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A
Right
we're
going
to
go
ahead
and
call
senate
committee
on
revenue
to
order.
Mr
secretary,
please
call
the
roll.
A
Here
so
please
mark
senator
ratty
present
as
she
arrives,
so
we
have
three
bills
on
for
a
hearing
today.
We
will
hear
them
in
order,
and
so
I
will
go
ahead
and
open
the
hearing
up
for
ab20
and
I
believe
this
is
go
ed.
A
So
will
it
be
you
director,
brown
or
mr
presenting.
C
So,
just
to
put
some
context
around
these
bills
when
I
was
appointed
in
november
of
19,
which
seems
like
a
long
time
ago,
but
it
was
just
recent.
I
turned
to
the
staff-
and
I
said
you
know
this
agency
is
a
decade
old.
You
know,
please
take
a
look
at
your
statutes,
find
out.
What's
what
needs
updated?
C
What's
working,
what
isn't
working
and
we'll
go
to
the
legislature
and
and
try
to
get
some
of
that
modernized?
And
I
also
when
I
came
in
made
a
commitment
to
strengthen
the
agency's
compliance
work,
started
a
quarterly
director
to
director
meeting
on
abatement
incentive
and
incentive
audits
and
everything
going
on
with
the
department
of
taxation,
which
includes
my
operational
staff
and
the
director
of
taxation's
operational
staff,
and
we've
made
a
series
of
internal
improvements
in
that
area.
But
also
one
of
the
measures
today
comes
to
us
from
department
of
taxation
to
help
strengthen
compliance.
C
All
of
these
are
designed
to
basically
update
our
statutes
and
to
make
compliance
improvements.
They're
not
designed
to
be
policy
changes,
obviously,
with
the
onset
of
the
pandemic
and
the
dislocation
of
the
nevada
economy,
particularly
our
the
southern
nevada
economy.
C
Governor
wants
to
keep
all
the
available
tools
that
are
at
our
disposal
now,
as
we
are
in
this
highly
competitive
economic
development
world,
as
I
mentioned
in
the
first
oversight
in
the
first
oversight
hearing
that
was
done
at
the
start
of
this
session,
american
manufacturing
is
busy
trying
to
sort
out
its
supply
chains,
its
logistics
change,
the
new
demands
of
e-commerce
in
nevada
as
a
pacific
time
zone
state
is
particularly
attractive
to
these
companies
and
we
have
a
whole
series
of
discussions
going
underway
right
now
with
them,
and
so
we're
not
anxious
to
to
make
any
major
changes
like
I
say
these,
these
three
bills-
and
I
regret
that
it
couldn't
be
one
big
bill-
are
really
just
designed
to
update
things
within
the
agency,
and
so
with
that
I'll
turn
to
eric
price,
who
runs
the
nevada.
C
I
use
the
term
nevada
film
office,
but
but
officially
I
guess,
nevada
motion
picture
office.
That's
one
of
the
things
that
we're
trying
to
change
and
to
modernize
that
so
the
chair
is
ready,
I'll.
Let
eric
proceed
and
oh
and
I'm
michael
brown,
director
of
the
governor's
office
of
economic
development.
D
Well,
thank
you
director
brown
again.
My
name
is
eric
price
and
I'm
the
director
of
the
nevada
film
office,
just
going
to
read
a
little
prepared
testimony,
chair
neal
and
members
of
the
senate
committee
on
revenue
and
economic
development.
Thank
you
for
this
opportunity
to
testify
in
support
of
ab20
assembly
bill
20.
for
the
record.
My
name
is
eric
price
and
I
am
the
director
of
the
nevada
film
office
that
is
housed
in
the
governor's
office
of
economic
development.
D
I'm
here
today
with
my
colleagues
executive
director,
michael
brown,
kim
spurgeon,
our
film
office
analyst
and
james
hum
our
director
of
compliance
and
regulatory
affairs.
Let
me
provide
a
quick
background
on
the
nevada
film
office.
Since
1983,
the
nevada
film
office
has
facilitated
the
creation
of
content
in
nevada,
drawing
global
attention
to
the
state's
businesses,
individuals
and
our
natural
landscape.
D
D
Having
administered
the
program
for
the
last
seven
years,
we
are
bringing
ab20
before
you
today
in
an
effort
to
improve
the
law
to
reflect
best
practices
for
the
state
and
align
them
with
industry
standards.
Based
on
our
experience,
the
bill
seeks
to
further
clarify
certain
aspects
of
the
program
to
reflect
the
office's
working
and
functional
interpretation.
D
It
is
primarily
a
housekeeping
bill
to
properly
reflect
the
best
practices
for
the
program.
Turning
to
the
bill
section,
one
addresses
the
types
of
productions
that
can
qualify
for
the
program.
Interstitial
television,
programming
and
interstitial
advertisements
have
been
removed
as
qualified
productions,
as
their
inclusion
is
redundant
and
inconsistent
with
standard
industry
terminology.
D
D
The
law
currently
states
that
the
office
shall
approve
an
application
that
meets
the
specified
requirements
section
two
of
this
bill
updates
the
language
from
shall
approve
to
may
approve,
which
would
allow
the
office
to
prioritize
productions
that
are
in
the
best
interest
of
the
state.
It
extends
the
allowable
time
to
complete
the
required
audit
from
90
to
270
days,
which
is
more
consistent
with
the
actual
time
frame
required
for
an
auditor
to
complete
the
work.
