Tahoe Oversight Committee - Nevada Legislature · DBH Diameter at Breast Height (tree measurement)...

TAHOE OVERSIGHT COMMITTEE

RESOURCE BINDER

2013-2014 Interim

Committee Members and Staff

The Legislative Committee for the Review and Oversight of the Tahoe Regional Planning

Agency (TRPA) and the Marlette Lake Water System (MLWS) (Committee) is an ongoing

statutory committee of the Nevada Legislature, whose authorization is set forth in

Nevada Revised Statutes (NRS) 218E.555. The Chair and the Vice Chair are elected by the

members at the first Committee meeting each interim; one is selected from each house of

the Nevada Legislature according to subsection 3 of NRS 218E.555.

Committee Members and Staff

The Legislative Commission appointed the following six legislators to the Committee for the

2013–2014 Interim:

Senator Ben Kieckhefer

Senator David R. Parks

Senator James Settelmeyer

Assemblyman Randy Kirner

Assemblyman Michael Sprinkle

Assemblywoman Heidi Swank

The following staff will be working with the Committee:

Jennifer Ruedy, Principal Research Analyst, Research Division

Lisa Gardner, Senior Research Secretary, Research Division

(Research Division Telephone (775) 684-6825)

Eileen G. O'Grady, Chief Deputy Legislative Counsel, Legal Division

Dan Reich, Deputy Legislative Counsel, Legal Division

(Legal Division Telephone: (775) 684-6830)

Wayne Thorley, Program Analyst, Fiscal Analysis Division

(Fiscal Analysis Division Telephone: (775) 684-6821)

http://www.leg.state.nv.us/NRS/NRS-218E.html#NRS218ESec555

http://www.leg.state.nv.us/App/Legislator/A/Senate/77th2013/16



http://www.leg.state.nv.us/App/Legislator/A/Assembly/77th2013/40



Acronym List for the

Legislative Committee for the Review and Oversight of the Tahoe Regional Planning

Agency and the Marlette Lake Water System

AIS Aquatic Invasive Species

APC Advisory Planning Commission

BMPs Best Management Practices

CAL FIRE California Department of Forestry and Fire Protection

CARB California Air Resources Board

CCR California Code of Regulations

CNEL Community Noise Equivalent Level

CTC California Tahoe Conservancy

CWPP Community Wildfire Protection Plan

DBH Diameter at Breast Height (tree measurement)

EIP Environmental Improvement Program

EIS Environmental Impact Statement

ETCC Environmental Threshold Carrying Capacity

FSP Fine Sediment Particle >16 microns in diameter

GHG Greenhouse Gas Emissions

IPES Individual Parcel Evaluation System

LRWQCB Lahontan Regional Water Quality Control Board

LTB Lake Tahoe Basin

LTBMU Lake Tahoe Basin Management Unit of the U.S. Forest Service

LTRA Lake Tahoe Restoration Act of 2000

LTWT Lake Tahoe Water Trail

MAC Multi-agency coordination

MLWS Marlette Lake Water System

MOU Memorandum of Understanding

NDEP Nevada Division of Environmental Protection

NDF Nevada’s Division of Forestry

NDOW Nevada’s Department of Wildlife

NFSC Nevada Fire Safe Council

PLRM Pollutant Load Reduction Model

PM Particulate Matter

PRC California Public Resources Code

ROV Remote Operated Vehicle

RPF Registered Professional Forester

SAFETEA-LU Safe, Accountable, Flexible, Efficient Transportation Equity Act:

A Legacy for Users

SDCNR State Department of Conservation and Natural Resources

SNPLMA Southern Nevada Public Lands Management Act of 1998

SEZ Stream Environment Zone

TAU Tourist Accommodation Unit

Updated by the Research Division February 18, 2014

TERC Tahoe Environmental Research Center

TFFT Tahoe Fire and Fuels Team

TIIMS Tahoe Integrated Information Management System

TMDL Total Maximum Daily Load (a water quality restoration plan led by the

States of California and Nevada to determine the maximum amount of

pollutants that Lake Tahoe can absorb while meeting water quality

standards)

TMPO Tahoe Metropolitan Planning Organization

TRPA Tahoe Regional Planning Agency

TSC Tahoe Science Consortium

TTD Tahoe Transportation District

USDA United State Department of Agriculture

VMT Vehicle Miles Traveled

WUI Wildland Urban Interface

State Laws and Regulations

Relevant to the

Legislative Committee for the Review and Oversight of the Tahoe Regional Planning

Agency (TRPA) and the Marlette Lake Water System

Below is a list of laws and regulations of the State of Nevada relevant to the Committee.

This should not be construed as an all-inclusive list.

Nevada Revised Statutes (NRS)

NRS 218E.550 through 218E.580: Creation, Membership, Duties, and general information

about the Committee

NRS 277.190 through 277.220: Tahoe Regional Planning Compact

NRS 278.780 through 278.828: General Provisions relevant to planning and zoning under the

Tahoe Regional Planning Compact, including creation of the Nevada TRPA

NRS 321.595: Boundary of Lake Tahoe

NRS 321.5951 through 321.5957: Protection of Lake Tahoe Basin, including Account for

License Plates for Support of Preservation and Restoration of Natural Environment of Lake

Tahoe Basin, declaration of legislative intent, and duties of the Division of State Lands,

State Department of Conservation and Natural Resources relevant to the Lake Tahoe Basin

NRS 331.160 through 331.180: Marlette Lake Water System

NRS 353.210 (Section 7): Submission of budget of TRPA to the Legislature

Nevada Administrative Code (NAC)

NAC 278.800 through 278.870: Practice before the Nevada TRPA

NAC 321.300 through 321.365: Protection of Lake Tahoe Basin

http://www.leg.state.nv.us/NRS/NRS-218E.html#NRS218ESec550

http://www.leg.state.nv.us/NRS/NRS-277.html#NRS277Sec190






http://www.leg.state.nv.us/NAC/NAC-278.html#NAC278Sec800

http://www.leg.state.nv.us/NAC/NAC-321.html#NAC321Sec300

AB480.EN Page 1 of 1

ASSEMBLY BILL 480 (Enrolled)

Relates to the Tahoe Regional Planning Agency

Summary

Assembly Bill 480 requires the Tahoe Regional Planning Agency annually to provide the

Governor and the Director of the Legislative Counsel Bureau with a copy of the Agency’s most

recent independent audit report and certain information about the Agency’s expenditures and its

progress in achieving certain performance measures and benchmarks.

The bill also requires the Agency to submit biennially its proposed budget to the Director of

the Department of Administration and the Fiscal Analysis Division of the Legislative Counsel

Bureau.

Effective Date

This bill is effective on June 7, 2013.

FLOOR STATEMENT 77th REGULAR SESSION

OF THE NEVADA LEGISLATURE

Nonpartisan Staff of the Nevada Legislature

PREPARED BY

RESEARCH DIVISION

LEGISLATIVE COUNSEL BUREAU

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Assembly Bill No. 480–Committee on Ways and Means

CHAPTER..........

AN ACT relating to the Tahoe Regional Planning Agency; requiring the Agency periodically to submit certain financial information to the Executive and Legislative Departments of the State Government; and providing other matters properly relating thereto.

Legislative Counsel’s Digest: Section 1 of this bill requires the Tahoe Regional Planning Agency annually to provide the Governor and the Director of the Legislative Counsel Bureau with a copy of the Agency’s most recent independent audit report and certain information about the Agency’s expenditures and its progress in achieving certain performance measures and benchmarks. Sections 2 and 3 of this bill require the Agency to submit biennially its proposed budget to the Chief of the Budget Division of the Department of Administration and the Fiscal Analysis Division of the Legislative Counsel Bureau.

EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted.

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

Section 1. NRS 277.220 is hereby amended to read as follows: 277.220 1. The Account for the Tahoe Regional Planning Agency is hereby established in the State General Fund and consists of any money provided by direct legislative appropriation. Money in this Account must be expended for the support of, or paid over directly to, the Tahoe Regional Planning Agency in whatever amount and manner is directed by each appropriation or provided by law. 2. On or before January 31 of each year, the Tahoe Regional Planning Agency shall submit to the Governor and the Director of the Legislative Counsel Bureau: (a) A copy of the report of the independent audit most recently prepared for the Tahoe Regional Planning Agency; and (b) A written report detailing: (1) The nature and purpose of the expenditures made by the Tahoe Regional Planning Agency during the immediately preceding calendar year from money appropriated to it by the Legislature; and (2) The progress of the Tahoe Regional Planning Agency in achieving the performance measures and benchmarks included in its current biennial budget.

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3. The Director of the Legislative Counsel Bureau shall cause copies of the materials submitted pursuant to subsection 2 to be transmitted to the Legislative Committee for the Review and Oversight of the Tahoe Regional Planning Agency and the Marlette Lake Water System created by NRS 218E.555 and: (a) In odd-numbered years, the Legislature. (b) In even-numbered years, the Interim Finance Committee. Sec. 2. NRS 353.210 is hereby amended to read as follows: 353.210 1. Except as otherwise provided in [subsection] subsections 6 [,] and 7, on or before September 1 of each even-numbered year, all departments, institutions and other agencies of the Executive Department of the State Government, and all agencies of the Executive Department of the State Government receiving state money, fees or other money under the authority of the State, including those operating on money designated for specific purposes by the Nevada Constitution or otherwise, shall prepare, on blanks furnished them by the Chief, and submit to the Chief: (a) The number of full-time equivalent positions within the department, institution or agency. (b) The number of full-time equivalent positions within the department, institution or agency that have been vacant for at least 12 months, the number of months each such position has been vacant and the reasons for each such vacancy. (c) Any existing contracts for services the department, institution or agency has with temporary employment services or other persons, the proposed expenditures for such contracts in the next 2 fiscal years and the reasons for the use of such services. If such contracts include any privatization contracts, a copy of each of those privatization contracts together with: (1) A statement specifying the duration of the privatization contracts; (2) The number of privatization contracts proposed for the next 2 fiscal years and the estimated expenditures for the privatization contracts; and (3) An analysis of each of the privatization contracts, which includes, without limitation: (I) For the preceding, current and next fiscal years, the annual amount required to perform each of the privatization contracts; and (II) For the preceding and current fiscal years, the number of persons the department, institution or agency employed pursuant to the privatization contracts, reflected as the equivalent full-time position if the persons were regularly employed by the department,

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institution or agency, including the equivalent hourly wage and the cost of benefits for each job classification. (d) Estimates of expenditure requirements of the department, institution or agency, together with all anticipated income from fees and all other sources, for the next 2 fiscal years compared with the corresponding figures of the last completed fiscal year and the estimated figures for the current fiscal year. 2. The Chief shall direct that one copy of the forms submitted pursuant to subsection 1, accompanied by every supporting schedule and any other related material, be delivered directly to the Fiscal Analysis Division of the Legislative Counsel Bureau on or before September 1 of each even-numbered year. 3. The Budget Division of the Department of Administration shall give advance notice to the Fiscal Analysis Division of the Legislative Counsel Bureau of any conference between the Budget Division of the Department of Administration and personnel of other state agencies regarding budget estimates. A Fiscal Analyst of the Legislative Counsel Bureau or his or her designated representative may attend any such conference. 4. The estimates of expenditure requirements submitted pursuant to subsection 1 must be classified to set forth the data of funds, organizational units, and the character and objects of expenditures by program or budgetary account and by category of expense, and must include a mission statement and measurement indicators in adequate detail to comply with the requirements of subparagraph (3) of paragraph (b) of subsection 1 of NRS 353.205. The organizational units may be subclassified by functions and by agencies, bureaus or commissions, or in any other manner at the discretion of the Chief. 5. If any department, institution or other agency of the Executive Department of the State Government, whether its money is derived from state money or from other money collected under the authority of the State, fails or neglects to submit estimates of its expenditure requirements as provided in this section, the Chief may, from any data at hand in the Chief’s office or which the Chief may examine or obtain elsewhere, make and enter a proposed budget for the department, institution or agency in accordance with the data. 6. Agencies, bureaus, commissions and officers of the Legislative Department, the Public Employees’ Retirement System and the Judicial Department of the State Government shall submit to the Chief for his or her information in preparing the proposed executive budget the budgets which they propose to submit to the Legislature.

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7. On or before September 1 of each even-numbered year, the Tahoe Regional Planning Agency shall submit the budget which the Agency proposes to submit to the Legislature to: (a) The Chief for his or her information in preparing the proposed executive budget. (b) The Fiscal Analysis Division of the Legislative Counsel Bureau. 8. The information provided by a department, institution or agency pursuant to paragraph (c) of subsection 1 is a public record and must be open to public inspection. [8.] 9. As used in this section, “privatization contract” means a contract executed by or on behalf of a department, institution or agency which authorizes a private entity to provide public services which are: (a) Substantially similar to the services performed by the public employees of the department, institution or agency; and (b) In lieu of the services otherwise authorized or required to be provided by the department, institution or agency. Sec. 3. NRS 353.246 is hereby amended to read as follows: 353.246 1. Except as otherwise provided in subsection 2 of this section and [subsection] subsections 6 and 7 of NRS 353.210, the provisions of NRS 353.150 to 353.245, inclusive, do not apply to agencies, bureaus, commissions and officers of the Legislative Department, the Public Employees’ Retirement System , [and] the Judicial Department of the State Government [.] and the Tahoe Regional Planning Agency. 2. The Legislative Department, the Public Employees’ Retirement System , [and] the Judicial Department of the State Government and the Tahoe Regional Planning Agency shall submit their budgets to the Legislature in the same format as the proposed executive budget unless otherwise provided by the Legislative Commission. All projections of revenue and any other information concerning future state revenue contained in those budgets must be based upon the projections and estimates prepared by the Economic Forum pursuant to NRS 353.228. Sec. 4. This act becomes effective on July 1, 2013.

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Page 1 of 12

January 31, 2014 The Honorable Brian Sandoval Office of the Governor 101 North Carson Street Carson City, NV, 89701 Mr. Rick Combs Director, Nevada Legislative Counsel Bureau 401 South Carson Street Carson City, NV 89701-4747 Dear Governor Sandoval and Mr. Combs: The Tahoe Regional Planning Agency respectfully submits the following report per the statutory requirements of Section 1 of AB 480. The specific requirement is as follows: On or before January 31 of each year, the Tahoe Regional Planning Agency shall submit to the Governor and the Director of the Legislative Counsel Bureau:

A. A copy of the report of the independent audit most recently prepared for the Tahoe Regional Planning Agency; and

B. A written report detailing: 1. The nature and purpose of the expenditures made by the Tahoe Regional Planning

Agency during the immediately preceding calendar year from money appropriated to it by the Legislature; and

2. The progress of the Tahoe Regional Planning Agency in achieving the performance measures and benchmarks included in its current biennial budget.

Background Established by a federally sanctioned interstate compact between California and Nevada, the Tahoe Regional Planning Agency (TRPA) is designated as the region’s land use, transportation, and environmental planning agency. TRPA is responsible for providing leadership in the development and administration of policy, plans, programs, and projects in the cooperative effort to preserve, restore, and enhance Lake Tahoe’s unique natural and human environments. In accordance with the Bi-State Compact, all state funding requests by TRPA are made based on a one-third, two-third proportionate share between the states of Nevada and California respectively. These funds are augmented from a variety of additional funding sources including local jurisdiction contributions, federal and state grants, and fees for service. TRPA’s total budget for 2012-13 was $20.7 million of which the state of Nevada contributed $1 million to the general fund plus an additional $256,000 from the Department of Motor Vehicles.

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Priorities and Performance Based Nevada Budgeting classification

• Core Function: Resource Management • Governor’s Priority: Sustainable and growing economy; safe and livable communities. • Objective: Protect Resources – Protect and enhance resources to help ensure availability now

and in the future. Applicable Statutes, Laws and Functions of the Agency The Agency is authorized under Nevada law (NRS 277.190 through 277.200), California law (California Government Code sections 66800 through 66801) and federal law (PL 96-551). The purpose of the Tahoe Regional Planning Compact, which was adopted in 1969 and amended in 1980, is to provide for the enhancement of governmental efficiency and effectiveness, the establishment of environmental threshold standards for the region, the adoption and enforcement of a Regional Plan to attain the threshold standards, to provide for orderly growth and development consistent with the standards, and to provide for resource protection programs needed to achieve and maintain standards. Both states adopted further Compact amendments in 2013 as codified in Nevada’s SB 229 and California’s SB 630. The following attachments satisfy sections A and B numbers 1 and 2 of AB 480’s requirements. TRPA appreciates the opportunity to submit this report. Please don’t hesitate to contact me with questions about the report’s details. Sincerely, Joanne S. Marchetta, Executive Director cc Shelly Aldean, TRPA Governing Board Chair

Gerald Gardner, Office of the Governor Cory Hunt, Office of the Governor Leo Drozdoff, Department of Conservation and Natural Resources

Jim Rodriguez, Budget Division Jennifer Ruedy, Legislative Counsel Bureau Wayne Thorley, Legislative Counsel Bureau Sylvia Wiese, Legislative Counsel Bureau

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ATTACHMENT 1:

STATE OF NEVADA APPROPRIATED FUNDS

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ATTACHMENT 1: Nevada General Fund Appropriation to TRPA TRPA Revenues By Source For fiscal year 2013 (2012/13), TRPA received $20.7M in revenue of which 5% came from the Nevada General Fund allocation. In addition, we received $256,000 from the Nevada DMV fund which is restricted to air quality programs. The overall distribution of TRPA revenues is shown in Chart 1. Grant funding comes from a variety of sources. Primary Nevada entities include NDOT and DCNR. The bulk of the funds come from the federal government or California entities. TRPA charges applicants for the direct costs of reviewing and monitoring application filings. In addition, applicants indemnify TRPA against legal challenges to permits. TRPA Expenditures TRPA works cooperatively with multiple agencies and entities to implement the Compact mandates. In addition, as the federally designated Metropolitan Planning Organization (MPO) for the Tahoe Basin, TRPA receives substantial transportation funding. Planning activities are conducted within TRPA/TMPO, but implementation funds are passed through to the Tahoe Transportation District, a second but independent Bi-State Compact agency authorized by the Compact. As a result, TRPA has significantly higher contract costs than might be expected for most public entities, accounting for slightly more than 50% of our expenditures. Chart 2 shows TRPA’s cost distribution for Fiscal Year 2013 (2012/13). TRPA’s approved headcount from the FY 2011/12 budget was 75.5 full-time equivalent employees (FTEs). For the FY 2013/14 timeframe, TRPA’s approved staffing headcount is 70 FTEs. Our current headcount is 62 FTEs with several key positions open that will be filled during FY 2014. TRPA continues to manage staffing levels to reflect constrained budget conditions and evolving program priorities. The following table identifies how TRPA’s revenues were used during FY 2013. The table allocates administrative and support costs to program areas. Overall, the Nevada General Fund contribution amounts to 5% of TRPA’s total revenues. Additional dedicated funds from the DMV fund ($256K) support air quality monitoring in the Region. See Attachment 3 for detail.

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Specific uses of Nevada General Fund contributions to the Agency include:

• $649,000 in Planning, used for: o The Regional Plan Update, finalized in December 2012 o Implementation of the Regional Plan including local government area plan

development o Current planning project review and environmental analysis, including applicant services

and outreach o Code enforcement and permit compliance o Administrative and infrastructure costs related to project review and compliance

o Note: TRPA generally does not charge other public agencies application fees, leaving a shortfall in the Planning fund. Other applicants pay the direct cost of permit review.

• $37,000 for shorezone activities (buoy and pier permit review, enforcement, etc.) o Note: currently operated as an interim program pending resolution of litigation.

Tahoe Regional Planning AgencyUses of Funds by Program Activity - Fiscal Year 2013 ($K)

NV CA Fees Grants OtherTotal

Revenue

Planning

Planning, Permitting & Enforcement 649 2,593 2,729 337 6,308

MPO (Transportation) 7,358 7,358

Total Planning 649 2,593 2,729 7,358 337 13,666

Implementation

Shorezone 37 149 - 19 206

Administer EIP Program 150 598 313 78 1,139

Stormwater BMPs 24 98 905 13 1,040

Aquatic Invasive Species 98 390 3,456 51 3,994

Total Implementation 309 1,236 - 4,674 161 6,379

Measurement & Reporting

Air Quality Measurement 257 257

Threshold Monitoring 73 293 38 404

Total Measurement 73 293 - 257 38 661

Totals 1,031 4,122 2,729 12,289 536 20,706

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• $150,000 to administer the multi-state/multi-agency Environmental Improvement Program (EIP) throughout the Basin. This investment covers coordinated reporting on EIP activities for a wide range of customers including the Nevada & California congressional delegations and other federal government sponsors.

• $24,000 for stormwater management (Best Management Practices/BMPs) in support of threshold progress on water quality and lake clarity.

• $98,000 to prevent and treat aquatic invasive species to augment water quality programs, particularly in the lake’s nearshore, and protect the lake’s fishery and recreation resources.

• $73,000 for monitoring the progress in achieving adopted environmental threshold standards.

An additional allocation of Nevada DMV funds is used for air quality programs. (See Attachment 3 for more details

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ATTACHMENT 2:

PERFORMANCE MEASURES AND BENCHMARKS

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ATTACHMENT 2: SUMMARY OF AGENCY PERFORMANCE INDICATORS As directed in AB 480, Section B, #2, the Tahoe Regional Planning Agency tracks a suite of performance measures to ensure accountability and transparency. The Agency is transitioning to a set of updated performance measures newly adopted by the TRPA Governing Board. This report documents the new metrics going forward along with those currently in TRPA’s budget submission. In June 2013, the TRPA Governing Board approved a set of 14 Regional Plan Update Performance Measures. The recommended measures relate directly to the intended implementation actions resulting from the 2012 Regional Plan amendments and utilize information that is both available and measurable. Additionally, each performance measure has an associated Level-1 and Level-2 benchmark, or target, to be reported both annually and on a 4-year timeframe. Data will be collected on these new performance measures throughout 2014 and will be reported to the state of Nevada starting in January 2015. TRPA believes these new performance measures are better suited to Nevada’s Priorities and Performance Based Budgeting process. For completeness, we have also included the metrics submitted as part of the FY 2013/14 budget cycle. Adopted Regional Plan Performance Measures Regional Land Use Patterns

1. Distribution of development for land-use types 2. Annual average number of units transferred to Town Centers from sensitive and remote land 3. Retirement rate for existing non-residential units of use 4. Housing availability for residents and workers

Travel Behavior

5. Percentage of all trips using non-automobile modes of travel (transit, bicycle, pedestrian) 6. Automobile vehicle miles travelled per capita (excluding through trips) 7. Construction of pedestrian and bicycle improvements

Environmental Restoration

8. Coverage removal from Stream Environment Zones and other sensitive lands (privately-funded) 9. Issuance of BMP Certificates in conjunction with property improvements and area-wide BMP

installations 10. TMDL performance benchmarks 11. Scenic improvement rate on urban roadways

Effective Regional Plan Implementation

12. Prepare and maintain Area Plans in conformance with the 2012 Regional Plan 13. Complete mitigation measures identified in the Regional Plan Update EIS

Economic Vitality

14. Rate of redevelopment

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In addition to the new regional plan performance measures, work program benchmarks included in TRPA’s budget submission are listed in the table below. Note that permit applications received and processed were down substantially because of the severe economic downturn in the Tahoe Basin.

Actual 11-12

Projected 12-13

Actual 12 -13

Number of Permit Applications Received 822 850 592 Number of Permit Applications Processed 764 800 619 Number of EIP Project Applications Under Review 53 45 36 Number of EIP Projects Completed or Underway 55 45 45 * Number of BMP Completion Certificates Issued 1,205 1,000 611 **Number of Memoranda of Understanding Administered 50 50 50 Number of Project Inspections Performed 574 550 656 Number of Regional Plan Violations Resolved 15 18 18 * On the basis of the recently adopted Lake Tahoe Total Maximum Daily Load (TMDL), the updated 2012 Regional Plan shifts emphasis to area-wide BMP treatment strategies for enhanced water quality benefits. Consequently, in recent years, using the best available TMDL science, TRPA has adjusted resources to accelerate area-wide BMP compliance in geographic areas with the greatest opportunity for stormwater sediment reduction. This shift resulted in fewer BMP certificates issued but greater economies of scale by coordinating private parcel BMP compliance with public-sector infrastructure stormwater erosion control projects on streets and roadways. ** TRPA maintains Memoranda of Understanding (MOUs) with partner agencies, regional public works agencies, and other organizations to streamline the permitting process and eliminate redundancy by delegating project review authority for routine activities to other agencies. With completion of the Regional Plan Update, the number and scope of MOUs is expected to increase over time.

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ATTACHMENT 3:

NEVADA DMV APPROPRIATED FUNDS

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ATTACHMENT 3: Use of Nevada Air Quality DMV Funds Lake Tahoe’s air quality has been a priority since the early days of the first Bi-State Compact which created TRPA. Over the last three years, pursuant to Nevada’s legislative direction, TRPA has invested resources to continue improving the region’s air quality program. Eight monitoring stations are currently operational and monitor for pollutants from carbon monoxide to ozone. The $512,000 in funds provided by Nevada through the Department of Motor Vehicles in last biennium was used to accomplish the following:

• Finalizing air quality planning documents – namely the completion of a conceptual model used to improve understanding of factors and activities known to affect air quality conditions and a science-vetted Air Quality Monitoring Plan for the region.

• Operating and maintaining air quality monitoring sites at Bliss State Park and at TRPA’s office – this work includes recording, analyzing, and reporting site data as well as maintaining, updating, and calibrating site equipment through a contract with the Desert Research Institute.

• Recording real estate transaction data related to woodstove compliance with EPA-emission standards.

• Sharing data with county and state air quality districts and agencies to support continued air quality monitoring partnerships.

• Developing reporting products for air quality threshold standards and state and federal standards such as the Threshold Evaluation indicators summaries produced in the peer-reviewed Threshold Evaluation Report adopted by the Governing Board in December 2012.

