hereby created an interim retirement and benefits committee of the legislature to review the operation of the public employees’ retirement system and the public employees’ benefits program and to make recommendations to the public employees’ retirement board and the board of the public employees’ benefits program, the legislative commission and the legislature. The interim retirement and benefits committee consists of six members appointed as follows:

(a) Three members of the senate, one of whom is the chairman of the committee on finance during the preceding session and two of whom are appointed by the majority leader of the senate.

(b) Three members of the assembly, one of whom is the chairman of the committee on ways and means and two of whom are appointed by the speaker of the assembly.

2. The immediate past chairman of the senate standing committee on finance is the chairman of the interim retirement and benefits committee for the period ending with the convening of each odd‑numbered session of the legislature. The immediate past chairman of the assembly standing committee on ways and means is the chairman of the interim retirement and benefits committee during the next legislative interim, and the chairmanship alternates between the houses of the legislature according to this pattern.

3. The interim retirement and benefits committee may exercise the powers conferred on it by law only when the legislature is not in regular or special session and shall meet at the call of the chairman.

4. The director of the legislative counsel bureau shall provide a secretary for the interim retirement and benefits committee.

5. The members of the interim retirement and benefits committee are entitled to receive the compensation provided for a majority of the members of the legislature during the first 60 days of the preceding session, the per diem allowance provided for state officers and employees generally and the travel expenses provided by NRS 218.2207 for each day of attendance at a meeting of the committee and while engaged in the business of the committee. Per diem allowances, compensation and travel expenses of the members of the committee must be paid from the legislative fund.”.

Amend the bill as a whole by adding a new section designated sec. 42.5, following sec. 42, to read as follows:

“Sec. 42.5. Section 18 of this act is hereby amended to read as follows:

Sec. 18. NRS 287.041 is hereby amended to read as follows:

287.041 1. There is hereby created the board of the public employees’ benefits program. The board consists of [nine] seven members appointed as follows:

(a) One member who is an employee of the University and Community College System of Nevada, appointed by the governor upon consideration of any recommendations of organizations that represent employees of the University and Community College System of Nevada.

(b) One member who is retired from public employment, appointed by the governor upon consideration of any recommendations of organizations that represent retired public employees.

(c) Two members who are employees of the state, appointed by the governor upon consideration of any recommendations of organizations that represent state employees.

(d) One member appointed by the governor upon consideration of any recommendations of organizations that represent employees of local governments that participate in the program.

(f) [Two members who have substantial and demonstrated experience in risk management, portfolio investment strategies or employee benefits programs appointed by the governor.

(g)] The director of the department of administration or his designee.

3. Each person appointed as a member of the board must:

(a) [Except for a member appointed pursuant to paragraph (f) of subsection 1, have] Have been a participant in the program for at least 1 year before his appointment;

(b) [Except for a member appointed pursuant to paragraph (f) of subsection 1, be] Be a current employee of the State of Nevada or another public employer that participates in the program or a retired public employee who is a participant in the program; and

4. Except as otherwise provided in this subsection, after the initial terms, the term of an appointed member of the board is 4 years and until his successor is appointed and takes office unless the member no longer possesses the qualifications for appointment set forth in this section or is removed by the governor. If a member loses the requisite qualifications within the last 12 months of his term, the member may serve the remainder of his term. Members are eligible for reappointment. A vacancy occurring in the membership of the board must be filled in the same manner as the original appointment.

5. The appointed members of the board serve at the pleasure of the governor. If the governor wishes to remove a member from the board for any reason other than malfeasance or misdemeanor, the governor shall provide the member with written notice which states the reason for and the effective date of the removal.”.

Amend the bill as a whole by deleting sections 43 through 46 and inserting:

“Secs. 43-46. (Deleted by amendment.)”.

Amend sec. 47, page 29, lines 12 and 13, by deleting: “July 1, 1999.” and inserting: “the members of the board of the public employees’ benefits program are appointed pursuant to section 48 of Senate Bill No. 544 of this session.”.

Amend sec. 47, page 29, lines 15 and 16, by deleting: “July 1, 1999.” and inserting: “the members of the board of the public employees’ benefits program are appointed pursuant to section 48 of Senate Bill No. 544 of this session.”.

Amend the bill as a whole by adding a new section designated sec. 47.5, following sec. 47, to read as follows:

“Sec. 47.5. NRS 286.113 and 287.0432 are hereby repealed.”.

Amend sec. 49, page 30, by deleting lines 1 through 6 and inserting:

“Sec. 49. 1. This section and sections 41, 47 and 48 of this act become effective upon passage and approval.

2. Sections 1 to 12, inclusive, 13 to 40, inclusive, 42 and 50 of this act become effective on July 1, 1999.

3. Section 12.5 of this act becomes effective on July 1, 1999, for the purpose of adopting regulations, and on January 1, 2001, for all other purposes.

4. Section 18 of this act expires by limitation on July 1, 2003.

5. Section 42.5 of this act becomes effective on July 1, 2003.”.

Amend the text of repealed sections by adding the text of NRS 286.113.

Amend the title of the bill by deleting the seventh and eighth lines and inserting: “and the executive officer to complete continuing education; authorizing certain periodic state employees to receive extended coverage from the public employees’ benefits program; renaming the interim retirement committee and expanding its duties to include the review of the operation of the public”.

Senator O’Connell moved that the Senate concur in Assembly amendment No. 873 to Senate Bill No. 544.

Motion carried.

Amendment No. 1199.

Amend sec. 11.5, page 7, line 1, by deleting “Three” and inserting “Six”.

Amend sec. 11.5, page 7, line 4, by deleting “Twenty-one” and inserting “Twenty-four”.

Amend sec. 11.5, page 7, line 8, after “contribution” by inserting: “plus allowable administrative fees”.

Amend sec. 12.5, page 7, line 21, by deleting “shall” and inserting “may”.

Amend sec. 18, page 11, line 22, by deleting “an” and inserting “a professional”.

Amend sec. 29, page 19, line 5, by deleting “689B.600,” and inserting “689B.590,”.

Amend sec. 37, page 24, line 25, by after “(h)” by inserting: “The division of health care financing and policy of the department of human resources.

(i)”.

Amend sec. 37, page 24, line 26, by deleting “(i)” and inserting “(j)”.

Amend the bill as a whole by adding a new section designated sec. 48.5, following sec. 48, to read as follows:

“Sec. 48.5. On or before February 5, 2001, the board of the public employees’ benefits program created pursuant to NRS 287.041 shall submit a copy of the regulations adopted by the board pursuant to section 12.5 of this act to the 71st session of the Nevada Legislature.”.

Amend sec. 49, page 30, by deleting line 34 and inserting:

“2. Sections 1 to 12, inclusive, 13 to 28, inclusive, 30 to 40, inclusive, 42, 48.5 and 50 of this act”.

Amend sec. 49, page 30, line 36, after “3.” by inserting: “Section 29 of this act becomes effective at 12:01 a.m. on July 1, 1999.

4.”.

Amend sec. 49, page 30, line 37, by deleting “January” and inserting “July”.

Amend sec. 49, page 30, line 39, by deleting “4.” and inserting “5.”.

Amend sec. 49, page 30, line 40, by deleting “5.” and inserting “6.”.

Remarks by Senator O’Connell.

Senator O’Connell moved that the Senate do not concur in Assembly amendment No. 1199 to Senate Bill No. 544.

Remarks by Senator O’Connell.

Motion carried.

Bill ordered transmitted to the Assembly.

Reports of Conference Committees

Madam President:

The first Conference Committee concerning Senate Bill No. 192, consisting of the undersigned members, has met, and reports that:

It has agreed to recommend that the amendment of the Assembly be concurred in.

Jon C. Porter Barbara E. Buckley

Mike McGinness Gene Segerblom

Raymond C. Shaffer Lynn C. Hettrick

Senate Conference Committee Assembly Conference Committee

Senator Porter moved that the Senate adopt the report of the first Conference Committee concerning Senate Bill No. 192.

Conflict of interest declared by Senators James and Amodei.

Remarks by Senators Porter and Titus.

Motion carried.

Madam President:

The first Conference Committee concerning Senate Bill No. 475, consisting of the undersigned members, has met, and reports that:

It has agreed to recommend that the amendment of the Assembly be concurred in.

It has agreed to recommend that the bill be further amended as set forth in Conference Amendment No. 13, which is attached to and hereby made a part of this report.

Conference Amendment.

Amend sec. 4, page 3, by deleting lines 28 and 29 and inserting: “appropriate, in accordance with the procedures for bidding that are set forth in:

(a) The provisions of sections 3 to 11, inclusive, of Assembly Bill No. 298 of this session; or

(b) NRS 338.140 to 338.147, inclusive, if the public body is a local government that elects to award a contract for a public work in accordance with paragraph (b) of subsection 1 of section 2 of Assembly Bill No. 298 of this session.”.

Amend sec. 8, page 6, line 6, after “338.147” by inserting: “or section 11 of Assembly Bill No. 298 of this session”.

Amend sec. 8, page 6, line 36, by deleting “contract;” and inserting: “contract, excluding any amount related to costs that may be incurred as a result of unexpected conditions or occurrences as authorized by the contract;”.

Amend sec. 9, page 7, line 10, by deleting: “Design or construct” and inserting “Construct”.

Amend sec. 9, page 7, line 11, by deleting “design or”.

Amend sec. 10, pages 7 through 9, by deleting lines 36 through 42 on page 7, lines 1 through 43 on page 8 and lines 1 through 13 on page 9, and inserting:

“5. “Eligible bidder” means a person who is:

(a) Found to be a responsible and responsive contractor by a local government which requests bids for a public work in accordance with paragraph (b) of subsection 1 of section 2 of [this act;] Assembly Bill No. 298 of this session; or

(b) Determined by a public body which awarded a contract for a public work pursuant to sections 3 to 11, inclusive, of [this act,] Assembly Bill No. 298 of this session, to be qualified to bid on that contract pursuant to section 5 of [this act] Assembly Bill No. 298 of this session or was exempt from meeting such qualifications pursuant to section 6 of [this act.

3.] Assembly Bill No. 298 of this session.

6. “Local government” means every political subdivision or other entity which has the right to levy or receive money from ad valorem or other taxes or any mandatory assessments, and includes, without limitation, counties, cities, towns, boards, school districts and other districts organized pursuant to chapters 244A, 309, 318, 379, 474, 541, 543 and 555 of NRS, NRS 450.550 to 450.750, inclusive, and any agency or department of a county or city which prepares a budget separate from that of the parent political subdivision.

[4.] 7. “Offense” means failing to:

(a) Pay the prevailing wage required pursuant to this chapter;

(b) Pay the contributions for unemployment compensation required pursuant to chapter 612 of NRS; or

[5.] 8. “Prime contractor” means a person who:

(a) Contracts to [complete] construct an entire project;

(b) Coordinates all work performed on the entire project;

(d) Contracts for the services of any subcontractor or independent contractor or is responsible for payment to any contracted subcontractors or independent contractors.

[6.] 9. “Public body” means the state, county, city, town, school district or any public agency of this state or its political subdivisions sponsoring or financing a public work.

[7.] 10. “Public work” means any project for the new construction, repair or reconstruction of:

(a) A project financed in whole or in part from public money for:

(1) Public buildings;

(2) Jails and prisons;

(3) Public roads;

(4) Public highways;

(5) Public streets and alleys;

(6) Public utilities which are financed in whole or in part by public money;

(7) Publicly owned water mains and sewers;

(8) Public parks and playgrounds;

(9) Public convention facilities which are financed at least in part with public funds; and

(10) Any other publicly owned works and property whose cost as a whole exceeds $20,000.

Each separate unit that is a part of a project is included in the cost of the project to determine whether a project meets that threshold.

(b) A building for the University and Community College System of Nevada of which 25 percent or more of the costs of the building as a whole are paid from money appropriated by this state or from federal money.

[8.] 11. “Specialty contractor” means a contractor whose operations as such are the performance of construction work requiring special skill and whose principal contracting business involves the use of specialized building trades or crafts.

12. “Stand-alone underground utility project” means an underground utility project that is not integrated into a larger project, including, without limitation:

(a) An underground sewer line or an underground pipeline for the conveyance of water, including facilities appurtenant thereto; and

(b) A project for the construction or installation of a storm drain, including facilities appurtenant thereto,

that is not located at the site of a public work for the design and construction of which a public body is authorized to contract with a design-build team pursuant to subsection 2 of section 2 of this act.

13. “Wages” means:

(a) The basic hourly rate of pay; and

(b) The amount of pension, health and welfare, vacation and holiday pay, the cost of apprenticeship training or other similar programs or other bona fide fringe benefits which are a benefit to the workman.

[9.] 14. “Workman” means a skilled mechanic, skilled workman, semiskilled mechanic, semiskilled workman or unskilled workman.The term does not include a design professional . [as that term is defined in NRS 338.155.]”.

Amend sec. 11, pages 9 and 10, by deleting lines 16 through 42 on page 9 and lines 1 through 21 on page 10, and inserting: “338.1907, a local government that awards a contract for the construction, alteration or repair of a public work in accordance with paragraph (b) of subsection 1 of section 2 of [this act,] Assembly Bill No. 298 of this session, or a public officer, public employee or other person responsible for awarding a contract for the construction, alteration or repair of a public work who represents that local government, shall not:

(a) Commence such a project for which the estimated cost exceeds $100,000 unless it advertises in a newspaper of general circulation in this state for bids for the project; or

(b) Divide such a project into separate portions to avoid the requirements of paragraph (a).

2. Except as otherwise provided in subsection 6, a local government that maintains a list of properly licensed contractors who are interested in receiving offers to bid on public works projects for which the estimated cost is more than $25,000 but less than $100,000 shall solicit bids from not more than three of the contractors on the list for a contract of that value for the construction, alteration or repair of a public work. The local government shall select contractors from the list in such a manner as to afford each contractor an equal opportunity to bid on a public works project. A properly licensed contractor must submit a written request annually to the local government to remain on the list. Offers for bids which are made pursuant to this subsection must be sent by certified mail.

3. Approved plans and specifications for the bids must be on file at a place and time stated in the advertisement for the inspection of all persons desiring to bid thereon and for other interested persons. Contracts for the project must be awarded on the basis of bids received.

4. Any bids received in response to an advertisement for bids may be rejected if the person responsible for awarding the contract determines that:

(a) The bidder is not responsive or responsible;

(b) The quality of the services, materials, equipment or labor offered does not conform to the approved plan or specifications; or

5. Before a local government may commence a project subject to the provisions of this section, based upon a determination that the public interest would be served by rejecting any bids received in response to an advertisement for bids, it shall prepare and make available for public inspection a written statement containing:

(a) A list of all persons, including supervisors, whom the local government intends to assign to the project, together with their classifications and an estimate of the direct and indirect costs of their labor;

(b) A list of all equipment that the local government intends to use on the project, together with an estimate of the number of hours each item of equipment will be used and the hourly cost to use each item of equipment;

(d) An estimate of the total cost of the project; and

(e) An estimate of the amount of money the local government expects to save by rejecting the bids and performing the project itself.”.

Amend sec. 11, page 10, by deleting line 28 and inserting: “Statutes of Nevada 1947, the Moapa Valley water district created pursuant to chapter 477, Statutes of Nevada 1983 or the Virgin Valley water district created pursuant to chapter 100, Statutes of Nevada 1993[.] ; or”.