D
The
requirement
of
a
nevada
business
address
to
be
included
on
the
application
has
been
removed,
as
productions
will
typically
apply
before
that
address
is
established
in
this
section.
We
are
also
proposing
an
amendment
to
section
2
that
would
require
productions
to
include
an
acknowledgement
in
the
end
screen
credits
that
the
production
was
filmed
in
nevada
by
including
the
nevada
film
office
logo.
D
This
subsection
was
initially
intended
to
prevent
pass-through
benefits
to
non-nevada
businesses,
but
it
also
unintentionally
prevented
nevada
businesses
from
growing
their
inventory.
This
change
allows
nevada
businesses
to
grow
their
inventories
to
accommodate
bigger
productions,
while
still
preventing
pass-through
benefits
to
non-nevada
businesses.
D
D
In
summary,
while
this
is
primarily
a
house
cleanup
build,
these
changes
will
make
needed
improvements
to
the
program's
functionality.
Thank
you
for
the
time
and
we
welcome
any
questions
that
you
might
have.
Thank
you
very
much.
A
Thank
you
for
that.
Senator
key
keffer.
B
Thank
you,
madam
chair
appreciate
it
so
as
it
relates
to
section
two
in
the
change
that
you
referenced
relating
to
subsection
two,
the
office
shall
approve
versus
may
approve.
So
what
is
the
process
by
which
you're
gonna
determine
which
qualifying
applications?
You'll
approve
and
deny.
D
Thank
you
for
the
question
eric
price
for
the
nevada
film
office.
The
reason
for
this
change
from
shal
to
may
just
gives
us
that
additional
flexibility,
mainly
due
to
the
fact
that
our
program
as
currently
written
it
is
a
relatively
small
program,
the
amount
of
funding
that
is
available
right
now.
It
approved
it
at
10
million
per
year
that
potentially
puts
us
in
a
situation
where
we
have
multiple
applicants,
but
not
enough
band,
not
enough
money
to
award.
D
So
this
gives
us
the
ability
to
decide
which
one
the
the
way
the
program
is
currently
written,
productions
that
qualify
for
the
incentive
that
meet
the
requirements
are
are
generally
approved.
D
C
Michael
brown,
director
of
governor's
office
of
economic
development,
I
don't
believe
we'd
be
adopting
regulations.
I
think
that
would
rest
with
my
with
me
as
the
director.
B
Thank
you
cherny
eltz,
so
I
wanted
to
follow
up
on
that
because
I
I
think
you
may
want
to
come
up
with
a
system
that
is
straightforward
and
defensible
if
you're
weighing
one
project
against
another,
and
I
don't
know
whether
that
would
be
on
the
wages
or
the
number
of
nevada
employees
or
benefits,
or
something
like
that.
So
you
may
want
to
consider
that
and
then
I
also
want
to
know
about
the
demand
side.
So
how
has
been?
How
has
the
demand
been
maybe
outside
of
the
covedgier
just
in
general?
C
Yeah
I
mean
michael
brown
government's
office
of
economic
development.
On
the
first
point,
I
think,
if
it's
a
committee's
way,
should
we
adopt
the
regulations
in
that
area.
We
can
do
that
and
I'll.
Let
eric
talk
about
the
creative
side
of
the
business.
D
Eric
price
for
the
nevada
film
office,
thank
you
on
the
second
point.
We
have
not
fully
utilized.
All
of
the
capacity
covid
in
this
year
has
been
a
factor
in
that
you
know
due
to
the
small
size
of
the
program.
We
are
often
have
larger
productions
that
that
simply
we
don't
have
enough
funding
to
accommodate
them,
but
for
the
multiple
of
smaller
productions.
Yes,
we
have,
you
know,
run
close
to
the
to
the
deadline
at
times,
but
we
have
not
exceeded
it
as
of
yet.
A
Yes,
members
any
additional
questions:
okay,
senator
dennis.
B
Thank
you
so
on
some
of
these
changes,
so
that
the
cleanup
language
like,
for
example,
where
it
talks
about.
B
The
where
is
it
adding
the
the
oh,
the
episodes
is
that
something
that
the
industry
had
had
given
you
ideas
that
you
know
they
wanted
to
do
some
things
here,
but
because
of
the
way
the
language
they
haven't
been
able
to
come.
D
Eric
price
for
the
nevada
film
office,
if
you're
talking
about
maybe
subsection
one
where
we've
we've
added
some
additional
the
ability
to
well
we've
removed
some
of
the
types
of
productions,
interstitial
programming
and
others,
and
we've
also
made
an
adjustment
to
the
number
of
reality.
Television
shows
that
are
required
again,
based
on
our
experience.
We've
just
tried
to
clean
this
bill
up
a
little
bit,
so
that
is
more
clear.
D
At
times,
we've
gotten
questions
from
potential
applicants
that
don't
know
if
their
type
of
production
qualifies
or
not
so
just
trying
to
clarify
that
and
clarify
the
legislative
intent
as
to
what
types
of
productions
qualify
and
don't.
B
Yeah,
I
think
it
does.
I
I
I
you
know,
I
think,
since
we
originally
put
this
created
the
the
the
tax
credits,
I
think,
even
just
since
then
programming
has
changed
and
I
don't,
I
think,
definitely
with
the
pandemic
this
year.
It's
it's
put
some
more
pressure
on
on
content,
so
I
think
that
that
it
makes
sense
to
to
be
able
to
clean
some
of
this
up.