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ENCLOSURE A:

INDEPENDENT AUDIT

TAHOE REGIONAL PLANNING AGENCY

Financial Statements

Year Ended June 30, 2013

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TABLE OF CONTENTS

Page

Independent Auditors’ Report 1 Management’s Discussion and Analysis (Required Supplementary Information) 4 Basic Financial Statements:

Government-wide Financial Statements:

Statement of Net Position 23 Statement of Activities 24

Fund Financial Statements:

Governmental Funds:

Balance Sheet 26 Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position 29 Statement of Revenues, Expenditures and Changes in Fund Balances 30 Reconciliation of Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities 32

Agency Funds:

Statement of Assets and Liabilities 33

Notes to the Basic Financial Statements 34

Required Supplementary Information: Budgetary Comparison Schedules:

General Fund 58 Transportation Special Revenue Fund 59 Aquatic Invasive Species Special Revenue Fund 60

Note to Required Supplementary Information 61

Supplementary Schedules:

General Fund:

Combining Balance Sheet 62 Combining Statement of Revenues, Expenditures and Changes in Fund Balances 64



(Continued)

TABLE OF CONTENTS (CONTINUED)

Page

Supplementary Schedules (Continued): Non-Major Governmental Funds:

Combining Balance Sheet 66 Combining Statement of Revenues, Expenditures and Changes in Fund Balances 68 Budgetary Comparison Schedules: Special Revenue Funds: Environmental Improvement Program Fund 70 Threshold Fund 71 Southern Nevada Public Lands Management Fund 72 Erosion Control Fund 73

Agency Funds: Combining Statement of Assets and Liabilities 74 Combining Statement of Changes in Assets and Liabilities 76

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Board of Directors

Tahoe Regional Planning Agency

Stateline, Nevada

INDEPENDENT AUDITORS’ REPORT

Report on the Financial Statements

We have audited the accompanying financial statements of the governmental activities, each major

fund, and the aggregate remaining fund information of the Tahoe Regional Planning Agency (TRPA), as

of and for the year ended June 30, 2013, and the related notes to the financial statements, which

collectively comprise the Agency’s basic financial statements as listed in the table of contents.

Management’s Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of these financial statements in

accordance with accounting principles generally accepted in the United States of America; this includes

the design, implementation, and maintenance of internal control relevant to the preparation and fair

presentation of financial statements that are free from material misstatement, whether due to fraud or

error.

Auditors’ Responsibility

Our responsibility is to express opinions on these financial statements based on our audit. We

conducted our audit in accordance with auditing standards generally accepted in the United States of

America and the standards applicable to financial audits contained in Government Auditing Standards,

issued by the Comptroller General of the United States. Those standards require that we plan and

perform the audit to obtain reasonable assurance about whether the financial statements are free from

material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in

the financial statements. The procedures selected depend on the auditor’s judgment, including the

assessment of the risks of material misstatement of the financial statements, whether due to fraud or

error. In making those risk assessments, the auditor considers internal control relevant to the entity’s

preparation and fair presentation of the financial statements in order to design audit procedures that

are appropriate in the circumstances, but not for the purpose of expressing an opinion on the

Board of Directors


Stateline, Nevada

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effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also

includes evaluating the appropriateness of accounting policies used and the reasonableness of

significant accounting estimates made by management, as well as evaluating the overall presentation of

the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for

our audit opinion.

Opinion

In our opinion, the financial statements referred to above present fairly, in all material respects, the

respective financial position of the governmental activities, each major fund, and the aggregate

remaining fund information of TRPA, as of June 30, 2013, and the respective changes in financial

position thereof for the year then ended in accordance with accounting principles generally accepted in

the United States of America.

Emphasis of Matter

As described further in note 15 to the financial statements, during the year ended June 30, 2013, the

TRPA implemented Governmental Accounting Standards Board (GASB) Statement Numbers 63 and 65.

Our opinion is not modified with respect to this matter.

Report on Summarized Comparative Information

We have previously audited TRPA’s 2012 financial statements, and we expressed an unmodified audit

opinion on those audited financial statements in our report dated December 3, 2012. In our opinion,

the summarized comparative information presented herein as of and for the year ended June 30, 2012

is consistent, in all material respects, with the audited financial statements from which it has been

derived.

Other Matters

Required Supplementary Information

Accounting principles generally accepted in the United States of America require that the Management’s

Discussion and Analysis and Budgetary Comparison Schedules for the General Fund and each major

special revenue fund be presented to supplement the basic financial statements. Such information,

although not a part of the basic financial statements, is required by GASB who considers it to be an

essential part of financial reporting for placing the basic financial statements in an appropriate

operational, economic, or historical context. We have applied certain limited procedures to the

Required Supplementary Information in accordance with auditing standards generally accepted in the

United States of America, which consisted of inquiries of management about the methods of preparing

Board of Directors


Stateline, Nevada

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the information and comparing the information for consistency with management’s responses to our

inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic

financial statements. We do not express an opinion or provide any assurance on the information

because the limited procedures do not provide us with sufficient evidence to express an opinion or

provide any assurance.

Other Information

Our audit was conducted for the purpose of forming opinions on the financial statements that

collectively comprise TRPA’s basic financial statements. The combining and individual nonmajor fund

financial statements are presented for purposes of additional analysis and are not a required part of the

basic financial statements. The combining and individual nonmajor fund financial statements are the

responsibility of management and were derived from and relates directly to the underlying accounting

and other records used to prepare the basic financial statements. Such information has been subjected

to the auditing procedures applied in the audit of the basic financial statements and certain additional

procedures, including comparing and reconciling such information directly to the underlying accounting

and other records used to prepare the basic financial statements or to the basic financial statements

themselves, and other additional procedures in accordance with auditing standards generally accepted

in the United States of America. In our opinion, the combining and individual nonmajor fund financial

statements are fairly stated, in all material respects, in relation to the basic financial statements as a

whole.

Other Reporting Required by Government Auditing Standards

In accordance with Government Auditing Standards, we have also issued our report dated December 5,

2013 on our consideration of TRPA’s internal control over financial reporting and on our tests of its

compliance with certain provisions of laws, regulations, contracts, grant agreements and other matters.

The purpose of that report is to describe the scope of our testing of internal control over financial

reporting and compliance and the results of that testing, and not to provide an opinion on internal

control over financial reporting or on compliance. That report is an integral part of an audit performed

in accordance with Government Auditing Standards in considering TRPA’s internal control over financial

reporting and compliance.

Irvine, California

December 5, 2013


Management’s Discussion and Analysis


- 4 -

The Tahoe Regional Planning Agency (TRPA) was created in 1969 by a Compact between the states of

Nevada and California, and ratified by the U.S. Congress, to protect and restore the environment of Lake

Tahoe. The bi-state agency is charged with regional planning, development and redevelopment

oversight, regulatory enforcement, and implementation of environmental protection and restoration

programs for the Region.

TRPA’s vision is for a Lake environment that is sustainable, healthy, and safe for the community and

future generations. The mission is to cooperatively lead the effort to preserve, restore, and enhance the

unique natural and human environment of the Lake Tahoe Region now and in the future.

To answer its mandate, the TRPA adopted “environmental threshold carrying capacities” (thresholds) for

the Region, first set in 1982. The Compact directs the Agency to establish measures that meet and

maintain the thresholds, and authorizes it to work through a variety of means including land use

regulations, growth management, capital improvement programs, and resource management plans.

Using the Annual Report

The discussion and analysis of the financial performance of the Tahoe Regional Planning Agency

(Agency) provides review of the organization’s overall financial activities for the fiscal year ended June

30, 2013. This annual report consists of a series of basic financial statements and notes to those

statements. These statements are organized to assist the reader in understanding the Agency as a

financial whole and an entire operating entity. The statements also provide an increasingly detailed look

at specific financial activities.

The Statement of Net Position and Statement of Activities comprise the Agency-wide financial

statements and provide information about the activities of the whole Agency, presenting both an

aggregate and long-term view of the organization’s finances. Fund financial statements provide the next

level of detail. For governmental funds, these statements show how services were financed in the short-

term as well as what remains for future spending. The fund financial statements also look at the

Agency’s most significant fund – the General Fund, the Transportation Fund and the Aquatic Invasive

Species (AIS) Fund, with all other non-major funds presented in total in one column.

The notes to the basic financial statements also include notes to explain financial statement information

and provide more detailed data.

Financial Highlights

Operational Financial Highlights

The focus of the Agency in Fiscal Year (FY) 2013 was the adoption of a new Regional Plan Update (RPU)

and related Regional Transportation Plan (RTP). During the first half of FY 2013, the Governing Board



(Continued)

- 5 -

held numerous public meetings, and accepted a wide variety of comments and inputs from the

community. The Regional Plan Update was adopted at the December 2012 Governing Board meeting.

The regular operations of TRPA are organized into two major departments: Planning and

Implementation & Reporting. The roles and responsibilities are:

Planning Department

• Long Range Planning focuses on periodic and occasional amendments to the adopted Regional

Plan and modifications to TRPA rules and regulations to meet the dynamic needs of the Tahoe

environment and the Region.

• Transportation Planning occurs under requirements of the compact as well as under TRPA’s

designated role as the Tahoe Metropolitan Planning Organization (TMPO) and the Regional

Transportation Planning Agency. This includes a periodic revision of the Regional Transportation

Plan (RTP) and programs transportation improvement projects.

• Current Planning covers all permitting for land use activities in the Tahoe basin, either directly or

through delegation of permitting responsibilities to local governments.

• Code Compliance ensures the conditions of the permits issued by TRPA or through delegation

are met by visiting work sites and inspecting projects, as well as by responding to complaints

regarding Code violations.

Implementation Department

• Acquiring data and reporting on a wide variety of performance metrics including the

Environmental Thresholds, Regional Plan compliance measures, and other environmental data

gathering required to support the Agency’s mission.

• Aquatic Invasive Species (AIS) program management including prevention of new aquatic

invasive species, treatment to control existing species, and responding to new infestations.

• Storm-water management through the application of Best Management Practices (BMPs) for

residential, commercial, and public properties.

• Forest fuels reduction to control the risk of destructive wildfires and promote the health of the

forest resources in the basin.

• Management of the Environmental Improvement Program, the Region-wide multi-sector capital

investment strategy to implement the adopted Regional Plan and a comprehensive set of

programs aimed at addressing environmental concerns in the Tahoe basin.

• Coordinating, consolidating and reporting on all Environmental Improvement Program activities

throughout the Tahoe basin, including activities implemented by other entities.

In addition to these operational departments, TRPA has a variety of service units supporting

Departmental activities and the general operation of the Agency. These include Communications,

Executive, Finance, HR, IT and Legal.



(Continued)

- 6 -

Financial Highlights

Agency Revenues

TRPA revenues for the year were $20.8 million.

Direct contributions to the General Fund from the

State of California were $4.0 million. The State of

Nevada contribution to the General Fund was $1.3

million. Combined with local funding, this

represents 26% of total revenues. In addition to

General Fund contributions, various departments

and agencies of the two states contribute to specific

projects through Grant funding.

Directly funded programs (Grants) totaled 59% of

revenues, amounting to $12.3 million. Funding

sources include both states and the United States Government. Major Federal contributors include the

Department of the Interior, Department of Transportation, and the Environmental Protection Agency.

State entities included CalTrans, NDOT, Cal EPA, CA State Water Resource Control Board (including

Lahontan), NV Division of Environmental Protection, the CA Tahoe Resource Conservation District, the

Nevada Resource Conservation District, and others.

Fees for services amounted to $3.1 million or 15% of the Agency’s revenues. This includes Planning Fees

and reimbursed costs from applicants as well as Watercraft Inspection fees supporting the AIS program.

Agency Expenditures

Total expenditures for FY 2013 were $20.1 million.

Staff costs accounted for 27% of the total. Contracts

comprised 39% of costs and passthrough to the

Tahoe Transportation District totaled 21%.

Financing costs, mostly related to the acquisition of

the TRPA office building, amounted to 5% of total

expenditures.

TRPA works closely with other governmental entities

in the basin to fund and execute on various

environmental initiatives. During FY 2013, TRPA

provided $1.2 million to the Tahoe Resource

Conservation District, a unit of El Dorado County,

California, to fund roadside inspections of



(Continued)

- 7 -

watercraft as part of the Aquatic Invasive Species program. TRPA also provided/passed through $4.3

million in funding to the Tahoe Transportation District for implementation of transportation projects

and operation of transit systems throughout the basin. $4.0 million of Excess Coverage Mitigation funds

and $1.6 million of other Mitigation funds collected from applicants were passed on to local

jurisdictions. These funds are used to finance projects designed to offset the environmental impact of

development.

Overall, TRPA Net Position increased by $1.8 million during FY 2013. This makes up for a shortfall of

$1.7 million that was incurred during FY 2012. Deferral of revenue from FY 2012 due to GASB

requirements accounts for most of this. Revenue must be deferred if not collected in 120 days,

regardless of collectability.

Key Operational Accomplishments in FY 2013

Planning Department:

After many years of unprecedented public engagement and input and Governing Board modification of

planning and policy alternatives, the RPU was adopted on December 12, 2012. The next major activity is

the development and approval of Area Plans in each jurisdiction. Area Plans were under development in

Douglas County, Nevada; the City of South Lake Tahoe; El Dorado County California, and Placer County,

California. Total direct costs of the RPU amounted to $442 thousand in personnel costs and $132

thousand in contracts and operating expenses. These costs were largely funded by the TRPA General

Fund. Various grants covered a small portion of eligible costs.

The Agency operates under multiple transportation planning mandates, including serving as the region’s

Transportation Planning Agency, known as the Tahoe Metropolitan Planning Organization (TMPO).

During FY 2013, the transportation planning program primarily supported the transportation aspects of

the TRPA Regional Plan Update required by the Compact. The Agency also initiated the update of the

Regional Transportation Plan (Mobility 2030), to implement state and pending federal policies regarding

transportation planning’s role in responding to climate change and regional sustainability. The Agency

received $5,428 thousand in grants from the Federal Government and the states of California and

Nevada to support these activities. The Agency incurred $647 thousand in personnel costs and $5,093

thousand in contract and operating costs related to the TMPO.

Current Planning received 592 permit applications during FY 2013, and approved 346 permits. All

applications were processed within 120 days of submittal, and 86% of applicants rated service as “Good”

or “Excellent.” Fees for services totaled $2,394 thousand. The most significant project approved in FY

2013 was the Edgewood Lodge and Golf Course Improvement Project. TRPA spent $1,163 thousand on

personnel costs and $947 thousand on contracts and operating costs in the planning department. These

expenditures include Code Administration (below).



(Continued)

- 8 -

The Code Administration unit performed 298 inspections during the year. A major effort has been

underway to review compliance with existing permits for eligibility to return assets held as financial

assurance. The review of 154 project permits in FY 2013 has resulted in the resolution and return of

$885 thousand in security deposits. An additional $5 million of non-cash securities were also released.

Implementation Department:

Despite austere staff resources in the Department due to past budget cuts and other revenue declines,

the Agency leveraged assistance from scientists, the Tahoe Science Consortium and other agency staff

to measure progress toward attainment of environmental threshold standards. The Threshold

Evaluation Report was completed and reported to the TRPA Governing Board at the March 2012

meeting and adopted, in conjunction with the RPU, at the December 2012 Governing Board meeting.

Results of the Threshold Evaluation Report can be found at the Agency’s website. The key points are

that progress is being made on two thirds of the metrics, and lake clarity has stabilized and shows a

slight improvement. TRPA spent $190 thousand in personnel costs and $341 thousand in contract and

operating expenses on Measurement and Reporting in FY 2013. Funding for this effort was provided by

the TRPA General Fund and $256 thousand in funding from the Nevada Department of Motor Vehicles.

The Lake Tahoe Aquatic Invasive Species (AIS) Program continued implementation of the watercraft

inspection program, first started in 2007, to prevent and control catastrophic infestation of invasive

species. During the primary boating season, TRPA oversaw watercraft inspections performed by Tahoe

Resource Conservation District (TRCD) inspectors at five roadside stations in the Tahoe basin, and

previously inspected boats had inspection seals verified by trained inspectors prior to launch at sixteen

(16) launch facilities. The Agency works closely with the U.S. Fish and Wildlife Service (USFWS) and other

partners to secure continued funding for the AIS Program as a whole. The Agency is coordinating

private/public AIS initiatives in two areas. The first is cooperative cost sharing with marina operators to

address aquatic weed infestations, and the second is securing funds to control targeted small

infestations in specific locations. As of fiscal year ending June 30, 2013, the Agency collected $629

thousand in inspection fees and received $3,392 thousand in Federal grant funds from various sources

including USFWS, Lahontan Regional Water Quality Control Board, Nevada Division of State Lands, the

California Tahoe Conservancy, and other partners. The Agency incurred $321 thousand in personnel

costs and $3,071 thousand in contract and operating costs related to the Aquatic Invasive Species

Program.

The Storm-water management team has been working for many years to complete water quality retrofit

improvements on all developed properties in the basin. In addition to TRPA’s parcel-specific retrofit

requirements, the adoption of the TMDL by US EPA as well as the Nevada Department of Environmental

Protection in Nevada and the California State Water Resources Control Board in California established

additional implementation mechanisms to accelerate results and achieve storm-water retrofit

requirements on all developed properties within the Region. Through storm-water plans developed by

local jurisdictions and roadway agencies, parcel-specific BMP retrofit is implemented in a variety of



(Continued)

- 9 -

ways, through area-wide public-private partnership projects, local jurisdiction and agency public works

projects (primarily along roadways), and parcel-specific treatments certified by TRPA and its

implementation partners. The Agency permits all BMP retrofit projects, and primarily works with private

homeowners, commercial property owners, and several public entities (Resource Conservation Districts)

in the Tahoe basin to implement water quality Best Management Practices (BMPs). During FY 2013, 535

residential and 77 commercial BMP certificates were issued, reflecting private property owner efforts to

improve environmental conditions in the basin. TRPA spent $404 thousand in personnel costs and $521

thousand in contract and operating costs on BMPs. Funding for this activity included $905 thousand in

grants from various entities, with the balance covered by the general fund.

Planning, implementation and construction activities continued in the Environmental Improvement

Program (EIP) during FY 2013. Since 1997, significant environmental progress has been made by all

partners, public and private, in capital projects needed to make progress toward threshold attainment.

A number of long-awaited projects critical as foundations for further threshold progress emerged from

the extensive planning and permitting process and either started construction this year or were

completed: examples include the Kings Beach Commercial Core Improvement Project, Tahoe City Transit

Center, the Stateline-to-Stateline Bike Trail, the Upper Truckee River Sunset Reach restoration, the

Highway 50 Storm-water Improvement projects on the South Shore, and the Bijou Area-Wide Storm-

water Treatment project. The Agency provides strategic coordination between and within the EIP

program areas, and many of these projects are being guided by technical advisory committees with staff

from implementing, funding and regulatory agencies. Partners invested additional funds on science and

technical research to help inform policy choices and management decisions by increasing knowledge

related to environmental thresholds and for technical assistance. The Agency received $228 thousand in

grants, mostly from the Federal Government, to support this activity. The Agency incurred $68

thousand in personnel costs and $152 thousand in contract and operating costs related to the

Environmental Improvement Program. The Agency’s General Fund made up the balance of the funding

requirement for this activity. The next 10-year phase of the program was first estimated in 2010 to

require $2.45 billion in funding to continue critical restoration projects and in view of expected long-

term fiscal limits, programs and projects are now being scaled to provide more feasible cost objectives.

This next phase will continue to be science-based and incorporates an adaptive management approach

to reflect evolving environmental conditions, such as climate change.

Administrative Financial Highlights

The Agency continued implementing its strategic plan through staffing and organizational adjustments

to achieve TRPA’s goals in an efficient and effective manner.

The Agency adopted the FY 2013 budget in June of 2012. All budgets are adopted consistent with

generally accepted accounting principles. Budgets were adopted for the General Fund and certain

Special Revenue Funds. The budgets for the El Dorado County State Transit Assistance Fund, El Dorado



(Continued)

- 10 -

County Local Transportation Fund and Placer County Local Transportation Fund are adopted by the

respective County jurisdictions.

The Agency continued debt service payments for Lease Revenue Bonds, Series A and B, in the amount of

$255 thousand in principle and $637 thousand in interest. These bonds were issued by the Nevada

Division of Business and Industry to acquire the TRPA office building located at 128 Market Street,

Stateline, NV.

Overview of the Financial Statements

Government-wide Financial Statements - Statement of Net Position and the Statement of Activities

The government-wide financial statements are designed to provide readers with a broad overview of

the Agency’s finances, in a manner similar to a private-sector business.

The Statement of Net Position presents information on all of the Agency’s assets and liabilities, with the

difference between the two reported as Net Position. Over time, increases or decreases in Net Position

may serve as a useful indicator of whether the financial position of the Agency is improving or

deteriorating.

The Statement of Activities presents information showing how the Agency’s Net Position changed during

the most recent fiscal year. All changes in Net Position are reported as soon as the underlying event

giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and

expenses are reported in this statement for some items that will only result in cash flows in future fiscal

periods (i.e., revenue earned but not received).

Both of the government-wide financial statements report functions of the Agency that are principally

supported by taxes and intergovernmental revenues, including federal and state grants, as

governmental activities. The governmental activities of the Agency include administrative services,

support services, legal services, development services, environmental improvement implementation,

planning and evaluation services, and measurement and reporting.

Reporting the Agency’s Most Significant Funds

Fund Financial Statements

A fund is a grouping of related accounts that is used to maintain control over resources that have been

segregated for specific activities or objectives. The Agency, like other state and local governments, uses

fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of

the funds of the Agency can be divided into two categories: governmental and fiduciary funds.



(Continued)

- 11 -

Governmental Funds

Governmental funds are used to account for essentially the same functions reported as governmental

activities in the government-wide financial statements. However, unlike the government-wide financial

statements, governmental fund financial statements focus on near-term inflows and outflows of

spendable resources as well as balances of spendable resources available at the end of the fiscal year.

These funds are reported using an accounting method called modified accrual accounting, which

measures cash and all other financial assets that can readily be converted to cash. The governmental

fund statements provide a detailed short-term view of the Agency’s general government operations.

Governmental fund information is useful in evaluating the government’s financial resources that can be

spent in the near future to finance the Agency’s programs.

Because the focus of governmental funds is narrower than that of the government-wide financial

statements, it is useful to compare the information presented for governmental funds with similar

information presented for governmental activities in the government-wide financial statements. By

doing so, readers may better understand the long-term impact of the government’s near-term financing

decisions. Both the governmental fund balance sheet and the governmental fund statement of

revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this

comparison between governmental funds and governmental activities.

The Agency maintains eleven individual governmental funds, of which, information is disclosed

separately in the fund balance sheet and the governmental fund statement of revenues, expenditures

and changes in governmental fund balances. The Agency has combined the 128 Market Street Building

fund, Shorezone fund, Special Studies fund, Environmental Education fund and the Development

Securities fund into the General fund for presentation purposes. The General fund, Transportation fund,

and Aquatic Invasive Species fund are each considered a major Governmental fund and are presented

separately. Data from the other eight governmental funds are combined into a single, aggregated

presentation. Individual fund data each of these non-major funds is provided in the Required

Supplementary Information elsewhere in the report.

Fiduciary funds

Fiduciary fund statements provide information about the financial relationships in which the Agency acts

solely as a trustee or agent for the benefit of others and are not reflected in the government-wide

financial statements.



(Continued)

- 12 -

The Agency as a Whole

The Statement of Net Position provides the perspective of the Agency as a whole. Table 1 provides a

summary that compares the Agency’s Net Position from FY 2013 to FY 2012.

Assets:

Current and Other Noncurrent Assets – Increased by $0.5 million, or 3%, from a balance of $13.6 million

at June 30, 2012, to a balance of $14.1 million at June 30, 2013. Some key factors that resulted in this

increase include:

• Cash and investments increased by $2.8 million from the prior year due to operational timing of

receivable collections and processing of payables.

• Due from other governments decreased by $1.5 million and is attributable to additional year-

end grant billings and various fund changes in due from other governments representing timing

on collections of outstanding governmental receivables.

• Unamortized bond issuance costs have been removed from the financial statements due to a

change in presentation under GASB Statement 65. In FY 2012, these unamortized costs were

$0.8 million.

Table 1 - Summary of Statement of Net Position

Increase Percentage

2013 2012 (Decrease) Change

Assets

Current and other

Assets 14,085,110 13,613,650 471,460 3% Capital Assets 10,703,310 11,168,401 (465,091) -4% Total Assets 24,788,420 24,782,051 6,369 0%

Liabilities Current Liabilities and Other 6,113,715 6,294,634 (180,919) -3% Unearned Revenue 2,421,446 1,785,594 635,852 36%

Long-Term Liabilities 13,216,257 13,617,800 (401,543) -3% Total Liabilities 21,751,418 21,698,028 53,390 0%

Net Position

Net Investment in Capital Assets 4,086

63,648

(59,562)

-94%

Restricted 863,951

138,555

725,396

524%

Unrestricted 2,168,965

2,881,820

(712,855)

-25%

Total Net Position 3,037,002

3,084,023

(47,021)

-2%



(Continued)

- 13 -

Capital Assets – Capital assets decreased by $0.5 million or 4%, from a balance of $11.2 million at June

30, 2012, to a balance of $10.7 million at June 30, 2013. Most of the net decrease can be attributed to

depreciation.

Liabilities:

Current Liabilities – Current liabilities decreased by $0.2 million, or 3%, from a balance of $6.3 million at

June 30, 2012, to a balance of $6.1 million at June 30, 2013. The decrease is largely due to timing of

Accounts Payable balances at Fiscal Year-end.

Unearned Revenue – increased by $0.6 million, or 36% from a balance of $1.8 million as of June 30, 2012

to $2.4 million as of June 30, 2013. The increase is largely due to $0.8 million (net) in advance payments

from CA Prop 1B transit grants. That revenue will be recognized as funds are distributed. This is

partially offset by distribution of Regional Surface Transportation Program (RSTP) exchange funds. Both

relate to transit operations on the California side of the lake.