Amend sec. 12, pages 10 and 11, by deleting lines 33 through 43 on page 10 and lines 1 through 38 on page 11, and inserting:

“338.143 1. Except as otherwise provided in subsection 6, a local government that awards a contract for the construction, alteration or repair of a public work in accordance with paragraph (b) of subsection 1 of section 2 of ~~[this act,]~~ Assembly Bill No. 298 of this session, or a public officer, public employee or other person responsible for awarding a contract for the construction, alteration or repair of a public work who represents that local government, shall not:

(a) Commence such a project for which the estimated cost exceeds $100,000 unless it advertises in a newspaper of general circulation in this state for bids for the project; or

(b) Divide such a project into separate portions to avoid the requirements of paragraph (a).

4. Any bids received in response to an advertisement for bids may be rejected if the person responsible for awarding the contract determines that:

(a) The bidder is not responsive or responsible;

(b) The quality of the services, materials, equipment or labor offered does not conform to the approved plan or specifications; or

(d) An estimate of the total cost of the project; and

(e) An estimate of the amount of money the local government expects to save by rejecting the bids and performing the project itself.”.

Amend sec. 12, page 12, by deleting lines 2 through 5 and inserting: “Statutes of Nevada 1947, the Moapa Valley water district created pursuant to chapter 477, Statutes of Nevada 1983 or the Virgin Valley water district created pursuant to chapter 100, Statutes of Nevada 1993.”.

Amend the bill as a whole by deleting sections 13 and 13.5 and adding new sections designated sections 13 and 13.5, after sec. 12, to read as follows:

“Sec. 13. NRS 338.147 is hereby amended to read as follows:

338.147 1. Except as otherwise provided in NRS 338.143[,] and sections 2 to 9, inclusive, of this act, a local government shall award a contract for a public work to the contractor who submits the best bid.

2. Except as otherwise provided in subsection 8 or limited by subsection 9, for the purposes of this section, a contractor who:

(a) Has been found to be a responsible and responsive contractor by the local government; and

(b) At the time he submits his bid, provides to the local government a copy of a certificate of eligibility to receive a preference in bidding on public works issued to him by the state contractors’ board pursuant to subsection 3,

shall be deemed to have submitted a better bid than a competing contractor who has not provided a copy of such a valid certificate of eligibility if the amount of his bid is not more than 5 percent higher than the amount bid by the competing contractor.

3. The state contractors’ board shall issue a certificate of eligibility to receive a preference in bidding on public works to a general contractor who is licensed pursuant to the provisions of chapter 624 of NRS and submits to the board an affidavit from a certified public accountant setting forth that the general contractor has:

(a) Paid:

(1) The sales and use taxes imposed pursuant to chapters 372, 374 and 377 of NRS on materials used for construction in this state, including, without limitation, construction that is undertaken or carried out on land within the boundaries of this state that is managed by the Federal Government or is on an Indian reservation or Indian colony, of not less than $5,000 for each consecutive 12-month period for 60 months immediately preceding the submission of the affidavit from the certified public accountant;

(2) The motor vehicle privilege tax imposed pursuant to chapter 371 of NRS on the vehicles used in the operation of his business in this state of not less than $5,000 for each consecutive 12-month period for 60 months immediately preceding the submission of the affidavit from the certified public accountant; or

(3) Any combination of such sales and use taxes and motor vehicle privilege tax; or

(b) Acquired, by inheritance, gift or transfer through a stock option plan for employees, all the assets and liabilities of a viable, operating construction firm that possesses a:

(1) License as a general contractor pursuant to the provisions of chapter 624 of NRS; and

(2) Certificate of eligibility to receive a preference in bidding on public works.

4. For the purposes of complying with the requirements set forth in paragraph (a) of subsection 3, a general contractor shall be deemed to have paid:

(a) Sales and use taxes and motor vehicle privilege taxes paid in this state by an affiliate or parent company of the contractor, if the affiliate or parent company is also a general contractor; and

(b) Sales and use taxes paid in this state by a joint venture in which the contractor is a participant, in proportion to the amount of interest the contractor has in the joint venture.

5. A contractor who has received a certificate of eligibility to receive a preference in bidding on public works from the state contractors’ board pursuant to subsection 3 shall, at the time for the annual renewal of his contractors’ license pursuant to NRS 624.283, submit to the board an affidavit from a certified public accountant setting forth that the contractor has, during the immediately preceding 12 months, paid the taxes required pursuant to paragraph (a) of subsection 3 to maintain his eligibility to hold such a certificate.

6. A contractor who fails to submit an affidavit to the board pursuant to subsection 5 ceases to be eligible to receive a preference in bidding on public works unless he reapplies for and receives a certificate of eligibility pursuant to subsection 3.

7. If a contractor who applies to the state contractors’ board for a certificate of eligibility to receive a preference in bidding on public works submits false information to the board regarding the required payment of taxes, the contractor is not eligible to receive a preference in bidding on public works for a period of 5 years after the date on which the board becomes aware of the submission of the false information.

8. If any federal statute or regulation precludes the granting of federal assistance or reduces the amount of that assistance for a particular public work because of the provisions of subsection 2, those provisions do not apply insofar as their application would preclude or reduce federal assistance for that work. The provisions of subsection 2 do not apply to any contract for a public work which is expected to cost less than $250,000.

9. [If] Except as otherwise provided in subsection 2 of section 8 of this act and subsection 2 of section 27 of this act, if a bid is submitted by two or more contractors as a joint venture or by one of them as a joint venturer, the provisions of subsection 2 apply only if both or all of the joint venturers separately meet the requirements of that subsection.

10. The state contractors’ board shall adopt regulations and may assess reasonable fees relating to the certification of contractors for a preference in bidding on public works.

11. A person or entity who believes that a contractor wrongfully holds a certificate of eligibility to receive a preference in bidding on public works may challenge the validity of the certificate by filing a written objection with the public body to which the contractor has submitted a bid or proposal on a contract for the completion of a public work. A written objection authorized pursuant to this subsection must:

(a) Set forth proof or substantiating evidence to support the belief of the person or entity that the contractor wrongfully holds a certificate of eligibility to receive a preference in bidding on public works; and

(b) Be filed with the public body at or after the time at which the contractor submitted the bid or proposal to the public body and before the time at which the public body awards the contract for which the bid or proposal was submitted.

12. If a public body receives a written objection pursuant to subsection 11, the public body shall determine whether the objection is accompanied by the proof or substantiating evidence required pursuant to paragraph (a) of that subsection. If the public body determines that the objection is not accompanied by the required proof or substantiating evidence, the public body shall dismiss the objection and may proceed immediately to award the contract. If the public body determines that the objection is accompanied by the required proof or substantiating evidence, the public body shall determine whether the contractor qualifies for the certificate pursuant to the provisions of this section and may proceed to award the contract accordingly.

Sec. 13.5. NRS 338.147 is hereby amended to read as follows:

338.147 1. Except as otherwise provided in NRS 338.143 , [and sections 2 to 9, inclusive, of this act,] a local government shall award a contract for a public work to the contractor who submits the best bid.

2. Except as otherwise provided in subsection 8 or limited by subsection 9, for the purposes of this section, a contractor who:

(a) Has been found to be a responsible and responsive contractor by the local government; and

(a) Paid:

(3) Any combination of such sales and use taxes and motor vehicle privilege tax; or

(b) Acquired, by inheritance, gift or transfer through a stock option plan for employees, all the assets and liabilities of a viable, operating construction firm that possesses a:

(1) License as a general contractor pursuant to the provisions of chapter 624 of NRS; and

(2) Certificate of eligibility to receive a preference in bidding on public works.

4. For the purposes of complying with the requirements set forth in paragraph (a) of subsection 3, a general contractor shall be deemed to have paid:

(a) Sales and use taxes and motor vehicle privilege taxes paid in this state by an affiliate or parent company of the contractor, if the affiliate or parent company is also a general contractor; and

(b) Sales and use taxes paid in this state by a joint venture in which the contractor is a participant, in proportion to the amount of interest the contractor has in the joint venture.

9. [Except as otherwise provided in subsection 2 of section 8 of this act and subsection 2 of section 27 of this act, if] If a bid is submitted by two or more contractors as a joint venture or by one of them as a joint venturer, the provisions of subsection 2 apply only if both or all of the joint venturers separately meet the requirements of that subsection.

10. The state contractors’ board shall adopt regulations and may assess reasonable fees relating to the certification of contractors for a preference in bidding on public works.

Amend sec. 27, page 24, lines 26 and 27, by deleting: “that arise during construction and are” and inserting “as”.

Amend sec. 28, page 25, line 1, by deleting “Design, construct,” and inserting “Construct,”.

Amend sec. 28, page 25, line 2, by deleting “design or”.

Amend the bill as a whole by adding new sections designated sections 35.2 through 35.8, following sec. 35, to read as follows:

“Sec. 35.2. Section 11 of this act is hereby amended to read as follows:

Sec. 11. NRS 338.143 is hereby amended to read as follows:

338.143 1. Except as otherwise provided in subsection 6 and NRS 338.1907, a local government that awards a contract for the construction, alteration or repair of a public work in accordance with paragraph (b) of subsection 1 of section 2 of this act, or a public officer, public employee or other person responsible for awarding a contract for the construction, alteration or repair of a public work who represents that local government, shall not:

(a) Commence such a project for which the estimated cost exceeds $100,000 unless it advertises in a newspaper of general circulation in this state for bids for the project; or

(b) Divide such a project into separate portions to avoid the requirements of paragraph (a).

4. Any bids received in response to an advertisement for bids may be rejected if the person responsible for awarding the contract determines that:

(a) The bidder is not responsive or responsible;

(b) The quality of the services, materials, equipment or labor offered does not conform to the approved plan or specifications; or

(d) An estimate of the total cost of the project; and

(e) An estimate of the amount of money the local government expects to save by rejecting the bids and performing the project itself.

6. This section does not apply to:

(a) Any utility subject to the provisions of chapter 318 or 710 of NRS;

(b) Any work of construction, reconstruction, improvement and maintenance of highways subject to NRS 408.323 or 408.327;

(d) The Las Vegas Valley water district created pursuant to chapter 167, Statutes of Nevada 1947, the Moapa Valley water district created pursuant to chapter 477, Statutes of Nevada 1983 or the Virgin Valley water district created pursuant to chapter 100, Statutes of Nevada 1993 . [; or

(e) The design and construction of a public work for which a public body contracts with a design-build team pursuant to sections 2 to 9, inclusive, of this act.]”.

Sec. 35.4. Assembly Bill No. 298 of this session is hereby amended by adding thereto new sections designated sections 19.2 through 19.6, following sec. 19, to read as follows:

Sec. 19.2. Section 8 of this act is hereby amended to read as follows:

Sec. 8. 1. Except as otherwise provided in subsection 7 and NRS 338.1906 and 338.1907, this state, or a local government that awards a contract for the construction, alteration or repair of a public work in accordance with paragraph (a) of subsection 1 of section 2 of this act, or a public officer, public employee or other person responsible for awarding a contract for the construction, alteration or repair of a public work who represents the state or the local government, shall not:

(a) Commence such a project for which the estimated cost exceeds $100,000 unless it advertises in a newspaper of general circulation in this state for bids for the project; or

(b) Divide such a project into separate portions to avoid the requirements of paragraph (a).

2. Except as otherwise provided in subsection 7, a public body that maintains a list of properly licensed contractors who are interested in receiving offers to bid on public works projects for which the estimated cost is more than $25,000 but less than $100,000 shall solicit bids from not more than three of the contractors on the list for a contract of that value for the construction, alteration or repair of a public work. The public body shall select contractors from the list in such a manner as to afford each contractor an equal opportunity to bid on a public works project. A properly licensed contractor must submit a written request annually to the public body to remain on the list. Offers for bids which are made pursuant to this subsection must be sent by certified mail.

3. Each advertisement for bids must include a provision that sets forth:

(a) The requirement that a contractor must be qualified pursuant to section 5 of this act to bid on the contract or must be exempt from meeting such qualifications pursuant to section 6 of this act; and

(b) The period during which an application to qualify as a bidder on the contract must be submitted.

4. Approved plans and specifications for the bids must be on file at a place and time stated in the advertisement for the inspection of all persons desiring to bid thereon and for other interested persons. Contracts for the project must be awarded on the basis of bids received.

5. Any bids received in response to an advertisement for bids may be rejected if the person responsible for awarding the contract determines that:

(a) The bidder is not a qualified bidder pursuant to section 5 of this act, unless the bidder is exempt from meeting such qualifications pursuant to section 6 of this act;

(b) The bidder is not responsive;

(c) The quality of the services, materials, equipment or labor offered does not conform to the approved plan or specifications; or

(d) The public interest would be served by such a rejection.

6. Before the state or a local government may commence a project subject to the provisions of this section, based upon a determination that the public interest would be served by rejecting any bids received in response to an advertisement for bids, it shall prepare and make available for public inspection a written statement containing:

(a) A list of all persons, including supervisors, whom the state or the local government intends to assign to the project, together with their classifications and an estimate of the direct and indirect costs of their labor;

(b) A list of all equipment that the state or the local government intends to use on the project, together with an estimate of the number of hours each item of equipment will be used and the hourly cost to use each item of equipment;

(d) An estimate of the total cost of the project; and

(e) An estimate of the amount of money the state or the local government expects to save by rejecting the bids and performing the project itself.

7. This section does not apply to:

(a) Any utility subject to the provisions of chapter 318 or 710 of NRS;

(b) Any work of construction, reconstruction, improvement and maintenance of highways subject to NRS 408.323 or 408.327;

(e) The design and construction of a public work for which a public body contracts with a design-build team pursuant to sections 2 to 9, inclusive, of Senate Bill No. 475 of this session.]

Sec. 19.4. Section 8 of this act is hereby amended to read as follows:

Sec. 8. 1. Except as otherwise provided in subsection 7 , [and NRS 338.1906 and 338.1907,] this state, or a local government that awards a contract for the construction, alteration or repair of a public work in accordance with paragraph (a) of subsection 1 of section 2 of this act, or a public officer, public employee or other person responsible for awarding a contract for the construction, alteration or repair of a public work who represents the state or the local government, shall not:

(a) Commence such a project for which the estimated cost exceeds $100,000 unless it advertises in a newspaper of general circulation in this state for bids for the project; or

(b) Divide such a project into separate portions to avoid the requirements of paragraph (a).

3. Each advertisement for bids must include a provision that sets forth:

(b) The period during which an application to qualify as a bidder on the contract must be submitted.

5. Any bids received in response to an advertisement for bids may be rejected if the person responsible for awarding the contract determines that:

(a) The bidder is not a qualified bidder pursuant to section 5 of this act, unless the bidder is exempt from meeting such qualifications pursuant to section 6 of this act;

(b) The bidder is not responsive;

(c) The quality of the services, materials, equipment or labor offered does not conform to the approved plan or specifications; or

(d) The public interest would be served by such a rejection.

(d) An estimate of the total cost of the project; and

(e) An estimate of the amount of money the state or the local government expects to save by rejecting the bids and performing the project itself.

7. This section does not apply to:

(a) Any utility subject to the provisions of chapter 318 or 710 of NRS;

(b) Any work of construction, reconstruction, improvement and maintenance of highways subject to NRS 408.323 or 408.327;

Sec. 19.6. Section 11 of this act is hereby amended to read as follows:

Sec. 11. 1. Except as otherwise provided in section 8 of this act , [and sections 2 to 9, inclusive, of Senate Bill No. 475 of this session,] a public body shall award a contract for a public work to the contractor who submits the best bid.