Thank
you.
Thank
you,
madam
chair.
A
Thank
you
for
that,
okay,
so
I
I
have
a
couple
questions
so
on
section
two,
I
believe
it's
step
three.
Can
you
explain
why
did
you
extend
beyond
the
90
days
to
270
days
after
the
completion
of
the
principal
photography
of
the
qualified
production?
Because
that's
it's
it's
actually
super
long.
So
I
wanted
to
know
what
what
did
you
find
out
and
what
were
the
reasons
for
the
extension,
since
these
were
corrections
that
you
felt
you
guys
should
make
for
this
session.
D
Thank
you
for
the
question
again
eric
price
from
the
nevada
film
office.
The
reason
we
extended
that
was
exactly
due
to
our
experience
with
productions.
You
know
these
productions
can
be
simple
to
very
complicated
and
a
lot
of
times
when
a
production
is
completed.
D
They
end
up
having
to
maybe
come
back
to
nevada
and
do
reshoots
or
changes
are
made
in
editing
that
caused
them
to
have
to
come
back
and
film.
Some
new
footage,
as
a
result
of
that
the
shorter
time
frame
did
not
allow
them
to
be
able
to
do
that
and
still
have
those
costs
qualified.
D
Also
90
days,
some
of
these
audits
and
depending
on
the
size
of
the
productions
you
know,
can
be
rather
complicated
and
require
a
lot
of
documentation
and
support.
So
you
know
the
audit
is
our
check
to
make
sure
that
the
productions
that
are
receiving
tax
incentive
dollars
should
be
receiving
them
and
that
those
expenses
are
correct.
A
Okay,
thank
you
for
that,
and
then
my
next
question
is
on
still
section
two,
but
it's
sub
two.
This
is
this
is
where
you
guys
are
looking
to
have
the
nevada
logo
in
the
screening,
but
in
sub
two
it
the
way
it
reads
it's
like
if
the
qualified
production
does
not
have
an
end
screen
credits,
other
acknowledgement
in
the
final
version,
etc.
A
I
didn't
know
if
that
was
like,
because
it
has
an
and,
and
then
it
goes
to
the
h.
Was
there
supposed
to
be
a
penalty
there?
I
mean,
because
what
I
heard
you
say
was
that
ultimately,
the
idea
to
have
these
in-screen
credits
to
include
the
logo
of
the
state
is
to
number
one
lift
the
state
up
right
and
to
try
to
use
that
as
a
form
of
advertisement.
A
D
Thank
you
for
the
question
eric
price
from
the
nevada
film
office.
This
is
this
is
not
intended
to
penalize
anyone
or
in
any
way
it's
intended
to
be
consistent
with
the
with
most
of
the
other
state
programs
that
offer
incentives
to
show
the
logo.
D
There
may
be
opportunities
in
which
they
thank
the
film
office
for
the
state
of
nevada
in
another
in
another
way
that
that
is
also
appropriate.
So
we
wanted
to
just
make
sure
we
had.
You
know
the
flexibility
there.
I
we
will
maybe
check
the
language
to
make
sure
that
it
is
clear
as
to
what
we're
trying
to
accomplish,
but
again
we're
not
trying
to
create
any
sort
of
penalty
for
anyone
who
doesn't
include
the
logo,
we're
just
trying
to
make
sure
that
the
an
acknowledgment
to
nevada
is
included
in
the
production.
E
Chair
neal,
I'm
a
kim
spurgeon
with
the
nevada
film
office
to
probably
further
clarify
some
productions
that
qualify
for
the
incentive
do
not
naturally
have
end
screen.
Credits
like
the
commercial
can
qualify
for
the
program,
but
a
commercial
does
not
have
end
screen
credits
so
this
that
language
just
allows
for
something
that
naturally
does
not
have
screen
credits
like
commercial
that
may
qualify
to
allow
the
film
office
logo
in
another
way
or
allow
some
other
type
of
promotion
instead
of
the
actual
logo.
Since
it
doesn't
have
screen
credit.
A
Okay,
so
and
then
my
next
question
is
on
it's
the
strikeout
on
we're
still
in
section
two,
but
it's
a
strikeout
of
the
business
address.
Well
initially,
it
said
the
business
address
of
the
check
projection
company
required
for
it
to
be
in
the
state
so
to
me
that
that
goes
to
the
principal
place
of
business
right,
and
so
are
we
saying
that
we
no
longer
want
the
principal
place
of
business
to
be
in
nevada
and
in
regards
to
issuing
them
a
tax
credit?
D
Thank
you
for
the
question
eric
price
from
the
film
office.
This
just
strikes
it
out
so
that
it
doesn't
have
to
be
established
during
the
application
process.
A
lot
of
times.
Production
companies
will
plan
a
production
in
nevada
and
then
after
the
production
is
planned,
they
will
create
a
production,
a
production
address
a
production
office
where
they
will
do
all
their
business
out
of,
and
sometimes
that
address
has
not
been
established
as
of
the
application
date.
D
So
we
just
wanted
to
make
sure
that
we
weren't
preventing
the
application
from
being
processed
because
that
application
that
address
had
not
been
established
yet
so
they
they.
They
eventually
will
establish
that
that
location
here
locally
for
the
production,
but
we're
just
saying
that
it
doesn't
have
to
be
done
as
of
the
application
date
just
prior
to
the
start
of
production.
D
Yes,
thank
you
for
the
question.
