Lawmaker promotes economic diversification

Legislative leaders aren't projecting a budget windfall this year, but an Assembly leader wants to be sure funding is allocated for economic diversification.

Assembly Minority Leader Lynn Hettrick, R-Gardnerville, said that when economic growth slows -- as it has in Nevada -- state government should become friendlier with business and not discourage new investments.

Hettrick addressed members of the Nevada Association of Independent Businesses political action committee, which sponsored an open house last week for state Assembly and Senate candidates.

Candidates from both sides of the political aisle were invited to the event, but it was a predominantly Republican crowd that gathered to meet the NAIB leadership. The organization, which has more than 800 members statewide, is nonpartisan, but frequently lands on the GOP side when business issues are debated.

The NAIB supports small- and medium-sized business stances, opposing government regulation and taxation. As an ardent supporter of Right to Work laws, the organization often finds itself opposing unions and their political agendas.

Hettrick said the most recent quarterly projection of sales tax revenues indicates there won't be a surplus as there has been in the last two years.

"In light of the economy, we may have to dip into the rainy-day fund to finance school districts," Hettrick said. "As a result, it's important to not do anything to discourage businesses. In fact, we should cut audits and inspections and make it more convenient for businesses to operate in Nevada."

He also said the Nevada Legislature should continue to reform the state's workers' compensation system, increase incentives to diversify the economy and put a limit on the length of the legislative session.

Hettrick said the proposed 120-day limitation on the state's biennial legislative sessions would not encourage an abundance of closed-door deals as critics contend. He said the intent of the limitation is to set tighter deadlines for the introduction of legislation and for moving bills from one house to the other.

"A 120-day session will cut costs and is a realistic time frame to complete our work," Hettrick said. "Utah does it all in 45 days. And even though they meet every year, that's still less time than we spend in session."

As for increasing incentives to diversify the economy, Hettrick said he supports rebates on sales and employee taxes to businesses that guarantee a certain number of jobs or certain level of purchases from in-state suppliers. He also said state officials need to work toward promoting Nevada for its positive business climate.

"Many out-of-state businesses don't realize that this is one of the most urbanized states in the West," Hettrick said. "If we can get some of those people to look us over, we can offer the incentives and convince them to relocate. That should help us diversify our own economy."

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