2. Except as otherwise provided in subsection 8 or limited by subsection 9, for the purposes of this section, a contractor who:

(a) Has been determined by the public body to be a qualified bidder pursuant to section 5 of this act or is exempt from meeting such requirements pursuant to section 6 of this act; and

(b) At the time he submits his bid, provides to the public body a copy of a certificate of eligibility to receive a preference in bidding on public works issued to him by the state contractors’ board pursuant to subsection 3,

(a) Paid:

(3) Any combination of such sales and use taxes and motor vehicle privilege tax; or

(b) Acquired, by inheritance, gift or transfer through a stock option plan for employees, all the assets and liabilities of a viable, operating construction firm that possesses a:

(1) License as a general contractor pursuant to the provisions of chapter 624 of NRS; and

(2) Certificate of eligibility to receive a preference in bidding on public works.

4. For the purposes of complying with the requirements set forth in paragraph (a) of subsection 3, a general contractor shall be deemed to have paid:

(a) Sales and use taxes and motor vehicle privilege taxes paid in this state by an affiliate or parent company of the contractor, if the affiliate or parent company is also a general contractor; and

(b) Sales and use taxes paid in this state by a joint venture in which the contractor is a participant, in proportion to the amount of interest the contractor has in the joint venture.

9. [Except as otherwise provided in subsection 2 of section 8 of Senate Bill No. 475 of this session, if] If a bid is submitted by two or more contractors as a joint venture or by one of them as a joint venturer, the provisions of subsection 2 apply only if both or all of the joint venturers separately meet the requirements of that subsection.

10. The state contractors’ board shall adopt regulations and may assess reasonable fees relating to the certification of contractors for a preference in bidding on public works.

11. A person or entity who believes that a contractor wrongfully holds a certificate of eligibility to receive a preference in bidding on public works may challenge the validity of the certificate by filing a written objection with the public body to which the contractor has submitted a bid or proposal on a contract for the construction of a public work. A written objection authorized pursuant to this subsection must:

Sec. 35.6. Sections 8, 11, 12 and 21 of Assembly Bill No. 298 of this session are hereby amended to read as follows:

(a) Commence such a project for which the estimated cost exceeds $100,000 unless it advertises in a newspaper of general circulation in this state for bids for the project; or

(b) Divide such a project into separate portions to avoid the requirements of paragraph (a).

3. Each advertisement for bids must include a provision that sets forth:

(b) The period during which an application to qualify as a bidder on the contract must be submitted.

5. Any bids received in response to an advertisement for bids may be rejected if the person responsible for awarding the contract determines that:

(a) The bidder is not a qualified bidder pursuant to section 5 of this act, unless the bidder is exempt from meeting such qualifications pursuant to section 6 of this act;

(b) The bidder is not responsive;

(c) The quality of the services, materials, equipment or labor offered does not conform to the approved plan or specifications; or

(d) The public interest would be served by such a rejection.

(d) An estimate of the total cost of the project; and

(e) An estimate of the amount of money the state or the local government expects to save by rejecting the bids and performing the project itself.

7. This section does not apply to:

(a) Any utility subject to the provisions of chapter 318 or 710 of NRS;

(b) Any work of construction, reconstruction, improvement and maintenance of highways subject to NRS 408.323 or 408.327;

(e) The design and construction of a public work for which a public body contracts with a design-build team pursuant to sections 2 to 9, inclusive, of Senate Bill No. 475 of this session.

Sec. 11. 1. Except as otherwise provided in section 8 of this act and sections 2 to 9, inclusive, of Senate Bill No. 475 of this session, a public body shall award a contract for a public work to the contractor who submits the best bid.

2. Except as otherwise provided in subsection 8 or limited by subsection 9, for the purposes of this section, a contractor who:

(a) Has been determined by the public body to be a qualified bidder pursuant to section 5 of this act or is exempt from meeting such requirements pursuant to section 6 of this act; and

(a) Paid:

(3) Any combination of such sales and use taxes and motor vehicle privilege tax; or

(b) Acquired, by inheritance, gift or transfer through a stock option plan for employees, all the assets and liabilities of a viable, operating construction firm that possesses a:

(1) License as a general contractor pursuant to the provisions of chapter 624 of NRS; and

(2) Certificate of eligibility to receive a preference in bidding on public works.

4. For the purposes of complying with the requirements set forth in paragraph (a) of subsection 3, a general contractor shall be deemed to have paid:

(a) Sales and use taxes and motor vehicle privilege taxes paid in this state by an affiliate or parent company of the contractor, if the affiliate or parent company is also a general contractor; and

(b) Sales and use taxes paid in this state by a joint venture in which the contractor is a participant, in proportion to the amount of interest the contractor has in the joint venture.

9. Except as otherwise provided in subsection 2 of section 8 of Senate Bill No. 475 of this session, if a bid is submitted by two or more contractors as a joint venture or by one of them as a joint venturer, the provisions of subsection 2 apply only if both or all of the joint venturers separately meet the requirements of that subsection.

10. The state contractors’ board shall adopt regulations and may assess reasonable fees relating to the certification of contractors for a preference in bidding on public works.

11. A person or entity who believes that a contractor wrongfully holds a certificate of eligibility to receive a preference in bidding on public works may challenge the validity of the certificate by filing a written objection with the public body to which the contractor has submitted a bid or proposal on a contract for the construction of a public work. A written objection authorized pursuant to this subsection must:

Sec. 12. NRS 338.010 is hereby amended to read as follows:

338.010 As used in this chapter:

1. “Day labor” means all cases where public bodies, their officers, agents or employees, hire, supervise and pay the wages thereof directly to a workman or workmen employed by them on public works by the day and not under a contract in writing.

2. “Eligible bidder” means a person who was[found] :

(a) Found to be a responsible contractor by a [public body] local government which awarded a contract for a public work [.] in accordance with paragraph (b) of subsection 1 of section 2 of this act; or

(b) Determined by a public body which awarded a contract for a public work pursuant to sections 3 to 11, inclusive, of this act, to be qualified to bid on that contract pursuant to section 5 of this act or was exempt from meeting such qualifications pursuant to section 6 of this act.

3. “Local government” means every political subdivision or other entity which has the right to levy or receive money from ad valorem or other taxes or any mandatory assessments, and includes, without limitation, counties, cities, towns, boards, school districts and other districts organized pursuant to chapters 244A, 309, 318, 379, 474, 541, 543 and 555 of NRS, NRS 450.550 to 450.750, inclusive, and any agency or department of a county or city which prepares a budget separate from that of the parent political subdivision.

4. “Offense” means failing to:

(a) Pay the prevailing wage required pursuant to this chapter;

(b) Pay the contributions for unemployment compensation required pursuant to chapter 612 of NRS; or

[4.] 5. “Public body” means the state, county, city, town, school district or any public agency of this state or its political subdivisions sponsoring or financing a public work.

[5.] 6. “Public work” means any project for the new construction, repair or reconstruction of:

(a) A project financed in whole or in part from public money for:

(1) Public buildings;

(2) Jails and prisons;

(3) Public roads;

(4) Public highways;

(5) Public streets and alleys;

(6) Public utilities which are financed in whole or in part by public money;

(7) Publicly owned water mains and sewers;

(8) Public parks and playgrounds;

(9) Public convention facilities which are financed at least in part with public funds; and

(10) [All] Any other publicly owned works and property whose cost as a whole exceeds $20,000. Each separate unit which is a part of a project is included in the cost of the project for the purpose of determining whether a project meets this threshold.

(b) A building for the University and Community College System of Nevada of which 25 percent or more of the costs of the building as a whole are paid from money appropriated by [the] this state or from federal money.

[6.] 7. “Wages” means:

(a) The basic hourly rate of pay; and

[7.] 8. “Workman” means a skilled mechanic, skilled workman, semiskilled mechanic, semiskilled workman or unskilled workman.

Sec. 21. 1. This section and sections 2 to 7, inclusive, 10 to 14, inclusive, 16 to 19, inclusive, and 20 of this act become effective on October 1, 1999.

2. Section 8 of this act becomes effective on October 1, 1999, and expires by limitation on October 1, 2003.

3. Sections 19.2 and 19.6 of this act become effective on October 1, 2003.

4. Sections 15 and 19.4 of this act become effective at 12:01 a.m. on May 1, 2013.

5. Sections 14, 18, 19 and 19.2 of this act expire by limitation on May 1, 2013.

Sec. 35.8. Section 4 of Senate Bill No. 144 of this session is hereby amended to read as follows:

Sec. 4. “Contractor” means~~[a]~~ :

1. A person who:

~~[1.]~~ (a) Is licensed pursuant to the provisions of chapter 624 of NRS or performs such work that he is not required to be licensed pursuant to chapter 624 of NRS; and

~~[2.]~~ (b) Contracts with a public body to provide labor, materials or services for a public work.

2. A design-build team that contracts with a public body to design and construct a public work pursuant to sections 2 to 9, inclusive, of Senate Bill No. 475 of this session.”.

Amend sec. 36, page 28, line 34, by deleting “is” and inserting: “and section 9 of Assembly Bill No. 298 of this session are”.

Amend sec. 38, page 29, by deleting lines 33 through 42 and inserting:

“Sec. 38. 1. This section and sections 35.4 and 35.6 of this act become effective on October 1, 1999.

2. Sections 1 to 9, inclusive, 14 to 35, inclusive, 36 and 37of this act become effective on October 1, 1999, and expire by limitation on October 1, 2003.

3. Sections 10, 13 and 35.8 of this act become effective at 12:01 a.m. on October 1, 1999, and expire by limitation on October 1, 2003.

4. Section 11 of this act becomes effective at 12:01 a.m.on October 1, 1999, and expires by limitation on May 1, 2013.

5. Section 13.5 of this act becomes effective at 12:01 a.m. on October 1, 2003.

6. Section 35.2 of this act becomes effective at 12:01 a.m. on October 1, 2003 and expires by limitation on May 1, 2013.

7. Section 12 of this act becomes effective at 12:02 a.m. on May 1, 2013.”.

Amend the bill as a whole by deleting the text of the repealed section and adding the text of repealed sections, following sec. 38, to read as follows:

TEXT OF REPEALED SECTIONS

341.171 Single contract for design and construction of capital improvement: Legislative approval; regulations.

1. The board may, with the approval of the interim finance committee when the legislature is not in regular or special session, or with the approval of the legislature by concurrent resolution when the legislature is in regular or special session, let to a contractor licensed under chapter 624 of NRS a single contract for both the design and construction of a project of capital improvement. The board shall for the purpose prepare a comprehensive sketch plan and narrative of the scope of the work involved in a project.

2. The board shall adopt regulations establishing procedures for:

(a) The determination of the qualifications of contractors to bid for contracts for the design and construction of such projects. The board shall consult with the American Institute of Architects and the Associated General Contractors, or the successor of either if the named organization ceases to exist, before adopting procedures under this paragraph.

(b) The board’s approval of designs and architects employed in a project.

(c) The bidding and awarding of contracts for the design and construction of projects based on a final cost of the project which the contractor guarantees will not be exceeded.

(d) The scheduling and controlling of projects.

Section 9 of Assembly Bill No. 298 of this session:

Sec. 9. 1. Except as otherwise provided in subsection 7, this state, or a local government that awards a contract for the construction, alteration or repair of a public work in accordance with paragraph (a) of subsection 1 of section 2 of this act, or a public officer, public employee or other person responsible for awarding a contract for the construction, alteration or repair of a public work who represents the state or the local government, shall not:

(a) Commence such a project for which the estimated cost exceeds $100,000 unless it advertises in a newspaper of general circulation in this state for bids for the project; or

(b) Divide such a project into separate portions to avoid the requirements of paragraph (a).

3. Each advertisement for bids must include a provision that sets forth:

(b) The period during which an application to qualify as a bidder on the contract must be submitted.

5. Any bids received in response to an advertisement for bids may be rejected if the person responsible for awarding the contract determines that:

(a) The bidder is not a qualified bidder pursuant to section 5 of this act, unless the bidder is exempt from meeting such qualifications pursuant to section 6 of this act;

(b) The bidder is not responsive or responsible;

(c) The quality of the services, materials, equipment or labor offered does not conform to the approved plan or specifications; or

(d) The public interest would be served by such a rejection.

(d) An estimate of the total cost of the project; and

(e) An estimate of the amount of money the state or the local government expects to save by rejecting the bids and performing the project itself.

7. This section does not apply to:

(a) Any utility subject to the provisions of chapter 318 or 710 of NRS;

(b) Any work of construction, reconstruction, improvement and maintenance of highways subject to NRS 408.323 or 408.327;

(d) The Las Vegas Valley water district created pursuant to chapter 167, Statutes of Nevada 1947.

Ann O’Connell

Jon C. Porter Douglas A. Bache

Terry Care Vivian L. Freeman

Senate Conference Committee Assembly Conference Committee

Senator O’Connell moved that the Senate adopt the report of the first Conference Committee concerning Senate Bill No. 475.

Remarks by Senator O’Connell.

Motion carried.

Madam President:

The first Conference Committee concerning Senate Bill No. 478, consisting of the undersigned members, has met, and reports that:

It has agreed to recommend that the amendment of the Assembly be concurred in.

It has agreed to recommend that the bill be further amended as set forth in Conference Amendment No. CA28, which is attached to and hereby made a part of this report.

Conference Amendment.

Amend the bill as a whole by adding a new section designated sec. 5.5, following sec. 5, to read as follows:

“Sec. 5.5. 1. The commission shall appoint, within the limits of legislative appropriation, a commission counsel who shall perform the duties set forth in this chapter and such other duties as may be prescribed by the commission.

2. The commission counsel must be an attorney who is licensed to practice law in this state.

3. The commission counsel is in the unclassified service of the state.

4. The commission counsel shall devote his entire time and attention to the business of the commission and shall not pursue any other business or occupation or hold any other office of profit that detracts from the full and timely performance of his duties.

5. The commission counsel may not:

(a) Be actively involved in the work of any political party or political campaign; or

(b) Communicate directly or indirectly with a member of the legislative branch on behalf of someone other than himself to influence legislative action, except in pursuit of the business of the commission.”.

Amend sec. 6, page 2, line 31, by deleting “281.511.” and inserting: “281.511, 294A.345 or 294A.346.”.

Amend sec. 11, page 5, lines 23 and 24, by deleting: “[~~294A.345 or 294A.346,]~~” and inserting: “294A.345 or 294A.346,”.

Amend sec. 12, page 5, lines 41 and 42, by deleting: “of [:

~~(a) This]~~ this” and inserting: “of:

(a) This”.

Amend sec. 12, page 6, line 1, by deleting “[~~(1)]~~ (a)” and inserting “(1)”.

Amend sec. 12, page 6, by deleting lines 3 through 8 and inserting:

“(2) [~~A determination of the]~~ The commission on its own motion . [ that there is just and sufficient cause to render an opinion concerning the conduct of that public officer or employee or former public officer or employee.]

(b) NRS 294A.345 or 294A.346 in any proceeding commenced by the filing of a request for an opinion pursuant thereto.”.

Amend sec. 12, page 6, line 9, by deleting: “[~~of paragraph (a)]~~” and inserting: “of paragraph (a)”.

Amend sec. 14, page 8, by deleting lines 10 and 11 and inserting:

“[~~4.]~~ 6. Except as otherwise provided in this subsection, upon such a petition, the court shall enter an order directing the”.