Long - Term Liabilities – Long - Term liabilities decreased by $0.4 million, or 3%, from a balance of $13.6

million at June 30, 2012, to a balance of $13.2 million at June 30, 2013. Some key factors that resulted in

this decrease include:

• A decrease to the Agency issued Lease Revenue Bonds, Series A and B, in the amount of $0.2

million. The bonds were issued to acquire the Agency’s office headquarters building located at

128 Market Street, Stateline, NV.

• TRPA paid off a $0.1 million capital lease used to acquire and install solar panels on the roof of

the Agency’s office building.

• The Agency decreased long-term capital lease payables by $0.1 million. The decrease is

attributable to monthly payments owed per existing capital lease agreements.

Net Position:

Net Investment in Capital Assets decreased by $0.1 million from $0.1 million at June 30, 2012 to $0.0

million at June 30, 2013. The decrease is due to a $0.5 reduction in net assets due to depreciation offset

by $0.4 million in debt principle payments.

Restricted – Restricted Net Position increased $0.7 million from $0.1 million as of June 30, 2012 to $0.8

million on June 30, 2013. This increase was due to an AIS grant invoice in the amount of $0.7 million

that was not collected within 120 days of the year end during Fiscal Year 2012 and was received in Fiscal

Year 2013.

Unrestricted – Unrestricted Net Position decreased by $0.7 million, or 25%, from a balance of $2.9

million at June 30, 2012, to a balance of $2.2 million at June 30, 2013. This reduction is due to all of the

factors listed under change in assets and liabilities.



(Continued)

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Table 2 shows the changes in Net Position for fiscal year 2013 and 2012.

Program Revenues:

Charges for Services – Charges for Services revenue increased by $0.7 million, or 31%, from

$2.4 million for the year ended June 30, 2012, to $3.1 million for the year ended June 30, 2013.

• Fees for Planning Services, including cost reimbursements, increased by $0.7 million, driven by

reimbursed EIR/EIS fees charged to applicants.

Grants and Contributions - Grants and Contributions revenue decreased by $0.6 million, or 5%, from

$12.9 million for the year ended June 30, 2012, to 12.3 million for the year ended June 30, 2013.

• Environmental improvement revenue increased by $0.9 million.

o AIS expenditures in Fiscal Year 2013 were higher by $1.1 million largely due to new

projects to suppress an Asian Clam infestation in Emerald Bay.

o Non-major grant revenue increased by $0.2 million due to a special grant to update the

TIIMS inter-agency database.

o Storm-water Management grant revenue increased by $0.7 million for finalizing BMP

deliverables.

o $1.1 million of AIS and non-major grant revenue was earned in Fiscal Year 2012 and

collected in Fiscal Year 2013 reducing the revenue.

Table 2 - Summary of Statement of Activities

Increase Percentage


Revenues

Program Revenues: Charges for Services 3,091,687 2,351,847 739,840 31%

Grants and Contributions 12,288,784 12,936,847 (648,063) -5%

General Revenues:

State Revenue 5,196,710 5,030,359 166,351 3% Local Revenue 217,224 113,578 103,646 91%

Investment Earnings - Unrestricted 30,026 56 29,970 53518%

Miscellaneous 866 48,093 (47,227) -98%

Total Revenues 20,825,297 20,480,780 344,517 2%

Program Expenses

General Government 3,105,467 2,687,666 417,801 16%

Environmental Planning, Implement 16,199,269 17,937,677 (1,738,408) -10%

Building Rental 163,233 134,629 28,604 21%

Interest and Debt Service 651,905 696,431 (44,526) -6%

Total Expenses 20,119,874 21,456,403 (1,336,529) -6%

Increase (Decrease) in Net Position 705,423 (975,623) 1,681,046



(Continued)

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• Planning and evaluation services revenue decreased by $1.5 million.

o Overall Work Program revenues were reduced by $0.6 million due to the Regional

Transportation Plan being completed in December 2012.

o Nevada Scenic Byways grant was also completed in December 2012 resulting in a

decrease in Fiscal Year 2013 revenue of $0.1 million.

o The Sierra Growth Council Sustainable Communities grant was restructured reducing

Fiscal Year 2013 revenue by $0.1 million.

o Reduced allocations for the Transportation Development Act (TDA) funding resulted in

reduced revenue of $0.2 million.

o $0.6 million of the decrease is attributed to a change in accounting for Regional Surface

Transportation Program (RSTP) Exchange funds. These funds are received by TRPA as

the Regional Transportation Planning Agency (RTPA), and are held on behalf of Placer

County, El Dorado County, and the City of South Lake Tahoe. Previously all RSTP

Exchange funds were recorded as revenue once distributed. Starting in FY 2013 only the

portion kept by TRPA will be counted as revenue.

o A number of Prop 1B projects were completed during the Fiscal Year which increased

revenue by $0.4 million.

o A Prop 84 grant in relation to the Transportation Model closed out in Fiscal Year 2012

reducing Fiscal Year 2013 revenue in comparison by $0.3 million.

General Revenues:

State Revenues were increased $0.2 million from $5.0 million in FY 2012 to $5.2 FY 2013. This reflects

reclassifying some State of Nevada receipts formerly accounted for as Operating Grants and

Contributions.

Investment & Miscellaneous Earnings decreased by an immaterial amount.

Program Expenses:

The cost of all program expenses decreased by $1.4 million, or 5%, from $21.5 million for the year ended

June 30, 2012, to $20.2 million for the year ended June 30, 2013. Some of the key factors that resulted

in the decrease include:

• Decrease in Planning contract expenses of $1.0 million for applicant-reimbursed planning and

litigation expenses.

• Increase in Environmental Implementation expenses of $0.8 million related primarily to

increased FY 2013 spending in the AIS programs, and in particular, the Emerald Bay Asian Clam

treatment project.

• Decrease in Regional Plan Update expenses of $0.3 million in FY 2013 for contract and

professional services.

• Decreased general administrative costs of $0.4 million for a variety of small items.

• Outside funding for Measurement and Reporting activities declined by $0.4 million. TRPA’s General

Fund support increased but available funds are not sufficient to make up the entire shortfall.



(Continued)

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Fund Balances:

Table 3 provides an analysis of the fund balances and the total change in fund balances from the prior

year.

The Agency’s governmental funds report a combined fund balance of $4.5 million, a $1.9 million, or 72%

increase from last year’s $2.6M total. The negative fund balances generally reflect GASB rules requiring

the deferral of revenue not collected within 120 days of year end. The Agency collected all of the FY

2012 balance in FY 2013, and expects to collect all of the FY 2013 revenue in FY 2014. Some key factors

that resulted in the decrease include:

• General fund balance increased by $0.7 million, this increase in the General Fund offsets a Fiscal

Year 2012 deficit of $0.4 million, and is attributable to tight management of expenses that led to

an under run of $0.7 million in General Fund activities.

• The Aquatic Invasive Species fund incurred a fund balance increase of $0.8 million. The

increased fund balance is primarily due to receiving revenue deferred in FY 2012 because it was

not received soon enough after year end to be considered available.

• A decrease of $0.3 million in the Transportation fund is primarily due to deferred revenue not

received within 120 days from the Fiscal Year End. In addition, the fund has unbilled

administrative and overhead expenses due to delays in the approval of prior years’ overhead

rates.

• Other non-major governmental funds increased by $0.7 million. Most of the other non-major

fund balance decreases are attributable to revenue deferred in FY 2012 because it was not

received soon enough after year-end to be considered available. Those funds were received in

FY 2013.

General Fund Budgeting Highlights

The following discussion is limited to the General Fund only, not the total Agency financials.

The Agency adopted the fiscal budget in June of 2012. The budget contained the following adjustments

to revenue and expenses as compared with the prior fiscal year budget:

Table 3 - Summary of Fund Balances

Increase Percentage 2013 2012 (Decrease) Change

General Fund 4,240,361 3,561,956 678,405 19%

Aquatic Invasive Species Fund 681,389 (135,154) 816,543 -604%

Transportation Fund (693,081) (403,707) (289,374) 72%

Other Nonmajor Governmental Funds 283,109 (398,565) 681,674 -171%

Total Fund Balances 4,511,778 2,624,530 1,887,248 72%



(Continued)

- 17 -

• The major budgeted revenue assumptions included the following items:

o The State of California funding provided to the General fund remained unchanged from

the prior year at an amount of $4.1 million.

o The State of Nevada funding was constant from FY 2012, a total of $1.3 million. Nevada

has a biennial budget process.

o The Planning Fund fee for service revenue was budgeted at $1.0 million.

• The major budgeted expense assumptions included the following items:

o General fund departmental expense for the Regional Plan Update was budgeted at $1.0

million a decrease of 17% from the prior fiscal year. This reflects completion of the Plan

in December 2012.

o With completion of the RPU, General Fund resources shifted to increasing the budgets

for Implementation (+3.7%) and Measurement & Reporting (+13.7%).

The budget to actual comparison for the General Fund for the year ended June 30, 2013 includes the

following items:

• Pass-through revenue and reimbursed planning costs amounted to an additional $1.1

million of revenue. Only a portion of this revenue and the associated expenses, were budgeted

at the beginning of FY 2013. Beginning in FY 2013 these revenues and expenses are included in

TRPA’s audited financial statements. Costs increased by a comparable amount.

• Administrative and Overhead recovery from Special Funds (Grants) was below budget

by $0.1 million due to lower direct labor costs in the Special Funds.

Capital Assets

For the year ended June 30, 2013, the Agency had $10.7 million invested in capital assets. Table 4

shows June 30, 2013 balances compared to June 30, 2012.

Overall capital assets decreased by $0.5 million or 4%, from $11.2 million for the year ended June 30,

2012, to $10.7 million for the year ended June 30, 2013. This is due to depreciation. No significant

capital investments were made during FY 2013.

Table 4 - Summary of Capital Assets Net of Depreciation Increase Percentage


Land, Buildings and Improvements 12,355,858 12,355,858 0 0

Boats, Equipment and Furniture 1,972,587 2,142,037 (169,450) -8%

Software 847,249 776,426 70,823 9%

Accumulated depreciation (4,472,384) (4,105,920) (366,464) 9%

Total Capital Assets Net 10,703,310 11,168,401 (465,091) -4%



(Continued)

- 18 -

Long Term Debt

Table 5 - Summary of Long Term Debt

Increase Percentage


Lease Revenue Bonds 12,495,000 12,750,000 (255,000) -2%

Capital Lease Obligations 206,119 211,675 (5,556) -3%

Long Term Loans 23,958 30,767 (6,809) -22%

Compensated Absences 491,180 625,358 (134,178) -21%

Total Long-Term Debt 13,216,257 13,617,800 (401,543) -3%

The Agency’s debt, considered a liability of governmental activities, decreased by $0.4 million, or 3%,

from $13.6 million for the year ended June 30, 2012, to $13.2 million for the year ended June 30, 2013.

The decrease can be attributed to the following items:

• Principle payments of $0.3 million, decreasing the balance of the Series B Agency issued lease

revenue bonds.

• Reduction in earned but not used Compensated Absences of $0.1 million.

Factors bearing on the Agency’s Future

The key assumptions in the General Fund revenue and expenditure budget for fiscal year 2014 were:

1. The California appropriated budget remains intact and fully funded as approved during the

Legislative process. TRPA has already received these funds for FY 2014.

2. The Nevada appropriated budget approved by the Legislature in their biennial budget process

increased funding for the Agency by $250 thousand. TRPA has already received these funds for

FY 2014.

3. The local support is fixed at $150,000 per the Tahoe Regional Planning Compact.

4. The Sierra Club and Friends of the West Shore have filed a lawsuit against the newly adopted

Regional Plan. While the results of litigation cannot be reasonably predicted, the Agency

believes adequate funds have been set aside to defend against this suit.

5. Filing fees and permitting revenues are subject to fluctuations in the real estate and

construction economies of the Lake Tahoe basin. For conservatism, the Agency budget for FY

2014 assumes similar levels as FY 2013. These fees may not equal actual totals and represent

the biggest near-term risk to General Fund Revenues.



(Continued)

- 19 -

6. TRPA has been receiving a portion of the gasoline sales tax revenue in the region to support

transportation planning, environmental reviews, and transit operations. This direct allocation to

TRPA was removed in the 2013 Federal Highways Bill (MAP 21). Funds will still be available for

these activities through a new funding mechanism that is being put into place, but the level of

available funding is uncertain.

Contacting the Agency

This financial report is designed to provide a general overview of the Tahoe Regional Planning Agency’s

finances for those interested and to demonstrate the Agency’s accountability for the money it receives.

Questions concerning any information provided in this report or requests for additional financial

information should be addressed to the Tahoe Regional Planning Agency Finance Office, P.O. Box 5310,

Stateline, Nevada 89449.

- 20 -


- 21 -

BASIC FINANCIAL STATEMENTS

- 22 -


2013 2012 2011

Assets:

Cash and investments (note 2) 8,979,515$ 6,188,398 7,448,800

Cash and investments with fiscal agent (note 2) 892,897 892,803 892,803

Receivables:

Accounts 164,806 199,225 219,048

Interest 9,951 2,023 7,226

Due from other governments 3,934,302 5,458,618 3,560,118

Prepaid items 103,639 118,009 79,336

Deposits - 2,130 2,130

Unamortized bond issuance costs - 752,444 782,540

Capital assets, net of accumulated depreciation (note 4) 10,703,310 11,168,401 11,684,606

Total assets 24,788,420 24,782,051 24,676,607

Liabilities:

Accounts payable 1,964,733 1,835,691 1,153,781

Accrued payroll and benefits 109,998 139,415 129,387

Interest payable 53,147 53,077 54,141

Due to other governments 1,531 1,530 -

Due to claimants 10,190 240,045 10,190

Unearned revenue 2,421,446 1,785,594 1,207,067

Deposits payable 3,974,116 4,024,876 4,156,019

Long-term liabilities (note 5):

Due within one year 800,444 891,488 908,914

Due in more than one year 12,415,813 12,726,312 12,997,462

Total liabilities 21,751,418 21,698,028 20,616,961

Net position:

Net Investment in capital assets 4,086 63,648 369,949

Restricted for:

Planning and evaluation services 156,484 133,899 12,966

Environmental implementation 707,467 - 92,452

Measurement and reporting - 4,656 157,443

Unrestricted 2,168,965 2,881,820 3,426,836

Total net position 3,037,002$ 3,084,023 4,059,646

Governmental Activities


Statement of Net Position

June 30, 2013

See Notes to the Basic Financial Statements

- 23 -

Indirect Operating Capital

Expense Charges for Grants and Grants and

Expenses Allocation Services Contributions Contributions

Governmental activities:

General government:

Administrative services 642,735$ (187,730) 10,103 - -

Support services 1,694,385 (469,465) 95,724 - -

Legal services 768,347 (131,898) - - -

Environmental planning, implementation, and

measurement and reporting:

Developmental services 41,428 - 1,088,919 - -

Environmental implementation 5,135,538 431,057 - 4,673,867 -

Planning and evaluation services 9,916,348 358,036 1,639,971 6,803,909 554,368

Measurement and reporting 532,051 - - 256,640 -

Regional plan update 573,904 - - - -

Building and rental activities 163,233 - 256,970 - -

Interest and fiscal charges 651,905 - - - -

Total governmental activities 20,119,874$ - 3,091,687 11,734,416 554,368

General revenues:


Statement of Activities


Functions/Programs

Program Revenues

- 24 -

General revenues:

State revenue

Local revenue

Investment earnings, unrestricted

Miscellaneous

Total general revenues

Changes in net position

Net position, beginning of year, as restated (note 17)

Net position, end of year


- 24 -

2013 2012 2011

(444,902) (454,471) (347,191)

(1,129,196) (1,642,236) (1,640,894)

(636,449) (563,843) (826,296)

1,047,491 985,176 2,152,174

(892,728) (838,503) (1,528,666)

(1,276,136) (1,500,744) (1,396,523)

(275,411) (748,211) (599,517)

(573,904) (921,335) (663,345)

93,737 212,889 210,275

(651,905) (696,431) (714,400)

(4,739,403) (6,167,709) (5,354,383)

Net (Expense) Revenue and

Changes in Net Position

- 25 -

5,196,710$ 5,030,359 5,309,062

217,224 113,578 150,000

30,026 56 30,369

866 48,093 62,608

5,444,826 5,192,086 5,552,039

705,423 (975,623) 197,656

2,331,579 4,059,646 3,861,990

3,037,002$ 3,084,023 4,059,646

- 25 -

Non-Major

Transportation Aquatic Invasive Governmental

General Fund Species Funds

Cash and investments 8,097,154$ 288,017 337,313 257,031

Cash and investments with fiscal agent 892,897 - - -

Receivables:

Accounts 162,644 - 1,287 875

Interest 9,244 472 235 -

Due from other governments 85,174 2,468,988 956,202 423,938

Due from other funds (note 3) 232,504 - 19,525 -

Prepaid items 103,639 - - -

Deposits - - - -

Total assets 9,583,256$ 2,757,477 1,314,562 681,844

Liabilities:

Accounts payable 530,932$ 794,748 607,255 31,798

Accrued payroll and benefits 109,998 - - -

Due to other funds (note 3) 19,525 - - 232,504

Due to other governments 1,531 - - -

Due to claimants - - - 10,190

Unearned revenue 571,313 1,850,133 - -

Deposits payable 3,974,116 - - -

Special Revenue Funds


Governmental Funds

Balance Sheet

June 30, 2013

Assets

Liabilities, Deferred Inflows of

Resources, and Fund Balances

- 26 -

Total liabilities 5,207,415 2,644,881 607,255 274,492

Deferred inflows of resources:

Unavailable revenues 135,480 805,677 25,918 124,243

Total deferred inflows of resources 135,480 805,677 25,918 124,243

Fund balances:

Nonspendable:

Prepaid items 103,639 - - -

Deposits - - - -

Restricted for:

Environmental implementation - - 681,389 26,078

Planning and evaluation services - - - 156,484

Measurement and reporting - - - -

Debt service 892,897 - - -

Assigned to:

Capital projects - - - 100,547

Unassigned 3,243,825 (693,081) - -

Total fund balances 4,240,361 (693,081) 681,389 283,109

Total liabilities, deferred inflows

of resources, and fund balances 9,583,256$ 2,757,477 1,314,562 681,844


- 26 -

2013 2012 2011

8,979,515 6,188,398 7,448,800

892,897 892,803 892,803

164,806 199,225 219,048

9,951 2,023 7,226

3,934,302 5,458,618 3,560,118

252,029 2,176,741 2,059,661

103,639 118,009 79,336

- 2,130 2,130

14,337,139 15,037,947 14,269,122

1,964,733 1,835,691 1,153,781

109,998 139,415 129,387

252,029 2,176,741 2,059,661

1,531 1,530 -

10,190 240,045 10,190

2,421,446 1,785,594 1,207,067

3,974,116 4,024,876 4,156,019

Totals

- 27 -

8,734,043 10,203,892 8,716,105

1,091,318 2,209,525 1,303,216

1,091,318 2,209,525 1,303,216

103,639 118,009 79,336

- 2,130 2,130

707,467 - 92,452

156,484 133,899 12,966

- 4,656 157,443

892,897 892,803 892,803

100,547 - -

2,550,744 1,473,033 3,012,671

4,511,778 2,624,530 4,249,801

14,337,139 15,037,947 14,269,122

- 27 -

- 28 -


Fund balances of governmental funds 4,511,778$

Amounts reported for governmental activities in the Statement of

Net Position are different because:

Capital assets net of depreciation have not been included as

financial resources in governmental fund activity.

Capital assets 15,175,694

Accumulated depreciation (4,472,384)

Long-term liabilities are not due and payable in the current period and

therefore are not reported in the governmental funds. Long-term

liabilities consist of the following:

Compensated absences (491,180)

Capital lease obligations (230,077)

Lease revenue bonds (12,495,000)

Interest expenditures are recognized in the governmental funds when

due. Interest expense is recorded on the accrual basis in the government-

wide financial statements, and therefore these statements reflect a

liability for accrued interest payable. (53,147)

Revenue is deferred in the governmental funds when it is not received soon

enough after the year-end to be considered available. The availability

criteria does not apply to the government-wide financial statements and,

therefore, the revenue is not deferred. 1,091,318

Net position of governmental activities 3,037,002$


Reconciliation of the Balance Sheet of Governmental Funds

to the Statement of Net Position

June 30, 2013


- 29 -

Non-Major

Transportation Aquatic Invasive Governmental

General Fund Species Funds

Revenues:

Federal grants -$ 4,345,084 2,384,067 194,783

State government grants and contracts 5,453,350 1,083,053 1,006,779 2,205,403

Local government grants and contracts 247,038 - 92,300 1,093,508

Charges for services 2,773,319 - 628,960 -

Fines and forfeitures 160,965 - - -

Rental income 255,601 - - -

Investment income 27,326 571 258 2,139

Miscellaneous revenues - - - -

Pass-through revenue - 999 - -

Total revenues 8,917,599 5,429,707 4,112,364 3,495,833

Expenditures:

Current:

General government:

Administrative services 775,445 - - -

Support services 1,271,474 - - -

Legal services 768,347 - - -

Interfund reimbursements (788,814) - - -



Environmental implementation 776,069 - 3,392,279 1,279,294

Planning and evaluation services 2,750,205 5,749,975 - 1,763,675

Measurement and reporting 532,051 - - -

Regional plan update 573,904 - - -

Building and rental activities 163,233 - - -

Capital outlay 131,591 - - -

Debt service:

Principal payments 369,791 - - -

Interest and fiscal charges 651,835 - - -

Pass-through expenditures 11,528 - - -

Total expenditures 7,986,659 5,749,975 3,392,279 3,042,969

Excess (deficiency) of revenues

over (under) expenditures 930,940 (320,268) 720,085 452,864

Other financing sources (uses):

Transfers in (note 3) 4,656 30,894 96,458 234,059

Transfers out (note 3) (360,818) - - (5,249)

Proceeds of capital lease 103,627 - - -

Total other financing sources (uses) (252,535) 30,894 96,458 228,810

Net changes in fund balances 678,405 (289,374) 816,543 681,674

Fund balances (deficit), beginning of year 3,561,956 (403,707) (135,154) (398,565)

Fund balances (deficit), end of year 4,240,361$ (693,081) 681,389 283,109


Special Revenue Funds


Governmental Funds

Statement of Revenues, Expenditures, and Changes in Fund Balances


- 30 -

2013 2012 2011

6,923,934 6,698,073 5,029,728

9,748,585 9,129,135 8,209,046

1,432,846 460,191 292,048

3,402,279 2,665,531 2,699,478

160,965 239,326 99,555

255,601 343,027 382,049

30,294 3,508 32,911

- 51,324 168,151

999 20,682 -

21,955,503 19,610,797 16,912,966

775,445 686,901 697,405

1,271,474 1,799,918 1,603,256

768,347 707,446 953,999

(788,814) (859,122) (763,998)

5,447,642 4,582,868 4,138,797

10,263,855 11,271,108 8,029,598

532,051 1,008,300 858,160

573,904 921,335 663,346

163,233 134,629 142,461

131,591 66,578 509,172

369,791 263,227 273,340

651,835 667,399 685,323

11,528 21,681 -

20,171,882 21,272,268 17,790,859

1,783,621 (1,661,471) (877,893)

366,067 408,184 424,688

(366,067) (408,184) (424,688)

103,627 36,200 -

103,627 36,200 -

1,887,248 (1,625,271) (877,893)

2,624,530 4,249,801 5,127,694

4,511,778 2,624,530 4,249,801

Totals

- 31 -

Net change in fund balances - total governmental funds 1,887,248$

Amounts reported for governmental activities in the Statement of Activities

are different because:

Governmental funds report capital outlays as expenditures. However, in

the Statement of Activities, the costs of those assets are allocated over

their estimated useful lives as depreciation expense or allocated to the

appropriate functional expense when the cost is below the capitalization

threshold. This activity is reconciled as follows:

Depreciation (594,013)

Capital outlay 128,922

The issuance of long-term debt (e.g. bonds) provides current financial

resources to governmental funds, while the repayment of the principal

of long-term debt consumes the current financial resources of governmental

funds. Also, governmental funds report the effect of issuance costs when

debt is first issued, whereas these amounts are deferred and amortized in the

Statement of Activities.

Principal payments for lease revenue bonds 255,000

Principal payments for capital lease obligations 115,992

Proceeds from loan payable (103,627)

Interest on noncurrent liabilities is not accrued in governmental funds, but

rather is recognized as an expenditure when due. (70)

Compensated absences reported on the Statement of Activities do not

require the use of current financial resources and therefore are not

reported as expenditures in governmental funds. The net change is

reported on the Statement of Activities. 134,178

Revenue is deferred in the governmental funds when it is not received soon

enough after year-end to be considered available. The availability criteria does

not apply to the government-wide financial statements and, therefore, the

revenue is not deferred. (1,118,207)

Change in net position of governmental activities 705,423$


Reconciliation of the Statement of Revenues, Expenditures, and Changes in

Fund Balances of Governmental Funds to the Statement of Activities



- 32 -

Cash and investments (note 2) 12,470,605$

Receivables:

Interest 12,927

Total assets 12,483,532$

Accounts payable 20,000$

Due to governments 12,356,172

Deposits payable 107,360

Total liabilities 12,483,532$


Agency Funds

Statement of Assets and Liabilities

June 30, 2013

Assets

Liabilities


- 33 -


Notes to the Basic Financial Statements


- 34 -

(1) Summary of Significant Accounting Policies

(a) Reporting Entity

The 91st Congress consented to the creation of the Tahoe Regional Planning Agency (TRPA) (PL

91-148) by the states of California and Nevada in 1969. The purpose of TRPA, as outlined in the

state legislation, is to maintain equilibrium between the region’s natural endowment and its

man-made environment, and to preserve the scenic beauty and recreational opportunities of

the region.