Actually,
the
the
the
incentive
does
at
this
point
does
not
require
them
to
have
a
nevada
business
license
or
to
be
a
business
established
in
the
state
of
nevada
it
it.
It
requires
them
to
have
a
local
address
for
for
purposes
of
the
production.
D
Some
of
the
companies
that
will
apply
for
the
incentive
will
will
not
necessarily
be
nevada-based
companies.
They
may
be
companies
based.
You
know,
production
companies
like
you,
know,
nbc,
universal
or
warner
brothers
or
sony
or
someone
that
may
not
have
a
local
business
address.
So
the
incentive
at
this
point
as
written
does
not
require
it,
but
it
does
require
that
you
know
when
they
produce
locally,
that
they
do
have
a
local,
a
local
production
office.
A
When
the,
if
the
asset,
the
calculation,
so
in
making
the
calculation
required
by
this
paragraph,
the
cost
of
any
property
that
remains
an
asset
of
the
nebad
nevada
business
after
the
production
of
the
qualified
production
cannot
be
included
in
the
calculation.
So
there's
two
questions
there.
So,
although
they're
not
required
to
have
a
business
license,
they're
not
required
to
be
permanently
established,
but
they
they
do
have
an
address.
But
it
looks
like
there
is
some
permanency
in
the
things
that
are
associated
with
them,
because
you
are.
A
You
are
then
you're
having
a
discussion
about
the
calculation
of
the
property
right,
and
so
I
want
to
know
how
how
that
works.
And
then
I
have
a
separate
question
specifically
on
this,
this
calculation
of
the
property
that
that
that
you
guys
are,
I
guess,
excluding
so,
but
can
you
answer
the
first
part,
because
I
it
just
seems
like
there
was
some
permanency
there
because
clearly
there's
an
asset
that
remains,
and
so
I
just
wanted
to
get
a
better
understanding
about.
What's
going
on
with
the
property
that
they're
purchasing.
D
Sure,
thank
you
for
the
question
again
eric
price
from
the
nevada
film
office.
There
are.
There
are
two
separate
two
similar
but
separate
issues
that
we're
discussing.
One
is
in
in
this
particular
in
section
three,
and
this
particular
paragraph
is
to
clarify
for
the
nevada
businesses
that
are
the
supporting
businesses
that
actually
are
the
ones
that
the
production
company
will
rent
equipment
from,
for
example,
this
would
apply
to
a
local
nevada
business,
maybe
that
that
rents
equipment
to
the
production.
D
So
when
the
production
comes
to
town
to
complete
the
production,
they
will
use
local
businesses
in
which
they
will
rent
equipment
from
and
when
they
rent
equipment
from
those
local
businesses.
Those
are
qualified
expenditures.
This
specific
paragraph
is
for
those
local
businesses,
our
local
nevada
businesses.
You
know
in
equipment,
rental
businesses,
if
they
acquire
equipment
for
purposes
of
renting
into
that
production
when
they
acquire
that
equipment,
the
they
are
able
to.
You
know
the
production's
able
to
to
rent
that
equipment
and
then
get
that
as
a
qualified
expenditure.
D
The
the
purposes
of
this
section
were
at
the
time
it
was
developed.
We
were
concerned
that
companies
would
set
up
shop
in
nevada,
buy
a
bunch
of
equipment,
but
they
really
wouldn't
be
nevada
companies.
So
so
these
these
rules,
typically
called
pass-through
rules,
were
put
into
place.
D
What
we
found,
though,
was
that
local
small
businesses,
when
a
big
production
would
come
in
and
look
to
rent
a
bunch
of
equipment
that
local
small
business
would
have
to
acquire
more
inventory
to
be
able
to
service
that
big
production
and
that
some
of
these,
this
nrs
was
a
little
too
constrictive,
so
that
when
they
were
acquiring
that
new
equipment,
it
was
triggering
them
to
not
be
able
to
to
to
qualify
those
expenditures
through
the
production.
A
It
is,
but
what
I'm
trying
to
figure
out
is,
if
that's,
if
that's
the
explanation,
so
if
you
look
at
line
16,
it
says
that
after
the
production
of
the
qualified
production
has
ended,
it
must
not
be
included
in
the
calculation
as
property
purchase,
rented
or
leased
in
the
manner
described
in
the
subsection,
and
this
is
the
subsection
that
says
that
not
more
than
50
percent
of
the
property
purchase,
rented
or
leased
by
the
production
company
can
then
be
I
the
way
I
read
it
be
a
part
of
the
qualified
expenditure.
A
So
if
the
small
company
is
the
small
company
is
buying
more
equipment
in
order
to
support
these
larger
films,
then
I
just
need
more
of
a
real-life
explanation
of
why,
if,
if
it's
not
it's
not
included
after
it
becomes
an
asset
of
theirs,
but
it's
included
while
it's
while
it's
what
you
know
what's.
D
And
kim,
maybe
kim
our
film
office
analyst
might
want
to
jump
in,
she
might
be
able
to
better
clarify
it.
E
Yes,
happy
to
kim
spurgeon
with
the
nevada
film
office,
so
we're
looking
at
two
different
kinds
of
purchases
here,
so
there's
the
one
purchase
that
remains
with
the
nevada
business
as
an
asset
they're
growing
their
inventory,
then
there's
another
type
of
purchase
or
sub
rental,
where
the
nevada
business
might
contract
with
another
business
out
of
state
to
provide
inventory
for
the
production.
