Issue 12 | April 9, 2021
Number of Days Until Legislative Session Ends: 59
In this issue:
  • Legislative Bill Updates
  • Washington, D.C. Fly-In 2021
  • Recover. Rebuild. Reinvent Nevada Together: BizPAC
Legislative Bill Updates
Assembly Joint Resolution 10*
Proposes to amend the Nevada Constitution to prospectively increase the required minimum wage paid to employees.
Legislative Summary: The resolution would also allow the Legislature to establish by law a minimum wage that an employer must pay to each employee. The resolution would eliminate the $1 healthcare credit that currently exists per the State’s constitution.
 
The Chamber opposes this resolution because of a variety of concerns including the increased costs to employers, and the potential negative impact on job creation, as well as job losses.
Primary Bill Sponsor: Assembly Committee on Commerce and Labor
Position: Oppose
*Carryover from 2019 session.

Assembly Bill 308
Revises provisions relating to landlords and tenants.
Legislative Summary: AB 308 addresses several technical changes relating to landlords and tenants, specifically late fees, security deposits and notifications for rent increases. AB 308 adds statutory language prohibiting late fees from being charged to tenants until three calendar days after rent is due.

Additionally, AB 308 provides clarifying language on the definition and restriction on security deposits. Finally, AB 308 provides statutory requirements for notice that a landlord must provide to a tenant before increasing rent, based on the length of lease agreements. 

As introduced, AB 308 is the product of discussions involving a broad based group of stakeholders and incorporates significant feedback from the business community. 
The Chamber is in support of AB 308 and the clarification in statute for landlord and tenant agreements. 
Primary Bill Sponsor: Speaker Jason Frierson
Position: Support

Assembly Bill 331
Makes various changes relating to affordable housing.
Legislative Summary: AB 331 would authorize cities and counties to impose linkage fees and in lieu fees on developers of housing and commercial projects in order to fund the construction of affordable housing units. These fees would be assessed by the governing body of the city or county and charged to developers prior to construction. Depending on the size and scope of projects, future developments could see significant cost increases that would be passed on directly to the consumer. 

AB 331 also creates a statutory requirement that local governments conduct and publish annual studies on the creation and retention of affordable housing units throughout their jurisdictions. 

Economic estimates provided through studies of jurisdictions that have adopted similar inclusionary zoning, linkage fee, and in lieu fee policies have shown that both the timelines for building and the cost to consumers increase significantly when implemented. These increases have been shown to correlate directly to shortages in the supply of market rate housing while not measurably decreasing waiting list times for affordable housing applicants. 

The Chamber is opposed to AB 331 because of the increase in housing costs that will be passed on to future residents, along with objections to the authorizing of local governments to levy a de-facto industry specific tax that violates the intent of Nevada’s Dillon’s rule status. 
Primary Bill Sponsor: Assemblywoman Elaine Marzola
Position: Oppose

Assembly Bill 334
Revises provisions relating to affordable housing.
Legislative Summary: Much like AB 331, AB 334 would authorize cities and counties to impose linkage fees and in lieu fees on developers of housing, commercial and industrial projects in order to fund the construction of affordable housing units. These fees would be assessed by the governing body of the city or county and charged to developers prior to construction. Depending on the size and scope of projects, future developments could see significant cost increases that would be passed on directly to the consumer. 

Economic estimates provided through studies of jurisdictions that have adopted similar inclusionary zoning, linkage fee, and in lieu fee policies have shown that both the timelines for building and the cost to consumers increase significantly when implemented. These increases have been shown to correlate directly to shortages in the supply of market rate housing while not measurably decreasing waiting list times for affordable housing applicants. 

AB 334 differs slightly from AB 331 in that it stipulates slightly lower linkage and in lieu fees for developers, and does not include a provision for mandated studies by local governments on affordable housing supply. 