(b) Financial Statement Presentation

The basic financial statements of TRPA are composed of the following:

• Government-wide financial statements

• Fund financial statements

• Notes to the basic financial statements

Government-Wide Financial Statements

The government-wide financial statements (i.e., the Statement of Net Position and the

Statement of Activities) report information on all of the nonfiduciary activities of TRPA. These

statements report governmental activities, which normally are supported by taxes and

intergovernmental revenues. TRPA does not have any business-type activities, which rely to a

significant extent on fees and charges for support. Eliminations have been made in the

statement of activities so that certain allocated expenses are recorded only once (by the

function to which they were allocated).

The Statement of Activities demonstrates the degree to which the direct expenses of a given

function or segment is offset by program revenues. Direct expenses are those that are clearly

identifiable with a specific function or segment. Program revenues include 1) charges to

customers who purchase, use, or directly benefit from goods, services or privileges provided by

a given function or segment and 2) grants and contributions that are restricted to meeting the

operational or capital requirements of a particular function or segment. Taxes and other items

not properly included among program revenues are reported instead as general revenues.



(Continued)

- 35 -

(1) Summary of Significant Accounting Policies (Continued)

(b) Financial Statement Presentation (Continued)

Fund Financial Statements

The underlying accounting system of TRPA is organized and operated on the basis of separate

funds, each of which is considered to be a separate accounting entity. The operations of each

fund are accounted for with a separate set of self-balancing accounts that comprise its assets,

liabilities, fund equity, revenues and expenditures. Governmental resources are allocated to

and accounted for in individual funds based upon the purposes for which they are to be spent

and the means by which spending activities are controlled.

Fund financial statements for TRPA’s governmental funds are presented after the government-

wide financial statements. The emphasis on fund financial statements is on major governmental

funds, each displayed in a separate column. All remaining governmental funds are aggregated

and reported as nonmajor funds.

(c) Major Funds

Major funds are defined as funds that have assets, liabilities, revenues or expenditures equal to

ten percent of their fund-type total and five percent of the grand total of all fund types. The

General Fund is always a major fund. TRPA may also select other funds it believes should be

presented as major funds.

TRPA reports the following major governmental funds:

• General Fund – The General Fund is the general operating fund of TRPA and is used to

account for all financial resources except those required to be accounted for in another

fund. Principal sources of revenue include monies provided by the State of California,

monies provided by the State of Nevada, and fees for services rendered.

• Transportation Special Revenue Fund – This fund is used to account revenues received from

federal and state grants for transportation planning for the entire Lake Tahoe basin.

• Aquatic Invasive Species Special Revenue Fund – The Aquatic Invasive Species Fund is

used to account for revenue from federal, state and private funding sources utilized

towards the detection, control, and prevention of aquatic invasive species in the Lake

Tahoe region.



(Continued)

- 36 -


(c) Major Funds (Continued)

Additionally, TRPA reports the following fund types:

Capital Projects Funds

These funds are used to account for financial resources that are restricted, committed, or

assigned for expenditures for capital outlay, including the acquisition or construction of capital

facilities and other capital assets.

Agency Funds

These funds are used to account for assets held by the Agency as an agent for individuals,

private organizations, and other governments. The financial activities of these funds are

excluded from the government-wide financial statements but are presented in a separate

fiduciary fund financial statement. The financial statements include the following Agency Funds:

• California Tahoe Regional Planning Agency Tahoe Keys Fund – This fund was established

during the existence of the California Tahoe Regional Planning Agency (CTRPA), a

political subdivision of the State of California, exercising responsibility for the

development and enforcement of plans for land and resource development in the Lake

Tahoe region of California. This fund collects environmental mitigation fees paid by

property owners with projects located in the geographical area known as the “Tahoe

Keys”. Disbursements from this fund are made by TRPA on behalf of the Lahontan

Regional Water Quality Board to fund water quality projects beneficial to the Tahoe

Keys.

• California Tahoe Regional Planning Agency Securities Fund – This fund was established

during the existence of CTRPA as a mechanism of enforcement concerning project

applications, project approvals and conditions of approval ensuring compliance with

certain conditions as set forth by TRPA.

• California Tahoe Regional Planning Agency Indirect Source Fund – This fund was

established during the existence of CTRPA to collect environmental mitigation fees paid

by projects directly effecting air quality within the Lake Tahoe Basin. Disbursements

from this fund are made by TRPA on behalf of the California Resources Agency with

concurrence of the Attorney General to fund air quality projects beneficial to the Lake

Tahoe region of California.



(Continued)

- 37 -


(c) Major Funds (Continued)

• Excess Coverage Mitigation Fund – This fund was established to collect environmental

mitigation fees as an offsetting effect to expected impacts on land coverage. The mitigation

fees are paid by project applicants in lieu of a reduction of land coverage. Disbursements

from this fund are made to the States of California and Nevada to fund land purchases.

• Mitigation Fund – This fund was established to collect mitigation fees as an offsetting effect

to expected impacts of certain projects within the Lake Tahoe Basin. The mitigation fees are

paid by project applicants and grouped into air quality, water quality and stream zone

environment. Disbursements from this fund are made to Lake Tahoe basin jurisdictions to

fund eligible projects that serve to mitigate impacts of development.

(d) Measurement Focus and Basis of Accounting

The government-wide financial statements are reported using the economic resources

measurement focus and the accrual basis of accounting. Revenues are recorded when earned,

and expenses are recorded when a liability is incurred, regardless of the timing of related cash

flows. Grants and similar items are recognized as revenue as soon as all eligibility requirements

imposed by the provider have been met.

Governmental fund financial statements are reported using the current financial resources

measurement focus and the modified accrual basis of accounting. Revenues are recognized as

soon as they are both measurable and available. Revenues are considered to be available when

they are collected within the current period or soon enough thereafter to pay liabilities of the

current period. For this purpose, TRPA considers revenues to be available if they are collected

within 60 days of the end of the current fiscal period, except for grants for which the availability

period is 120 days. Expenditures generally are recorded when a liability is incurred; however,

principal and interest expenditures on long-term debt and compensated absences of

governmental funds are recorded only when payment is due. Governmental capital asset

acquisitions are reported as expenditures in governmental funds. Proceeds of governmental

long-term debt and acquisitions under capital leases are reported as other financing sources.

Those revenues susceptible to accrual include fuel taxes collected and held by the State at year-

end on behalf of TRPA, intergovernmental revenue, and interest revenue. In applying the

susceptible-to-accrual concept to intergovernmental revenues, there are essentially two types

of revenues. In one, moneys must be expended on the specific purpose or project before any

amounts will be paid to TRPA; therefore, revenues are recognized based upon expenditures

incurred. In the other, moneys are virtually unrestricted and are usually revocable only for



(Continued)

- 38 -


(d) Measurement Focus and Basis of Accounting (Continued)

failure to comply with prescribed compliance requirements. These resources are reflected as

revenues at the time of receipt or earlier if the susceptible-to-accrual criteria are met.

(e) Cash and Investments

Investments are reported in the accompanying financial statements at fair value. The fair value

is determined based upon market closing prices. The fair value of mutual funds is stated at

share value.

Changes in fair value that occur during a fiscal year are recognized as investment income

reported for that fiscal year. Investment income includes interest earnings and changes in fair

value. Interest earned on investments is allocated to the General Fund, certain nonmajor funds,

and agency funds in accordance with policies established by TRPA’s management.

(f) Prepaid Items

Certain payments to vendors reflecting costs applicable to future accounting periods are

recorded as prepaid items in both the government-wide and fund financial statements.

(g) Interfund Transactions

During the course of operations, numerous transactions occur between individual funds

involving goods provided or services rendered. There are also transfers of revenues from funds

authorized to receive the revenue to funds authorized to expend it. Outstanding interfund

balances are reported as due from/to other funds.

(h) Capital Assets

Capital assets are defined by TRPA as assets with an initial individual cost of more than $2,500 and an

estimated useful life in excess of two years. Such assets are recorded at historical cost or estimated

historical cost if purchased or constructed. Contributed capital assets are valued at their estimated

fair market value at the date of the contribution. The costs of normal maintenance and repairs that

do not add to the value of the asset or materially extend the life of the asset are not capitalized.



(Continued)

- 39 -


(h) Capital Assets (Continued)

TRPA depreciates its capital assets over their estimated useful lives using the straight-line

method. Depreciation is charged as an expense against operations and accumulated

depreciation is reported on the Statement of Net Position. The range of lives used for

depreciation purposes for each capital asset class is as follows:

Item Useful Life

Buildings and improvements 10-40 years

Boats and equipment 3-12 years

Furniture and fixtures 3-12 years

Software 3 years

(i) Deferred Inflow of Resources

In addition to assets, the balance sheet will sometimes report a separate section for deferred

outflows of resources. This separate financial statement element represents a consumption of

fund balance that applies to a future period(s) and so will not be recognized as an outflow of

resources (expenditure) until then. TRPA currently does not have any items that qualify for

reporting in this category.

In addition to liabilities, the balance sheet will sometimes report a separate section for deferred

inflows of resources. This separate financial statement element represents an acquisition of

fund balance that applies to a future period(s) and so will not be recognized as an inflow of

resources (revenue) until that time. TRPA has only one type of item, which arises only under a

modified accrual basis of accounting, that qualifies for reporting in this category, and is reported

as unavailable revenue. The unavailable revenue arises when potential revenues so not meet

both the measureable and availability criteria for recognition in the current period. In

subsequent periods, when the revenue recognition criteria are met, the deferred inflow of

resources is removed from the balance sheet and revenue is recognized.

(j) Unearned Revenue

Unearned revenue represents amounts received prior to the incurrence of eligible expenditures

for intergovernmental revenue that is in a form substantially equivalent to reimbursement

grants. For these intergovernmental revenues, TRPA does not become entitled to the revenues

until it has first incurred expenditures for the projects specified for these funds.



(Continued)

- 40 -


(k) Compensated Absences

Compensated absences include accumulated vacation and other compensatory leave balances that

are accrued as earned. The employee’s entitlement to these balances is attributable to services

already rendered and it is probable that virtually all of these balances will be liquidated by either paid

time off or payments upon termination or retirement. Compensated absences are generally

liquidated in the General Fund.

(l) Long-Term Obligations

In the government-wide financial statements, long-term debt is reported as long-term liabilities

in the governmental activities. Bond discounts are deferred and amortized over the life of the

bonds using the effective interest method. Bonds payable are recorded net of the bond

discount.

In the fund financial statements, governmental fund types recognize bond discounts and bond

issuance costs during the current period. The face amount of the debt issued is reported as

other financing sources. Discounts on debt issuances are reported as other financing uses.

Bond issuance costs, whether or not withheld from the actual debt proceeds received, are

reported as debt service expenditures.

(m) Fund Balances

Fund balances are reported in the fund statements in the following classifications:

• Nonspendable – this includes amounts that cannot be spent because they are either not

spendable in form (such as inventory) or legally or contractually required to be

maintained intact (such as endowments).

• Restricted – this includes amounts that can be spent only for specific purposes

stipulated by constitution, external resource providers, or through enabling legislation.

If the Board action limiting the use of funds is included in the same action (legislation)

that created (enables) the funding source, then it is restricted.



(Continued)

- 41 -


• Committed – this includes amounts that can be used only for the specific purposes

determined by a formal action of the Board. It includes legislation (Board action) that

can only be overturned by new legislation requiring the same type of voting consensus

that created the original action. Therefore, if the Board action limiting the use of the

funds is separate from the action (legislation) that created (enabled) the funding source,

then it is committed, not restricted. For TRPA, a resolution is the highest level of

decision-making authority that is used to establish a commitment of fund balance.

• Assigned – this includes amounts that are designated or expressed by the Board, but

does not require a formal action like a resolution or ordinance. The Board may delegate

the ability of an employee or committee to assign uses of specific funds, for specific

purposes. Such delegation of authority has not yet been granted to persons or bodies

other than the Board of Directors.

• Unassigned – this includes the remaining spendable amounts which are not included in

one of the other classifications.

It is TRPA’s policy that restricted resources will be applied first, followed by (in order of

application) committed, assigned and unassigned resources, in the absence of a formal policy

adopted by the Board.

(n) Net Position

In the government-wide financial statements, net position represents the difference between

assets and liabilities and deferred inflows and outlfows and are classified into three categories:

• Net Investment in capital assets – consists of capital assets, including restricted capital

assets, net of accumulated depreciation and reduced by the outstanding balances of any

bonds, mortgages, notes, or other borrowings that are attributable to the acquisition,

construction, or improvement of those assets.

• Restricted net position – represents the net position that is not accessible for general

use because their use is subject to restrictions enforceable by third parties.

• Unrestricted net position – represents those assets that are available for general use.

When both restricted and unrestricted resources are available for use, it is TRPA’s policy to use

restricted resources first.



(Continued)

- 42 -


(o) Use of Estimates

The preparation of basic financial statements in conformity with accounting principles generally

accepted in the United States of America requires management to make estimates and

assumptions that affect the reported amounts of assets and liabilities at the reporting date and

revenues and expenses during the reporting period. Actual results could differ from those

estimates.

(p) Prior Year Data

Selected information from the prior fiscal years has been included in the accompanying

financial statements in order to provide an understanding of changes in TRPA’s financial

position and operations. This information has been included for comparison purposes only

and does not represent a complete presentation in accordance with generally accepted

accounting principles. Accordingly, such information should be read in conjunction with

TRPA’s financial statements for the years ended June 30, 2012 and 2011, from which this

selected financial data was derived.

(2) Cash and Investments

Cash and investments as of June 30, 2013 are classified in the accompanying financial statements as

follows:

Statement of Net Position:

Cash and investments $ 8,979,515

Cash and investments with fiscal agent 892,897

Agency Funds:

Cash and investments 12,470,605 Total cash and investments $22,343,017

Cash and investments as of June 30, 2013 consist of the following:

Cash on hand $ 500

Deposits with financial institutions 2,108,746

Investments 20,233,771 Total cash and investments $22,343,017



(Continued)

- 43 -

(2) Cash and Investments (Continued)

Investments Authorized by the California Government Code and TRPA’s Investment Policy

The table below identifies the investment types that are authorized for TRPA by the California

Government Code, Nevada Revised Statutes and TRPA’s investment policy. The table also identifies

certain provisions of the California Government Code, Nevada Revised Statutes, or TRPA’s investment

policy, if more restrictive, that address interest rate risk, credit risk, and concentration of credit risk.

Authorized by Maximum Maximum

Investment Types Investment Maximum Percentage Investment

Authorized by State Law Policy Maturity* of Portfolio* In One Issuer*

Local Agency Bonds Yes 5 years 40% None

U.S. Treasury Obligations Yes 5 years 75% None

U.S. Agency Securities Yes 5 years 50% 30%

Banker’s Acceptances Yes 180 days 20% 30%

Commercial Paper Yes 180 days 15% 10%

Negotiable Certificates of Deposit Yes 5 years 25% None

Repurchase Agreements Yes 90 days None None

Reverse Repurchase Agreements No N/A N/A N/A

Medium-Term Notes Yes 5 years 20% 10%

Mutual Funds Yes N/A 10% 10%

Money Market Mutual Funds Yes N/A 20% 10%

Mortgage Pass-Through Securities No N/A N/A N/A

County Pooled Investment Fund Yes N/A None None

State Investment Pools Yes N/A None None

* Based on state law requirements or investment policy requirements, whichever is more restrictive.

Investments Authorized by Debt Agreements

Investment of debt proceeds held by the fiscal agent is governed by provisions of the debt agreements,

rather than the general provisions of the California Government Code, Nevada Revised Statutes or

TRPA’s investment policy. The table below identifies the investment types that are authorized for

investments held by the fiscal agent. The table also identifies certain provisions of these debt

agreements that address interest rate risk and concentration of credit risk.



(Continued)

- 44 -


Authorized Investment Type

Maximum

Maturity

Maximum

Percentage

Allowed

Maximum

Investment in

One Issuer

Defeasance Securities None None None

U.S. Treasury Obligations None None None

Federal Agency Securities None None None

Banker’s Acceptances 360 days None None

Commercial Paper 270 days None None

Money Market Mutual Funds None None None

Investment Agreements None None None

Municipal Obligations None None None

Pre-refunded Municipal Obligations None None None

Disclosures Relating to Interest Rate Risk

Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an

investment. Generally, the longer the maturity of an investment, the greater the sensitivity of its fair

value to changes in market interest rates. One way that TRPA manages its exposure to interest rate risk

is by purchasing a combination of shorter term and longer term investments and by timing cash flows

from maturities. A portion of the portfolio is always maturing or coming close to maturity evenly over

time as necessary to provide the cash flow and liquidity needed for TRPA’s operations. In addition, the

investment policy limits purchase of securities to those with maturities of five years or less.

Information about the sensitivity of the fair values of TRPA’s investments (including investments held by

fiscal agent) to market interest rate fluctuations is provided by the following table that shows the

distribution of TRPA’s investments by maturity.

Maturities (in Months)

Total

12 Months or

Less

13-24

Months

25-36

Months

More than

36 Months

State investment pool $8,177,366 8,177,366 - - -

County investment pool 156,484 156,484 - - -

Federal agencies securities 6,281,045 2,267,836 1,003,121 3,010,088 -

U.S. Treasury notes 251,768 251,768 - - -

Medium-term notes 2,587,341 1,105,016 1,019,108 463,217 -

Money market mutual funds 1,886,778 1,886,778 - - -

Held by fiscal agent:

Money market mutual funds 892,989 892,989 - - -

Total investments $20,233,771 14,738,237 2,022,229 3,473,305 -



(Continued)

- 45 -


Disclosures Relating to Credit Risk

Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder

of the investment. This is measured by the assignment of a rating by a nationally recognized statistical

rating organization. Presented below is the minimum rating required by (where applicable) the

California Government Code, TRPA’s investment policy, or debt agreements, and the actual rating as of

year end for each investment type.

Rating as of Year End

Total

Minimum

Legal

Rating

Exempt

from

Disclosure AAA AA+ - AA- A+ - A- BBB+ Not Rated

State investment pool $8,177,366 N/A - - - - - 8,177,366

County investment pool 156,484 N/A - - - - - 156,484

Federal agencies securities 6,281,045 AAA - - 6,281,045 - - -

U.S. Treasury notes 251,768 N/A 251,768 - - - - -

Medium-term notes 2,587,341 AAA - - 1,316,728 1,120,562q 150,051 -

Money market mutual funds 1,886,778 AAA - - - - - 1,886,778

Held by fiscal agent:

Money market mutual funds 892,989 AAA-m - 892,989 - - - -

Total investments $20,233,771 251,768 892,989 7,597,773 1,120,562 150,051 10,220,628

Concentration of Credit Risk

Concentration risk is the risk of loss attributed to the magnitude of an investor’s investment in a single

issue. To limit concentration risk, TRPA places a limit on the amount that can be invested in specific

investment types. Investments in any one issuer (other than U.S. Treasury securities, mutual funds, and

external investment pools) that represents 5% or more of total TRPA investments are as follows:

Issuer Investment Type Reported Amount

Federal National Mortgage Association Federal agency securities $2,746,076

Federal Home Loan Mortgage Corp. Federal agency securities 3,029,734

Custodial Credit Risk

Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial

institution, a government will not be able to recover its deposits or will not be able to recover collateral

securities that are in the possession of an outside party. TRPA’s Investment Policy requires financial

institutions to collateralize deposits. TRPA participates in Nevada’s collateral pool for public agencies,

which is overseen by the Nevada State Treasurer. Amounts with financial institutions are first covered

by FDIC insurance and amounts exceeding the limit are collateralized by the bank with the Nevada State

Treasurer’s office. The minimum collateralization is 102% of the public deposit.



(Continued)

- 46 -


The custodial credit risk for investments is the risk that, in the event of the failure of the counterparty

(e.g., broker-dealer) to a transaction, a government will not be able to recover the value of its

investment or collateral securities that are in the possession of another party. To address investment

custodial credit risk, TRPA’s Investment Policy requires the investments be placed with an independent

third party for safekeeping and that all trade where applicable will be executed by Delivery vs. Payment.

This ensures that securities are deposited in eligible financial institutions prior to the release of funds.

TRPA’s investment manager and its safekeeping custodian are affiliated with the same bank, but are

under separate operational management. To ensure proper internal controls are in place between the

manager and the safekeeping custodian, TRPA annually reviews the audit report on controls placed in

operation and tests of operating effectiveness for the trust services of the investment safekeeping

custodian issued by an independent public accounting firm (Statement on Standards for Attestation

Engagements No. 16 audit report).

TRPA uses an investment management firm to manage all of its investments that are held in securities

form. The investment management firm executes investment purchases within the prescribed

allowability and diversification guidelines provided by TRPA’s investment policy. The investment

manager places buy and sell orders with a number of broker-dealers on behalf of TRPA and in keeping

with TRPA’s Investment Policy. The investment manager executes all transactions using Delivery vs.

Payment with the securities being held in safekeeping by the trust department affiliated with the

investment manager. In addition, all cash and securities in TRPA’s portfolio are held in safekeeping in

TRPA’s name by the safekeeping custodian, acting as agent for TRPA. As of June 30, 2013, total

investments held by the safekeeping custodian on behalf of TRPA were $11,006,932.

For investments identified herein as held by fiscal agent, the fiscal agent selects the investment under

the terms of the applicable trust agreement, acquires the investment and holds the investment on

behalf of TRPA.

Investment in State Investment Pools

TRPA is a voluntary participant in the Local Agency Investment Fund (LAIF) that is regulated by the

California Government Code under the oversight of the Treasurer of the State of California, and the

Local Government Investment Pool (LGIP) that is regulated by the Nevada Revised Statutes under the

oversight of the Treasurer of the State of Nevada. The fair value of TRPA’s investments in these pools

are reported in the accompanying financial statements at an amount based upon TRPA’s pro-rata share

of the fair value provided by pools. The balance available for withdrawal is based on the accounting

records maintained by the pools, which are recorded on an amortized cost basis. Currently, the pools

do not have an investment rating.



(Continued)

- 47 -

(3) Interfund Transactions

Due From/Due To Other Funds

The composition of balances related to due from other funds and due to other funds at June 30, 2013 is

as follows:

Receivable Fund Payable Fund Amount

General Fund Nonmajor Governmental Funds $232,504

Aquatic Invasive Species Fund General Fund 19,525

Total $252,029

The amounts due to the General Fund represent temporary cash borrowings that will be repaid when

reimbursements from granting agencies are collected. The amount due to the Aquatic Invasive Species

Fund represents the amount owed for watercraft monitoring expenditures that were incurred

Interfund Transfers

Interfund transfers consisted of the following for the year ended June 30, 2013:

Transfers In Transfers Out Amount

General Fund Nonmajor Governmental Funds $ 4,656

Transportation Fund General Fund 30,894

Aquatic Invasive Species Fund General Fund 96,458

Nonmajor Governmental Funds General Fund 233,466

Nonmajor Governmental Funds Nonmajor Governmental Funds 593

Total transfers $366,067

Interfund transfers are primarily used: 1) to reimburse funds that have made an expenditure on behalf

of another fund due to statutory requirements; 2) to pay for capital projects or capital outlays, lease or

debt service payments and operating expenses; and 3) to finance various programs with unrestricted

revenues.



(Continued)

- 48 -

(4) Capital Assets

Capital asset activity for the year ended June 30, 2013 is as follows:

Balance at

June 30, 2012

Additions

Deletions

Balance at

June 30, 2013

Capital assets not being depreciated:

Land $ 1,606,706 - - 1,606,706

Total capital assets not being depreciated 1,606,706 - - 1,606,706

Capital assets being depreciated:

Buildings and improvements 10,749,152 - - 10,749,152

Boats, equipment and furniture 2,142,037 39,719 (209,169) 1,972,587

Software 776,426 91,872 (21,049) 847,249

Total capital assets being depreciated 13,667,615 131,591 (230,218) 13,568,988

Less accumulated depreciation for:

Buildings and improvements $ (1,722,778) (342,753) - (2,065,531)

Boats, equipment and furniture (1,609,424) (221,536) 206,500 (1,624,460)

Software (773,718) (29,724) 21,049 (782,393)

Total accumulated depreciation (4,105,920) (594,013) 227,549 (4,472,384)

Capital assets, net $11,168,401 (462,422) (2,669) 10,703,310

Depreciation expense was charged to functions as follows:

Support services $422,632

Environmental planning, implementation and


Development services 41,428

Environmental improvement implementation 129,953

Total depreciation $594,013



(Continued)

- 49 -

(5) Long-Term Liabilities

The following is a summary of changes in long-term liabilities for the year ended June 30, 2013:

Amount Amount

Balance at Balance at Due In Due Beyond

June 30, 2012 Additions Deletions June 30, 2013 One Year One Year

Series A Lease Revenue Bonds $7,575,000 - - 7,575,000 - 7,575,000

Series B Lease Revenue Bonds 5,175,000 - (255,000) 4,920,000 265,000 4,655,000

Capital Lease Obligations 211,675 103,627 (109,183) 206,119 54,672 151,447

Loans Payable 30,767 - (6,809) 23,958 7,162 16,796

Compensated Absences 625,358 480,992 (615,170) 491,180 473,610 17,570

Total $13,617,800 584,619 (986,162) 13,216,257 800,444 12,415,813

Compensated Absences

TRPA’s policies relating to employee leave benefits are described in

Note 1(j). This liability will be paid in future years from future resources

from the General Fund. $491,180

Lease Revenue Bonds

On May 1, 2007, TRPA issued Lease Revenue Bonds, Series A and B, in

the amounts of $7,575,000 and $6,245,000, respectively. The bonds

were issued to fund the acquisition and improvements for the building

located at 128 Market Street, Stateline, Nevada, which serves as TRPA’s

office headquarters. Principal payments are due annually on June 1 in

amounts ranging from $15,000 to $362,000. Interest is payable

semiannually at 4.5% for the Series A bonds and rates ranging from

5.32% to 5.87% for the Series B bonds. As of June 30, 2013, cash and

investments held in the reserve account for the series A and B bonds

was equal to the reserve requirement of $688,030. $12,495,000



(Continued)

- 50 -

(5) Long-Term Liabilities (Continued)

Lease Revenue Bonds (Continued)

Annual debt service requirements to maturity are as follows:

Series A Bonds

Year Ending

June 30 Principal Interest Total

2014 $ - 340,875 340,875

2015 - 340,875 340,875

2016 - 340,875 340,875

2017 - 340,875 340,875

2018 - 340,875 340,875

2019-2023 - 1,704,375 1,704,375

2024-2028 1,105,000 1,680,300 2,785,300

2029-2033 3,280,000 1,173,600 4,453,600

2034-2037 3,190,000 366,750 3,556,750

Total $7,575,000 6,629,400 14,204,400

Series B Bonds

Year Ending

June 30 Principal Interest Total

2014 265,000 282,479 547,479

2015 280,000 268,381 548,381

2016 295,000 253,485 548,485

2017 310,000 237,791 547,791

2018 330,000 221,299 551,299

2019-2023 1,955,000 792,450 2,747,450

2024-2027 1,485,000 179,622 1,664,622

Total $4,920,000 2,235,507 7,155,507

Capital Lease Obligations

In 2005, TRPA entered into an equipment lease for a 28-foot sounder

patrol boat in the amount of $200,553. Title transfers to TRPA at the

termination of the lease. The annual principal and interest installment

is $21,717 and interest on the lease is 6.66%. $137,574



(Continued)

- 51 -


Capital Lease Obligations (Continued)

In 2013, TRPA entered into an Equipment Lease for four Xerox printers

in the amount of $41,915. Title transfers to TRPA at the termination of

the lease. The annual principal and interest installment is $1,746 and

the interest rate on the lease is 4.35%.