In-State,
that's
what's
called
a
pass-through.
E
Ultimately,
the
benefit
of
a
pass-through
is
a
non-nevada
business.
Now
we
allow
for
some
of
those
pass-throughs
to
happen,
because
our
infrastructure
may
not
have
all
of
the
different
types
of
equipment
that
a
production
may
need
and
as
long
as
a
nevada
business
is
the
primary
source
of
this
type
of
equipment.
They
can
sub
rent
a
few
specialty
items
and
still
have
those
qualified
simply
because
we
don't
have
them
in
this
state.
E
Otherwise,
but
allowing
pass-throughs
could
also
potentially
allow
these
potentially
shell
companies
to
open
up
where
they
claim
to
be
a
nevada
business,
and
then
they
just
get
all
of
their
inventory
from
elsewhere,
and
the
benefit
to
nevada
is
is
nothing
essentially
so
we're
looking
at
two
different
types
of
transactions
with
this
section
one.
E
We
want
to
allow
the
businesses
to
purchase
and
maintain
and
keep
that
inventory,
that
they're
then
renting
out
to
these
productions
and
and
those
would
not
be
included
in
that
calculation
for
the
limitation
of
50,
but
the
types
of
transition
transactions
that
are
limited
by
that
50
are
the
ones
that
are
sub
rentals
from
elsewhere,
where
we
may
not
have
that
type
of
equipment.
E
Here
we
still
want
the
production
to
come
here
and
film,
even
if
we
don't
have
everything
they
need,
but
we
still
promote
the
nevada
business
to
use
the
rest
of
their
equipment
and
then
sub
rent
that
small
amount.
That
is
still
immediate.
I
hope
that
cleared
up.
A
It
does
thanks
and
then
my
last
question
is
on
the
I
guess,
the
latter
part
of
section
4,
which
is
your
added
language,
about
the
withholding
of
the
transferable
tax
credits.
And
so
you
have.
You
have
a
term
here,
that's
dependent
upon
a
legal
action
and
then
also
the
term
where
you're
saying
if
the
company
violates
any
state
or
local
law,
and
so
any
state
or
local
law
is
the
catch-all.
So
can
you
explain
why
you
inserted
that,
because
any
any
is
not
necessarily
related
to
the
film
itself?
A
D
Thank
you
for
the
question
eric
eric
price
from
nevada
film
office.
As
you
said,
yes,
our
goal
is
not
to
create
additional.
Our
goal
is
not
prevent
anyone
from
receiving
the
tax
credits.
D
Our
goal
with
this
was
merely
to
provide
more
security
for
the
state
of
nevada
that,
when
we
issue
tax
credits
that
the
company
has
not
violated
laws
or
or
not
completed
their
obligation
in
nevada
when
it
comes
to
you
know,
vendors
getting
compensated
fairly.
You
know
making
sure
that
the
production
is
run
in
accordance
with
the
permitting
offices
and
that
the
production
is
is
done
completely.
D
Our
goal
is
not
to
try
to
penalize
productions
or
or
not
provide
a
tax
credit.
You
know
because
they
had
a
traffic
violation
or
something.
So
if.
D
E
Work
here
I
can
jump
in
here
kim
spurgeon
with
are
you
going
to
film.
A
D
Was
there
technical
difficulty
I
apologize
again.
This
is
eric
price
from
the
film
office.
Again,
I
don't
know
if
the
video
froze
our
goal
is
not
to
penalize
productions
if
there's
a
traffic
violation
or
anything
of
that
matter.
D
Our
goal
is
to
merely
state
that,
prior
to
receiving
tax
incentives
from
nevada
that
the
companies
that
do
produce
here
in
film
content
here
have
made
good
on
their
obligations
to
the
vendors
and
the
crew
members
that
they
hire
to
ensure
that
the
tax
incentives
are
awarded
for
for
valid
expenditures
and
that
they
have
not.
You
know,
broken
any
local
laws.
It's
it's
not
intended
to
penalize
them,
for
you
know
for
miscellaneous
violations
can
maybe
you
can
add
to
that.
A
That
was
good
yeah.
That
was
good
all
right,
so
that
was
it
for
my
questions,
so
we
will
go
ahead
and
open
up
for
support
for
ab20
we'll
take
the
folks,
because
this
is
so
weird
so
we'll
take
the
folks
that
are
actually
in
the
room
and
then
we'll
go
to
the
folks
on
the
zoom
and
on
the
line.
B
All
right
good
afternoon,
chair
and
members
of
the
committee
for
the
record,
my
name
is
dylan
keith
policy
analyst,
with
the
vegas
chamber,
the
chamber
has
historically
supported
the
offering
of
transferable
tax
credits
as
a
tool
for
economic
diversity
and
diversification,
and
we
are
in
support
of
ab20.
Thank
you.
A
F
A
Bps,
we
actually
have
a
person
in
opposition
in
person,
so
we'll
take
him
first
and
then
go
to
the
phone
line.
That's
all
right.
B
Thank
you
chair
and
members
of
the
committee
marcos,
lopez,
americans
for
prosperity,
nevada,
americans
for
prosperity
is
a
staunch
opponent
of
film
tax
credit
programs.
All
around
the
country.
Study
after
study
shows
that
they
do
not
deliver
the
economic
impact
that
they
claim
that
it
will.
We
have
studies
from
both
michigan
and
maryland,
showing
that
these
jobs
are
only
temporary
an
average
of
23
days.