The Chamber is opposed to AB 334 because of the increase in housing costs that will be passed on to future residents, along with objections to the authorizing of local governments to levy a de-facto industry specific tax that violates the intent of Nevada’s Dillon’s rule status. 
Primary Bill Sponsor: Assemblywoman Shondra Summers-Armstrong
Position: Oppose

Assembly Bill 356
Makes various changes relating to the conservation of water.
Legislative Summary: AB 356 deals primarily with the utilization, reservation, transference, and sale of water rights by various entities, as well as proposals to allow for more limited utilization of water rights in an effort to promote water conservation. While the bill primarily deals with the utilization of water allocations by rights holders year over year, there is a proposal by the Southern Nevada Water Authority (SNWA) to incentivize the removal of non-functional turf as a water conservation measure. The proposal would require the removal of unused turf, informally defined by SNWA representatives as “grass that never gets stepped on except when it’s mowed” most recognizably, turf existing in traffic medians. 

While the Chamber is neutral on the bill as written, we support the SNWA’s non-functional turf removal proposal as a water conservation measure that will have concrete benefits without causing cost increases on end users. 
Primary Bill Sponsor: Assembly Committee on Ways and Means
Position: Neutral 
 
Assembly Bill 377
Revises provisions governing access to broadband services.
Legislative Summary: AB 377 would provide statutory authority to the Public Utilities Commission (PUC) to mandate that broadband internet service providers offer services at reduced rates for low income individuals. AB 377 stipulates that broadband providers could seek reimbursement from the PUC’s Universal Service Funds (USF).

Such a move brings up questions regarding the PUC’s legal jurisdiction, and whether or not it may regulate broadband providers. There are additional questions on the viability of draining USF dollars without a designated source to replace them in the long term. Finally, AB 377 does not take into account programs undertaken by AT&T, Cox and others to provide free or reduced high speed internet access to low income families throughout the State. 

The Chamber is opposed to AB 377 because of the additional cost increases it would mandate, the questionable expansion of PUC authority and the lack of a designated replacement source for the proposed expenditure of USF dollars. 
Primary Bill Sponsor: Assemblywoman Bea Duran
Position: Oppose

Assembly Bill 380
Revises provisions relating to utilities. 
Legislative Summary: AB 380, as originally written, would have eliminated the use of natural gas in new residential, commercial and industrial construction, while providing a framework for a mandated phase out of its use in restaurants and kitchen appliances. While AB 380 was later amended, the change would have mandated the study of methods by which electrification could be achieved statewide, aimed at the elimination of natural gas. 

As originally proposed, the bill would have dramatically increased costs of construction, electricity and requirements to overhaul existing gas equipment. Additionally, commercial use of gas, such as restaurants, would be adversely affected as the quality of their products would be impacted. 

The Chamber is opposed to the bill as it holds the position that consumer choice in the energy sector is necessary and beneficial, and that clean burning natural gas must remain a viable option in the State’s energy mix for the near future. 
Primary Bill Sponsor: Assemblywoman Lesley Cohen
Position: Oppose

Assembly Bill 388
Revises provisions governing access to broadband services.
Legislative Summary: AB 388, as amended, seeks to increase access to broadband services for low income Nevadan’s and rural areas underserved by broadband connectivity by establishing an opt-in-based funding and grant program. This program would allow broadband customers to voluntarily donate to this funding and grant program to be administered through the Governor’s Office of Science, Information and Technology (OSIT). In addition to establishing a fund to collect and disburse funding, AB 388 would authorize OSIT to prepare biannual reports on the status of broadband connectivity in rural and underserved communities where permanent broadband infrastructure is still being developed. 

AB 388 received significant amendments from broadband providers to be presented in the form described above. Based on the work done with stakeholders in the amendment process, the Vegas Chamber has moved from opposed to neutral on AB 388. 
Primary Bill Sponsor: Assemblyman C.H. Miller
Position: Neutral

Assembly Bill 398
Revises provisions relating to sales of residential property.
Legislative Summary: AB 398 addresses the responsibilities of real estate agents in the process of disclosing defects on a property to the buyer, and liability relating to such disclosures. In current law, sellers of property must compile and present a list to the buyer of a property listing defects of which the seller is aware. AB 398 specifies that the agent may not prepare and present this list on the seller’s behalf, while additionally clarifying the liability of an agent for defects that the seller fails to disclose. 