26,936

In 2013, TRPA entered into an Equipment Lease for NetApp hardware,

software and support in the amount of $63,908. Title transfers to TRPA

at the termination of the lease. The annual principal and interest

installment is $22,299 and interest on the lease is 4.75%. 41,609

Total obligations under capital leases $206,119

Future minimum lease payments for all capital lease obligations are as follows:

Year Ending

June 30

2014 $64,973

2015 51,000

2016 21,717

2017 21,718

2018 21,717

2019-2023 57,435

Total lease payments 238,560

Less interest (32,441)

Present Value of Minimum Lease Payments $206,119

As of June 30, 2013, capital assets acquired under capital leases were detailed as follows:

Boats, equipment and furniture $ 365,147

Software 63,908

Less accumulated depreciation (229,128)

Total capital leases, net $ 199,927



(Continued)

- 52 -


Loans Payable

In 2011, TRPA entered into a vehicle loan for two Ford Escapes in the

amount of $36,200. Title transfers to TRPA at the termination of the

loan. The annual principal and interest installment is $8,212 and

interest on the lease is 5.00%. $23,958

(6) Pledged Revenue

TRPA’s Series A and Series B Lease Revenue Bonds are collateralized by the pledging of rental income.

See Note 5 for the amount and term of the remainder of these commitments, which are indicated in the

debt service to maturity tables, and also the purposes of the related debt issuances utilized disclosed in

the debt descriptions. For the current year, debt service payments as a percentage of the pledged gross

revenue are indicated in the table below. These percentages also approximate the relationship of debt

service to pledged revenue for the remainder of the term of the commitment.

Description of

Pledged Revenue

Annual amount

of Pledged

Revenue

Annual Debt Service

Payments (of all

Debt Secured by this

Revenues)

Debt Service as a

Percentage of

Pledged Revenue

Rental Income $944,492 965,521 98%

(7) Defined Contribution Pension Plan

Plan Description

TRPA participates in a 401(a) defined contribution plan (Plan) that is administered by Daily Access. The

Plan provides retirement benefits to eligible employees. Employees are eligible to participate in the

plan after six months of employment. TRPA’s contributions for each employee become fully vested

after five years of continuous service. Separate financial statements for the Plan are not prepared.

Contributions

Participants may contribute up to 15% of their annual gross salary (subject to annual limits). TRPA

contributes 8% of employees’ gross salaries. Employer contributions are in lieu of contributing to social

security. Benefit provisions are established and may be amended by TRPA’s Board of Directors.



(Continued)

- 53 -

(7) Defined Contribution Pension Plan (Continued)

During the fiscal year ended June 30, 2013, TRPA contributed $389,668 and the employees contributed

$459,448 to the Plan.

In addition, the District had a 401(a) plan that was frozen on July 27, 2013 after it was determined that

the plan was improperly structured to meet the Internal Revenue Service requirements for a Social

Security Replacement Plan. Disposition of the 401(a) plan is currently pending a ruling from the IRS.

(8) Deferred Compensation Plan

TRPA offers its employees a deferred compensation plan (the “457 Plan”) created in accordance with

Section 457 of the Internal Revenue Code. The 457 Plan permits employees to defer a portion of their

salary to future years. A third party administrator maintains deferrals in a trust capacity. The deferred

compensation is not available to employees until termination, retirement, death or unforeseen

emergency. Participants can elect to contribute up to $16,500 of their annual compensation annually.

As of June 30, 2013, the 457 Plan’s assets of $1,032,700 consisted of investments in mutual funds.

These assets are held in trust and are considered protected from the general creditors of TRPA.

(9) Risk Management

TRPA is exposed to various risks of loss related to torts; theft of, damage to, or destruction of assets;

errors or omissions; injuries to employees; and natural disasters. TRPA protects itself against such losses

with commercial insurance purchased from independent third parties. Loss exposures retained by TRPA

are treated as normal expenditures and include any loss contingency not covered by TRPA’s purchased

insurance policies. Settlements have not exceeded covered amounts in the previous three fiscal years.

(10) Deficit Fund Balances

The following funds reported a deficit as of June 30, 2013. These deficits will be remedied when

outstanding receivables are collected from granting agencies.

Major Funds:

Transportation Fund $693,081



(Continued)

- 54 -

(11) Expenditures in Excess of Appropriations

Expenditures in the fund below exceeded appropriations as of June 30, 2013:

Fund Final Budget Expenditures

Amount

Exceeding

Appropriations

Major Funds:

General Fund $7,308,348 7,986,659 678,311

Transportation Fund 4,399,350 5,749,975 1,350,625

Aquatic Invasive Species Fund 3,368,783 3,392,279 23,496

There were sufficient revenues to account for the expenditures in excess of appropriations as noted in

the above funds. The Transportation Fund amounts expended were authorized by the Governing Board,

but not as part of the formal TRPA budget process. Special Revenue Funds expenditures, although they

exceed the budget for the year, represent timing differences and the total expenditures are within the

overall grant budgets.

(12) Proposition 1B

As part of the State of California’s Highway Safety, Traffic Reduction, Air Quality, and Port Security Bond

Act of 2006, approved by California voters as Proposition 1B (Prop 1B) on November 7, 2006, TRPA was

awarded funding from the Public Transportation, Modernization, Improvement and Service

Enhancement Account (PTMISEA) and the Transit System Safety, Security and Disaster Response

Account (TSSSDRA). During fiscal year, TRPA received $1,344,183 and $75,431 in PTMISEA and TSSSDRA

funding. As of June 30, 2013, TRPA has unspent Proposition 1B proceeds and interest of $1,553,264 and

$241,649 in PTMISEA and TSSSDRA funds, respectively.

(13) Contingencies

Litigation

Various claims and suits have been filed against TRPA in the normal course of business. Although the

outcome of these matters is not presently determinable, in the opinion of legal counsel, the resolutions

of these matters will not have a material adverse effect on the financial condition of TRPA. During the

year ended June 30, 2013, there was a settlement agreement (agreement) between TRPA and both MV

Transportation (MV) and South Tahoe Area Transit Authority (STATA). The agreement stipulates that

TRPA receives $34,396 from STATA and TRPA owes $25,000 and $25,000 to MV and STATA, respectively.



(Continued)

- 55 -

(13) Contingencies (Continued)

Federal and State Grants

TRPA receives federal and state funds for specific purposes that are subject to audit by the granting

agencies. Although the outcome of any such audits cannot be predicted, it is management’s opinion

that these audits would not have a material effect on TRPA’s financial position or changes in financial

position.

(14) Economic Dependency

During the fiscal year ended June 30, 2013, approximately 82% of TRPA’s total revenue was derived

from federal, state, and local government agencies.

(15) Implementation of GASB Statement Nos. 63 and 65

The accompanying financial statements reflect the implementation of GASB Statements Nos. 63 and 65.

Significant impacts of GASB Statement No. 63 include changing the title of the statement of net assets to

the statement of net position and reformatting the statement of net position to add separate sections

for deferred inflows of resources and deferred outflows of resources. Significant impacts of GASB

Statement No. 65 include reclassifying as deferred inflows of resources and deferred outflows of

resources certain balances that were previously reported as assets and liabilities. GASB Statement No.

65 also required that debt issuances costs be reported as expenses when incurred. The retroactive

effects of implementing this change in reporting debt issuance costs resulted in a restatement of the

beginning net position of certain funds, as described further in note 17.

(16) Restatement of Fund Balance

The beginning net position of TRPA was restated at July 1, 2012 to reflect the following:

Net position at beginning of year, as previously reported $3,084,023

Adjustment to implement GASB Statement No. 65, which

requires reporting of bond issuance costs as expenses

when incurred (752,444)

Net position at end of year, as restated $2,331,579

- 56 -


- 57 -

REQUIRED SUPPLEMENTARY INFORMATION

Variances with

Final Budget

Positive

Original Final Actual (Negative)

Revenues:

State government grants and contracts 5,409,999$ 5,409,999 5,453,350 43,351

Local government grants and contracts 177,303 177,303 247,038 69,735

Charges for services 1,454,003 1,454,003 2,773,319 1,319,316

Fines and forfeitures 165,000 165,000 160,965 (4,035)

Rental income 249,755 249,755 255,601 5,846

Investment income - - 27,326 27,326

Miscellaneous revenues 114,214 114,214 - (114,214)

Total revenues 7,570,274 7,570,274 8,917,599 1,347,325

Expenditures:

Current:

General government:

Administrative services 761,834 761,834 775,445 (13,611)

Support services 1,733,484 1,733,484 1,271,474 462,010

Legal services 688,015 688,015 768,347 (80,332)

Interfund reimbursements (854,597) (854,597) (788,814) (65,783)



Environmental implementation 823,706 823,706 776,069 47,637

Budgeted Amounts


General Fund

Budgetary Comparison Schedule


Environmental implementation 823,706 823,706 776,069 47,637

Planning and evaluation services 1,492,832 1,492,832 2,750,205 (1,257,373)

Measurement and reporting 681,644 681,644 532,051 149,593

Regional plan update 893,186 893,186 573,904 319,282

Building and rental activities 136,590 136,590 163,233 (26,643)

Capital outlay 45,000 45,000 131,591 (86,591)

Debt service:

Principal payments 283,300 283,300 369,791 (86,491)

Interest and fiscal charges 623,354 623,354 651,835 (28,481)

Pass-through expenditures - - 11,528 (11,528)

Total expenditures 7,308,348 7,308,348 7,986,659 (678,311)


over (under) expenditures 261,926 261,926 930,940 669,014


Transfers in - - 4,656 4,656

Transfers out (289,160) (289,160) (360,818) (71,658)

Proceeds of capital lease - - 103,627 103,627

Total other financing sources (uses) (289,160) (289,160) (252,535) 36,625

Net change in fund balance (27,234) (27,234) 678,405 705,639

Fund balance, beginning of year 3,561,956 3,561,956 3,561,956 -

Fund balance, end of year 3,534,722$ 3,534,722 4,240,361 705,639

See Note to Required Supplementary Information

- 58 -

Variances with

Final Budget

Positive


Revenues:

Federal grants 3,865,000$ 3,865,000 4,345,084 480,084

State government grants and contracts 528,602 528,602 1,083,053 554,451

Investment income - - 571 571

Pass-through revenue - - 999 999

Total revenues 4,393,602 4,393,602 5,429,707 1,036,105

Expenditures:

Current:

Environmental planning, implementation,

and measurement and reporting:

Planning and evaluation services 4,399,350 4,399,350 5,749,975 (1,350,625)

Total expenditures 4,399,350 4,399,350 5,749,975 (1,350,625)


Budgeted Amounts


Transportation Fund


Total expenditures 4,399,350 4,399,350 5,749,975 (1,350,625)


over (under) expenditures (5,748) (5,748) (320,268) (314,520)

Other financing sources:

Transfers in 5,744 5,744 30,894 25,150

Total other financing sources 5,744 5,744 30,894 25,150

Net change in fund balance (4) (4) (289,374) (289,370)

Fund deficit, beginning of year (403,707) (403,707) (403,707) -

Fund deficit, end of year (403,711)$ (403,711) (693,081) (289,370)


- 59 -

Variances with

Final Budget

Positive


Revenues:

Federal grants 1,892,835$ 1,892,835 2,384,067 491,232

State government grants and contracts - 857,409 1,006,779 149,370

Local government grants and contracts - 37,700 92,300 54,600

Charges for services 545,570 545,570 628,960 83,390

Investment income - - 258 258

Total revenues 2,438,405 3,333,514 4,112,364 778,850

Expenditures:

Current:



Environmental implementation 3,343,783 3,343,783 3,392,279 (48,496)

Capital Outlay 25,000 25,000 - 25,000



Aquatic Invasive Species Fund



Budgeted Amounts



over (under) expenditures (930,378) (35,269) 720,085 755,354


Transfers in 76,033 76,033 96,458 20,425

Total other financing sources 76,033 76,033 96,458 20,425

Net change in fund balance (854,345) 40,764 816,543 775,779

Fund deficit, beginning of year (135,154) (135,154) (135,154) -

Fund balance (deficit), end of year (989,499)$ (94,390) 681,389 775,779


- 60 -


Notes to Required Supplementary Information


- 61 -

(1) Budgetary Data

TRPA follows the procedures below when establishing the budgetary data reflected in the

financial statements:

1. By September 30 of each calendar year, TRPA’s management submits a proposed

operating and capital improvement budget to the Board of Directors for the fiscal year

commencing the following July 1. The budget includes the proposed expenditures and

means of financing them. In order to obtain state funding, TRPA must submit budget

requests to the State of California annually and the State of Nevada biannually.

2. The budget is legally enacted through adoption of a resolution by the Board of Directors.

3. TRPA’s Executive Director is authorized to implement the programs as approved in the

adopted budget. Within a specific fund, the Executive Director or his designee may

transfer appropriations between categories, departments, projects and programs as

needed to implement the adopted budget, whereas the Board of Directors must

authorize budget increases and decreases, and transfers between funds. Therefore, the

legal level of budgetary control is at the fund level.

4. Budgets are adopted on a basis consistent with generally accepted accounting

principles. Budgets were adopted for the General Fund and certain Special Revenue

Funds. The budgets for the El Dorado County State Transit Assistance Fund, El Dorado

County Local Transportation Fund and Placer County Local Transportation Fund are

adopted by the respective County jurisdictions.

128 Market

General Street Watercraft &

Fund Building Shorezone Settlements

Cash and investments 6,696,357$ 52,447 1,103,454 244,896

Cash and investments with fiscal agent - 892,897 - -

Receivables:

Accounts 144,029 1,615 - 16,500

Interest 9,338 (94) - -

Due from other governments 85,174 - - -

Due from other funds 235,409 - - -

Prepaid items 84,000 12,767 6,872 -

Total assets 7,254,307$ 959,632 1,110,326 261,396

Liabilities:

Accounts payable 494,937$ 9,849 3,820 10,250

Accrued payroll and benefits 109,998 - - -

Due to other funds - - 19,525 -

Due to other governments 1,531 - - -

Unearned revenue 564,703 - - -

Deposits payable 3,950,733 23,383 - -

Total liabilities 5,121,902 33,232 23,345 10,250


Unavailable revenues 116,710 1,616 - 17,154

Total deferred inflows of resources 116,710 1,616 - 17,154

Fund balances:

Nonspendable:

Prepaid items 84,000 12,767 6,872 -

Restricted for:

Debt service - 892,897 - -

Unassigned 1,931,695 19,120 1,080,109 233,992

Total fund balances 2,015,695 924,784 1,086,981 233,992

Total liabilities, deferred inflows

of resources, and fund balances 7,254,307$ 959,632 1,110,326 261,396

(1) Interfund balances within the group of funds that are consolidated to form the General Fund for

purposes of the combined financial statements have been eliminated on this schedule.

Assets


General Fund

Combining Balance Sheet

June 30, 2013



- 62 -

Charitable

Contributions Eliminations (1) Total

- - 8,097,154

- - 892,897

500 - 162,644

- - 9,244

- - 85,174

- (2,905) 232,504

- - 103,639

500 (2,905) 9,583,256

12,076 - 530,932

- - 109,998

2,905 (2,905) 19,525

- - 1,531

6,610 - 571,313

- - 3,974,116

21,591 (2,905) 5,207,415

- - 135,480

- - 135,480

- - 103,639

- - 892,897

(21,091) - 3,243,825

(21,091) - 4,240,361

500 (2,905) 9,583,256

- 63 -

128 Market

General Street Watercraft &

Fund Building Shorezone Settlements

Revenues:

State government grants and contracts 5,329,350$ - 124,000 -

Local government grants and contracts 247,038 - - -

Charges for services 2,762,907 8,980 1,432 -

Fines and forfeitures - - - 160,965

Rental income - 946,711 - -

Investment income 23,765 - 3,561 -

Total revenues 8,363,060 955,691 128,993 160,965

Expenditures:

Current:

General Government:

Administrative services 754,354 - - -

Support services 1,271,474 - - -

Legal services 710,170 - - 58,177

Interfund reimbursements (788,814) - - -



Environmental implementation 631,287 - 144,782 -

Planning and evaluation services 2,750,205 - - -

Measurement and reporting 532,051 - - -



General Fund

Combining Statement of Revenues, Expenditures and Changes in Fund Balances


- 64 -


Building and rental activities 691,110 163,233 - -

Capital outlay 131,591 - - -

Debt service:

Principal payments 43,199 313,686 12,906 -

Interest and fiscal charges 3,295 640,227 8,313 -

Pass-through expenditures 11,528 - - -

Total expenditures 7,315,354 1,117,146 166,001 58,177


over (under) expenditures 1,047,706 (161,455) (37,008) 102,788


Transfers in 248,733 37,322 - -

Transfers out (642,217) - - -

Proceeds of capital lease 103,627 - - -

Total other financing sources (uses) (289,857) 37,322 - -

Net change in fund balances 757,849 (124,133) (37,008) 102,788

Fund balances (deficit), beginning of year 1,257,846 1,048,917 1,123,989 131,204

Fund balances (deficit), end of year 2,015,695$ 924,784 1,086,981 233,992

(1) Transfers and rental income within the group of funds that are consolidated to form the General Fund for purposes

of the combined financial statements have been eliminated on this schedule.

- 64 -

Charitable

Contributions Eliminations (1) Total

- - 5,453,350

- - 247,038

- - 2,773,319

- - 160,965

- (691,110) 255,601

- - 27,326

- (691,110) 8,917,599

21,091 - 775,445

- - 1,271,474

- - 768,347

- - (788,814)

- - 776,069

- - 2,750,205

- - 532,051

- - 573,904

- 65 -

- - 573,904

- (691,110) 163,233

- - 131,591

- - 369,791

- - 651,835

- - 11,528

21,091 (691,110) 7,986,659

(21,091) - 930,940

- (281,399) 4,656

- 281,399 (360,818)

- - 103,627

- - (252,535)

(21,091) - 678,405

- - 3,561,956

(21,091) - 4,240,361

- 65 -

South Nevada

Environmental Public Lands Erosion

Improvement Management Control

Program Threshold Fund Fund

Cash and investments -$ - - -

Receivables:

Accounts 875 - - -

Interest receivable - - - -

Due from other governments 91,919 - - 332,019

Total assets 92,794 - - 332,019

Liabilities:

Accounts payable 28,624$ - - 3,174

Due to other funds 47,813 - - 184,691

Due to claimants - - - 10,190

Unearned revenue - - - -

Total liabilities 76,437 - - 198,055


Unavailable revenues - - - 124,243

Total deferred inflows of resources - - - 124,243

Fund balances (deficit):

Restricted for:

Environmental implementation 16,357 - - 9,721

Planning and evaluation services - - - -


Assigned to:

Capital projects - - - -

Unassigned - - - -

Total fund balances (deficit) 16,357 - - 9,721

92,794$ - - 332,019


Non-Major Governmental Funds

Combining Balance Sheet



Total liabilities, deferred inflows of

resources, and fund balance

Assets

SPECIAL REVENUE FUNDS

- 66 -

CAPITAL

PROJECTS

FUND

El Dorado

El Dorado Placer County

County Local County Local State Transit

Transportation Transportation Assistance Capital

Fund Fund Fund Outlay 2013 2012 2011

31,010 125,458 16 100,547 257,031 148,154 667,426

- - - - 875 4,841 -

- - - - - 612 535

- - - - 423,938 863,069 524,573

31,010 125,458 16 100,547 681,844 1,016,676 1,192,534

- - - - 31,798 27,899 118,098

- - - - 232,504 550,219 622,189

- - - - 10,190 240,045 10,190

- - - - - 597,078 276,492

- - - - 274,492 1,415,241 1,026,969

- - - - 124,243 - -

- - - - 124,243 - -

- - - - 26,078 - (185,711)

31,010 125,458 16 - 156,484 133,899 193,286

- - - - - 4,656 157,443

- - - 100,547 100,547 547 547

- - - - - (537,667) -

31,010 125,458 16 100,547 283,109 (398,565) 165,565

31,010 125,458 16 100,547 681,844 1,016,676 1,192,534

Totals


- 67 -

South Nevada

Environmental Public Lands Erosion

Improvement Management Control

Program Threshold Fund Fund

Revenues:

Federal grants 174,963$ - - 19,820

State government grants and contracts 63,365 - - 357,917

Local government grants and contracts - - - 1,093,508

Investment income - - - -

Miscellaneous revenues - - - -

Total revenues 238,328 - - 1,471,245

Expenditures:

Current:



Environmental implementation 220,505 - - 1,058,789

Planning and evaluation services - - - -


Total expenditures 220,505 - - 1,058,789


over (under) expenditures 17,823 - - 412,456


Transfers in - - 593 133,466

Transfers out (593) (4,656) - -

Total other financing sources (593) (4,656) 593 133,466

Net change in fund balances 17,230 (4,656) 593 545,922

Fund balances (deficit), beginning of year (873) 4,656 (593) (536,201)

Fund balances (deficit), end of year 16,357$ - - 9,721


Non-Major Governmental Funds

Combining Statement of Revenues, Expenditures and Changes in Fund Balances



- 68 -

CAPITAL

PROJECTS

FUND

El Dorado Placer El Dorado County

County Local County Local State Transit

Transportation Transportation Assistance Capital

Fund Fund Fund Outlay 2013 2012 2011

- - - - 194,783 155,301 626,373

755,286 542,999 485,836 - 2,205,403 2,307,417 1,985,572

- - - - 1,093,508 292,013 142,048

132 1,865 142 - 2,139 3,871 3,075

- - - - - 2,564 121,798

755,418 544,864 485,978 - 3,495,833 2,761,166 2,878,866

- - - - 1,279,294 1,135,316 1,423,524

724,414 551,235 488,026 - 1,763,675 1,997,395 2,063,053

- - - - - 321,209 103,318

724,414 551,235 488,026 - 3,042,969 3,453,920 3,589,895

31,004 (6,371) (2,048) - 452,864 (692,754) (711,029)

- - - 100,000 234,059 220,291 238,688

- - - - (5,249) (91,667) (100,000)

- - - 100,000 228,810 128,624 138,688

31,004 (6,371) (2,048) 100,000 681,674 (564,130) (572,341)

6 131,829 2,064 547 (398,565) 165,565 737,906

31,010 125,458 16 100,547 283,109 (398,565) 165,565


Totals

- 69 -

Variances with

Final Budget

Positive

Final Budget Actual (Negative)

Revenues:

Federal grants 341,517$ 174,963 (166,554)

State government grants and contracts 55,959 63,365 7,406

Total revenues 397,476 238,328 (159,148)

Expenditures:

Current:



Environmental implementation 468,196 220,505 247,691


Environmental Improvement Program



Total expenditures 468,196 220,505 247,691


over (under) expenditures (70,720) 17,823 88,543


Transfers in 20,719 - (20,719)

Transfers out - (593) (593)

Total other financing sources (uses) 20,719 (593) (21,312)

Net change in fund balance (50,001) 17,230 67,231

Fund deficit, beginning of year (873) (873) -

Fund balance (deficit), end of year (50,874)$ 16,357 67,231

- 70 -

Variances with

Final Budget

PositiveFinal Budget Actual (Negative)

Revenues:

Federal grants -$ - -

Total revenues - - -

Expenditures:

Current:



Measurement and reporting - - -

Total expenditures - - -


Threshold Fund




over (under) expenditures - - -


Transfers out - (4,656) (4,656)

Total other financing sources (uses) - (4,656) (4,656)

Net change in fund balance - (4,656) (4,656)

Fund balance, beginning of year 4,656 4,656 -

Fund balance, end of year 4,656$ - (4,656)

- 71 -

Variances with

Final Budget


Revenues:

Federal grants -$ - -

Total revenues - - -

Expenditures:

Current:



Planning and evaluation services - - -

Total expenditures - - -


Southern Nevada Public Lands Management Fund




over (under) expenditures - - -


Transfers in - 593 593

Total other financing sources - 593 593

Net change in fund balance - 593 593

Fund deficit, beginning of year (593) (593) -

Fund balance (deficit), end of year (593)$ - 593

- 72 -

Variances with

Final Budget


Revenues:

Federal grants 19,523$ 19,820 297

State government grants and contracts 524,539 357,917 (166,622)

Local government grants and contracts 445,000 1,093,508 648,508

Total revenues 989,062 1,471,245 482,183

Expenditures:

Current:



Environmental implementation 1,175,729 1,058,789 116,940


Erosion Control Fund



Total expenditures 1,175,729 1,058,789 116,940


over (under) expenditures (186,667) 412,456 599,123


Transfers in 186,665 133,466 (53,199)

Total other financing sources 186,665 133,466 (53,199)