We
have
a
pennsylvania
study
showing
that
a
return
of
investment
for
every
dollar
to
only
be
a
mere
14
cents
and
pretty
much
aside
from
every
study.
B
Independent
study
has
shown
that
tax
credits
generate
less
than
30
percent
for
every
one
dollar
of
spending
on
it
in
general,
we
oppose
tax
credits.
We
think
this
is
a
method
of
picking
winners
and
losers,
and
it
it
takes
away
from
our
tax
base,
which
then
leads
for
calls
for
higher
taxes.
So
we
urge
that
you
guys
vote
no
on
this.
Thank
you.
A
F
F
A
Hey
so
mr
bryce
or
director
brown,
would
you
like
to
offer
any
closing
comments.
C
Madam
chair,
thank
you.
I'm
joined
also
on
this
one
for
help
on
the
q,
a
by
melanie
sheldon
who's,
our
professional
economic
development
officer
based
in
southern
nevada.
When
I
became
director,
it
became
apparent
to
me
that
when
the
board
approves
an
abatement
that
there
were
a
number
of
companies
that
had
not
then
gone
to
the
next
stage
of
entering
into
a
contractual
agreement
with
goad
and
that
some
of
these
have
stretched
for
some
time.
C
Baby
66
basically
says
that
if
an
applicant
is
approved
for
an
abatement
or
incentive
that
they
have
to
within
one
year
enter
into
that
contractual
arrangement
with
the
state
of
nevada
and
failing
to
do
that.
That
would
be
stale
and
require
reapproval
by
the
board,
and-
and
I
raised
this
because
there
has
been
one
one
instance
where,
because
the
contract
have
not
been
signed
under
the
current
statute,
the
company
uses
the
date
go
and
receive
the
application.
C
Regardless
of
the
time
that
it
elapsed.
That
creates
the
possibility
for
the
company
to
apply
the
abated
rate
towards
purchases
paid
at
the
full
rate,
and
that
could
result
in
the
state
refunding
fully
paid
taxes
and
having
unexpected
refunds
can
have
a
budgetary
impact
on
state
and
local
governments,
particularly
if
it's
a
significant
amount
of
hiring
or
purchasing
occur.
While
this
has
not
been
common,
ab-66
would
close
that
loophole.
C
It
would
also
have,
I
hope,
the
effect
of
of
limiting
forum
shopping,
where
companies
come
to
nevada
and
they
seek
an
abatement,
an
incentive
and
then
once
they
have
their
report
approval.
You
know
possibly
look
at
other
states
to
see
if,
if
there's
a
better
offer
out
there,
if
we
put
a
one-year
time
frame
on
it,
we
brought
that
measure
over
to
the
assembly
and
melanie
can
answer
any
questions
that
might
you
might
have
on
this.
C
While
we
were
in
the
assembly,
because
we've
had
these
quarterly
meetings
with
the
department
of
taxation,
they
brought
forward
an
amendment
to
improve
operations
on
their
side
of
the
equation,
because
in
nevada
we
have
statutory
abatements
with
a
full
audit
requirement
with
clawback
provisions.
So
this
is
a
very
rigid
system
and
we're
joined
by
terry
upton
from
the
department
of
taxation
who
can
explain
what
their
amendment
that
was
added
in
the
assembly
does.
E
The
department
has
been
working
with
goed
for
the
last
year
or
more
meeting
with
them
on
this
issue,
as
well
as
other
issues,
and
we
believe
that
it
was
important
that
we
ensure
that
businesses
were
paying
the
appropriate
amount
of
tax
when
it
was
due.
E
So
one
of
the
amendments
that
we
we
asked
for
is
that
businesses
who
came
to
the
department
seeking
a
exemption
of
a
tax
exemption
certificate
did
so
on
a
timely
basis
and
if
they
had
purchased
those
purchases
that
were
approved
for
abatement
between
the
time
they
received,
or
they
executed
that
contract
to
the
point
where
we
gave
them
the
resales
or
the
exemption
certificate.
E
This
is
actually
beneficial
for
the
state,
because
many,
not
many,
but
there
have
been
a
few
taxpayers
who
have
failed
to
take
advantage
of
that
exemption
certificate
and
have
waited
until
after
the
purchasing
period
is
over.
Then
they
approached
the
department
requesting
a
credit
on
those
taxes,
and
it
was.
It
was
difficult
for
the
counties
because
that
money
had
already
been
distributed,
and
now
we
would
have
to
claw
back
that
money
in
order
to
issue
a
win.
E
Another
thing
the
amendment
provides
is
that
the
ten
percent
or
the
interest
will
not
be
allowed.
If
somebody
should
seek
that.
No
businesses
in
the
past
have
done
that,
but
we
just
wanted
to
ensure
that
that
that
was
not
something
they
could
do,
and
we
would
put
a
stop
to
that
ahead
of
time,
and
that
is
basically
the
abatement.
C
Michael
brown,
madam
chair
of
governor's
office
economic
development,
I've
I've
had
a
chance
to
meet
with
the
auditors
over
there,
and
I
want
to
commend
the
department
of
taxation
for
the
diligent
work
they
do
and
for
the
issues
they
flag
and
I
could
say,
we
meet.
We
meet
quarterly
with
them,
and
I
also
arranged
just
a
month
ago
for
the
department
of
taxation
to
brief
our
regional
or
eight
regional
development
associations
to
remind
them
that
you
know
companies
that
are
coming
through
this
process.