Amend sec. 14, page 8, by deleting lines 15 through 20 and inserting: “produced the books or papers before the commission. If the witness has been subpoenaed by the commission in response to a request for an opinion filed pursuant to NRS 294A.345 or 294A.346, the court shall direct the witness to appear before the court as expeditiously as possible to allow the commission to render its opinion within the time required by NRS 281.477. A certified copy of the order must be served upon the witness.”.

Amend the bill as a whole by adding a new section designated sec. 14.2, following sec. 14, to read as follows:

“Sec. 14.2. NRS 281.477 is hereby amended to read as follows:

281.477 1. If a request for an opinion is filed with the commission pursuant to NRS 294A.345 or 294A.346, the commission shall conduct a public hearing on the request. Except as otherwise provided in subsection 6, the hearing must be held as expeditiously as possible, but not later than 15 days after the receipt of the request for the opinion.

2. Such a request must be accompanied by all evidence and arguments to be offered by the requester concerning the issues related to the request. Except as otherwise provided in this subsection, if such evidence and arguments are not submitted with the request, the commission may:

(a) Draw any conclusions it deems appropriate from the failure of the person or group of persons requesting the opinion to submit the evidence and arguments, other than a conclusion that a person alleged to have violated NRS 294A.345 acted with actual malice; and

(b) Decline to render an opinion.

The provisions of this subsection do not prohibit the commission from considering evidence or arguments presented by the requester after submission of the request for an opinion if the commission determines that consideration of such evidence or arguments is in the interest of justice.

3. The commission shall immediately notify any person alleged to have violated NRS 294A.345 or 294A.346 that such an opinion has been requested by the most expedient means possible. If notice is given orally by telephone or in any other manner, a second notice must be given in writing no later than the next calendar day by facsimile machine or overnight mail. The notice must include the time and place of the commission’s hearing on the matter.

4. A person notified pursuant to subsection 3 shall submit a response to the commission no later than at the close of business on the second business day following the receipt of the notice. The response must be accompanied by any evidence concerning the issues related to the request that the person has in his possession or may obtain without undue financial hardship. Except as otherwise provided in this subsection, if such evidence is not submitted within that time, the commission may:

(a) Draw any conclusions it deems appropriate from the failure of that person to submit the evidence and argument; and

(b) Prohibit that person from responding and presenting evidence at the hearing.

The provisions of this subsection do not prohibit the commission from allowing that person to respond and present evidence or arguments, or both, after the close of business on the second business day if the commission determines that consideration of such evidence or arguments is in the interest of justice.

5. Except as otherwise provided in subsection 4, the commission shall allow any person alleged to have violated NRS 294A.345 or 294A.346 to:

(a) Be represented by counsel; and

(b) Hear the evidence presented to the commission and respond and present evidence on his own behalf.

6. At the request of:

(a) The person or group of persons that filed the request for the opinion pursuant to NRS 294A.345 or 294A.346; or

(b) The person alleged to have violated the provisions of NRS 294A.345 or 294A.346,

the commission may grant a continuance of a hearing held pursuant to the provisions of this section upon a showing of the existence of extraordinary circumstances that would prohibit the commission from rendering a fair and impartial opinion. A continuance may be granted for not more than 15 days. Not more than one continuance may be granted by the commission pursuant to this subsection.

7. The person or group of persons that filed the request for the opinion pursuant to NRS 294A.345 or 294A.346 has the burden of proving the elements of the offense, including that a person alleged to have violated NRS 294A.345 acted with actual malice. The existence of actual malice may not be presumed. A final opinion of the commission rendered pursuant to this section must be supported by clear and convincing evidence. In addition to the other requirements for issuing an opinion pursuant to this subsection, the commission shall not render a final opinion determining that a person has violated NRS 294A.345 or 294A.346 unless a finding that each of the elements of the offense has been proven receives the affirmative vote of two-thirds of the commission.

8. The commission shall render its opinion, or decline to render an opinion, as expeditiously as possible, but not later than 3 days after the date of the hearing. If additional time is required to determine the state of mind or the intent of the person alleged to have violated the provisions of NRS 294A.345 or 294A.346 or to determine the amount of any civil penalty that may be imposed pursuant to NRS 281.551, the commission may continue its jurisdiction to investigate those issues but shall render its opinion as to the truth or falsity of the statement made concerning the candidate or the ballot question or its opinion as to whether the person impeded the success of the campaign or induced another person to impede the success of the campaign. If the commission continues its jurisdiction pursuant to this subsection, it may render a final opinion after the time set forth in this subsection.

9. A final opinion of the commission rendered pursuant to this section is subject to judicial review pursuant to NRS 233B.130. The district court shall give a petition for judicial review of a final opinion of the commission priority over other civil matters that are not expressly given priority by law. Notwithstanding the provisions of NRS 233B.130, the court may provide for such expedited review of the final opinion, including shortened periods for filing documents, as it deems appropriate for the circumstances.

10. Each request for an opinion filed pursuant to NRS 294A.345 or 294A.346, each opinion rendered by the commission pursuant thereto and any motion, evidence or record of a hearing relating to the request are public and must be open to inspection pursuant to NRS 239.010.

11. For the purposes of NRS 41.032, the members of the commission and its employees shall be deemed to be exercising or performing a discretionary function or duty when taking any action related to the rendering of an opinion pursuant to this section.

12. Except as otherwise provided in this section, a meeting or hearing held by the commission to carry out the provisions of this section and the commission’s deliberations on the information or evidence are not subject to any provision of chapter 241 of NRS.”.

Amend the bill as a whole by deleting sec. 16.5.

Amend sec. 17, page 16, by deleting lines 30 through 39 and inserting:

“281.531 1. The [~~attorney general]~~ commission counsel is the legal adviser to the commission. For each opinion [~~he]~~ of”.

Amend sec. 18, pages 17 and 18, by deleting lines 37 through 42 on page 17 and lines 1 through 3 on page 18, and inserting:

“4. [Except as otherwise provided in this subsection, and in] In addition to any other penalty provided by law, by an affirmative vote of two-thirds of the commission, the commission may impose on any person who violates any provision of NRS 294A.345 or 294A.346 a civil penalty not to exceed [$10,000. If the commission finds that a violation of NRS 294A.345 or 294A.346 occurred within 10 days before an election, including any recall or special election, the commission may impose on the person who committed such a violation a civil penalty not to exceed $30,000.] $5,000.

5. If the commission finds that [a] :”.

Amend sec. 18, page 18, line 9, by deleting “[~~6.]~~”.

Amend sec. 18, page 18, line 16, by deleting “5.” and inserting “6.”.

Amend sec. 18, page 18, lines 27 and 28, by deleting: “~~employee.~~

~~7.]~~ 6.” and inserting “~~employee.]~~

7.”.

Amend sec. 18, page 18, line 33, by deleting “[~~8.]~~ 7.” and inserting “8.”.

Amend sec. 18, page 18, by deleting lines 36 and 37 and inserting: “officers or employees. If the commission finds that a public officer or employee has”.

Amend sec. 18, page 19, by deleting lines 1 and 2 and inserting:

“9. The imposition of a civil penalty pursuant to subsections 1 to 4, inclusive, is a final decision for the purposes of”.

Amend sec. 18, page 19, line 4, by deleting “[~~10.]~~ 9.” and inserting “10.”.

Amend sec. 18, page 19, line 22, by deleting “10.” and inserting “11.”.

Amend the bill as a whole by deleting sections 22 and 23 and adding new sections designated sections 22 and 23, following sec. 21, to read as follows:

“Sec. 22. NRS 294A.345 is hereby amended to read as follows:

294A.345 1. A person shall not, with actual malice and the intent to impede the success of the campaign of a candidate, cause to be published a false statement of fact concerning the candidate, including, without limitation, statements concerning:

(a) The education or training of the candidate.

(b) The profession or occupation of the candidate.

(c) Whether the candidate committed, was indicted for committing or was convicted of committing a felony or other crime involving moral turpitude, dishonesty or corruption.

(d) Whether the candidate has received treatment for a mental illness.

(e) Whether the candidate was disciplined while serving in the military or was dishonorably discharged from service in the military.

(f) Whether another person endorses or opposes the candidate.

(g) The record of voting of a candidate if he formerly served or currently serves as a public officer.

2. A person shall not, with actual malice and the intent to impede the success of a campaign for the passage or defeat of a question on the ballot at any election, including any recall or special election, cause to be published a false statement of fact concerning the question on the ballot.

3. Any candidate who alleges that a false statement of fact concerning the candidate has been published in violation of subsection 1, and any person or group of persons that advocates the passage or defeat of a question on the ballot at any election, is required to file a report pursuant to NRS 294A.150, and alleges that a false statement of fact has been published in violation of subsection 2, may file a request for an opinion with the commission on ethics pursuant to NRS 281.411 to 281.581, inclusive, and NRS 281.477. Such a request must be filed with the commission not later than 10 days after the date on which the false statement of fact is alleged to have been made. The commission shall give priority to such a request over all other matters pending with the commission.

4. A person who violates the provisions of this section is subject to a civil penalty that may be imposed by the commission on ethics pursuant to NRS 281.551.

5. As used in this section:

(a) “Actual malice” means knowledge of the falsity of a statement or reckless disregard for whether a statement is true or false.

(b) “Publish” means the act of printing, posting, broadcasting, mailing, speaking or otherwise disseminating.

Sec. 23. NRS 294A.346 is hereby amended to read as follows:

294A.346 1. An employee, agent or volunteer of the campaign of a candidate shall not willfully perform any act in the course of his employment, agency or volunteering that impedes the success of that campaign.

2. A person shall not willfully, to impede the success of the campaign of a candidate, offer or give an item of value to:

(a) A person to induce him to obtain a position as an employee, agent or volunteer for that campaign and perform any act in the course of his employment, agency or volunteering to impede the success of that campaign; or

(b) An employee, agent or volunteer for that campaign to induce him to perform any act in the course of his employment, agency or volunteering to impede the success of that campaign.

3. An employee, agent or volunteer of a campaign for the passage or defeat of a question on the ballot at any election, including any recall or special election, shall not willfully perform any act in the course of his employment, agency or volunteering that impedes the success of that campaign.

4. A person shall not willfully, to impede the success of a campaign for the passage or defeat of a question on the ballot at any election, including any recall or special election, offer or give an item of value to:

(b) An employee, agent or volunteer for that campaign to induce him to perform any act in the course of his employment, agency or volunteering to impede the success of that campaign.

5. Any candidate who alleges that a person has violated the provisions of subsection 1 or 2, and any person or group of persons that advocates the passage or defeat of a question on the ballot at any election, is required to file a report pursuant to NRS 294A.150, and alleges that a person has violated the provisions of subsection 3 or 4, may file a request for an opinion with the commission on ethics pursuant to NRS 281.411 to 281.581, inclusive, and 281.477. Such a request must be filed with the commission not later than 10 days after the date of the election with respect to which the alleged violation occurred. The commission shall give priority to such a request over all matters pending with the commission.

6. A person who violates the provisions of this section is subject to a civil penalty that may be imposed by the commission on ethics pursuant to NRS 281.551.”.

Amend the bill as a whole by deleting sec. 25 and adding a new section designated sec. 25, following sec. 24, to read as follows:

“Sec. 25. Section 5.5 of this act expires by limitation on June 30, 2001.”.

Amend the bill as a whole by deleting the text of repealed sections.

Amend the title of the bill by deleting the second through ninth lines and inserting: “director and commission counsel and providing their duties; clarifying the intent of the legislature with respect to the Nevada”.

Ann O’Connell

Jon C. Porter Chris Giunchigliani

William R. O’Donnell Douglas A. Bache

Senate Conference Committee Assembly Conference Committee

Senator O’Connell moved that the Senate adopt the report of the first Conference Committee concerning Senate Bill No. 478.

Remarks by Senator O’Connell.

Motion carried.

Madam President:

The first Conference Committee concerning Assembly Bill No. 109, consisting of the undersigned members, has met, and reports that:

It has agreed to recommend that the amendment of the Senate be concurred in.

It has agreed to recommend that the bill be further amended as set forth in Conference Amendment No. CA18, which is attached to and hereby made a part of this report.

Conference Amendment.

Amend the bill as a whole by deleting sections 1 through 9, renumbering section 10 as sec. 2, and adding a new section designated section 1, following the enacting clause, to read as follows:

“Section 1. Chapter 597 of NRS is hereby amended by adding thereto a new section to read as follows:

1. An informal merchant shall not offer for sale or knowingly allow the sale of any new product that he knows or reasonably should have known is stolen, has been recalled by the manufacturer, has been adulterated, has not been maintained at the proper temperature, has an expiration date that has passed, has been discarded by the manufacturer or a retailer, is an inferior product if he does not clearly indicate such inferiority, or has any other defect that makes the product ineffective for the use for which it is purchased or that makes the product below the quality expected by the consumer.

2. An informal merchant who violates the provisions of subsection 1 shall be punished:

(a) If the sale of the product does not cause substantial bodily harm to another person, for a gross misdemeanor.

(b) If the sale of the product causes substantial bodily harm to another person, for a category C felony as provided in NRS 193.130.

3. Upon request of a peace officer, an informal merchant shall provide reliable evidence of the legal acquisition of a new product that the merchant is offering for sale. If it is determined that the product was stolen and the informal merchant fails to provide such evidence, an inference is created that the informal merchant knew or should have known that the product was stolen.

4. As used in this section:

(a) “Informal market” means:

(1) A gathering at which:

(I) Two or more persons offer personal property for sale or exchange;

(II) A fee is charged for the sale or exchange of personal property; or

(III) A fee is charged for admission to the area in which personal property is offered for sale or exchange; or

(2) A place at which personal property is offered or displayed for sale or exchange on more than six occasions in a period of 12 months,

whether held in a building, under cover or in the open air.

(b) “Informal merchant” means a person who does not have an established retail store in the county and who transports an inventory of goods to an informal market and displays the goods for sale, offers them for sale at retail or sells them at retail.

(c) “New product” means any tangible good which has never been used or which is in its original, unopened package or container.

(d) “Stolen” means taken unlawfully from or without the permission of the owner, whether or not the person who took the item is or has been prosecuted or convicted for the taking of the item.”.

Amend sec. 10, page 4, by deleting lines 42 and 43 and inserting:

“(2) A bank, credit union or savings and loan institution whose deposits or accounts are eligible for insurance by the Federal Deposit Insurance Corporation, the National Credit Union Share Insurance Fund or a private insurer approved pursuant to NRS 678.755.”.

Amend the bill as a whole by adding new sections designated sections 3 through 10, following sec. 10, to read as follows:

“Sec. 3. Chapter 647 of NRS is hereby amended by adding thereto the provisions set forth as sections 4 to 7, inclusive, of this act.

Sec. 4. “Used book dealer” means a person who engages in the business of buying and selling used books.

Sec. 5. 1. A county may require a person who engages in business as a used book dealer within the county and any employee of the used book dealer who is authorized to purchase books on behalf of the used book dealer to hold a valid work card issued by the sheriff of the county.

2. The sheriff of a county shall issue a work card to a used book dealer or an employee of a used book dealer who complies with the requirements established by the sheriff for the issuance of such a card. A work card issued pursuant to this section must be renewed each year.

3. If the sheriff of a county requires an applicant for a work card to submit a set of his fingerprints with his application, the sheriff may submit the fingerprints to the central repository for Nevada records of criminal history and to the Federal Bureau of Investigation to determine the criminal history of the applicant.