Net change in fund balance (2) 545,922 545,924

Fund deficit, beginning of year (536,201) (536,201) -

Fund balance (deficit), end of year (536,203)$ 9,721 545,924

- 73 -

CTRPA Excess

CTRPA CTRPA Indirect Coverage

Tahoe Keys Securities Source Mitigation

Assets

Cash and investments 370,359$ 107,169 8,717 6,402,918

Receivables:

Interest 194 191 16 6,692

Total assets 370,553$ 107,360 8,733 6,409,610

Liabilities

Accounts payable -$ - - -

Due to other governments 370,553 - 8,733 6,409,610

Deposits payable - 107,360 - -

Total liabilities 370,553$ 107,360 8,733 6,409,610


Agency Funds

Combining Statement of Assets and Liabilities

June 30, 2013

- 74 -

Mitigation 2013 2012 2011

5,581,442 12,470,605 16,047,036 16,568,218

5,834 12,927 28,290 31,307

5,587,276 12,483,532 16,075,326 16,599,525

20,000 20,000 - 4,120

5,567,276 12,356,172 15,968,095 16,488,481

- 107,360 107,231 106,924

5,587,276 12,483,532 16,075,326 16,599,525

Totals

- 75 -

Balance Balance

July 1, 2012 Additions Deletions June 30, 2013

Cash and Investments 369,210$ 106,998 105,849 370,359

Receivables:

Interest 811 501 1,118 194

Total assets 370,021$ 107,499 106,967 370,553

Due to other governments 370,021$ 5,564 5,032 370,553

Total liabilities 370,021$ 5,564 5,032 370,553

Cash and Investments 106,955$ 5,719 5,505 107,169

Receivables:

Interest 276 280 365 191

Total assets 107,231$ 5,999 5,870 107,360

Deposits payable 107,231$ 1,749 1,620 107,360

Total liabilities 107,231$ 1,749 1,620 107,360

(Continued)

Assets

Liabilities


Agency Funds

Combining Statement of Changes in Assets and Liabilities

June 30, 2013

CTRPA Tahoe Keys

Assets

Liabilities

CTRPA Securities

- 76 -

Balance Balance


Cash and Investments 8,700$ 165 148 8,717

Receivables:

Interest 22 23 29 16

Total assets 8,722$ 188 177 8,733

Due to other governments 8,722$ 142 131 8,733

Total liabilities 8,722$ 142 131 8,733

Cash and Investments 9,706,358$ 18,658,011 21,961,451 6,402,918

Receivables:

Interest 14,747 13,401 21,456 6,692

Total assets 9,721,105$ 18,671,412 21,982,907 6,409,610

Due to other governments 9,721,105$ 808,261 4,119,756 6,409,610

Total liabilities 9,721,105$ 808,261 4,119,756 6,409,610

(Continued)


Agency Funds


(Continued)

Excess Coverage Mitigation

Assets

Liabilities

CTRPA Indirect Source

Assets

Liabilities

- 77 -

Balance Balance



Receivables:

Interest 12,434 - 6,600 5,834

Total assets 5,868,247$ 11,208,801 11,489,772 5,587,276

Accounts payable -$ 1,617,223 1,597,223 20,000

Due to other governments 5,868,247 1,918,192 2,219,163 5,567,276

Total liabilities 5,868,247$ 3,535,415 3,816,386 5,587,276


Receivables:

Interest 28,290 14,205 29,568 12,927

Total assets 16,075,326$ 29,993,899 33,585,693 12,483,532

Accounts payable -$ 1,617,223 1,597,223 20,000

Due to other governments 15,968,095 2,732,159 6,344,082 12,356,172

Deposits payable 107,231 1,749 1,620 107,360

Total liabilities 16,075,326$ 4,351,131 7,942,925 12,483,532

Liabilities

Mitigation

Assets

Liabilities


Agency Funds

TOTAL - ALL AGENCY FUNDS

Assets


(Continued)

- 78 -

SB229.R1.EN Page 1 of 2

SENATE BILL 229 (First Reprint) (Enrolled)

Relates to the Tahoe Regional Planning Compact

Summary

Senate Bill 229 repeals most of the provisions of S.B. 271 of the 2011 Legislative Session,

including the change in vote requirements for the Tahoe Regional Planning Agency’s (TRPA)

Governing Board and Nevada’s certain withdrawal from the Tahoe Regional Planning Compact

(Compact) dependent on certain actions by the State of California and the United States

Congress. This repeal occurs upon enactment of legislation by the State of California that is

effective on or before January 1, 2014, which includes the following amendments to

the Compact:

The TRPA must act in accordance with the requirements of the Compact and the

implementing ordinances, rules, and regulations of the Compact when adopting or

amending a regional plan and when taking an action or making a decision, and any party

who challenges the “Regional Plan” or such an action or a decision of the TRPA has the

burden of showing that the Plan violates those requirements; and

The TRPA’s planning commission and governing body shall ensure the “Regional Plan” of

the TRPA reflects changing economic conditions and the economic effect of regulation on

commerce.

Further, in its legislation, the State of California must agree: (1) to cooperate with the State of

Nevada in seeking to have Congress ratify these changes to the Compact; (2) to find and

declare support for the full implementation of the update of the “Regional Plan” adopted by the

TRPA on December 12, 2012; and (3) to acknowledge the authority of either the State of

California or the State of Nevada to withdraw from the Compact pursuant to the Compact or

state laws.

The Governor of the State of Nevada shall issue a proclamation when California has taken such

action, and if such a proclamation is not issued on or before January 1, 2014, this act expires

by limitation on January 2, 2014, and the provisions of S.B. 271 are not repealed.

FLOOR STATEMENT 77th REGULAR SESSION

OF THE NEVADA LEGISLATURE

Nonpartisan Staff of the Nevada Legislature

PREPARED BY

RESEARCH DIVISION

LEGISLATIVE COUNSEL BUREAU

SB229.R1.EN Page 2 of 2

Effective Date

The provisions relevant to the vote requirements of the TRPA Governing Board; the lists of

actions agreed to be undertaken, separately, by the States of California and Nevada; and the

requirement for the Secretary of State to transmit certain copies of the measure are effective on

June 6, 2013. The provisions relevant to any party who challenges the “Regional Plan” or

certain actions or decisions of the TRPA and repealing the bulk of S.B. 271 of the

2011 Session are effective on January 1, 2014, if the Governor issues the described

proclamation on or before this date. If the Governor does not issue such a proclamation on or

before January 1, 2014, this act expires by limitation on January 2, 2014.

Background Information

Senate Bill 271 of the 2011 Legislative Session (Chapter 530, Statutes of Nevada) provides for

the withdrawal of the State of Nevada from the Tahoe Regional Planning Compact under

certain circumstances. This withdrawal will take effect on October 1, 2015, unless the

governing body of the Tahoe Regional Planning Agency (TRPA) adopts an updated

“Regional Plan” and certain proposed amendments to the Compact. These amendments

include:

Changing the affirmative vote requirements to adopt, amend, or repeal environmental

threshold carrying capacities, the “Regional Plan,” and ordinances, rules, and regulations,

and for granting variances for the ordinances, rules, and regulations from four members of

the TRPA Governing Board from each state to nine members total; and to approve a

project, the affirmative vote is reduced from five to four members from the state in which

the project is located, but the total votes required remains at nine members;

Requiring the “Regional Plan” of the TRPA to consider the Lake Tahoe Basin’s changing

economic conditions; and

Adding language to the Compact providing that a person who challenges the

“Regional Plan” has the burden of proof to show that the Plan violates the Compact.

The Governor may issue a proclamation extending this withdrawal deadline to

October 1, 2017. Senate Bill 271 specifies that if Nevada withdraws from the Compact, the

Nevada TRPA will assume the duties and powers currently held by the bistate agency for

the portion of the Lake Tahoe Basin within this state; any approval for a project that was

issued by the TRPA remains valid.

The update to the Lake Tahoe Regional Plan that was adopted by the Governing Board of the

TRPA on December 12, 2012, was challenged in federal district court on February 11, 2013.

-

Senate Bill No. 229–Committee on Government Affairs

CHAPTER..........

AN ACT relating to land use planning; contingently amending and repealing certain provisions of the Tahoe Regional Planning Compact and provisions providing for the withdrawal of the State of Nevada from the Tahoe Regional Planning Compact under certain circumstances and various matters relating to that withdrawal; and providing other matters properly relating thereto.

Legislative Counsel’s Digest: Existing law sets forth the Tahoe Regional Planning Compact, an interstate agreement between the States of California and Nevada pursuant to which the bistate Tahoe Regional Planning Agency regulates environmental and land-use matters within the Lake Tahoe Basin. (NRS 277.190-277.220) Senate Bill No. 271 of the 2011 Session (SB271) requires the withdrawal of the State of Nevada from the Tahoe Regional Planning Compact on October 1, 2015, unless, by that date, an amendment to the Compact proposed by SB271 has been adopted by the State of California and approved pursuant to federal law, and the governing board of the Tahoe Regional Planning Agency has adopted an update to the 1987 Regional Plan. SB271 authorizes the Governor, under certain circumstances, to postpone that withdrawal date until October 1, 2017. (Chapter 530, Statutes of Nevada 2011, p. 3710) This bill repeals certain provisions of SB271 upon enactment by the State of California of legislation that is effective on or before January 1, 2014, which: (1) adopts amendments to the Compact that are substantially identical to the amendments contained in section 1.5 of SB271, as amended by section 2 of this bill; (2) agrees to cooperate with the State of Nevada in seeking to have those changes to the Compact approved by Congress; (3) adopts amendments to the Compact substantially identical to the amendments contained in section 1 of this bill relating to the duty of the Tahoe Regional Planning Agency to take certain actions in accordance with the Compact and the regional plan and placing the burden of proof on the party challenging the regional plan or an act taken or decision made by the Agency pursuant to the Compact or the regional plan to show that the plan, act or decision is not in conformance with those requirements; (4) finds and declares support for the full implementation of the regional plan update adopted by the Tahoe Regional Planning Agency in December of 2012; and (5) acknowledges the authority of either the State of California or the State of Nevada to withdraw from the Tahoe Regional Planning Compact pursuant to subdivision (c) of Article X of the Compact or pursuant to any other provision of the laws of each respective State. Section 2 of this bill revises SB271 to remove the proposed amendments to the Compact regarding the voting structure of the governing body of the Tahoe Regional Planning Agency and the burden of proof. If the State of California does not enact such legislation on or before January 1, 2014, the provisions of this bill expire and SB271 remains in effect.

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EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted.

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

Section 1. NRS 277.200 is hereby amended to read as follows: 277.200 The Tahoe Regional Planning Compact is as follows:

Tahoe Regional Planning Compact

ARTICLE I. Findings and Declarations of Policy (a) It is found and declared that: (1) The waters of Lake Tahoe and other resources of the region are threatened with deterioration or degeneration, which endangers the natural beauty and economic productivity of the region. (2) The public and private interests and investments in the region are substantial. (3) The region exhibits unique environmental and ecological values which are irreplaceable. (4) By virtue of the special conditions and circumstances of the region’s natural ecology, developmental pattern, population distribution and human needs, the region is experiencing problems of resource use and deficiencies of environmental control. (5) Increasing urbanization is threatening the ecological values of the region and threatening the public opportunities for use of the public lands. (6) Maintenance of the social and economic health of the region depends on maintaining the significant scenic, recreational, educational, scientific, natural and public health values provided by the Lake Tahoe Basin. (7) There is a public interest in protecting, preserving and enhancing these values for the residents of the region and for visitors to the region. (8) Responsibilities for providing recreational and scientific opportunities, preserving scenic and natural areas, and safeguarding the public who live, work and play in or visit the region are divided among local governments, regional agencies, the states of California and Nevada, and the Federal Government. (9) In recognition of the public investment and multistate and national significance of the recreational values, the Federal Government has an interest in the acquisition of recreational

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property and the management of resources in the region to preserve environmental and recreational values, and the Federal Government should assist the states in fulfilling their responsibilities. (10) In order to preserve the scenic beauty and outdoor recreational opportunities of the region, there is a need to insure an equilibrium between the region’s natural endowment and its man-made environment. (b) In order to enhance the efficiency and governmental effectiveness of the region, it is imperative that there be established a Tahoe Regional Planning Agency with the powers conferred by this compact including the power to establish environmental threshold carrying capacities and to adopt and enforce a regional plan and implementing ordinances which will achieve and maintain such capacities while providing opportunities for orderly growth and development consistent with such capacities. (c) The Tahoe Regional Planning Agency shall interpret and administer its plans, ordinances, rules and regulations in accordance with the provisions of this compact.

ARTICLE II. Definitions As used in this compact: (a) “Region,” includes Lake Tahoe, the adjacent parts of Douglas and Washoe counties and Carson City, which for the purposes of this compact shall be deemed a county, lying within the Tahoe Basin in the State of Nevada, and the adjacent parts of the Counties of Placer and El Dorado lying within the Tahoe Basin in the State of California, and that additional and adjacent part of the County of Placer outside of the Tahoe Basin in the State of California which lies southward and eastward of a line starting at the intersection of the basin crestline and the north boundary of Section 1, thence west to the northwest corner of Section 3, thence south to the intersection of the basin crestline and the west boundary of Section 10; all sections referring to Township 15 North, Range 16 East, M.D.B. & M. The region defined and described herein shall be as precisely delineated on official maps of the agency. (b) “Agency” means the Tahoe Regional Planning Agency. (c) “Governing body” means the governing board of the Tahoe Regional Planning Agency. (d) “Regional plan” means the long-term general plan for the development of the region. (e) “Planning commission” means the advisory planning commission appointed pursuant to subdivision (h) of Article III.

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(f) “Gaming” means to deal, operate, carry on, conduct, maintain or expose for play any banking or percentage game played with cards, dice or any mechanical device or machine for money, property, checks, credit or any representative of value, including, without limiting the generality of the foregoing, faro, monte, roulette, keno, bingo, fantan, twenty-one, blackjack, seven-and-a-half, big injun, klondike, craps, stud poker, draw poker or slot machine, but does not include social games played solely for drinks, or cigars or cigarettes served individually, games played in private homes or residences for prizes or games operated by charitable or educational organizations, to the extent excluded by applicable state law. (g) “Restricted gaming license” means a license to operate not more than 15 slot machines on which a quarterly fee is charged pursuant to NRS 463.373 and no other games. (h) “Project” means an activity undertaken by any person, including any public agency, if the activity may substantially affect the land, water, air, space or any other natural resources of the region. (i) “Environmental threshold carrying capacity” means an environmental standard necessary to maintain a significant scenic, recreational, educational, scientific or natural value of the region or to maintain public health and safety within the region. Such standards shall include but not be limited to standards for air quality, water quality, soil conservation, vegetation preservation and noise. (j) “Feasible” means capable of being accomplished in a successful manner within a reasonable period of time, taking into account economic, environmental, social and technological factors. (k) “Areas open to public use” means all of the areas within a structure housing gaming under a nonrestricted license except areas devoted to the private use of guests. (l) “Areas devoted to private use of guests” means hotel rooms and hallways to serve hotel room areas, and any parking areas. A hallway serves hotel room areas if more than 50 percent of the areas on each side of the hallway are hotel rooms. (m) “Nonrestricted license” means a gaming license which is not a restricted gaming license.

ARTICLE III. Organization (a) There is created the Tahoe Regional Planning Agency as a separate legal entity.

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The governing body of the agency shall be constituted as follows: (1) California delegation: (A) One member appointed by each of the County Boards of Supervisors of the Counties of El Dorado and Placer and one member appointed by the City Council of the City of South Lake Tahoe. Any such member may be a member of the county board of supervisors or city council, respectively, and shall reside in the territorial jurisdiction of the governmental body making the appointment. (B) Two members appointed by the Governor of California, one member appointed by the Speaker of the Assembly of California and one member appointed by the Senate Rules Committee of the State of California. The members appointed pursuant to this subparagraph shall not be residents of the region and shall represent the public at large within the State of California. (2) Nevada delegation: (A) One member appointed by each of the boards of county commissioners of Douglas and Washoe counties and one member appointed by the board of supervisors of Carson City. Any such member may be a member of the board of county commissioners or board of supervisors, respectively, and shall reside in the territorial jurisdiction of the governmental body making the appointment. (B) One member appointed by the governor of Nevada, the secretary of state of Nevada or his designee, and the director of the state department of conservation and natural resources of Nevada or his designee. Except for the secretary of state and the director of the state department of conservation and natural resources, the members or designees appointed pursuant to this subparagraph shall not be residents of the region. All members appointed pursuant to this subparagraph shall represent the public at large within the State of Nevada. (C) One member appointed for a 1-year term by the six other members of the Nevada delegation. If at least four members of the Nevada delegation are unable to agree upon the selection of a seventh member within 60 days after the effective date of the amendments to this compact or the occurrence of a vacancy on the governing body for that state the governor of the State of Nevada shall make such an appointment. The member appointed pursuant to this subparagraph may, but is not required to, be a resident of the region within the State of Nevada. (3) If any appointing authority under paragraph (1)(A), (1)(B), (2)(A) or (2)(B) fails to make such an appointment within 60 days

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after the effective date of the amendments to this compact or the occurrence of a vacancy on the governing body, the governor of the state in which the appointing authority is located shall make the appointment. The term of any member so appointed shall be 1 year. (4) The position of any member of the governing body shall be deemed vacant if such a member is absent from three consecutive meetings of the governing body in any calendar year. (5) Each member and employee of the agency shall disclose his economic interests in the region within 10 days after taking his seat on the governing board or being employed by the agency and shall thereafter disclose any further economic interest which he acquires, as soon as feasible after he acquires it. As used in this paragraph, “economic interests” means: (A) Any business entity operating in the region in which the member or employee has a direct or indirect investment worth more than $1,000; (B) Any real property located in the region in which the member or employee has a direct or indirect interest worth more than $1,000; (C) Any source of income attributable to activities in the region, other than loans by or deposits with a commercial lending institution in the regular course of business, aggregating $250 or more in value received by or promised to the member within the preceding 12 months; or (D) Any business entity operating in the region in which the member or employee is a director, officer, partner, trustee, employee or holds any position of management. � No member or employee of the agency shall make, or attempt to influence, an agency decision in which he knows or has reason to know he has an economic interest. Members and employees of the agency must disqualify themselves from making or participating in the making of any decision of the agency when it is reasonably foreseeable that the decision will have a material financial effect, distinguishable from its effect on the public generally, on the economic interests of the member or employee. (b) The members of the agency shall serve without compensation, but the expenses of each member shall be met by the body which he represents in accordance with the law of that body. All other expenses incurred by the governing body in the course of exercising the powers conferred upon it by this compact unless met in some other manner specifically provided, shall be paid by the agency out of its own funds. (c) Except for the secretary of state and director of the state department of conservation and natural resources of Nevada and the

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member appointed pursuant to subdivision (a)(2)(C), the members of the governing body serve at the pleasure of the appointing authority in each case, but each appointment shall be reviewed no less often than every 4 years. Members may be reappointed. (d) The governing body of the agency shall meet at least monthly. All meetings shall be open to the public to the extent required by the law of the State of California or the State of Nevada, whichever imposes the greater requirement, applicable to local governments at the time such meeting is held. The governing body shall fix a date for its regular monthly meeting in such terms as “the first Monday of each month,” and shall not change such date more often than once in any calendar year. Notice of the date so fixed shall be given by publication at least once in a newspaper or combination of newspapers whose circulation is general throughout the region and in each county a portion of whose territory lies within the region. Notice of any special meeting, except an emergency meeting, shall be given by so publishing the date and place and posting an agenda at least 5 days prior to the meeting. (e) The position of a member of the governing body shall be considered vacated upon his loss of any of the qualifications required for his appointment and in such event the appointing authority shall appoint a successor. (f) The governing body shall elect from its own members a chairman and vice chairman, whose terms of office shall be 2 years, and who may be reelected. If a vacancy occurs in either office, the governing body may fill such vacancy for the unexpired term. (g) Four of the members of the governing body from each state constitute a quorum for the transaction of the business of the agency. The voting procedures shall be as follows: (1) For adopting, amending or repealing environmental threshold carrying capacities, the regional plan, and ordinances, rules and regulations, and for granting variances from the ordinances, rules and regulations, the vote of at least four of the members of each state agreeing with the vote of at least four members of the other state shall be required to take action. If there is no vote of at least four of the members from one state agreeing with the vote of at least four of the members of the other state on the actions specified in this paragraph, an action of rejection shall be deemed to have been taken. (2) For approving a project, the affirmative vote of at least five members from the state in which the project is located and the affirmative vote of at least nine members of the governing body are required. If at least five members of the governing body from the

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state in which the project is located and at least nine members of the entire governing body do not vote in favor of the project, upon a motion for approval, an action of rejection shall be deemed to have been taken. A decision by the agency to approve a project shall be supported by a statement of findings, adopted by the agency, which indicates that the project complies with the regional plan and with applicable ordinances, rules and regulations of the agency. (3) For routine business and for directing the agency’s staff on litigation and enforcement actions, at least eight members of the governing body must agree to take action. If at least eight votes in favor of such action are not cast, an action of rejection shall be deemed to have been taken. � Whenever under the provisions of this compact or any ordinance, rule, regulation or policy adopted pursuant thereto, the agency is required to review or approve any project, public or private, the agency shall take final action by vote, whether to approve, to require modification or to reject such project, within 180 days after the application for such project is accepted as complete by the agency in compliance with the agency’s rules and regulations governing such delivery unless the applicant has agreed to an extension of this time limit. If a final action by vote does not take place within 180 days, the applicant may bring an action in a court of competent jurisdiction to compel a vote unless he has agreed to an extension. This provision does not limit the right of any person to obtain judicial review of agency action under subdivision (h) of Article VI. The vote of each member of the governing body shall be individually recorded. The governing body shall adopt its own rules, regulations and procedures. (h) An advisory planning commission shall be appointed by the agency. The commission shall include: the chief planning officers of Placer County, El Dorado County, and the City of South Lake Tahoe in California and of Douglas County, Washoe County and Carson City in Nevada, the executive officer of the Lahontan Regional Water Quality Control Board of the State of California, the executive officer of the Air Resources Board of the State of California, the director of the state department of conservation and natural resources of the State of Nevada, the administrator of the division of environmental protection in the state department of conservation and natural resources of the State of Nevada, the administrator of the Lake Tahoe Management Unit of the United States Forest Service, and at least four lay members with an equal number from each state, at least half of whom shall be residents of the region. Any official member may designate an alternate.

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The term of office of each lay member of the advisory planning commission shall be 2 years. Members may be reappointed. The position of each member of the advisory planning commission shall be considered vacated upon loss of any of the qualifications required for appointment, and in such an event the appointing authority shall appoint a successor. The advisory planning commission shall elect from its own members a chairman and a vice chairman, whose terms of office shall be 2 years and who may be reelected. If a vacancy occurs in either office, the advisory planning commission shall fill such vacancy for the unexpired term. A majority of the members of the advisory planning commission constitutes a quorum for the transaction of the business of the commission. A majority vote of the quorum present shall be required to take action with respect to any matter. (i) The agency shall establish and maintain an office within the region, and for this purpose the agency may rent or own property and equipment. Every plan, ordinance and other record of the agency which is of such nature as to constitute a public record under the law of either the State of California or the State of Nevada shall be open to inspection and copying during regular office hours. (j) Each authority charged under this compact or by the law of either state with the duty of appointing a member of the governing body of the agency shall by certified copy of its resolution or other action notify the Secretary of State of its own state of the action taken.

ARTICLE IV. Personnel (a) The governing body shall determine the qualification of, and it shall appoint and fix the salary of, the executive officer of the agency, and shall employ such other staff and legal counsel as may be necessary to execute the powers and functions provided for under this compact or in accordance with any intergovernmental contracts or agreements the agency may be responsible for administering. (b) Agency personnel standards and regulations shall conform insofar as possible to the regulations and procedures of the civil service of the State of California or the State of Nevada, as may be determined by the governing body of the agency; and shall be regional and bistate in application and effect; provided that the governing body may, for administrative convenience and at its discretion, assign the administration of designated personnel arrangements to an agency of either state, and provided that

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administratively convenient adjustments be made in the standards and regulations governing personnel assigned under intergovernmental agreements. (c) The agency may establish and maintain or participate in such additional programs of employee benefits as may be appropriate to afford employees of the agency terms and conditions of employment similar to those enjoyed by employees of California and Nevada generally.

ARTICLE V. Planning (a) In preparing each of the plans required by this article and each amendment thereto, if any, subsequent to its adoption, the planning commission after due notice shall hold at least one public hearing which may be continued from time to time, and shall review the testimony and any written recommendations presented at such hearing before recommending the plan or amendment. The notice required by this subdivision shall be given at least 20 days prior to the public hearing by publication at least once in a newspaper or combination of newspapers whose circulation is general throughout the region and in each county a portion of whose territory lies within the region. The planning commission shall then recommend such plan or amendment to the governing body for adoption by ordinance. The governing body may adopt, modify or reject the proposed plan or amendment, or may initiate and adopt a plan or amendment without referring it to the planning commission. If the governing body initiates or substantially modifies a plan or amendment, it shall hold at least one public hearing thereon after due notice as required in this subdivision. If a request is made for the amendment of the regional plan by: (1) A political subdivision a part of whose territory would be affected by such amendment; or (2) The owner or lessee of real property which would be affected by such amendment, � the governing body shall complete its action on such amendment within 180 days after such request is accepted as complete according to standards which must be prescribed by ordinance of the agency. (b) The agency shall develop, in cooperation with the states of California and Nevada, environmental threshold carrying capacities for the region. The agency should request the President’s Council on Environmental Quality, the United States Forest Service and other

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appropriate agencies to assist in developing such environmental threshold carrying capacities. Within 18 months after the effective date of the amendments to this compact, the agency shall adopt environmental threshold carrying capacities for the region. (c) Within 1 year after the adoption of the environmental threshold carrying capacities for the region, the agency shall amend the regional plan so that, at a minimum, the plan and all of its elements, as implemented through agency ordinances, rules and regulations, achieves and maintains the adopted environmental threshold carrying capacities. Each element of the plan shall contain implementation provisions and time schedules for such implementation by ordinance. The planning commission and governing body shall continuously review and maintain the regional plan. The regional plan shall consist of a diagram, or diagrams, and text, or texts setting forth the projects and proposals for implementation of the regional plan, a description of the needs and goals of the region and a statement of the policies, standards and elements of the regional plan. The regional plan shall be a single enforceable plan and includes all of the following correlated elements: (1) A land-use plan for the integrated arrangement and general location and extent of, and the criteria and standards for, the uses of land, water, air, space and other natural resources within the region, including but not limited to an indication or allocation of maximum population densities and permitted uses. (2) A transportation plan for the integrated development of a regional system of transportation, including but not limited to parkways, highways, transportation facilities, transit routes, waterways, navigation facilities, public transportation facilities, bicycle facilities, and appurtenant terminals and facilities for the movement of people and goods within the region. The goal of transportation planning shall be: (A) To reduce dependency on the automobile by making more effective use of existing transportation modes and of public transit to move people and goods within the region; and (B) To reduce to the extent feasible air pollution which is caused by motor vehicles. � Where increases in capacity are required, the agency shall give preference to providing such capacity through public transportation and public programs and projects related to transportation. The agency shall review and consider all existing transportation plans in preparing its regional transportation plan pursuant to this paragraph.