AB 398 is a formal codification of current real estate industry best practices and helps to clarify the responsibilities and liabilities born by each party in the process of the buying and selling of properties. 

The Chamber is in support of AB 398 because it provides statutory definition of best practices.
Primary Bill Sponsor: Assembly Committee on Commerce and Labor 
Position: Support

Assembly Bill 399
Revises provisions governing the production and sale of eggs and egg products.
Legislative Summary: AB 399 would mandate that all eggs sold commercially in the State of Nevada must be certified cage-free. The bill also sets penalties for establishments not in compliance. 

While seven states in the Mountain West have adopted similar legislation, including states from which Nevada imports the bulk of its eggs, these states all have a phase-in process that does not require full compliance until the year 2024. In most cases, states with legislation, or legislative resolutions signaling support for such restrictions, have made provisions allowing for a portion of retail shelf space to be reserved for eggs that are not certified cage free to provide a budget friendly option for low income individuals. 

While a phase-in was not originally included in the bill, amendments have been accepted that would mirror neighboring states and allow a longer time frame for adoption. 

The Chamber is neutral on AB 399, with the adoption of the amendment allowing an extended timeline until 2024 for implementation. 
Primary Bill Sponsor: Assembly Committee on Natural Resources
Position: Neutral

Assembly Bill 410
Revises provisions relating to public works.
Legislative Summary: AB 410 addresses the requirements for Construction Managers at Risk (CMARs) when bidding on public works projects with public bodies. As written, AB 410 would prohibit CMARs from bidding on public works contracts if they have previously been employed as a CMAR on a public works contract within 5 years of the date such a contract is advertised. Additionally, AB 410 removes time limits for which a public body may enter into a contract with a CMAR. 

The Chamber is opposed to AB 410 because these provisions would dramatically increase the difficulty of independent contractors qualified to operate as CMARs to bid on and win public works contracts while reducing the competition within the marketplace for qualified individuals. 
Primary Bill Sponsor: Assembly Committee on Government Affairs
Position: Oppose

Assembly Bill 413
Requires the Department of Transportation to establish an Advisory Working Group to Study Certain Issues Related to Transportation during the 2021-2022 interim.
Legislative Summary: AB 413 will continue a study from the last interim to improve public transit by improving efficiencies, while also reducing emissions from the public transportation fleet. With an amendment brought forward by the Chamber, a member of the Nevada Resorts Association and local chambers of commerce will also sit on the advisory working group. The results of this study will be delivered to the director of the LCB prior to the 82nd Legislative Session.

The Vegas Chamber is in support of AB 413.
Primary Bill Sponsor: Assembly Committee on Growth and Infrastructure
Position: Support

Assembly Bill 415
Provides for an interim study on public school accountability.
Legislative Summary: AB 415 directs the Legislative Commission on Education to conduct an interim study on the statewide system of accountability for public schools. The bill further specifies metrics to be used and identifies persons to be interviewed as part of the study, to determine current educational outcomes. 

Educational transparency and accountability have long been priorities of the Chamber. 
Primary Bill Sponsor: Assembly Committee on Education
Position: Support

Assembly Bill 416
Directs the Legislative Auditor to conduct audits of the Nevada System of Higher Education.
Legislative Summary: AB 416 as written would direct the Legislative Auditor to conduct a performance audit and compliance audit during the 2021-2023 biennium of the Nevada System of Higher Education for the Fiscal Years 2014-2015 to 2021-2022 to audit.

The Chamber supports audits and financial oversight measures to help ensure transparency and accountability of taxpayer funded programs and projects.
Primary Bill Sponsor: Assembly Committee on Education
Position: Support 

Assembly Bill 445
Revises provisions relating to financial administration.
Legislative Summary: AB 445 relates to transferring the Office of Grant Procurement, Coordination and Management in the Department of Administration to the Office of the Governor and renaming it to the Office as the Office of Federal Assistance. The bill would direct the Governor to appoint a director of the office and develop a state plan to maximize federal assistance. The bill would also revise the duties of the office and revise the membership of the Nevada Advisory Council on Federal Assistance.