Sec. 6. 1. A used book dealer shall maintain a book at his place of business in which he shall enter:

(a) A description of each transaction involving the purchase of used books; and

(b) The full name, address, driver’s license number and general physical description of the person from whom the used book is purchased.

2. A used book dealer and an employee of a used book dealer shall not erase, mutilate or change the book maintained pursuant to subsection 1 in any way and the used book dealer shall make the book available for inspection by a law enforcement officer or other county or municipal officer upon request.

3. A used book dealer who violates the provisions of this section is guilty of a misdemeanor.

Sec. 7. A person who is described in subsection 2 of NRS 647.018:

1. Shall comply with the provisions of NRS 647.110, 647.120 and 647.130; and

2. Is subject to the provisions of NRS 647.140 and 647.145.

Sec. 8. NRS 647.010 is hereby amended to read as follows:

647.010 As used in this chapter, unless the context otherwise requires, the words and terms defined in NRS 647.011 to 647.018, inclusive, and section 4 of this act, have the meanings ascribed to them in those sections.

Sec. 9. NRS 647.016 is hereby amended to read as follows:

647.016 “Junk dealer” means every person, firm or corporation engaged in the business of purchasing or selling hides or junk[.] , other than used books.

Sec. 10. NRS 647.018 is hereby amended to read as follows:

647.018 1. “Secondhand dealer” means any person engaged in whole or in part in the business of buying and selling metal junk, melted metals or secondhand personal property, other than used books, including, without limitation, antiques and collectibles.

2. The term does not include a person who engages in the business of buying or selling secondhand firearms or any antique parts, accessories or other equipment relating to those firearms if:

(a) The person engages in that business at a show that:

(1) Is held at:

(I) A convention facility which is owned or operated by and located on the premises of a resort hotel; or

(II) A recreational facility which is owned or operated by a county fair and recreation board; and

(2) Is conducted for not more than 7 days during any 6‑month period; and

(b) The person has been issued a license as a manufacturer, importer, dealer or collector pursuant to the provisions of 18 U.S.C. § 923.”.

Amend the bill as a whole by adding a new section designated sec. 12, following sec. 11, to read as follows:

“Sec. 12. Section 2 of this act becomes effective at 12:01 a.m. on October 1, 1999.”.

Amend the title of the bill to read as follows:

“AN ACT relating to trade practices; prohibiting an informal merchant from selling new products that have certain defects; authorizing counties to require used book dealers and certain employees of used book dealers to obtain work cards; requiring used book dealers to document certain information related to their business; removing used book dealers from the definition of “junk dealer” and “secondhand dealer”; revising the definition of “secondhand dealer” to exclude certain persons who engage in the business of buying or selling secondhand firearms under certain circumstances; providing penalties; and providing other matters properly relating thereto.”.

Jon C. Porter Barbara E. Buckley

Randolph J. Townsend David R. Parks

Raymond C. Shaffer Lynn C. Hettrick

Senate Conference Committee Assembly Conference Committee

Senator Porter moved that the Senate adopt the report of the first Conference Committee concerning Assembly Bill No. 109 .

Remarks by Senator Porter.

Conflict of interest declared by Senator Coffin.

Motion carried.

Madam President:

The first Conference Committee concerning Assembly Bill No. 408, consisting of the undersigned members, has met, and reports that:

It has agreed to recommend that the amendment of the Senate be concurred in.

It has agreed to recommend that the bill be further amended as set forth in Conference Amendment No. CA27, which is attached to and hereby made a part of this report.

Conference Amendment.

Amend the bill as a whole by renumbering sections 3 and 4 as sections 4 and 5 and adding a new section designated sec. 3, following sec. 2, to read as follows:

“Sec. 3. Section 2.280 of the charter of the City of North Las Vegas, being chapter 573, Statutes of Nevada 1971, as last amended by chapter 565, Statutes of Nevada 1997, at page 2758, is hereby amended to read as follows:

Sec. 2.280 Powers of city council: Provision of utilities.

1. Except as otherwise provided in subsection 3 and section 2.285, the city council may:

(a) Provide, by contract, franchise and public enterprise, for any utility to be furnished to the city for residents located [either] within or without the city.

(b) Provide for the construction and maintenance of any facilities necessary for the provision of all such utilities.

(c) Prescribe, revise and collect rates, fees, tolls and charges for the services, facilities or commodities furnished by any municipally operated or municipally owned utility or undertaking. Notwithstanding any provision of this charter to the contrary or in conflict herewith, no rates, fees, tolls or charges for the services, facilities or commodities furnished by any municipally operated or municipally owned utility or undertaking may be prescribed, revised, amended or altered, increased or decreased, without this procedure first being followed:

(1) There must be filed with the city clerk schedules of rates, fees, tolls or charges which must be open to public inspection, showing all rates, fees, tolls or charges which the city has established and which are in force at the time for any service performed or product furnished in connection therewith by any utility controlled and operated by the city.

(2) No changes may be made in any schedule so filed with the city clerk except upon 30 days’ notice to the inhabitants of the city and a public hearing held thereon. Notice of the proposed change or changes must be given by at least two publications in a newspaper published in the city during the 30‑day period before the hearing thereon.

(3) At the time set for the hearing on the proposed change, any person may appear and be heard and offer any evidence in support of or against the proposed change.

(4) Every utility operated by the city shall furnish reasonably adequate service and facilities, and the charges made for any service rendered or to be rendered, or for any service in connection therewith or incidental thereto, must be just and reasonable.

(d) Provide, by ordinance, for an additional charge to each business customer and for each housing unit within the city to which water is provided by a utility of up to 25 cents per month. If such a charge is provided for, the city council shall, by ordinance, provide for the expenditure of that money for any purpose relating to the beautification of the city.

2. Any charges due for services, facilities or commodities furnished by the city or by any utility operated by the city pursuant to this section is a lien upon the property to which the service is rendered and must be perfected by filing with the county recorder of Clark County of a statement by the city clerk stating the amount due and unpaid and describing the property subject to the lien. Each such lien must:

(a) Be coequal with the latest lien thereon to secure the payment of general taxes.

(b) Not be subject to extinguishment by the sale of any property on account of the nonpayment of general taxes.

(c) Be prior and superior to all liens, claims, encumbrances and titles other than the liens of assessments and general taxes.

3. The city council:

(a) Shall not sell telecommunications service to the general public.

(b) May purchase or construct facilities for providing telecommunications that intersect with public rights of way if the governing body:

(1) Conducts a study to evaluate the costs and benefits associated with purchasing or constructing the facilities; and

(2) Determines from the results of the study that the purchase or construction is in the interest of the general public.

4. Any information relating to the study conducted pursuant to subsection 3 must be maintained by the city clerk and made available for public inspection during the business hours of the office of the city clerk.

5. Notwithstanding the provisions of paragraph (a) of subsection 3, an airport may sell telecommunications service to the general public.

6. As used in this section:

(a) “Housing unit” means a:

(1) Single-family dwelling;

(2) Townhouse, condominium or cooperative apartment;

(3) Unit in a multiple-family dwelling or apartment complex; or

(4) Mobile home.

(b) “Telecommunications” has the meaning ascribed to it in 47 U.S.C. § 153(43), as that section existed on July 16, 1997.

[(b)] (c) “Telecommunications service” has the meaning ascribed to it in 47 U.S.C. § 153(46), as that section existed on July 16, 1997.”.

Amend sec. 4, page 4, line 3, by deleting “3” and inserting “4”.

Amend sec. 4, page 4, by deleting line 5 and inserting:

“2. Sections 1 and 3 of this act become effective on October 1, 1999.”.

Amend the title of the bill, fifth line, after “recorder;” by inserting: “revising the method for calculating the fee charged to a user of water for the beautification of the City of North Las Vegas;”.

Amend the summary of the bill, first line, by deleting “water.” and inserting: “water and revises method for calculating certain charge for water.”.

Dean A. Rhoads Douglas A. Bache

Ann O’Connell Kathy A. Von Tobel

Maggie Carlton Bonnie L. Parnell

Senate Conference Committee Assembly Conference Committee

Senator Rhoads moved that the Senate adopt the report of the first Conference Committee concerning Assembly Bill No. 408.

Remarks by Senator Rhoads.

Motion carried.

Madam President:

The first Conference Committee concerning Assembly Bill No. 477, consisting of the undersigned members, has met, and reports that:

It has agreed to recommend that the amendment of the Senate be receded from.

Michael Schneider Mark A. Manendo

Lawrence E. Jacobsen David R. Parks

Dean A. Rhoads Lynn C. Hettrick

Senate Conference Committee Assembly Conference Committee

Senator Schneider moved that the Senate adopt the report of the first Conference Committee concerning Assembly Bill No. 477.

Remarks by Senator Schneider.

Motion carried.

Appointment of Conference Committees

Madam President appointed Senators Wiener, Amodei and Townsend as a first Conference Committee to meet with a like committee of the Assembly for the further consideration of Senate Bill No. 104.

Madam President appointed Senators Amodei, Jacobsen and Shaffer as a first Conference Committee to meet with a like committee of the Assembly for the further consideration of Senate Bill No. 302.

Madam President appointed Senators Schneider, Washington and Townsend as a first Conference Committee to meet with a like committee of the Assembly for the further consideration of Senate Bill No. 445.

Madam President appointed Senators Townsend, Rhoads and Shaffer as a first Conference Committee to meet with a like committee of the Assembly for the further consideration of Senate Bill No. 438.

INTRODUCTION, FIRST READING AND REFERENCE

By the Committee on Finance:

Senate Bill No. 556—AN ACT relating to health care; creating a task force on the policy of the State of Nevada concerning access to public health services; making an appropriation; and providing other matters properly relating thereto.

Senator Raggio moved that the bill be referred to the Committee on Finance.

Motion carried.

Assembly Bill No. 699.

Senator Rawson moved that the bill be referred to the Committee on Finance.

Motion carried.

Assembly Bill No. 700.

Senator Rawson moved that the bill be referred to the Committee on Finance.

Motion carried.

Senator Raggio moved that the Senate recess subject to the call of the Chair.

Motion carried.

Senate in recess at 1:35 p.m.

SENATE IN SESSION

At 1:51 p.m.

President Hunt presiding.

Quorum present.

MOTIONS, RESOLUTIONS AND NOTICES

Senator Washington moved that Assembly Bill No. 348 be taken from the General File and placed on the General File on the Second Agenda.

Remarks by Senator Washington.

Motion carried.

GENERAL FILE AND THIRD READING

Senate Bill No. 193.

Bill read third time.

Roll call on Senate Bill No. 193:

Yeas—21.

Nays—None.

Senate Bill No. 193 having received a constitutional majority, Madam President declared it passed, as amended.

Bill ordered transmitted to the Assembly.

Assembly Bill No. 287.

Bill read third time.

Remarks by Senator James.

Senator James disclosed that his law firm has represented property owners.

Roll call on Assembly Bill No. 287:

Yeas—19.

Nays—Care, O’Connell—2.

Assembly Bill No. 287 having received a constitutional majority, Madam President declared it passed.

Bill ordered transmitted to the Assembly.

Assembly Bill No. 519.

Bill read third time.

Roll call on Assembly Bill No. 519:

Yeas—21.

Nays—None.

Assembly Bill No. 519 having received a constitutional majority, Madam President declared it passed.

Bill ordered transmitted to the Assembly.

Assembly Bill No. 688.

Bill read third time.

Roll call on Assembly Bill No. 688:

Yeas—21.

Nays—None.

Assembly Bill No. 688 having received a constitutional majority, Madam President declared it passed.

Bill ordered transmitted to the Assembly.

MOTIONS, RESOLUTIONS AND NOTICES

Senator Raggio moved that Vetoed Senate Bill No. 532 of the 70th Session be made a Special Order of Business for Sunday, May 30, 1999 at 4:30 p.m.

Remarks by Senator Raggio.

Motion carried.

Senator Townsend moved that the action of adoption of the Conference Report concerning Assembly Bill No. 109 be rescinded and requests the appointment of a second conference.

Remarks by Senator Townsend.

Motion carried.

Senator Raggio moved that the Senate recess until 4 p.m.

Motion carried.

Senate in recess at 2:04 p.m.

SENATE IN SESSION

At 4:15 p.m.

President Hunt presiding.

Quorum present.

SPECIAL ORDERS OF THE DAY

Veto Messages of the Governor

The hour of 4:30 p.m. having arrived, Vetoed Senate Bill No. 532 of the 70th Session was considered.

Vetoed Senate Bill No. 532 of the 70th Session.

Bill read.

Governor’s message stating his objections read.

MESSAGES FROM THE GOVERNOR

State of Nevada

Executive Chamber

Carson City, Nevada

May 29, 1999

The Honorable William Raggio, Majority Leader, Nevada State Senate, Legislative Building, Carson City, Nevada 89710

Dear Senator Raggio:

Attached herewith is Senate Bill No. 532 of the 1999 legislative session, which I am returning to you within the constitutional limit without my signature and without approval. I am vetoing the bill because it places an undue burden on the Division of State Parks.

Senate Bill No. 532 changes the date by which certain state money must be deposited by the Division of State Parks in the State Department of Conservation and Natural Resources. The bill was originally intended to provide reasonable guidelines for bank deposits by the Division of State Parks. The division collects fees at more than 20 locations, some of which are remote and produce small weekly amounts, and collections vary greatly depending on location and time of year. Accordingly, the cost of making the deposit could exceed the amount of money deposited. In its final version, however, Senate Bill No. 532 would require the division to make deposits by the next banking day when receipts accumulate to $1,000 or more.

I am concerned that this will create a hardship for our more remote state parks and will, in fact, create the very problem the bill was designed to address. While I understand the Legislature’s concerns, I will work with the division to ensure that deposits are made as promptly as possible.

Sincerely,

Kenny Guinn

Governor of Nevada

The question was put: "Shall the bill pass, notwithstanding the objections of the Governor?"

Remarks by Senator O’Connell.

The roll was called, and the Senate sustained the veto of the Governor by the following vote:

Roll call on Senate Bill No. 532 of the 70^th Session:

Yeas—None.

Nays—Amodei, Care, Carlton, Coffin, Jacobsen, James, Mathews, McGinness, O’Connell, O’Donnell, Porter, Raggio, Rawson, Rhoads, Schneider, Shaffer, Titus, Townsend, Washington, Wiener—20.

Not Voting—Neal.

REPORTS OF COMMITTEES

Madam President:

Your Committee on Finance, to which were referred Senate Bill No. 556; Assembly Bills Nos. 699, 700, has had the same under consideration, and begs leave to report the same back with the recommendation: Do pass.

William J. Raggio, Chairman

MESSAGES FROM THE ASSEMBLY

Assembly Chamber, Carson City, May 30, 1999

To the Honorable the Senate:

I have the honor to inform your honorable body that the Assembly on this day passed Senate Bills Nos. 466, 550.

Also, I have the honor to inform your honorable body that the Assembly on this day passed, as amended, Assembly Bills Nos. 330, 597, 598.

Also, I have the honor to inform your honorable body that the Assembly amended, and on this day passed, as amended, Senate Bill No. 184, Amendment No. 1218, and respectfully requests your honorable body to concur in said amendment.

Also, I have the honor to inform your honorable body that the Assembly on this day adopted the report of the second Conference Committee concerning Assembly Bill No. 238.

Also, I have the honor to inform your honorable body that the Assembly on this day adopted the report of the second Conference Committee concerning Assembly Bill No. 267.

Also, I have the honor to inform your honorable body that the Assembly on this day adopted the report of the first Conference Committee concerning Assembly Bill No. 408.