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The plan shall provide for an appropriate transit system for the region. The plan shall give consideration to: (A) Completion of the Loop Road in the states of Nevada and California; (B) Utilization of a light rail mass transit system in the South Shore area; and (C) Utilization of a transit terminal in the Kingsbury Grade area. � Until the regional plan is revised, or a new transportation plan is adopted in accordance with this paragraph, the agency has no effective transportation plan. (3) A conservation plan for the preservation, development, utilization, and management of the scenic and other natural resources within the basin, including but not limited to, soils, shoreline and submerged lands, scenic corridors along transportation routes, open spaces, recreational and historical facilities. (4) A recreation plan for the development, utilization, and management of the recreational resources of the region, including but not limited to, wilderness and forested lands, parks and parkways, riding and hiking trails, beaches and playgrounds, marinas, areas for skiing and other recreational facilities. (5) A public services and facilities plan for the general location, scale and provision of public services and facilities, which, by the nature of their function, size, extent and other characteristics are necessary or appropriate for inclusion in the regional plan. In formulating and maintaining the regional plan, the planning commission and governing body shall take account of and shall seek to harmonize the needs of the region as a whole, the plans of the counties and cities within the region, the plans and planning activities of the state, federal and other public agencies and nongovernmental agencies and organizations which affect or are concerned with planning and development within the region. (d) The regional plan shall provide for attaining and maintaining federal, state, or local air and water quality standards, whichever are strictest, in the respective portions of the region for which the standards are applicable. The agency may, however, adopt air or water quality standards or control measures more stringent than the applicable state implementation plan or the applicable federal, state, or local standards for the region, if it finds that such additional standards or control measures are necessary to achieve the purposes of this compact. Each element of the regional plan, where applicable, shall,

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by ordinance, identify the means and time schedule by which air and water quality standards will be attained. (e) Except for the Regional Transportation Plan of the California Tahoe Regional Planning Agency, the regional plan, ordinances, rules and regulations adopted by the California Tahoe Regional Planning Agency in effect on July 1, 1980, shall be the regional plan, ordinances, rules and regulations of the Tahoe Regional Planning Agency for that portion of the Tahoe region located in the State of California. Such plan, ordinance, rule or regulation may be amended or repealed by the governing body of the agency. The plans, ordinances, rules and regulations of the Tahoe Regional Planning Agency that do not conflict with, or are not addressed by, the California Tahoe Regional Planning Agency’s plans, ordinances, rules and regulations referred to in this subdivision shall continue to be applicable unless amended or repealed by the governing body of the agency. No provision of the regional plan, ordinances, rules and regulations of the California Tahoe Regional Planning Agency referred to in this subdivision shall apply to that portion of the region within the State of Nevada, unless such provision is adopted for the Nevada portion of the region by the governing body of the agency. (f) The regional plan, ordinances, rules and regulations of the Tahoe Regional Planning Agency apply to that portion of the region within the State of Nevada. (g) The agency shall adopt ordinances prescribing specific written findings that the agency must make prior to approving any project in the region. These findings shall relate to environmental protection and shall insure that the project under review will not adversely affect implementation of the regional plan and will not cause the adopted environmental threshold carrying capacities of the region to be exceeded. (h) The agency shall maintain the data, maps and other information developed in the course of formulating and administering the regional plan, in a form suitable to assure a consistent view of developmental trends and other relevant information for the availability of and use by other agencies of government and by private organizations and individuals concerned. (i) Where necessary for the realization of the regional plan, the agency may engage in collaborative planning with local governmental jurisdictions located outside the region, but contiguous to its boundaries. In formulating and implementing the regional plan, the agency shall seek the cooperation and consider the recommendations of counties and cities and other agencies of local

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government, of state and federal agencies, of educational institutions and research organizations, whether public or private, and of civic groups and private persons.

ARTICLE VI. Agency’s Powers (a) The governing body shall adopt all necessary ordinances, rules, and regulations to effectuate the adopted regional plan. Except as otherwise provided in this compact, every such ordinance, rule or regulation shall establish a minimum standard applicable throughout the region. Any political subdivision or public agency may adopt and enforce an equal or higher requirement applicable to the same subject of regulation in its territory. The regulations of the agency shall contain standards including but not limited to the following: water purity and clarity; subdivision; zoning; tree removal; solid waste disposal; sewage disposal; land fills, excavations, cuts and grading; piers, harbors, breakwaters or channels and other shoreline developments; waste disposal in shoreline areas; waste disposal from boats; mobile-home parks; house relocation; outdoor advertising; floodplain protection; soil and sedimentation control; air pollution; and watershed protection. Whenever possible without diminishing the effectiveness of the regional plan, the ordinances, rules, regulations and policies shall be confined to matters which are general and regional in application, leaving to the jurisdiction of the respective states, counties and cities the enactment of specific and local ordinances, rules, regulations and policies which conform to the regional plan. The agency shall prescribe by ordinance those activities which it has determined will not have substantial effect on the land, water, air, space or any other natural resources in the region and therefore will be exempt from its review and approval. Every ordinance adopted by the agency shall be published at least once by title in a newspaper or combination of newspapers whose circulation is general throughout the region. Except an ordinance adopting or amending the regional plan, no ordinance shall become effective until 60 days after its adoption. Immediately after its adoption, a copy of each ordinance shall be transmitted to the governing body of each political subdivision having territory within the region. (b) No project other than those to be reviewed and approved under the special provisions of subdivisions (d), (e), (f) and (g) may be developed in the region without obtaining the review and approval of the agency and no project may be approved unless it is

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found to comply with the regional plan and with the ordinances, rules and regulations enacted pursuant to subdivision (a) to effectuate that plan. The agency may approve a project in the region only after making the written findings required by this subdivision or subdivision (g) of Article V. Such findings shall be based on substantial evidence in the record. Before adoption by the agency of the ordinances required in subdivision (g) of Article V, the agency may approve a project in the region only after making written findings on the basis of substantial evidence in the record that the project is consistent with the regional plan then in effect and with applicable plans, ordinances, regulations, and standards of federal and state agencies relating to the protection, maintenance and enhancement of environmental quality in the region. (c) The legislatures of the states of California and Nevada find that in order to make effective the regional plan as revised by the agency, it is necessary to halt temporarily works of development in the region which might otherwise absorb the entire capability of the region for further development or direct it out of harmony with the ultimate plan. Subject to the limitation provided in this subdivision, from the effective date of the amendments to this compact until the regional plan is amended pursuant to subdivision (c) of Article V, or until May 1, 1983, whichever is earlier: (1) Except as otherwise provided in this paragraph, no new subdivision, planned unit development, or condominium project may be approved unless a complete tentative map or plan has been approved before the effective date of the amendments to this compact by all agencies having jurisdiction. The subdivision of land owned by a general improvement district, which existed and owned the land before the effective date of the amendments to this compact, may be approved if subdivision of the land is necessary to avoid insolvency of the district. (2) Except as provided in paragraph (3), no apartment building may be erected unless the required permits for such building have been secured from all agencies having jurisdiction, prior to the effective date of the amendments to this compact. (3) During each of the calendar years 1980, 1981 and 1982, no city or county may issue building permits which authorize the construction of a greater number of new residential units within the region than were authorized within the region by building permits issued by that city or county during the calendar year 1978. For the period of January through April, 1983, building permits authorizing

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the construction of no more than one-third of that number may be issued by each such city or county. For purposes of this paragraph a “residential unit” means either a single family residence or an individual residential unit within a larger building, such as an apartment building, a duplex or a condominium. The legislatures find the respective numbers of residential units authorized within the region during the calendar year 1978 to be as follows: 1. City of South Lake Tahoe and El Dorado County (combined) ............................................................................... 252 2. Placer County .............................................................. 278 3. Carson City .................................................................. -0- 4. Douglas County ........................................................... 339 5. Washoe County ............................................................ 739 (4) During each of the calendar years 1980, 1981 and 1982, no city or county may issue building permits which authorize construction of a greater square footage of new commercial buildings within the region than were authorized within the region by building permits for commercial purposes issued by that city or county during the calendar year 1978. For the period of January through April, 1983, building permits authorizing the construction of no more than one-third the amount of that square footage may be issued by each such city or county. The legislatures find the respective square footages of commercial buildings authorized within the region during calendar year 1978 to be as follows: 1. City of South Lake Tahoe and El Dorado County (combined) .......................................................................... 64,324 2. Placer County ......................................................... 23,000 3. Carson City ............................................................. -0- 4. Douglas County ...................................................... 57,354 5. Washoe County ....................................................... 50,600 (5) No structure may be erected to house gaming under a nonrestricted license. (6) No facility for the treatment of sewage may be constructed or enlarged except: (A) To comply, as ordered by the appropriate state agency for the control of water pollution, with existing limitations of effluent under the Clean Water Act, 33 U.S.C. §§ 1251 et seq., and the applicable state law for control of water pollution; (B) To accommodate development which is not prohibited or limited by this subdivision; or

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(C) In the case of Douglas County Sewer District # 1, to modify or otherwise alter sewage treatment facilities existing on the effective date of the amendments to this compact so that such facilities will be able to treat the total volume of effluent for which they were originally designed, which is 3.0 million gallons per day. Such modification or alteration is not a “project”; is not subject to the requirements of Article VII; and does not require a permit from the agency. Before commencing such modification or alteration, however, the district shall submit to the agency its report identifying any significant soil erosion problems which may be caused by such modifications or alterations and the measures which the district proposes to take to mitigate or avoid such problems. The moratorium imposed by this subdivision does not apply to work done pursuant to a right vested before the effective date of the amendments to this compact. Notwithstanding the expiration date of the moratorium imposed by this subdivision, no new highway may be built or existing highway widened to accommodate additional continuous lanes for automobiles until the regional transportation plan is revised and adopted. The moratorium imposed by this subdivision does not apply to the construction of any parking garage which has been approved by the agency prior to May 4, 1979, whether that approval was affirmative or by default. The provisions of this paragraph are not an expression of legislative intent that any such parking garage, the approval of which is the subject of litigation which was pending on the effective date of the amendments to this compact, should or should not be constructed. The provisions of this paragraph are intended solely to permit construction of such a parking garage if a judgment sustaining the agency’s approval to construct that parking garage has become final and no appeal is pending or may lawfully be taken to a higher court. (d) Subject to the final order of any court of competent jurisdiction entered in litigation contesting the validity of an approval by the Tahoe Regional Planning Agency, whether that approval was affirmative or by default, if that litigation was pending on May 4, 1979, the agency and the states of California and Nevada shall recognize as a permitted and conforming use: (1) Every structure housing gaming under a nonrestricted license which existed as a licensed gaming establishment on May 4, 1979, or whose construction was approved by the Tahoe Regional Planning Agency affirmatively or deemed approved before that date. The construction or use of any structure to house gaming under a nonrestricted license not so existing or approved, or the enlargement

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in cubic volume of any such existing or approved structure is prohibited. (2) Every other nonrestricted gaming establishment whose use was seasonal and whose license was issued before May 4, 1979, for the same season and for the number and type of games and slot machines on which taxes or fees were paid in the calendar year 1978. (3) Gaming conducted pursuant to a restricted gaming license issued before May 4, 1979, to the extent permitted by that license on that date. � The area within any structure housing gaming under a nonrestricted license which may be open to public use (as distinct from that devoted to the private use of guests and exclusive of any parking area) is limited to the area existing or approved for public use on May 4, 1979. Within these limits, any external modification of the structure which requires a permit from a local government also requires approval from the agency. The agency shall not permit restaurants, convention facilities, showrooms or other public areas to be constructed elsewhere in the region outside the structure in order to replace areas existing or approved for public use on May 4, 1979. (e) Any structure housing licensed gaming may be rebuilt or replaced to a size not to exceed the cubic volume, height and land coverage existing or approved on May 4, 1979, without the review or approval of the agency or any planning or regulatory authority of the State of Nevada whose review or approval would be required for a new structure. (f) The following provisions apply to any internal or external modification, remodeling, change in use, or repair of a structure housing gaming under a nonrestricted license which is not prohibited by Article VI (d): (1) The agency’s review of an external modification of the structure which requires a permit from a local government is limited to determining whether the external modification will do any of the following: (A) Enlarge the cubic volume of the structure; (B) Increase the total square footage of area open to or approved for public use on May 4, 1979; (C) Convert an area devoted to the private use of guests to an area open to public use; (D) Increase the public area open to public use which is used for gaming beyond the limits contained in paragraph (3); and

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(E) Conflict with or be subject to the provisions of any of the agency’s ordinances that are generally applicable throughout the region. � The agency shall make this determination within 60 days after the proposal is delivered to the agency in compliance with the agency’s rules or regulations governing such delivery unless the applicant has agreed to an extension of this time limit. If an external modification is determined to have any of the effects enumerated in subparagraphs (A) through (C), it is prohibited. If an external modification is determined to have any of the effects enumerated in subparagraph (D) or (E), it is subject to the applicable provisions of this compact. If an external modification is determined to have no such effect, it is not subject to the provisions of this compact. (2) Except as provided in paragraph (3), internal modification, remodeling, change in use or repair of a structure housing gaming under a nonrestricted license is not a project and does not require the review or approval of the agency. (3) Internal modification, remodeling, change in use or repair of areas open to public use within a structure housing gaming under a nonrestricted license which alone or in combination with any other such modification, remodeling, change in use or repair will increase the total portion of those areas which is actually used for gaming by more than the product of the total base area, as defined below, in square feet existing on or approved before August 4, 1980, multiplied by 15 percent constitutes a project and is subject to all of the provisions of this compact relating to projects. For purposes of this paragraph and the determination required by Article VI (g), base area means all of the area within a structure housing gaming under a nonrestricted license which may be open to public use, whether or not gaming is actually conducted or carried on in that area, except retail stores, convention centers and meeting rooms, administrative offices, kitchens, maintenance and storage areas, rest rooms, engineering and mechanical rooms, accounting rooms and counting rooms. (g) In order to administer and enforce the provisions of paragraphs (d), (e) and (f) the State of Nevada, through its appropriate planning or regulatory agency, shall require the owner or licensee of a structure housing gaming under a nonrestricted license to provide: (1) Documents containing sufficient information for the Nevada agency to establish the following relative to the structure: (A) The location of its external walls; (B) Its total cubic volume;

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(C) Within its external walls, the area in square feet open or approved for public use and the area in square feet devoted to or approved for the private use of guests on May 4, 1979; (D) The amount of surface area of land under the structure; and (E) The base area as defined in paragraph (f)(3) in square feet existing on or approved before August 4, 1980. (2) An informational report whenever any internal modification, remodeling, change in use, or repair will increase the total portion of the areas open to public use which is used for gaming. The Nevada agency shall transmit this information to the Tahoe Regional Planning Agency. (h) Gaming conducted pursuant to a restricted gaming license is exempt from review by the agency if it is incidental to the primary use of the premises. (i) The provisions of subdivisions (d) and (e) are intended only to limit gaming and related activities as conducted within a gaming establishment, or construction designed to permit the enlargement of such activities, and not to limit any other use of property zoned for commercial use or the accommodation of tourists, as approved by the agency. (j) Legal actions arising out of or alleging a violation of the provisions of this compact, of the regional plan or of an ordinance or regulation of the agency or of a permit or a condition of a permit issued by the agency are governed by the following provisions: (1) This subdivision applies to: (A) Actions arising out of activities directly undertaken by the agency. (B) Actions arising out of the issuance to a person of a lease, permit, license or other entitlement for use by the agency. (C) Actions arising out of any other act or failure to act by any person or public agency. � Such legal actions may be filed and the provisions of this subdivision apply equally in the appropriate courts of California and Nevada and of the United States. (2) Venue lies: (A) If a civil or criminal action challenges an activity by the agency or any person which is undertaken or to be undertaken upon a parcel of real property, in the state or federal judicial district where the real property is situated. (B) If an action challenges an activity which does not involve a specific parcel of land (such as an action challenging an ordinance of the agency), in any state or federal court having jurisdiction within the region.

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(3) Any aggrieved person may file an action in an appropriate court of the State of California or Nevada or of the United States alleging noncompliance with the provisions of this compact or with an ordinance or regulation of the agency. In the case of governmental agencies, “aggrieved person” means the Tahoe Regional Planning Agency or any state, federal or local agency. In the case of any person other than a governmental agency who challenges an action of the Tahoe Regional Planning Agency, “aggrieved person” means any person who has appeared, either in person, through an authorized representative, or in writing, before the agency at an appropriate administrative hearing to register objection to the action which is being challenged, or who had good cause for not making such an appearance. (4) A legal action arising out of the adoption or amendment of the regional plan or of any ordinance or regulation of the agency, or out of the granting or denial of any permit, shall be commenced within 60 days after final action by the agency. All other legal actions shall be commenced within 65 days after discovery of the cause of action. (5) In any legal action filed pursuant to this subdivision which challenges an adjudicatory act or decision of the agency to approve or disapprove a project, the scope of judicial inquiry shall extend only to whether there was prejudicial abuse of discretion. Prejudicial abuse of discretion is established if the agency has not proceeded in a manner required by law or if the act or decision of the agency was not supported by substantial evidence in light of the whole record. In making such a determination the court shall not exercise its independent judgment on evidence but shall only determine whether the act or decision was supported by substantial evidence in light of the whole record. In any legal action filed pursuant to this subdivision which challenges a legislative act or decision of the agency (such as the adoption of the regional plan and the enactment of implementing ordinances), the scope of the judicial inquiry shall extend only to the questions of whether the act or decision has been arbitrary, capricious or lacking substantial evidentiary support or whether the agency has failed to proceed in a manner required by law. (6) In addition to the provisions of paragraph (5) relating to judicial inquiry: (A) When adopting or amending a regional plan, the agency shall act in accordance with the requirements of the compact and the implementing ordinances, rules and regulations, and a party

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challenging the regional plan has the burden of showing that the regional plan is not in conformance with those requirements. (B) When taking an action or making a decision, the agency shall act in accordance with the requirements of the compact and the regional plan, including the implementing ordinances, rules and regulations, and a party challenging the action or decision has the burden of showing that the act or decision is not in conformance with those requirements. (7) The provisions of this subdivision do not apply to any legal proceeding pending on the date when this subdivision becomes effective. Any such legal proceeding shall be conducted and concluded under the provisions of law which were applicable prior to the effective date of this subdivision. [(7)] (8) The security required for the issuance of a temporary restraining order or preliminary injunction based upon an alleged violation of this compact or any ordinance, plan, rule or regulation adopted pursuant thereto is governed by the rule or statute applicable to the court in which the action is brought, unless the action is brought by a public agency or political subdivision to enforce its own rules, regulations and ordinances in which case no security shall be required. (k) The agency shall monitor activities in the region and may bring enforcement actions in the region to ensure compliance with the regional plan and adopted ordinances, rules, regulations and policies. If it is found that the regional plan, or ordinances, rules, regulations and policies are not being enforced by a local jurisdiction, the agency may bring action in a court of competent jurisdiction to ensure compliance. (l) Any person who violates any provision of this compact or of any ordinance or regulation of the agency or of any condition of approval imposed by the agency is subject to a civil penalty not to exceed $5,000. Any such person is subject to an additional civil penalty not to exceed $5,000 per day, for each day on which such a violation persists. In imposing the penalties authorized by this subdivision, the court shall consider the nature of the violation and shall impose a greater penalty if it was willful or resulted from gross negligence than if it resulted from inadvertence or simple negligence. (m) The agency is hereby empowered to initiate, negotiate and participate in contracts and agreements among the local governmental authorities of the region, or any other intergovernmental contracts or agreements authorized by state or federal law.

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(n) Each intergovernmental contract or agreement shall provide for its own funding and staffing, but this shall not preclude financial contributions from the local authorities concerned or from supplementary sources. (o) Every record of the agency, whether public or not, shall be open for examination to the Legislature and Controller of the State of California and the legislative auditor of the State of Nevada. (p) Approval by the agency of any project expires 3 years after the date of final action by the agency or the effective date of the amendments to this compact, whichever is later, unless construction is begun within that time and diligently pursued thereafter, or the use or activity has commenced. In computing the 3-year period any period of time during which the project is the subject of a legal action which delays or renders impossible the diligent pursuit of that project shall not be counted. Any license, permit or certificate issued by the agency which has an expiration date shall be extended by that period of time during which the project is the subject of such legal action as provided in this subdivision. (q) The governing body shall maintain a current list of real property known to be available for exchange with the United States or with other owners of real property in order to facilitate exchanges of real property by owners of real property in the region.

ARTICLE VII. Environmental Impact Statements (a) The Tahoe Regional Planning Agency when acting upon matters that have a significant effect on the environment shall: (1) Utilize a systematic, interdisciplinary approach which will insure the integrated use of the natural and social sciences and the environmental design arts in planning and in decision making which may have an impact on man’s environment; (2) Prepare and consider a detailed environmental impact statement before deciding to approve or carry out any project. The detailed environmental impact statement shall include the following: (A) The significant environmental impacts of the proposed project; (B) Any significant adverse environmental effects which cannot be avoided should the project be implemented; (C) Alternatives to the proposed project; (D) Mitigation measures which must be implemented to assure meeting standards of the region;

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(E) The relationship between local short-term uses of man’s environment and the maintenance and enhancement of long-term productivity; (F) Any significant irreversible and irretrievable commitments of resources which would be involved in the proposed project should it be implemented; and (G) The growth-inducing impact of the proposed project; (3) Study, develop and describe appropriate alternatives to recommended courses of action for any project which involves unresolved conflicts concerning alternative uses of available resources; (4) Make available to states, counties, municipalities, institutions and individuals, advice and information useful in restoring, maintaining and enhancing the quality of the region’s environment; and (5) Initiate and utilize ecological information in the planning and development of resource-oriented projects. (b) Prior to completing an environmental impact statement, the agency shall consult with and obtain the comments of any federal, state or local agency which has jurisdiction by law or special expertise with respect to any environmental impact involved. Copies of such statement and the comments and views of the appropriate federal, state and local agencies which are authorized to develop and enforce environmental standards shall be made available to the public and shall accompany the project through the review processes. The public shall be consulted during the environmental impact statement process and views shall be solicited during a public comment period not to be less than 60 days. (c) Any environmental impact statement required pursuant to this article need not repeat in its entirety any information or data which is relevant to such a statement and is a matter of public record or is generally available to the public, such as information contained in an environmental impact report prepared pursuant to the California Environmental Quality Act or a federal environmental impact statement prepared pursuant to the National Environmental Policy Act of 1969. However, such information or data shall be briefly described in the environmental impact statement and its relationship to the environmental impact statement shall be indicated. In addition, any person may submit information relative to a proposed project which may be included, in whole or in part, in any environmental impact statement required by this article.

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(d) In addition to the written findings specified by agency ordinance to implement the regional plan, the agency shall make either of the following written findings before approving a project for which an environmental impact statement was prepared: (1) Changes or alterations have been required in or incorporated into such project which avoid or reduce the significant adverse environmental effects to a less than significant level; or (2) Specific considerations, such as economic, social or technical, make infeasible the mitigation measures or project alternatives discussed in the environmental impact statement on the project. � A separate written finding shall be made for each significant effect identified in the environmental impact statement on the project. All written findings must be supported by substantial evidence in the record. (e) The agency may charge and collect a reasonable fee from any person proposing a project subject to the provisions of this compact in order to recover the estimated costs incurred by the agency in preparing an environmental impact statement under this article. (f) The agency shall adopt by ordinance a list of classes of projects which the agency has determined will not have a significant effect on the environment and therefore will be exempt from the requirement for the preparation of an environmental impact statement under this article. Prior to adopting the list, the agency shall make a written finding supported by substantial evidence in the record that each class of projects will not have a significant effect on the environment.

ARTICLE VIII. Finances (a) On or before September 30 of each calendar year the agency shall establish the amount of money necessary to support its activities for the next succeeding fiscal year commencing July 1 of the following year. The agency shall apportion $75,000 of this amount among the counties within the region on the same ratio to the total sum required as the full cash valuation of taxable property within the region in each county bears to the total full cash valuation of taxable property within the region. In addition, each county within the region in California shall pay $18,750 to the agency and each county within the region in Nevada, including Carson City, shall pay $12,500 to the agency, from any funds available therefor. The State of California and the State of Nevada may pay to the

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agency by July 1 of each year any additional sums necessary to support the operations of the agency pursuant to this compact. If additional funds are required, the agency shall make a request for the funds to the states of California and Nevada. Requests for state funds must be apportioned two-thirds from California and one-third from Nevada. Money appropriated shall be paid within 30 days. (b) The agency may fix and collect reasonable fees for any services rendered by it. (c) The agency shall submit an itemized budget to the states for review with any request for state funds, shall be strictly accountable to any county in the region and the states for all funds paid by them to the agency and shall be strictly accountable to all participating bodies for all receipts and disbursement. (d) The agency is authorized to receive gifts, donations, subventions, grants, and other financial aids and funds; but the agency may not own land except as provided in subdivision (i) of Article III. (e) The agency shall not obligate itself beyond the moneys due under this article for its support from the several counties and the states for the current fiscal year, plus any moneys on hand or irrevocably pledged to its support from other sources. No obligation contracted by the agency shall bind either of the party states or any political subdivision thereof.