The Chamber supports the bill as it has been a longstanding priority by the Chamber to increase Nevada’s share of federal grant dollars. This bill is also a priority from the Southern Nevada Forum.
Primary Bill Sponsor: Assembly Committee on Growth and Infrastructure
Position: Support

Assembly Bill 449
Revises provisions governing economic development.
Legislative Summary: AB 449 would revise the state’s abatement provisions as it relates to economic development. The bill would remove the Governor's Office of Economic Development’s (GOED) ability to award up to $250,000 on partial abatements. AB 449 would also require GOED to consider the number of employees for a prospective business that would be on Medicare and the cost of any employees on the state’s Medicaid program. The bill would increase the average hourly wage that will be paid by the business to its new employees in Nevada is at least 110 percent of the average statewide hourly wage or the average countywide hourly. The average is currently 100 percent.
 
The threshold requirement of a capital investment of $1 million for a business will offer a health insurance plan for all full-time employees that includes an option for health insurance coverage for dependents of those employees would be lowered to $500,000. The bill would require data centers to pay 10 percent of their abatement on an annual basis that would go towards affordable housing. The bill would also create the Office of Economic Development, the Division of Small Business Development.
 
The Chamber opposes the bill because of concerns that it will unintentionally hamper our recovery efforts as GOED and local regional development agencies work to bring new businesses to our community.
Primary Bill Sponsor: Assemblywoman Theresa Benitez-Thompson
Position: Oppose 
 
Senate Joint Resolution 7
Proposes to amend the Nevada Constitution to remove the constitutional provisions governing the election and duties of the Board of Regents of the State University and to authorize the Legislature to provide by statute for the governance of the State University and for the auditing of public institutions of higher education in this State.
Legislative Summary: SJR 7 provides greater clarity between the Nevada System of Higher Education Board of Regents and the State Legislature by amending the Nevada State Constitution.
 
The Chamber believes that the passage of SJR 7 is an important component to reforming the state’s higher education governance structure and its alignment to meeting the needs of today’s students and employers.
Primary Bill Sponsor: Senator Marilyn Dondero Loop
Position: Support 

Senate Bill 110
Revises provisions relating to businesses engaged in the development of emerging technologies.
Legislative Summary: SB 110 would create an Emerging Technologies Taskforce within Nevada’s Department of Business and Industry. The taskforce would specifically focus on emerging technology industries within the private sector such as blockchain technology, autonomous technology, the Internet, robotics, and artificial intelligence.
 
The Chamber supports the bill because of the economic value these businesses would bring to Southern Nevada, especially as they pertain to economic diversification and job creation.
Primary Bill Sponsor: Senator Pat Spearman
Position: Support 

Senate Bill 346
Imposes a tax on the retail sale of certain digital products.
Legislative Summary: SB 346 addresses the increased market share of digital goods as a replacement for traditional physical mediums such as books, CDs and movies. As more of these goods are delivered in digital formats, the portion of the tax base centered on traditional physical media has eroded, resulting in fewer collected revenues for the state. 

SB 346 is an attempt to address that tax base erosion by imposing a tax on digital goods downloaded and streamed within the state. 

As a tax bill, SB 346 would require a two-thirds majority vote in both the Assembly and Senate to pass. The Vegas Chamber is neutral on SB 346 at this time. 
Primary Bill Sponsor: Senator Dina Neal
Position: Neutral

Senate Bill 352
Revises provisions relating to education.
Legislative Summary: SB 352 would adopt regulations that would allow a person who is currently employed as a paraprofessional educator, or commonly known as a student teacher, to become a teacher through an accelerated program. This bill would allow qualified out-of-state or out-of-country student teaching experiences to be accepted by the Department of Education and fulfill the requirements of a student teaching program in Nevada.