A
Okay,
thank
you
for
that.
Senator
seaver's
cancer.
B
Let's
see
one
two,
a
and
b,
if
they
don't
use
the
document,
basically
for
the
50
or
more
purchases,
they're
deemed
out
of
compliance
and
then
there's
a
10
penalty.
If
you're
deemed
out
of
compliance,
do
you
claw
back
all
the
abated
amount
or
or
you
withdraw
from
the
abatements?
And
then
you
have
a
10
penalty,
or
is
it
just
a
10
penalty.
E
Erie
upton
deputy
director
for
the
department,
it
would
be
10
on
the
abated
amount,
but
we
would
not
void
the
contract
in
any
way.
It's
just
that
10.
B
Percent,
thank
you.
So
if
you're,
this
is
all
dependent
on
section,
one
part
part
two.
So
what
if
you
are
out
of
compliance?
How
does
that
work?
If
you
just
normally
out
of
compliance,
it's
not
because
you
didn't
produce
your
form.
E
The
entity
is
audited
and
if
we
found
that
they
had
paid
the
tax
at
50
50
more
than
their
purchases,
then
we
would
find
them
that
they
were
not
in
compliance
and
charge
them
the
10
of
that
abated
amount.
But
that's
how
would
we
we
would
know
they
were
out
of
compliance,
but
that
would
be
the
only
area
that
they
would
be
deemed
out
of
compliance
by
the
department.
B
A
So
I
had
a
question
in
the
same
section,
but
a
different
one,
so
this
is
to
miss
upton.
So
how
long
had?
Because
I'm
assuming
that
in
I'm
going
after
paragraph
b
and
section
1.4,
I
think
it
is.
How
long
had
the
local
governments
not
been
receiving
their
proceeds
from
the
refund.
E
Cherry
upton,
deputy
director
for
the
department,
the
local
governments,
the
amount
that
the
department
collects
is
distributed
to
the
local
governments
every
month.
So
it's
not
that
they
would
not
be
getting
that
amount.
It's
just
that
at
the
end
of
the
two-year
period,
when
we
go
to
audit
that
business
entity
and
find
that
they
have
overpaid
the
tax
because
they
haven't
taken
advantage
of
that
abatement,
then
we
would
have
to
go
back
and
claw
that
money
back.
So
we
could
issue
the
refund.
A
E
E
No
terry
upton
deputy
director
for
the
department-
maybe
non-compliance,
is
not
a
good
definition
of
that,
because
it's
not
that
they
are
not
incompliant
in
compliance
with
the
agreement.
It's
just
that
they've
overpaid
the
business
entity
has
overpaid.
A
A
B
F
F
Greetings
chair
members
of
the
committee
amber
stidham,
that's
s-t-I-d,
h-a-m
with
the
henderson
chamber
of
commerce.
I
just
want
to
say
that
we
appreciate
goed
further
outreach
to
our
chamber
in
the
development
of
this
bill
proposals
like
this.
We
believe
aid
our
diversification
efforts
in
both
new
industry
and
the
jobs
that
nevadans
seek,
which
is
also
a
primary
focus
of
our
henderson
development
association.
Over
the
last
15
years,
we
are
pleased
to
support
abe,
66
and
its
newest
iteration.
F
G
We
are
only
in
opposition
to
this
bill
because
of
the
legislative
standard
that,
if
you
are
not
in
support
as
written
then
you're
in
opposition,
our
opposition
was
brought
up
on
the
assembly
side
during
the
hearing
by
executive
secretary,
treasurer
of
the
southern
nevada
building
trades
bill
stanley,
and
so
I
you
know
I'd
sort
of
repeat
the
sentiment
that
he
he
made
the
comments
that
he
made
at
that
time.
G
I
don't
need
to
talk
about
the
economic
protections
of
nrs
338
in
this
committee.
Everyone
here
knows
the
importance
of
those
protections
and
those
protections
were
sort
of
in
a
way
expanded
last
year
with
ab190,
where
boards
and
bodies
that
oversee
construction
or
have
something
to
do
with
construction
are
also
subject
to
the
standards
of
nrs
338.
G
G
G
They
are
importing
pretty
much
their
entire
workforce
as
far
as
we
can
tell,
and
and
building
that
project,
having
received
abatements
from
the
governor's
office
of
economic
development,
and
we
don't
feel
that's
right,
we
feel
that
the
construction
of
a
project
to
the
the
remodeler
project,
it's
important
to
capture
the
potential
economic
benefits
during
that
phase
as
well,
and
so
we're
asking
for
the
opportunity
to
work
with
the
bill's
sponsor
to
discuss
a
way
that
we
can
amend
the
bill
with
the
language
of
similar
language.
G
That
was
in
ab190
last
session
to
capture
the
economic
stimulus
of
the
construction
of
the
pro
of
projects
that
they
offer
incentives
or
abatements.
To
thank
you
and
available
for
any
questions.
A
G
A
G
By
the
way,
greg
esposito
for
the
record
nevada
state
pie
trades.
If
you're
talking
about
the
current
goed
regulations
yeah,
I
don't
believe
and
I'll
be
corrected.
If
I'm
wrong
that
those
those
standards
are
for
construction,
I
believe
that
those
are
for
operation.
G
If
I'm
wrong,
then
I
believe
the
standard
is
like
a
flat
25
on
average,
and
that
would
be
for
construction
and
operation.
So
I
don't
believe
there
are
any
standards
on
the
construction
of
a
project.