Susan Furlong Reil

Assistant Chief Clerk of the Assembly

MOTIONS, RESOLUTIONS AND NOTICES

Senator O’Connell moved that the action of adoption of the Conference Report concerning Senate Bill No. 478 be rescinded and requests the appointment of a second conference.

Remarks by Senator O’Connell.

Motion carried.

UNFINISHED BUSINESS

Appointment of Conference Committees

Madam President appointed Senators Townsend, Schneider and Rawson as a second Conference Committee to meet with a like committee of the Assembly for the further consideration of Senate Bill No. 478.

Recede From Senate Amendments

Senator Townsend moved that the Senate do not recede from its action on Assembly Bill No. 64, that a conference be requested, and that Madam President appoint a first Conference Committee consisting of three members to meet with a like committee of the Assembly.

Remarks by Senator Townsend.

Motion carried.

Appointment of Conference Committees

Madam President appointed Senators Townsend, Amodei and Carlton as a first Conference Committee to meet with a like committee of the Assembly for the further consideration of Assembly Bill No. 64.

Reports of Conference Committees

Madam President:

The first Conference Committee concerning Senate Bill No. 438, consisting of the undersigned members, has met, and reports that:

It has agreed to recommend that the amendment of the Assembly be concurred in.

It has agreed to recommend that the bill be further amended as set forth in Conference Amendment No. CA30, which is attached to and hereby made a part of this report.

Conference Amendment.

Amend sec. 3, page 2, by deleting lines 8 and 9 and inserting: “obligations for the purchase of power.”.

Amend sec. 3, page 2, by deleting lines 34 through 42 and inserting:

“3. The provisions of this section must not be construed to allow the commission, by direct or indirect action, to modify or terminate any obligation for the purchase of power in effect on June 1, 1999.”.

Amend sec. 4, page 3, line 5, by deleting “may” and inserting: “must be established at and must”.

Amend sec. 5, page 3, line 19, after “2000,” by inserting: “or such other date that is determined to be in the public interest by the governor pursuant to NRS 704.976,”.

Amend sec. 10, page 7, by deleting lines 5 through 7 and inserting: “or after [July 1, 1999, or the date on which alternative sellers are authorized to provide potentially competitive services to customers in this state, as appropriate.] March 1, 2000, or such other date that is determined to be in the public interest by the governor pursuant to NRS 704.976.”.

Amend sec. 12, page 7, by deleting lines 24 and 25 and inserting: “[December 31, 1999,] March 1, 2000, unless the governor, after consultation with thecommission , determines that a different date is necessary to protect the public interest. [If the”.

Amend sec. 12, page 9, by deleting lines 6 through 11 and inserting:

“[8.] 7. A vertically integrated electric utility shall not provide a potentially competitive service except through an affiliate [:

(a) On or after December 31, 1999; or

(b) The date on which the commission determines that the service is potentially competitive,

whichever is later.] on or after March 1, 2000, or such other date that is determined to be in the public interest by the governor pursuant to subsection 1.”.

Amend sec. 16, page 12, by deleting lines 25 through 35 and inserting:

“4. A customer who has obtained generation, aggregation or any other potentially competitive service for at least 30 continuous days from an alternative seller after March 1, 2000, or such other date that is determined to be in the public interest by the governor pursuant to NRS 704.976, may reacquire service from the designated provider of electric service pursuant to tariffs approved by the commission. The commission shall establish minimum terms and conditions under which electric service must be provided pursuant to this section, including a minimum period during which a customer must be obligated to pay for the electric service from the assigned provider. The price charged for electric service for a particular group of customers must reflect the incremental cost of serving the group.”.

Amend sec. 16, page 12, line 36, by deleting “5.” and inserting “[4.] 5.”.

Amend sec. 17, page 13, by deleting lines 27 and 28 and inserting:

“2. [The rate that the designated provider of electric service must charge a customer for the provision of electric service pursuant to subsection 1 is the total rate established for that”.

Amend sec. 17, pages 13 and 14, by deleting lines 40 through 43 on page 13 and lines 1 through 6 on page 14, and inserting:

“4.] 3. A customer who has obtained generation, aggregation or any other potentially competitive service for at least 30 continuous days from an alternative seller [after March 1, 2000, or such other date that is determined to be in the public interest by the governor pursuant to NRS 704.976,] may reacquire service from the designated provider of electric service pursuant to tariffs approved by the commission. The commission shall establish minimum terms and conditions under which electric service must be provided pursuant to this section, including a minimum period during which a customer must be obligated to pay for the electric service from the assigned provider. The price charged for electric service for a particular group of customers must reflect the incremental cost of serving the group.”.

Amend sec. 17, page 14, by deletingline 12 and inserting:

“[6. Except upon the application of the designated provider to reduce the total rate for any class of customers pursuant to section 4 of this act, the commission shall not initiate or conduct any proceedings to]”.

Amend sec. 18, page 15, by deleting lines 11 and 12 and inserting:

“2. [For the purposes of this section,] Ifthe commission [may impose a procedure] determines that costs are recoverable pursuant to subsection 1, the commission shall, for the purposes of this section and section 3 of this act, adopt by regulation procedures to provide for the direct and unavoidable recovery from ratepayers of the”.

Amend sec. 18, page 15, line 14, by deleting “procedure” and inserting “[procedure] procedures”.

Amend the bill as a whole by deleting sec. 21 and renumbering sections 22 through 27 as sections 21 through 26.

Amend sec. 22, page 16, line 35, after “2000,” by inserting: “or such other date that is determined to be in the public interest by the governor pursuant to NRS 704.976,”.

Amend sec. 23, page 17, by deleting line 1 and inserting:

“Sec. 22. On or before March 1, 2000, or such other date that is determined to be in the public interest by the governor pursuant to NRS 704.976, an alternative seller and a vertically integrated electric”.

Amend sec. 23, page 17, line 4, by deleting “2000.” and inserting: “2000, or such other date that is determined to be in the public interest by the governor pursuant to NRS 704.976.”.

Amend sec. 24, page 17, line 6, by deleting: “for electric service” and inserting “with customers”.

Amend sec. 25, page 17, line 10, by deleting “July” and inserting “June”.

Amend sec. 26, page 17, by deleting line 12 and inserting: “inclusive, 18 to 22, inclusive, and 26 of this act become effective on”.

Amend sec. 26, page 17, line 14, by deleting: “Section 24 becomes” and inserting:

“Sections 23 and 24 become”.

Amend the title of the bill, seventh line, by deleting “extending” and inserting: “revising the provisions governing”.

Randolph J. Townsend Douglas A. Bache

Dean A. Rhoads Lynn C. Hettrick

Raymond C. Shaffer Joseph E. Dini

Senate Conference Committee Assembly Conference Committee

Senator Townsend moved that the Senate adopt the report of the first Conference Committee concerning Senate Bill No. 438.

Conflict of interest declared by Senator Raggio.

Remarks by Senators Townsend, O’Connell, Titus and Neal.

Senator Amodei requested that the following remarks be entered in the Journal.

Senator Townsend:

This is the electrical deregulation bill which does three important things. The first important change has to do with the provisions of this section which must not be construed to allow the commission, by direct or indirect action, to modify or terminate any obligation for the purchase of power. It is crucial that we not allow the commission, in action on a regulation or a ruling, to interfere with any contract obligation.

The second change has to do with the date certain, March 1, 2000. We felt it was important that if there was some technical glitch, irrespective of the year 2000, that in the public interest would not allow us to move forward with deregulation, that the Governor should, in consultation with the Public Utilities Commission (PUC) as the senior elected official in the Executive Branch, be responsible for delaying that.

The third area of change has to do with the simple issue in the case of stranded cost under A.B. No. 366, which is crucial debt. The commission goes into a determination through a hearing as to whether there are stranded costs on number one. On number two, the most important thing is how they are going to be captured. The way the bill originally was drafted, we felt that was clear. They made an attempt and voted with us on how this was to be done. The language that went into the bill left way too much latitude and gray area for all parties to be comfortable. As a result, the language that is included speaks specifically to the issue as to how that is going to be addressed.

What we have done is to say in subsection 1, it is important that the commission under A.B. No. 366 retain its jurisdiction to establish these stranded costs if they are there. Then, they will draft a regulation in order for them to be recovered. That is what we have clarified in this amendment. My colleague from southern Nevada will put some additional language in with regard to contract issues and “force majeure.”

Senator O’Connell:

Section 3 related to “qualifying facilities” or QF contracts. Because these are electrical generating facilities which generally utilize renewable resources to create electric power, their cost to produce that power can be higher than the usual cost for the utility to produce power or compared to market prices in a competitive environment. The utilities were forced into QF contracts by federal law. The issue before us in Nevada, as we move into a competitive environment, is to ensure that these existing arrangements are fairly treated while we continue to try and assure ratepayers in Nevada the lowest rates possible.

Section 3 has been added to ensure the fair treatment of the utilities and the qualifying QF contracts as well as the fair recovery of cost.

Specifically, subsection 1 guarantees the sanctity of these contracts, already confirmed under our Nevada and the United States Constitution, but the amendment clarifies that the terms of these contracts must be complied with as written.

Subsection 2 is not being amended and continues to ensure that all reasonable efforts to mitigate any extra costs associated with these contracts will be accomplished. We are deleting subsection 3 due to the fact that this area is clarified under NRS 704.983 which relates to the recovery of stranded cost.

Subsection 4 is being amended to clarify that the Public Utilities Commission may not modify or terminate any of these contracts in effect on July 1, 1999, either directly or indirectly. There has been some question raised specifically about the commission’s ability to interpret what are called “force majeure” clauses in these contracts. These are generally clauses which provide that major forces out of the control of either of the parties such as weather or earthquakes, can effectively void the contract or make it impossible to perform. The specific question raised is whether the enactment of A.B. No. 366 last session is or could give rise to a “force majeure” sufficient to void or reduce the contract. This language is, therefore, also, being added to ensure that the commission cannot interpret clauses to modify or terminate the contracts or use the “force majeure” clauses to reduce the costs recoverable under existing NRS 704.983 based upon the electric restructuring statutes we have passed and their impacts.

Senator Titus:

I rise in opposition to this conference amendment which interjects the Governor directly into the process of establishing a timetable for deregulation. With all due respect to the current Governor, decisions regarding electrical utility deregulation should be made not by him but by the Public Utilities Commission, which was created for this purpose. The commission is a non-elected, bipartisan body charged with protecting the public’s interest, and that’s exactly what they should do. Regardless of who serves as Governor, that person cannot possibly be as informed, as objective or as political as the PUC. Therefore, it is inappropriate to allow him or her to usurp their power in this way.

I voted against the original bill because I thought the ratepayers were not being protected, and I believe this conference amendment makes the situation worse.

Senator Neal:

I have a question I would like to ask to Senator O’Connell who had made the statement about the “force majeure” contract. I thought I heard her say that these contracts were forced upon these utilities by the federal government. Is that correct?

Senator O’Connell:

Thank you, Madam President. Through you to the Senator from Senate District 4, no it is not. The QF contracts are the contracts that were forced upon the utilities. The “force majeure” phrase is a phrase that is used in contracts that have to do with uncontrollable situations that neither party to the contract has any control over.

Senator Neal:

The QF contract that you mentioned to the Senate, what are those, and could you give us an example?

Senator O’Connell:

Those are contracts that the PUC, carrying out the federal government’s law, required utilities to build additional facilities. This happened especially in southern Nevada where our growth required us to keep building additional facilities in order to be able to service the customers from the south. Those are the QF contracts.

Senator Neal:

Are these also long-term contracts that were entered into for coal and other services?

Senator O’Connell:

My understanding is that is correct, Senator.

Senator Neal:

So, as I understand, if the long-term contracts that were entered into for coal contracts did not anticipate that somewhere along the line they would deregulate. You are not saying that those were not decisions that were being made by the management of these utility companies?

Senator Townsend:

Under the federal regulation known as the Public Utility Regulatory Policies Act (PURPA), from 1978, qualifying facilities were the environmentally sensitive way to eliminate large coal-fired power plants and develop what is known as a co-generation facility. Those were encouraged to be built and were also authorized by the PUC in a statement by the federal government as being in the best interest of this country for environmental purposes. The QF contract is different than any other contract. The issue at hand is one that we can never confuse. Stranded costs may be QF contracts or could be other contracts and may not have a cost, depending on market value. The issue is whether or not a QF contract was entered into as a result of the federal act authorized by the PUC depending on when those are asked to be recovered and their current market value. They may have a stranded cost associated with them, and they may, in fact, have an asset association with them depending on the current price.

Senator Neal:

I gather that what you are saying is if it is a QF contract and if we buy the concept that the government has forced these utilities into these long-term contracts, are you not saying that the stranded costs in terms of paying off those contracts is going to fall upon the ratepayers?

Senator Townsend:

The ratepayers currently pay for those contracts. The issue is a simple one. Under A.B. No. 366 and under Senate Bill No. 438, if there is a mitigation clause in those contracts, those parties must make a good faith effort in order to mitigate these costs for all classes of payers. If there is no mitigation clause, then they must receive dollar-for-dollar recovery on those contracts.

Senator Neal:

Could you tell the Senate the number of contracts that we are talking about and the dollar amount that may or may not be the stranded cost that would fall upon the ratepayers?

Senator Townsend:

The estimated stranded costs run, depending on the PUC of Nevada; Office of Consumer Advocates of Nevada; utilities and those who are interested in entering this market, run between zero and one billion dollars.

Senator Neal:

Could you now tell the Senate as to how many of those contracts have mitigation clauses?

Senator Townsend:

A vast majority do have mitigation clauses.

Senator Neal:

When you say a vast majority, can you narrow that down to a more definite dollar amount?

Senator Townsend:

I cannot define that in that manner. I believe that there are currently five contracts and I know that at least three of them do have mitigation clauses. But I do not know the dollar amount. There is one contract that is estimated to be as high as $600 million.

Senator Neal:

Does that particular contract have a mitigation clause?

Senator Townsend:

To the best of my knowledge, it does.

Senator Neal:

Does that mean that stranded cost would not fall upon the ratepayers of the State of Nevada?

Senator Townsend:

That contract is not a co-generation contract. That contract is one for purchase power. That would depend entirely upon the market value at the time it was being estimated to be a cost.

Senator Neal:

When you said a market value, did you mean that if it is undersold then that portion that it should have been sold for would then fall to the ratepayers, is that what I understood you to say?

Senator Townsend:

Yes, if at the time it is estimated to be a cost on the books, if the value of that contract at that time is five cents a kilowatt and they are paying six cents a kilowatt, then your stranded cost is the one cent difference. For that, all classes of ratepayers would pay for it.

Senator Neal:

Did the committee consider in reviewing the stranded cost as to how much of that stranded cost would fall upon the ratepayers?

Senator Townsend:

When you say ratepayers, you are using the generic term. The entire cost would be spread across all classes of customers; residential, small commercial, light industrial and the large users. Currently under the structure of this bill which has a three-and-one-half-year cap on rates, they will apply to the commission and honor the contracts that are in place. If a stranded cost is established, mitigation has been attempted and met the standard of the commission that is in A.B. No. 366 and in this bill, all classes of ratepayers will pay entirely for this sum.

Senator Neal:

Senator Titus had raised a question about the Governor being involved and making a determination as to when we deregulate. Why is it necessary or what advantage would it be to have the Governor make this particular decision?