The Chamber supports this bill because it will provide the necessary accountability for our Nevada students and education system but aid with the process of the additional teachers we need in our state.
Primary Bill Sponsor: Senate Committee on Education
Position: Support

Senate Bill 373
Provides for collective bargaining by certain state employees.
Legislative Summary: SB 373 would expand state collective bargaining to other state employees in the professional employee categories such as faculty within the Nevada System of Higher Education (NSHE).
 
The Chamber has expressed significant concerns over the years about the expansion of collective bargaining at the state level from the taxpayer perspective. The concerns are based on the financial impact that it would have on the state’s budget and the strain that it will place on the state’s limited resources by expanding collective bargaining for professional employees as it relates to NSHE.
Primary Bill Sponsor: Senate Committee on Government Affairs
Position: Oppose
 
Senate Bill 405
Revises provisions relating to the annual assessment levied to support the Public Utilities Commission of Nevada and the Consumer's Advocate of the Bureau of Consumer Protection.
Legislative Summary: SB 405 eliminates the maximum number of mills that may be levied against such utilities and requires instead that the assessment must be sufficient to fund the authorized budget of the Commission and an appropriate reserve. The bill also authorizes the budget of the Consumer’s Advocate to exercise his or her powers and perform his or her duties that are directly related to the protection of customers of public utilities.
 
The Chamber initially had concerns about oversight and transparency of how rates would be increased but those concerns were addressed and the Chamber is now neutral on the bill.
Primary Bill Sponsor: Senate Committee on Finance
Position: Neutral 
Washington, D.C. Fly-In 2021
Monday, Sept. 20 - Thursday, Sept. 23
We look forward to welcoming back our guests to an in-person experience at our annual Washington D.C. Fly-In, in partnership with the Las Vegas Global Economic Alliance, from Sept. 20-23.

This year, Chamber and LVGEA members will have the opportunity to attend the Washington, D.C. Fly-In in-person or virtually to interact with our federal policymakers from the comfort of their home or office. The Fly-In will offer a variety of meetings with decision-makers and policy experts throughout the week and receptions to build relationships and strengthen existing connections with Congressional leadership.
 
Whether it is online or in-person, we are ready to give you an overview of the app, events, and answer any questions you may have about the policy meetings during our Fly-In this year. Most importantly, this will be a great opportunity to get to know your fellow chamber members attending the Fly-In either in person or virtually.

Early Bird Pricing/Registration Fees: Now – Aug. 1, 2021
  • $1,495 In-person Policy Registration per person
  • $649 Virtual Policy Registration per person

Early Bird Spouse Program Registration Fees: Now – Aug. 1, 2021
  • $895 In-person Registration per person
  • This does not include any of the policy briefing, think-tank discussions or congressional meetings.
  • Virtual attendance is not available for the Spouse Program.

PRESENTING SPONSOR:

PROGRAM SPONSORS:
Recover. Rebuild. Reinvent Nevada Together: BizPAC
Recover. Rebuild. Reinvent Nevada Together is BizPAC’s campaign to ensure that the business community’s needs are well represented in the 2021 Legislative Session. By contributing through the Recover. Rebuild. Reinvent Nevada Together initiative, you are helping to ensure that the individuals serving in office support Nevada’s employers and employees. With your support of BizPAC, you are uniting with other business leaders in demonstrating to candidates for public office that the business community in Nevada is actively engaged in the political process and are willing to stand against onerous bills that will hurt the business community.
 
Through BizPAC, a bipartisan political action committee, the Vegas Chamber:
  • Supports pro-economy policymakers
  • Works to protect laws that support the business community
  • Ensures your interests and concerns are kept in front of elected officials
  • Champions legislation that supports economic growth and job creation for the state

To learn more about contributing to BizPAC or sponsoring an upcoming event, please contact Erica Valdriz or 702.245.8465, or click here to donate now.
Additional Legislative Resources
Vegas Chamber
Information is subject to change