Lawmakers hear details on economic development bill
CARSON CITY — Nevada lawmakers got their first chance to hear details on a bill that would overhaul how the state spends economic development money, one of the few spending bills with bipartisan support.
Under Assembly Bill 449 the state would invest millions of dollars in private businesses and academic research, and streamline its economic development agencies.
It seeks to create a $10 million "Catalyst Fund" that would provide grants to new and expanding businesses and a "Knowledge Fund" to direct academic study money toward university research that could be commercialized.
It also aims to consolidate myriad state, local and regional economic development agencies into three entities that would apply for funding through a new Cabinet-level organization that reports to the governor.
Assembly Speaker John Oceguera, D-Las Vegas, and Heidi Gansert, chief of staff to Republican Gov. Brian Sandoval, unveiled the bill on March 25. On Monday, it had its first legislative hearing.
Oceguera, Sandoval, Senate Majority Leader Steven Hosford, D-Las Vegas, and several economic development officials testified in support of the measure.
"We think it is a more efficient system and it will coordinate all the efforts of all the development agencies out there," Oceguera said. "If you don’t perform you don’t get money. We think that is the way it should be."
The plan is to provide a controlled and accountable system of providing funds to juice economic development statewide and to bring focus to efforts by groups such as the Nevada Development Authority and the Economic Development Authority of Western Nevada. It replicates programs in Utah and other states that business and government leaders say outpace Nevada in economic diversification efforts.
To get around a provision in the Nevada constitution that prohibits granting state tax dollars to private businesses, the bill calls for the Catalyst Fund to provide money to local government agencies to give to the businesses, with state strings attached.
It’s a different approach than one Lt. Gov. Brian Krolicki supported in past sessions, which would have set up a nonprofit agency to use the state’s unclaimed property fund to support business.
Krolicki said he supports the current bill but wants to make sure the details are in order so it doesn’t get derailed.
Nevada System of Higher Education Chancellor Dan Klaich also raised concerns even as he supported the bill. Klaich said he wanted to make sure the money that goes to the Knowledge Fund isn’t money that would have already been included in state support for higher education, which is facing a $162 million cut.
The hearing Monday was before a joint panel of members of the Assembly Ways and Means and Senate Finance committees. The panel didn’t vote on the measure.
Contact reporter Benjamin Spillman at bspillman@reviewjournal.com or 702-477-3861.