Senator Townsend:

The way the bill is crafted, and specifically the conference amendment with which we are dealing today, is done in a manner to accommodate the following potential problem. No matter who sits in the seats of the PUC, the social contract that this body entered into two years ago for the residential ratepayer, small commercial, light industrial and our large users, was that we would start January 1, 2000. We have subsequently moved that off as my colleague in the Assembly suggested that there might be a year 2000 problem. We accommodated his concern by going to March, 2000. The one issue with which we were concerned was regulatory delay which meant that the PUC under the previous bill would be allowed to make that determination. We felt that the executive branch should still have that determination, that the person who is duly elected and, in case of a total emergency would have to call a special session, should be the one that uses the PUC’s vast expertise, and ultimately have a ruling on this.

Senator Titus:

I would like an explanation as to what could be a total emergency that could require a special session to move us to deregulation after interim studies, two sessions and dates in the statutes?

Senator Townsend:

There are two things that could occur. One is federal and one is regional. Number one is that there are approximately five deregulation bills sitting in Congress. Those bills vary regarding trigger dates, regional implications and relationships that are required. The second issue that could be a substantial problem is the one that all of us face on a regular basis which is the issue in the West of reliability. Southern Nevada, as you are well aware, has suffered at some times particularly in August during the hottest month of the year what is called a “brownout,” which is a peak period in which the current generation capability is incapable of meeting the demand. If, in fact, a regional transmission system is going to be entered into between the PUC here in Nevada and either the current independent system operator in California or our own Desert Star that we have been working on and there are reliability issues that need to have a legislative mandate of some kind, then we would be required to come back here. It is highly unlikely, but in the event that something happens, since we are entering a new world, the responsibility to do that only rests with the Governor.

I would like to remind the body that the parties who have worked on this, which are extensive, are a core group of individuals which include Fred Schmidt, who is the Consumer Advocate from the Office of Consumer Protection, as well as large user groups, both utilities individually and collectively under their potential merger. The additional competitors have been involved in this and all the parties who have had concerns. The core group which is the individual who represents our residential customers whom we all depend on to represent the people that get up and go to work every day for a living has helped craft not only this bill but this conference report. He is someone who had more interest in that office than anyone. I am confident that this is the best thing we can do for our consumers. It is probably, once again, going to lead the nation in terms of the nature of how we address deregulation of this industry.

Senators Neal, Titus and Carlton requested a roll call vote on Senator Townsend’s motion.

Roll call on Senator Townsend’s motion:

Yeas—18

Nays—Neal, Titus—2.

Not Voting—Raggio.

The motion having received a majority, Madam President declared it carried.

Madam President:

The second Conference Committee concerning Assembly Bill No. 238, consisting of the undersigned members, has met, and reports that:

It has agreed to recommend that the amendment of the Senate be concurred in.

It has agreed to recommend that the bill be further amended as set forth in Conference Amendment No. CA29, which is attached to and hereby made a part of this report.

Conference Amendment.

Amend sec. 7, page 2, by deleting lines 18 through 26 and inserting:

“2. The state board of health shall adopt regulations to carry out the provisions of sections 3 to 9, inclusive, of this act. The regulations must:

(a) Establish a procedure to inform a patient that his name will be used for research and referrals to related services unless he requests the exclusion of his name from the system; and

(b) Require the exclusion from the system of the name of a patient if the patient or, if the patient is a minor, a parent or legal guardian of the patient has requested in writing to exclude the name of the patient from the system.”.

Amend sec. 8, page 3, by deleting lines 1 and 2 and inserting: “the patient is a minor, a parent or legal guardian of the patient has requested in writing to exclude the name of the patient from”.

Amend sec. 17, page 8, line 29, after “therapy” by inserting: “and listed on a transplant list generally recognized in the medical field”.

Amend sec. 18, page 8, line 34, by deleting “458.360,” and inserting “458.350,”.

Amend sec. 18, page 8, line 38, by deleting “458.360,” and inserting “458.350,”.

Amend sec. 18, page 8, line 40, by deleting “such” and inserting “that”.

Amend sec. 18, page 9, line 1, by deleting “458.360,” and inserting “458.350,”.

Amend sec. 18, page 9, line 4, by deleting “458.360,” and inserting “458.350,”.

Amend the bill as whole by renumbering sections 20 through 22 as sections 21 through 23 and adding a new section designated sec. 20, following sec. 19, to read as follows:

“Sec. 20. NRS 629.171 is hereby amended to read as follows:

629.171 It is unlawful to disclose or to compel a person to disclose the identity of a person who was the subject of a genetic test or to disclose genetic information of that person in a manner that allows identification of the person, without first obtaining the informed consent of that person or his legal guardian pursuant to NRS 629.181, unless the information is disclosed:

1. To conduct a criminal investigation, an investigation concerning the death of a person, or a criminal or juvenile proceeding;

2. To determine the parentage or identity of a person pursuant to NRS 56.020;

3. To determine the paternity of a person pursuant to NRS 126.121 or 425.384;

4. Pursuant to an order of a court of competent jurisdiction;

5. By a physician and is the genetic information of a deceased person that will assist in the medical diagnosis of persons related to the deceased person by blood;

6. To a federal, state, county or city law enforcement agency to establish the identity of a person or dead human body;

7. To determine the presence of certain preventable or inheritable disorders in an infant pursuant to NRS 442.115 or a provision of federal law;

8. To carry out the provisions of sections 3 to 9, inclusive, of this act; or

[8.] 9. By an agency of criminal justice pursuant to NRS 179A.075.”.

Amend sec. 22, page 10, by deleting line 7 and inserting:

“Sec. 23. Sections 10, 13, 18 and 20 of this act become effective at 12:01 a.m.”.

Maurice E. Washington Barbara E. Buckley

Randolph J. Townsend Dawn Gibbons

Michael Schneider Ellen M. Koivisto

Senate Conference Committee Assembly Conference Committee

Senator Washington moved that the Senate adopt the report of the second Conference Committee concerning Assembly Bill No. 238.

Remarks by Senator Washington.

Motion carried.

Madam President:

The second Conference Committee concerning Assembly Bill No. 267, consisting of the undersigned members, has met, and reports that:

It has agreed to recommend that the amendment of the Senate be concurred in.

Mark A. James Bernard Anderson

Dina Titus Barbara E. Buckley

Maurice E. Washington John C. Carpenter

Senate Conference Committee Assembly Conference Committee

Senator James moved that the Senate adopt the report of the second Conference Committee concerning Assembly Bill No. 267.

Remarks by Senator James.

Motion carried.

Appointment of Conference Committees

Madam President appointed Senators McGinness, Wiener and James as a second Conference Committee to meet with a like committee of the Assembly for the further consideration of Senate Bill No. 360.

Madam President appointed Senators O’Connell, Rhoads and Schneider as a second Conference Committee to meet with a like committee of the Assembly for the further consideration of Assembly Bill No. 109.

INTRODUCTION, FIRST READING AND REFERENCE

Assembly Bill No. 330.

Senator Rawson moved that the bill be referred to the Committee on Finance.

Motion carried.

Assembly Bill No. 597.

Senator Rawson moved that the bill be referred to the Committee on Finance.

Motion carried.

Assembly Bill No. 598.

Senator Rawson moved that the bill be referred to the Committee on Finance.

Motion carried.

MOTIONS, RESOLUTIONS AND NOTICES

Senator Raggio moved that Assembly Bill No. 348 be taken from the General File and placed on the General File on the next agenda.

Remarks by Senator Raggio.

Motion carried.

Senator Raggio moved that the Senate recess subject to the call of the Chair.

Motion carried.

Senate in recess at 5:29 p.m.

SENATE IN SESSION

At 5:38 p.m.

President Hunt presiding.

Quorum present.

GENERAL FILE AND THIRD READING

Senate Bill No. 556.

Bill read third time.

Remarks by Senators Titus, Washington and Amodei.

Roll call on Senate Bill No. 556:

Yeas—21.

Nays—None.

Senate Bill No. 556 having received a constitutional majority, Madam President declared it passed.

Bill ordered transmitted to the Assembly.

Assembly Bill No. 205.

Bill read third time.

Remarks by Senator Raggio.

Roll call on Assembly Bill No. 205:

Yeas—21.

Nays—None.

Assembly Bill No. 205 having received a constitutional majority, Madam President declared it passed.

Bill ordered transmitted to the Assembly.

Assembly Bill No. 696.

Bill read third time.

Roll call on Assembly Bill No. 696:

Yeas—14.

Nays—Amodei, Care, Carlton, Coffin, Schneider, Titus, Wiener—7.

Assembly Bill No. 696 having received a constitutional majority, Madam President declared it passed.

Bill ordered transmitted to the Assembly.

Assembly Bill No. 699.

Bill read third time.

Remarks by Senators Raggio, O’Connell and Neal.

Roll call on Assembly Bill No. 699:

Yeas—20.

Nays—Schneider.

Assembly Bill No. 699 having received a two-thirds majority, Madam President declared it passed.

Bill ordered transmitted to the Assembly.

Assembly Bill No. 700.

Bill read third time.

Roll call on Assembly Bill No. 700:

Yeas—19.

Nays—Coffin, Schneider—2.

Assembly Bill No. 700 having received a constitutional majority, Madam President declared it passed.

Bill ordered transmitted to the Assembly.

Senate Bill No. 548.

Bill read third time.

The following amendment was proposed by Senator Raggio:

Amendment No. 1225.

Amend sec. 39, page 23, by deleting lines 37 through 40 and inserting: “a presidential preference primary election is held, file with the secretary of state a declaration of candidacy on a form prescribed by the secretary of state.”.

Senator Raggio moved the adoption of the amendment.

Remarks by Senator Raggio.

Amendment adopted.

Bill ordered reprinted, engrossed and to third reading.

Senator Raggio moved that the Senate recess until 8 p.m.

Motion carried.

Senate in recess at 6:01 p.m.

SENATE IN SESSION

At 10:06 p.m.

President Hunt presiding.

Quorum present.

REPORTS OF COMMITTEES

Madam President:

Your Committee on Finance, to which was referred Assembly Bill No. 472, has had the same under consideration, and begs leave to report the same back with the recommendation: Amend, and do pass as amended.

Also, your Committee on Finance, to which were referred Assembly Bills Nos. 224, 320, 330, 360, 373, 663, has had the same under consideration, and begs leave to report the same back with the recommendation: Do pass.

William J. Raggio, Chairman

Madam President:

Your Committee on Natural Resources, to which was referred Assembly Bill No. 694, has had the same under consideration, and begs leave to report the same back with the recommendation: Amend, and do pass as amended.

Dean A. Rhoads, Chairman

MESSAGES FROM THE ASSEMBLY

Assembly Chamber, Carson City, May 30, 1999

To the Honorable the Senate:

I have the honor to inform your honorable body that the Assembly on this day passed Senate Bills Nos. 353, 553, 554, 555; Assembly Bills Nos. 698, 701.

Also, I have the honor to inform your honorable body that the Assembly on this day passed, as amended, Assembly Bill No. 564.

Also, I have the honor to inform your honorable body that the Assembly on this day adopted Senate Concurrent Resolutions Nos. 4, 19.

Also, I have the honor to inform your honorable body that the Assembly amended, and on this day passed, as amended, Senate Bill No. 259, Amendments Nos. 944, 1060, 1211; Senate Bill No. 411, Amendment No. 1161, and respectfully requests your honorable body to concur in said amendments.

Also, I have the honor to inform your honorable body that the Assembly on this day respectfully refused to concur in the Senate Amendment No. 1206 to Assembly Bill No. 689.

Also, I have the honor to inform your honorable body that the Assembly on this day adopted the report of the first Conference Committee concerning Senate Bill No. 128.

Also, I have the honor to inform your honorable body that the Assembly on this day adopted the report of the first Conference Committee concerning Senate Bill No. 133.

Also, I have the honor to inform your honorable body that the Assembly on this day adopted the report of the first Conference Committee concerning Senate Bill No. 192.

Also, I have the honor to inform your honorable body that the Assembly on this day adopted the report of the first Conference Committee concerning Senate Bill No. 438.

Also, I have the honor to inform your honorable body that the Assembly on this day adopted the report of the first Conference Committee concerning Senate Bill No. 451.

Also, I have the honor to inform your honorable body that the Assembly on this day adopted the report of the first Conference Committee concerning Senate Bill No. 530.

Also, I have the honor to inform your honorable body that the Assembly on this day adopted the report of the first Conference Committee concerning Assembly Bill No. 669.

Also, I have the honor to inform your honorable body that the Assembly on this day adopted the report of the first Conference Committee concerning Assembly Bill No. 680.

Also, I have the honor to inform your honorable body that the Assembly on this day adopted the report of the first Conference Committee concerning Assembly Joint Resolution No. 5 of the 69th Session.

Susan Furlong Reil

Assistant Chief Clerk of the Assembly

UNFINISHED BUSINESS

Consideration of Assembly Amendments

Senate Bill No. 184.

The following Assembly Amendment was read:

Amendment No. 1218.

Amend section 1, page 1, line 2, by deleting “2” and inserting “1.3”.

Amend the bill as a whole by adding new sections designated sections 1.3 through 1.7, following section 1, to read as follows:

“Sec. 1.3. As used in sections 1.3 to 5, inclusive, of this act, unless the context otherwise requires, the words and terms defined in sections 1.5 and 1.7 of this act have the meanings ascribed to them in those sections.

Sec. 1.5. “Division” means the division of parole and probation of the department of motor vehicles and public safety.

Sec. 1.7. “Program of treatment” means a program of treatment for the abuse of alcohol or drugs that is supervised by a judge.”.

Amend sec. 2, page 1, by deleting lines 6 and 7 and inserting: “director shall, after consulting with the division, refer the offender”.

Amend sec. 2, page 1, by deleting lines 9 and 10 and inserting: “participate successfully in and benefit from a program of treatment and:”.

Amend sec. 2, page 2, by deleting line 2 and inserting: “judge in the judicial district to which the offender would be assigned pursuant to section 10 of this act will”.

Amend sec. 2, page 2, by deleting lines 6 through 10 and inserting: “participation in a program of treatment, including, without limitation, costs for room and board, and to meet any existing obligation for restitution to any victim of his crime, or a judge in the judicial district to which the offender would be assigned will assist the offender to ensure that the offender”.

Amend sec. 2, page 2, by deleting lines 20 through 23 and inserting: “offender should be assigned to the custody of the division to be assigned to participate in a program of treatment, the director shall assign the offender to the custody of the division to be assigned to participate in a program of treatment for a minimum of 1 year, but not longer than the remainder of his sentence.”.

Amend sec. 2, page 2, line 25, by deleting “a court” and inserting “the division”.

Amend sec. 2, page 2, line 26, after “section.” by inserting: “The standards must be approved by the board and reviewed by the interim finance committee.”.

Amend sec. 2, page 2, by deleting lines 37 through 40 and inserting:

“(d) Has been convicted of more than one felony in this state or any offense in another state that would be a felony if committed in this state, unless each felony or offense which the offender has been convicted of arose out of the same act, transaction or occurrence;”.

Amend sec. 2, page 3, by deleting lines 4 through 10 and inserting: “is not eligible for assignment to the custody of the division pursuant to this section to be assigned to participate in a program of treatment.

4. The director shall adopt regulations requiring offenders who are assigned to the custody of the division pursuant to this section to reimburse a court, the division and the department for any costs incurred pursuant to sections 1.3 to 5, inclusive, and 10 of this act. The regulations must be approved by the board and reviewed by the interim finance committee.