That's
received,
abatements.
If
I'm
wrong,
I
apologize.
A
Okay,
so
director
brown,
can
you
offer
comment
on
the
wage,
the
average
wage
discussion
for
operations
versus
construction?
Please.
C
Madam
chair,
I'm
not
familiar
with
this
there's
a
distinction
between
that
we're
abating
the
operations,
but
I
I'm
not
sure
how
construction
fits
into
that
and
I'll
have
to
turn
to
someone
on
my
staff.
Maybe
that
could
answer
that.
H
Thank
you,
director
brown,
madam
chair,
melanie
sheldon,
director
of
business
development,
go
ahead
for
the
record.
No,
there
are
no.
There
are
no
construction
wage
requirements,
we
abate
the
the
actual
company
and
their
operations
and
they
are
held
to
the
statewide
average
wages
set
every
year
by
data.
H
Our
abate,
our
data
center
abatement,
our
3.5
billion
dollar
package,
as
well
as
one
billion
dollar
package,
does
have
a
construction
requirement
where
50
percent
of
the
construction
employees
at
least
50
percent,
must
be
nevada
residents,
but
we
don't,
and
they
also
must
be
offered
health
care,
but
we
don't
have
any
parameters
around
the
wages
for
construction
employees.
A
A
H
A
H
A
H
This
was
madam
chair
for
the
record.
This
was
a
project
incentive
in
around
2000
at
the
end
of.
C
A
C
A
C
Yes,
thank
you,
madam
chair
michael
brown,
executive
director
of
the
governor's
office
of
economic
development.
This
is
a
is
an
update
of
kind
of
some
of
the
core
statutes
surrounding
goed
and
also
involving
the
film
office.
The
most
important
things
that
I
think
it
does
is.
It
adds
the
director
of
business
and
industry
to
the
goed
board.
C
C
There
was
a
line
of
sights
from
go
head
to
bni
through
the
private
activity
program,
and
yet
we
do
a
lot
of
work
with
business
and
industry
and
we
have
two
non-voting
members
of
the
goed
board,
the
director
of
dieter
and
the
chancellor,
and
so
we
think
it's
a
fitting
that
the
director
of
business
and
industry
become
a
non-uh
voting
member
of
the
goed
board,
so
that
they're
formally
in
all
the
information
flow
that
goes
on
and
we
can
do
more
joint
planning
as
we
we
have
tried
to
do.
C
Another
change
that
it
makes
in
in
section
two
was
just
to
clarify,
and
this
is
where
we
got
significant
help
from
the
legislative
council
bureau
what
constitutes
a
quorum
and
we're
appreciative
for
that,
and
then
we
are
also.
C
We
were
in
the
peculiar
situation
that,
in
some
of
the
governor's
cabinet
is
appointed
directly
and
some
of
the
governor's
cabinet
is
appointed
on
recommendations
that
come
through
a
commission
or
a
board,
and
in
a
case
of
this
position
that
I
occupy
now,
there
was
a
requirement
that
the
that
the
the
the
search
committee
and
they
submit
three
names
to
the
governor.
C
Well,
my
appointment
was
delayed
for
about
two
months
because
they
struggled
to
find
the
third
name
and
dana
bennett
who
was
on
both
the
search
committee
and,
as
a
member
of
the
goat
board,
suggested
that
we
changed
that
to
basically
say
up
to
three
persons
should
be
submitted
to
the
governor
for
consideration
to
be
the
head
of
the
of
goed,
so
we
don't
get
trapped
in
that
situation.
Again
section
three
of
the
bill
changes.
C
The
motion
pictured
division
of
motion
pictures
formally
to
the
nevada
film
office,
section
five
creates
a
library
of
audio
visual
recordings
there
and
then
I
think
we
make
a
few
other
technical
changes
with
respect
to
film
and
I
think
eric
could
answer
any
of
those
questions,
but
I
think
they're,
all
just
updating
old
language.
So
thank
you,
madam
chair
members
of
committee,
we'd,
be
glad
to
answer
any
questions.
B
Thank
you
charney,
so,
just
about
the
audio
visual
or
the
visual
depictions
do
we
already
have
those,
because
the
language
is
sort
of
changing.
It
looks
like
maybe
we
had
them,
but
you're
changing
the
language
or
do
we
not
have
them
and
you
need
to
create
them.
Thank.
D
You
thank
you
for
the
question
eric
price
from
the
nevada
film
office.
Yes,
we
currently
do
have
them.
The
change
just
facilitates
our
ability
to
have
them
online
and
not
the
requirement
to
have
them
in
print.
The
online
option
is
more
in
in
congruent
with
our
current
times
more
environmentally
friendly,
and
allows
that
us
to
offer
to
a
wider
audience
and
does
not
limit
us
to
merely
to
print
gives
us
that
additional
flexibility.
D
D
A
A
A
B
Time
all
right,
thank
you
once
again,
chair
and
members
of
the
committee.
We
are
dylan
keith
for
the
record
policy
analyst
with
the
vegas
chamber.
We
are
in
support
of
ab69
for
its
clarity
and
improving
of
the
structural
governments
of
goed,
and
we
thank
you
for
your
time.
F
A
C
Madam
chair,
no
I
thank
you
and
the
members
of
the
committee
for
hearing
us
today
and
I
want
to
thank
the
legislative
council
bureau
staff
for
the
support
they
provided
us
in
the
development
of
these.
These
three
bills.