5. A court to which an offender has been assigned pursuant to section 10 of this act may return the offender to the custody of the department at any time.

6. If an offender assigned to the custody of the division pursuant to this section violates any of the terms or conditions imposed by a court to which the offender has been assigned pursuant to section 10 of this act and”.

Amend sec. 2, page 3, by deleting line 18 and inserting:

“7. The assignment of an offender to the custody of the division pursuant”.

Amend sec. 2, page 3, line 27, by deleting “7.” and inserting “8.”.

Amend sec. 2, page 3, line 28, by deleting “a court” and inserting “the division”.

Amend sec. 2, page 3, by deleting lines 29 and 30 and inserting: “an assignment, and it is not intended that the provisions of sections 1.3 to 5, inclusive, or section 10 of this act create any right or interest in”.

Amend sec. 2, page 3, line 34, by deleting “8.” and inserting “9.”.

Amend sec. 2, page 3, by deleting lines 35 and 36 and inserting: “custody of the division pursuant to this section to be assigned to participate in a program of treatment during each biennium.”.

Amend sec. 3, pages 3 and 4, by deleting lines 37 through 43 on page 3 and lines 1 through 4 on page 4, and inserting:

“Sec. 3. 1. A court that operates a program of treatment to which an offender is assigned pursuant to section 10 of this act shall submit a claim to the department for the cost of the offender to participate in the program of treatment at the rate of $1,500 for the first month that the offender participates in the program and $250 for each month thereafter that the offender participates in the program, pro rata for any month that the offender participates for less than a month, up to the date on which the offender would probably be released from prison, as determined by the director pursuant to section 2 of this act.

2. For each offender assigned to the custody of the division pursuant to section 2 of this act, the division shall submit a claim to the department for the cost of supervising the participation of the offender in the program at the rate of $100 for each month that the offender participates in the program, pro rata for any month that the offender participates for less than a month, up to the date on which the offender would probably be released from prison, as determined by the director pursuant to section 2 of this act.

3. Except as otherwise provided in subsection 4, claims submitted pursuant to subsections 1 and 2 must be paid in the same manner as other claims against the state are paid, from money appropriated to the department.

4. Funding for the payments made by the department pursuant to this section must be accrued from the savings incurred by the department as the result of assigning offenders to the custody of the division pursuant to section 2 of this act. Such savings must be documented, and the documentation must be reviewed and approved by the director of the department of administration. Upon the recommendation of the governor and after being approved by the interim finance committee, the amount of the savings must be transferred from the purpose for which it was designated to the budget of the director for payment pursuant to this section.”.

Amend sec. 4, page 4, by deleting line 6 and inserting “shall”.

Amend sec. 4, page 4, by deleting lines 9 and 10 and inserting: “assigned to the custody of the division to be assigned to participate in a program of treatment.”.

Amend sec. 4, page 4, line 12, by deleting: “meet regularly to”.

Amend sec. 4, page 4, by deleting lines 14 through 19 and inserting: “be assigned to the custody of the division to be assigned to participate in a program of treatment.

3. If a majority of the members of the advisory board determine that an offender should be assigned to the custody of the division to be assigned to participate in a program of treatment and the judge of the”.

Amend sec. 5, page 4, by deleting lines 26 and 27 and inserting: “experience related to a program of treatment;”.

Amend sec. 5, page 4, line 30, by deleting “A” and inserting: “An attorney regularly assigned to represent offenders who are participating in a program of treatment, or a”.

Amend sec. 6, page 5, line 25, by deleting “a court” and inserting: “the division of parole and probation of the department of motor vehicles and public safety”.

Amend sec. 7, page 6, line 1, by deleting “a court” and inserting: “the division of parole and probation of the department of motor vehicles and public safety”.

Amend sec. 8, page 6, line 38, by deleting “a court” and inserting: “the division of parole and probation of the department of motor vehicles and public safety”.

Amend sec. 9, page 7, line 28, by deleting “a court” and inserting: “the division of parole and probation of the department of motor vehicles and public safety”.

Amend sec. 9, page 7, lines 33 and 34, by deleting “a court” and inserting: “the division of parole and probation of the department of motor vehicles and public safety”.

Amend sec. 10, page 8, by deleting lines 1 through 38 and inserting:

“Sec. 10. Chapter 213 of NRS is hereby amended by adding thereto a new section to read as follows:

The division of parole and probation of the department of motor vehicles and public safety shall:

1. Supervise each offender who is assigned to the custody of the division pursuant to section 2 of this act; and

2. Assign each offender who is assigned to the custody of the division pursuant to section 2 of this act to participate in a program of treatment for the abuse of alcohol or drugs.”.

Amend sec. 11, page 8, by deleting lines 42 and 43 and inserting: “treatment for the abuse of alcohol or drugs by certain persons that are supervised by a judge in the Second Judicial District. The appropriation must be disbursed as follows:”.

Amend sec. 12, page 9, by deleting lines 5 through 7 and inserting: “State of Nevada the sum of $700,000 for the continuation of its programs of treatment for the abuse of alcohol or drugs by certain persons that are supervised by a judge in the Eighth Judicial District.”.

Amend sec. 12, page 9, by deleting line 11 and inserting “District.”.

Amend the title of the bill, second line, by deleting “a court” and inserting: “the division of parole and probation of the department of motor vehicles and public safety”.

Amend the summary of the bill, first line, by deleting “court” and inserting: “division of parole and probation of department of motor vehicles and public safety”.

Senator Raggio moved that the Senate concur in the Assembly amendment to Senate Bill No. 184.

Remarks by Senator Raggio.

Motion carried.

Bill ordered enrolled.

Recede From Senate Amendments

Senator Rawson moved that the Senate do not recede from its action on Assembly Bill No. 689, that a conference be requested, and that Madam President appoint a first Conference Committee consisting of three members to meet with a like committee of the Assembly.

Remarks by Senator Rawson.

Motion carried.

Appointment of Conference Committees

Madam President appointed Senators Rawson, Wiener and Washington as a first Conference Committee to meet with a like committee of the Assembly for the further consideration of Assembly Bill No. 689.

Reports of Conference Committees

Madam President:

The first Conference Committee concerning Senate Bill No. 302, consisting of the undersigned members, has met, and reports that:

No decision was reached, and recommends the appointment of a second Conference Committee, to consist of 3 members, for the further consideration of the measure.

Mark Amodei Tom Collins

Lawrence E. Jacobsen Jerry D. Claborn

Raymond C. Shaffer Donald G. Gustavson

Senate Conference Committee Assembly Conference Committee

Senator Amodei moved that the Senate adopt the report of the first Conference Committee concerning Senate Bill No. 302.

Remarks by Senator Amodei.

Motion carried.

Appointment of Conference Committees

Madam President appointed Senators O’Donnell, Washington and Wiener as a second Conference Committee to meet with a like committee of the Assembly for the further consideration of Senate Bill No. 302.

Reports of Conference Committees

Madam President:

The second Conference Committee concerning Senate Bill No. 360, consisting of the undersigned members, has met, and reports that:

It has agreed to recommend that the amendment of the Assembly be receded from.

Mike McGinness

Valerie Wiener Mark A. Manendo

Mark A. James Tom Collins

Senate Conference Committee Assembly Conference Committee

Senator McGinness moved that the Senate adopt the report of the second Conference Committee concerning Senate Bill No. 360.

Remarks by Senator McGinness.

Motion carried.

Madam President:

The first Conference Committee concerning Assembly Joint Resolution No. 5 of the 69th Session, consisting of the undersigned members, has met, and reports that:

It has agreed to recommend that the amendment of the Senate be concurred in.

William R. O’Donnell Bob Price

Jon C. Porter Harry Mortenson

Joseph Neal Merle A. Berman

Senate Conference Committee Assembly Conference Committee

Senator O’Donnell moved that the Senate adopt the report of the first Conference Committee concerning Assembly Joint Resolution No. 5 of the 69^th Session.

Remarks by Senator O’Donnell.

Motion carried.

INTRODUCTION, FIRST READING AND REFERENCE

By Senator Townsend (Emergency Request of Hettrick):

Senate Bill No. 557—AN ACT relating to health insurance; requiring certain policies of health insurance to include coverage for the treatment of conditions relating to severe mental illness; and providing other matters properly relating thereto.

Senator Rawson moved that the bill be referred to the Committee on Commerce and Labor.

Motion carried.

Assembly Bill No. 564.

Senator Rawson moved that the bill be referred to the Committee on Finance.

Motion carried.

Assembly Bill No. 698.

Senator Rawson moved that the bill be referred to the Committee on Finance.

Motion carried.

Assembly Bill No. 701.

Senator Rawson moved that the bill be referred to the Committee on Finance.

Motion carried.

SECOND READING AND AMENDMENT

Assembly Bill No. 472.

Bill read second time.

The following amendment was proposed by the Committee on Finance:

Amendment No. 1221.

Amend the bill as a whole by renumbering sec. 3 as sec. 4 and adding a new a new section designate sec. 3, following sec. 2, to read as follows:

“Sec. 3. 1. There is hereby appropriated from the state general fund to the Supreme Court for carrying out the amendatory provisions of this act:

For the fiscal year 1999-2000.................................................................... $182,612

For the fiscal year 2000-2001.................................................................... $205,367

2. Any balance of the sums appropriated by subsection 1 remaining at the end of the respective fiscal years must not be committed for expenditure after June 30 of the respective fiscal years and reverts to the state general fund as soon as all payments of money committed have been made.”.

Amend the title of the bill, second line, after “judges;” by inserting: “making an appropriation;”.

Senator Raggio moved the adoption of the amendment.

Remarks by Senator Raggio.

Amendment adopted.

Bill ordered reprinted, engrossed and to third reading.

Assembly Bill No. 694.

Bill read second time.

The following amendment was proposed by the Committee on Natural Resources:

Amendment No. 1216.

Amend section 1, page 1, by deleting lines 3 through 12 and inserting: “shall] must be packaged for retail sale [only in units] in:

(a) Units of 1 gill or less, one-half liquid pint, 10 fluid ounces, 1 liquid pint, 1 liquid quart, one-half gallon, 3 liquid quarts, 1 gallon, 1 1/2 gallons, 2 gallons, 2 1/2 gallons or multiples of 1 gallon [. Containers] ; or

(b) Such other amounts as are approved, jointly, by the state dairy commission and the state sealer of weights and measures.

2. Each container used for the sale of such products [shall be marked upon the side of each container] must:

(a) Be marked with its capacity [. The] ;

(b) Be marked with the name, initial or trade-mark of the manufacturer [shall be marked upon the side or bottom.

2.] ;

(c) Be marked with such other information as required by the state dairy commission and the state sealer of weights and measures; and

(d) If the fluid dairy product is packaged for retail sale in an amount other than a unit of measure listed in paragraph (a) of subsection 1, be marked with its capacity in fluid ounces and a comparison of that quantity with the unit of measure that is closest in volume in sufficient size and prominence to inform the public of the difference in volume.

3. This section does not apply to eating establishments serving milk in”.

Amend the title of the bill, third line, after “sale;” by inserting: “requiring certain containers used for the sale of such products to be marked with their capacity in fluid ounces and a comparison of that quantity with certain units of measure;”.

Senator Rhoads moved the adoption of the amendment.

Remarks by Senator Rhoads.

Amendment adopted.

Bill ordered reprinted, engrossed and to third reading.

Senator Porter moved that the Senate recess subject to the call of the Chair.

Motion carried.

Senate in recess at 10:22 p.m.

SENATE IN SESSION

At 10:47 p.m.

President Hunt presiding.

Quorum present.

GENERAL FILE AND THIRD READING

Senate Bill No. 548.

Bill read third time.

Roll call on Senate Bill No. 548:

Yeas—12.

Nays—Care, Carlton, Coffin, Mathews, Neal, Schneider, Shaffer, Titus, Wiener—9.

Senate Bill No. 548 having received a constitutional majority, Madam President declared it passed, as amended.

Bill ordered transmitted to the Assembly.

REPORTS OF COMMITTEES

Madam President:

Your Committee on Commerce and Labor, to which was referred Senate Bill No. 557, has had the same under consideration, and begs leave to report the same back with the recommendation: Do pass.

Randolph J. Townsend, Chairman

GENERAL FILE AND THIRD READING

Assembly Bill No. 224.

Bill read third time.

Remarks by Senator Raggio.

Roll call on Assembly Bill No. 224:

Yeas—21.

Nays—None.

Assembly Bill No. 224 having received a constitutional majority, Madam President declared it passed.

Bill ordered transmitted to the Assembly.

Assembly Bill No. 320.

Bill read third time.

Roll call on Assembly Bill No. 320:

Yeas—20.

Nays—O’Connell.

Assembly Bill No. 320 having received a constitutional majority, Madam President declared it passed.

Bill ordered transmitted to the Assembly.

Assembly Bill No. 330.

Bill read third time.

Roll call on Assembly Bill No. 330:

Yeas—21.

Nays—None.

Assembly Bill No. 330 having received a constitutional majority, Madam President declared it passed.

Bill ordered transmitted to the Assembly.

Assembly Bill No. 360.

Bill read third time.

Roll call on Assembly Bill No. 360:

Yeas—21.

Nays—None.

Assembly Bill No. 360 having received a constitutional majority, Madam President declared it passed.

Bill ordered transmitted to the Assembly.

Assembly Bill No. 373.

Bill read third time.

Roll call on Assembly Bill No. 373:

Yeas—20.

Nays—Washington.

Assembly Bill No. 373 having received a two-thirds majority, Madam President declared it passed.

Bill ordered transmitted to the Assembly.

Assembly Bill No. 663.

Bill read third time.

Roll call on Assembly Bill No. 663:

Yeas—21.

Nays—None.

Assembly Bill No. 663 having received a constitutional majority, Madam President declared it passed.

Bill ordered transmitted to the Assembly.

Senate Bill No. 557.

Bill read third time.

Remarks by Senator Townsend.

Conflict of interest declared by Senators James, Coffin and Raggio.

Roll call on Senate Bill No. 557:

Yeas—15.

Nays—McGinness, O’Connell, Porter—3.

Not Voting—Coffin, James, Raggio—3.

Senate Bill No. 557 having received a constitutional majority, Madam President declared it passed.

Bill ordered transmitted to the Assembly.

MOTIONS, RESOLUTIONS AND NOTICES

Senator Raggio moved that Assembly Bill No. 348 be taken from the General File and placed on the General File for the next legislative day.

Remarks by Senator Raggio.

Motion carried.

UNFINISHED BUSINESS

Signing of Bills and Resolutions

There being no objections, the President and Secretary signed Senate Bills Nos. 70, 80, 149, 165, 242, 322, 363, 432, 477, 485, 500, 507, 511, 519; Assembly Bills Nos. 12, 189, 220, 285, 380, 386, 454, 480, 527, 690, 695; Assembly Concurrent Resolutions Nos. 13, 46, 53.

GUESTS EXTENDED PRIVILEGE OF SENATE FLOOR

On request of Senator Care, the privilege of the floor of the Senate Chamber for this day was extended to Jenny Care, Diana Care and Maressa Morrow.

Senator Raggio moved that the Senate adjourn until Monday, May 31, 1999 at 10 a.m.

Motion carried.

Senate adjourned at 11:05 p.m.

Approved: Lorraine T. Hunt

President of the Senate

Attest: Janice L. Thomas

Prohibited substance Urine Blood

Nanograms per Nanograms per

Governor of Nevada

Secretary of the Senate