ARTICLE IX. Transportation District (a) The Tahoe transportation district is hereby established as a special purpose district. The boundaries of the district are coterminous with those of the region. (b) The business of the district shall be managed by a board of directors consisting of: (1) One member of the county board of supervisors of each of the counties of El Dorado and Placer; (2) One member of the city council of the City of South Lake Tahoe; (3) One member each of the board of county commissioners of Douglas County and of Washoe County; (4) One member of the board of supervisors of Carson City; (5) The director of the California Department of Transportation; and (6) The director of the department of transportation of the State of Nevada. � Any director may designate an alternate.

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(c) The vote of at least five of the directors must agree to take action. If at least five votes in favor of an action are not cast, an action of rejection shall be deemed to have been taken. (d) The Tahoe transportation district may in accordance with the adopted transportation plan: (1) Own and operate a public transportation system to the exclusion of all other publicly owned transportation systems in the region. (2) Acquire upon mutually agreeable terms any public transportation system or facility owned by a county, city or special purpose district within the region. (3) Hire the employees of existing public transportation systems that are acquired by the district without loss of benefits to the employees, bargain collectively with employee organizations, and extend pension and other collateral benefits to employees. (4) Fix the rates and charges for transit services provided pursuant to this subdivision. (5) Issue revenue bonds and other evidence of indebtedness. (6) By resolution, determine and propose for adoption a tax for the purpose of obtaining services of the district. The tax proposed must be general and of uniform operation throughout the region, and may not be graduated in any way. The district is prohibited from imposing an ad valorem tax, a tax measured by gross or net receipts on business, a tax or charge that is assessed against people or vehicles as they enter or leave the region, and any tax, direct or indirect, on gaming tables and devices. Any such proposition must be submitted to the voters of the district and shall become effective upon approval of two-thirds of the voters voting on the proposition. The revenues from any such tax must be used for the service for which it was imposed, and for no other purpose. (7) Provide service from inside the region to convenient airport, railroad and interstate bus terminals without regard to the boundaries of the region. (e) The legislatures of the states of California and Nevada may, by substantively identical enactments, amend this article.

ARTICLE X. Miscellaneous (a) It is intended that the provisions of this compact shall be reasonably and liberally construed to effectuate the purposes thereof. Except as provided in subdivision (c), the provisions of this compact shall be severable and if any phrase, clause, sentence or provision of this compact is declared to be contrary to the

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constitution of any participating state or of the United States or the applicability thereof to any government, agency, person or circumstance is held invalid, the validity of the remainder of this compact and the applicability thereof to any government, agency, person or circumstance shall not be affected thereby. If this compact shall be held contrary to the constitution of any state participating therein, the compact shall remain in full force and effect as to the remaining state and in full force and effect as to the state affected as to all severable matters. (b) The agency shall have such additional powers and duties as may hereafter be delegated or imposed upon it from time to time by the action of the Legislature of either state concurred in by the Legislature of the other. (c) A state party to this compact may withdraw therefrom by enacting a statute repealing the compact. Notice of withdrawal shall be communicated officially and in writing to the Governor of the other state and to the agency administrators. This provision is not severable, and if it is held to be unconstitutional or invalid, no other provision of this compact shall be binding upon the State of Nevada or the State of California. (d) No provision of this compact shall have any effect upon the allocation, distribution or storage of interstate waters or upon any appropriative water right. Sec. 2. Section 1.5 of chapter 530, Statutes of Nevada 2011, at page 3711, is hereby amended to read as follows:

Sec. 1.5. NRS 277.200 is hereby amended to read as follows: 277.200 The Tahoe Regional Planning Compact is as follows:

Tahoe Regional Planning Compact

ARTICLE I. Findings and Declarations of Policy (a) It is found and declared that: (1) The waters of Lake Tahoe and other resources of the region are threatened with deterioration or degeneration, which endangers the natural beauty and economic productivity of the region. (2) The public and private interests and investments in the region are substantial. (3) The region exhibits unique environmental and ecological values which are irreplaceable.

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(4) By virtue of the special conditions and circumstances of the region’s natural ecology, developmental pattern, population distribution and human needs, the region is experiencing problems of resource use and deficiencies of environmental control. (5) Increasing urbanization is threatening the ecological values of the region and threatening the public opportunities for use of the public lands. (6) Maintenance of the social and economic health of the region depends on maintaining the significant scenic, recreational, educational, scientific, natural and public health values provided by the Lake Tahoe Basin. (7) There is a public interest in protecting, preserving and enhancing these values for the residents of the region and for visitors to the region. (8) Responsibilities for providing recreational and scientific opportunities, preserving scenic and natural areas, and safeguarding the public who live, work and play in or visit the region are divided among local governments, regional agencies, the states of California and Nevada, and the Federal Government. (9) In recognition of the public investment and multistate and national significance of the recreational values, the Federal Government has an interest in the acquisition of recreational property and the management of resources in the region to preserve environmental and recreational values, and the Federal Government should assist the states in fulfilling their responsibilities. (10) In order to preserve the scenic beauty and outdoor recreational opportunities of the region, there is a need to insure an equilibrium between the region’s natural endowment and its man-made environment. (b) In order to enhance the efficiency and governmental effectiveness of the region, it is imperative that there be established a Tahoe Regional Planning Agency with the powers conferred by this compact including the power to establish environmental threshold carrying capacities and to adopt and enforce a regional plan and implementing ordinances which will achieve and maintain such capacities while providing opportunities for orderly growth and development consistent with such capacities.

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(c) The Tahoe Regional Planning Agency shall interpret and administer its plans, ordinances, rules and regulations in accordance with the provisions of this compact.

ARTICLE II. Definitions As used in this compact: (a) “Region,” includes Lake Tahoe, the adjacent parts of Douglas and Washoe counties and Carson City, which for the purposes of this compact shall be deemed a county, lying within the Tahoe Basin in the State of Nevada, and the adjacent parts of the Counties of Placer and El Dorado lying within the Tahoe Basin in the State of California, and that additional and adjacent part of the County of Placer outside of the Tahoe Basin in the State of California which lies southward and eastward of a line starting at the intersection of the basin crestline and the north boundary of Section 1, thence west to the northwest corner of Section 3, thence south to the intersection of the basin crestline and the west boundary of Section 10; all sections referring to Township 15 North, Range 16 East, M.D.B. & M. The region defined and described herein shall be as precisely delineated on official maps of the agency. (b) “Agency” means the Tahoe Regional Planning Agency. (c) “Governing body” means the governing board of the Tahoe Regional Planning Agency. (d) “Regional plan” means the long-term general plan for the development of the region. (e) “Planning commission” means the advisory planning commission appointed pursuant to subdivision (h) of Article III. (f) “Gaming” means to deal, operate, carry on, conduct, maintain or expose for play any banking or percentage game played with cards, dice or any mechanical device or machine for money, property, checks, credit or any representative of value, including, without limiting the generality of the foregoing, faro, monte, roulette, keno, bingo, fantan, twenty-one, blackjack, seven-and-a-half, big injun, klondike, craps, stud poker, draw poker or slot machine, but does not include social games played solely for drinks, or cigars or cigarettes served individually, games played in private homes or residences for prizes or games operated by charitable or

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educational organizations, to the extent excluded by applicable state law. (g) “Restricted gaming license” means a license to operate not more than 15 slot machines on which a quarterly fee is charged pursuant to NRS 463.373 and no other games. (h) “Project” means an activity undertaken by any person, including any public agency, if the activity may substantially affect the land, water, air, space or any other natural resources of the region. (i) “Environmental threshold carrying capacity” means an environmental standard necessary to maintain a significant scenic, recreational, educational, scientific or natural value of the region or to maintain public health and safety within the region. Such standards shall include but not be limited to standards for air quality, water quality, soil conservation, vegetation preservation and noise. (j) “Feasible” means capable of being accomplished in a successful manner within a reasonable period of time, taking into account economic, environmental, social and technological factors. (k) “Areas open to public use” means all of the areas within a structure housing gaming under a nonrestricted license except areas devoted to the private use of guests. (l) “Areas devoted to private use of guests” means hotel rooms and hallways to serve hotel room areas, and any parking areas. A hallway serves hotel room areas if more than 50 percent of the areas on each side of the hallway are hotel rooms. (m) “Nonrestricted license” means a gaming license which is not a restricted gaming license.

ARTICLE III. Organization (a) There is created the Tahoe Regional Planning Agency as a separate legal entity. The governing body of the agency shall be constituted as follows: (1) California delegation: (A) One member appointed by each of the County Boards of Supervisors of the Counties of El Dorado and Placer and one member appointed by the City Council of the City of South Lake Tahoe. Any such member may be a member of the county board of supervisors or city council, respectively,

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and shall reside in the territorial jurisdiction of the governmental body making the appointment. (B) Two members appointed by the Governor of California, one member appointed by the Speaker of the Assembly of California and one member appointed by the Senate Rules Committee of the State of California. The members appointed pursuant to this subparagraph shall not be residents of the region and shall represent the public at large within the State of California. (2) Nevada delegation: (A) One member appointed by each of the boards of county commissioners of Douglas and Washoe counties and one member appointed by the board of supervisors of Carson City. Any such member may be a member of the board of county commissioners or board of supervisors, respectively, and shall reside in the territorial jurisdiction of the governmental body making the appointment. (B) One member appointed by the governor of Nevada, the secretary of state of Nevada or his designee, and the director of the state department of conservation and natural resources of Nevada or his designee. Except for the secretary of state and the director of the state department of conservation and natural resources, the members or designees appointed pursuant to this subparagraph shall not be residents of the region. All members appointed pursuant to this subparagraph shall represent the public at large within the State of Nevada. (C) One member appointed for a 1-year term by the six other members of the Nevada delegation. If at least four members of the Nevada delegation are unable to agree upon the selection of a seventh member within 60 days after the effective date of the amendments to this compact or the occurrence of a vacancy on the governing body for that state the governor of the State of Nevada shall make such an appointment. The member appointed pursuant to this subparagraph may, but is not required to, be a resident of the region within the State of Nevada. (3) If any appointing authority under paragraph (1)(A), (1)(B), (2)(A) or (2)(B) fails to make such an appointment within 60 days after the effective date of the amendments to this compact or the occurrence of a vacancy on the governing body, the governor of the state in which the appointing

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authority is located shall make the appointment. The term of any member so appointed shall be 1 year. (4) The position of any member of the governing body shall be deemed vacant if such a member is absent from three consecutive meetings of the governing body in any calendar year. (5) Each member and employee of the agency shall disclose his economic interests in the region within 10 days after taking his seat on the governing board or being employed by the agency and shall thereafter disclose any further economic interest which he acquires, as soon as feasible after he acquires it. As used in this paragraph, “economic interests” means: (A) Any business entity operating in the region in which the member or employee has a direct or indirect investment worth more than $1,000; (B) Any real property located in the region in which the member or employee has a direct or indirect interest worth more than $1,000; (C) Any source of income attributable to activities in the region, other than loans by or deposits with a commercial lending institution in the regular course of business, aggregating $250 or more in value received by or promised to the member within the preceding 12 months; or (D) Any business entity operating in the region in which the member or employee is a director, officer, partner, trustee, employee or holds any position of management. � No member or employee of the agency shall make, or attempt to influence, an agency decision in which he knows or has reason to know he has an economic interest. Members and employees of the agency must disqualify themselves from making or participating in the making of any decision of the agency when it is reasonably foreseeable that the decision will have a material financial effect, distinguishable from its effect on the public generally, on the economic interests of the member or employee. (b) The members of the agency shall serve without compensation, but the expenses of each member shall be met by the body which he represents in accordance with the law of that body. All other expenses incurred by the governing body in the course of exercising the powers conferred upon it by this compact unless met in some other manner specifically provided, shall be paid by the agency out of its own funds.

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(c) Except for the secretary of state and director of the state department of conservation and natural resources of Nevada and the member appointed pursuant to subdivision (a)(2)(C), the members of the governing body serve at the pleasure of the appointing authority in each case, but each appointment shall be reviewed no less often than every 4 years. Members may be reappointed. (d) The governing body of the agency shall meet at least monthly. All meetings shall be open to the public to the extent required by the law of the State of California or the State of Nevada, whichever imposes the greater requirement, applicable to local governments at the time such meeting is held. The governing body shall fix a date for its regular monthly meeting in such terms as “the first Monday of each month,” and shall not change such date more often than once in any calendar year. Notice of the date so fixed shall be given by publication at least once in a newspaper or combination of newspapers whose circulation is general throughout the region and in each county a portion of whose territory lies within the region. Notice of any special meeting, except an emergency meeting, shall be given by so publishing the date and place and posting an agenda at least 5 days prior to the meeting. (e) The position of a member of the governing body shall be considered vacated upon his loss of any of the qualifications required for his appointment and in such event the appointing authority shall appoint a successor. (f) The governing body shall elect from its own members a chairman and vice chairman, whose terms of office shall be 2 years, and who may be reelected. If a vacancy occurs in either office, the governing body may fill such vacancy for the unexpired term. (g) Four of the members of the governing body from each state constitute a quorum for the transaction of the business of the agency. The voting procedures shall be as follows: (1) For adopting, amending or repealing environmental threshold carrying capacities, the regional plan, and ordinances, rules and regulations, and for granting variances from the ordinances, rules and regulations, the vote of at least four of the members of each state agreeing with the vote of at least four members of the other state shall be required to take action. If there is no vote of at least four of the members from one state agreeing with the vote of at least four of the

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members of the other state on the actions specified in this paragraph, an action of rejection shall be deemed to have been taken. (2) For approving a project, the affirmative vote of at least five members from the state in which the project is located and the affirmative vote of at least nine members of the governing body are required. If at least five members of the governing body from the state in which the project is located and at least nine members of the entire governing body do not vote in favor of the project, upon a motion for approval, an action of rejection shall be deemed to have been taken. A decision by the agency to approve a project shall be supported by a statement of findings, adopted by the agency, which indicates that the project complies with the regional plan and with applicable ordinances, rules and regulations of the agency. (3) For routine business and for directing the agency’s staff on litigation and enforcement actions, at least eight members of the governing body must agree to take action. If at least eight votes in favor of such action are not cast, an action of rejection shall be deemed to have been taken. � Whenever under the provisions of this compact or any ordinance, rule, regulation or policy adopted pursuant thereto, the agency is required to review or approve any project, public or private, the agency shall take final action by vote, whether to approve, to require modification or to reject such project, within 180 days after the application for such project is accepted as complete by the agency in compliance with the agency’s rules and regulations governing such delivery unless the applicant has agreed to an extension of this time limit. If a final action by vote does not take place within 180 days, the applicant may bring an action in a court of competent jurisdiction to compel a vote unless he has agreed to an extension. This provision does not limit the right of any person to obtain judicial review of agency action under subdivision (h) of Article VI. The vote of each member of the governing body shall be individually recorded. The governing body shall adopt its own rules, regulations and procedures. (h) An advisory planning commission shall be appointed by the agency. The commission shall include: the chief planning officers of Placer County, El Dorado County, and the City of South Lake Tahoe in California and of Douglas County, Washoe County and Carson City in Nevada, the

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executive officer of the Lahontan Regional Water Quality Control Board of the State of California, the executive officer of the Air Resources Board of the State of California, the director of the state department of conservation and natural resources of the State of Nevada, the administrator of the division of environmental protection in the state department of conservation and natural resources of the State of Nevada, the administrator of the Lake Tahoe Management Unit of the United States Forest Service, and at least four lay members with an equal number from each state, at least half of whom shall be residents of the region. Any official member may designate an alternate. The term of office of each lay member of the advisory planning commission shall be 2 years. Members may be reappointed. The position of each member of the advisory planning commission shall be considered vacated upon loss of any of the qualifications required for appointment, and in such an event the appointing authority shall appoint a successor. The advisory planning commission shall elect from its own members a chairman and a vice chairman, whose terms of office shall be 2 years and who may be reelected. If a vacancy occurs in either office, the advisory planning commission shall fill such vacancy for the unexpired term. A majority of the members of the advisory planning commission constitutes a quorum for the transaction of the business of the commission. A majority vote of the quorum present shall be required to take action with respect to any matter. (i) The agency shall establish and maintain an office within the region, and for this purpose the agency may rent or own property and equipment. Every plan, ordinance and other record of the agency which is of such nature as to constitute a public record under the law of either the State of California or the State of Nevada shall be open to inspection and copying during regular office hours. (j) Each authority charged under this compact or by the law of either state with the duty of appointing a member of the governing body of the agency shall by certified copy of its resolution or other action notify the Secretary of State of its own state of the action taken.

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ARTICLE IV. Personnel (a) The governing body shall determine the qualification of, and it shall appoint and fix the salary of, the executive officer of the agency, and shall employ such other staff and legal counsel as may be necessary to execute the powers and functions provided for under this compact or in accordance with any intergovernmental contracts or agreements the agency may be responsible for administering. (b) Agency personnel standards and regulations shall conform insofar as possible to the regulations and procedures of the civil service of the State of California or the State of Nevada, as may be determined by the governing body of the agency; and shall be regional and bistate in application and effect; provided that the governing body may, for administrative convenience and at its discretion, assign the administration of designated personnel arrangements to an agency of either state, and provided that administratively convenient adjustments be made in the standards and regulations governing personnel assigned under intergovernmental agreements. (c) The agency may establish and maintain or participate in such additional programs of employee benefits as may be appropriate to afford employees of the agency terms and conditions of employment similar to those enjoyed by employees of California and Nevada generally.

ARTICLE V. Planning (a) In preparing each of the plans required by this article and each amendment thereto, if any, subsequent to its adoption, the planning commission after due notice shall hold at least one public hearing which may be continued from time to time, and shall review the testimony and any written recommendations presented at such hearing before recommending the plan or amendment. The notice required by this subdivision shall be given at least 20 days prior to the public hearing by publication at least once in a newspaper or combination of newspapers whose circulation is general throughout the region and in each county a portion of whose territory lies within the region. The planning commission shall then recommend such plan or amendment to the governing body for adoption by

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ordinance. The governing body may adopt, modify or reject the proposed plan or amendment, or may initiate and adopt a plan or amendment without referring it to the planning commission. If the governing body initiates or substantially modifies a plan or amendment, it shall hold at least one public hearing thereon after due notice as required in this subdivision. If a request is made for the amendment of the regional plan by: (1) A political subdivision a part of whose territory would be affected by such amendment; or (2) The owner or lessee of real property which would be affected by such amendment, � the governing body shall complete its action on such amendment within 180 days after such request is accepted as complete according to standards which must be prescribed by ordinance of the agency. (b) The agency shall develop, in cooperation with the states of California and Nevada, environmental threshold carrying capacities for the region. The agency should request the President’s Council on Environmental Quality, the United States Forest Service and other appropriate agencies to assist in developing such environmental threshold carrying capacities. Within 18 months after the effective date of the amendments to this compact, the agency shall adopt environmental threshold carrying capacities for the region. (c) Within 1 year after the adoption of the environmental threshold carrying capacities for the region, the agency shall amend the regional plan so that, at a minimum, the plan and all of its elements, as implemented through agency ordinances, rules and regulations, achieves and maintains the adopted environmental threshold carrying capacities. Each element of the plan shall contain implementation provisions and time schedules for such implementation by ordinance. The planning commission and governing body shall continuously review and maintain the regional plan [.] and, in so doing, shall ensure that the regional plan reflects changing economic conditions and the economic effect of regulation on commerce. The regional plan shall consist of a diagram, or diagrams, and text, or texts setting forth the projects and proposals for implementation of the regional plan, a description of the needs and goals of the region and a

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statement of the policies, standards and elements of the regional plan. The regional plan shall be a single enforceable plan and includes all of the following correlated elements: (1) A land-use plan for the integrated arrangement and general location and extent of, and the criteria and standards for, the uses of land, water, air, space and other natural resources within the region, including but not limited to an indication or allocation of maximum population densities and permitted uses. (2) A transportation plan for the integrated development of a regional system of transportation, including but not limited to parkways, highways, transportation facilities, transit routes, waterways, navigation facilities, public transportation facilities, bicycle facilities, and appurtenant terminals and facilities for the movement of people and goods within the region. The goal of transportation planning shall be: (A) To reduce dependency on the automobile by making more effective use of existing transportation modes and of public transit to move people and goods within the region; and (B) To reduce to the extent feasible air pollution which is caused by motor vehicles. � Where increases in capacity are required, the agency shall give preference to providing such capacity through public transportation and public programs and projects related to transportation. The agency shall review and consider all existing transportation plans in preparing its regional transportation plan pursuant to this paragraph. The plan shall provide for an appropriate transit system for the region. The plan shall give consideration to: (A) Completion of the Loop Road in the states of Nevada and California; (B) Utilization of a light rail mass transit system in the South Shore area; and (C) Utilization of a transit terminal in the Kingsbury Grade area. � Until the regional plan is revised, or a new transportation plan is adopted in accordance with this paragraph, the agency has no effective transportation plan.

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(3) A conservation plan for the preservation, development, utilization, and management of the scenic and other natural resources within the basin, including but not limited to, soils, shoreline and submerged lands, scenic corridors along transportation routes, open spaces, recreational and historical facilities. (4) A recreation plan for the development, utilization, and management of the recreational resources of the region, including but not limited to, wilderness and forested lands, parks and parkways, riding and hiking trails, beaches and playgrounds, marinas, areas for skiing and other recreational facilities. (5) A public services and facilities plan for the general location, scale and provision of public services and facilities, which, by the nature of their function, size, extent and other characteristics are necessary or appropriate for inclusion in the regional plan. In formulating and maintaining the regional plan, the planning commission and governing body shall take account of and shall seek to harmonize the needs of the region as a whole, the plans of the counties and cities within the region, the plans and planning activities of the state, federal and other public agencies and nongovernmental agencies and organizations which affect or are concerned with planning and development within the region. (d) The regional plan shall provide for attaining and maintaining federal, state, or local air and water quality standards, whichever are strictest, in the respective portions of the region for which the standards are applicable. The agency may, however, adopt air or water quality standards or control measures more stringent than the applicable state implementation plan or the applicable federal, state, or local standards for the region, if it finds that such additional standards or control measures are necessary to achieve the purposes of this compact. Each element of the regional plan, where applicable, shall, by ordinance, identify the means and time schedule by which air and water quality standards will be attained. (e) Except for the Regional Transportation Plan of the California Tahoe Regional Planning Agency, the regional plan, ordinances, rules and regulations adopted by the California Tahoe Regional Planning Agency in effect on July 1, 1980, shall be the regional plan, ordinances, rules and

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regulations of the Tahoe Regional Planning Agency for that portion of the Tahoe region located in the State of California. Such plan, ordinance, rule or regulation may be amended or repealed by the governing body of the agency. The plans, ordinances, rules and regulations of the Tahoe Regional Planning Agency that do not conflict with, or are not addressed by, the California Tahoe Regional Planning Agency’s plans, ordinances, rules and regulations referred to in this subdivision shall continue to be applicable unless amended or repealed by the governing body of the agency. No provision of the regional plan, ordinances, rules and regulations of the California Tahoe Regional Planning Agency referred to in this subdivision shall apply to that portion of the region within the State of Nevada, unless such provision is adopted for the Nevada portion of the region by the governing body of the agency. (f) The regional plan, ordinances, rules and regulations of the Tahoe Regional Planning Agency apply to that portion of the region within the State of Nevada. (g) The agency shall adopt ordinances prescribing specific written findings that the agency must make prior to approving any project in the region. These findings shall relate to environmental protection and shall insure that the project under review will not adversely affect implementation of the regional plan and will not cause the adopted environmental threshold carrying capacities of the region to be exceeded. (h) The agency shall maintain the data, maps and other information developed in the course of formulating and administering the regional plan, in a form suitable to assure a consistent view of developmental trends and other relevant information for the availability of and use by other agencies of government and by private organizations and individuals concerned. (i) Where necessary for the realization of the regional plan, the agency may engage in collaborative planning with local governmental jurisdictions located outside the region, but contiguous to its boundaries. In formulating and implementing the regional plan, the agency shall seek the cooperation and consider the recommendations of counties and cities and other agencies of local government, of state and federal agencies, of educational institutions and research

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organizations, whether public or private, and of civic groups and private persons.

ARTICLE VI. Agency’s Powers (a) The governing body shall adopt all necessary ordinances, rules, and regulations to effectuate the adopted regional plan. Except as otherwise provided in this compact, every such ordinance, rule or regulation shall establish a minimum standard applicable throughout the region. Any political subdivision or public agency may adopt and enforce an equal or higher requirement applicable to the same subject of regulation in its territory. The regulations of the agency shall contain standards including but not limited to the following: water purity and clarity; subdivision; zoning; tree removal; solid waste disposal; sewage disposal; land fills, excavations, cuts and grading; piers, harbors, breakwaters or channels and other shoreline developments; waste disposal in shoreline areas; waste disposal from boats; mobile-home parks; house relocation; outdoor advertising; floodplain protection; soil and sedimentation control; air pollution; and watershed protection. Whenever possible without diminishing the effectiveness of the regional plan, the ordinances, rules, regulations and policies shall be confined to matters which are general and regional in application, leaving to the jurisdiction of the respective states, counties and cities the enactment of specific and local ordinances, rules, regulations and policies which conform to the regional plan. The agency shall prescribe by ordinance those activities which it has determined will not have substantial effect on the land, water, air, space or any other natural resources in the region and therefore will be exempt from its review and approval. Every ordinance adopted by the agency shall be published at least once by title in a newspaper or combination of newspapers whose circulation is general throughout the region. Except an ordinance adopting or amending the regional plan, no ordinance shall become effective until 60 days after its adoption. Immediately after its adoption, a copy of each ordinance shall be transmitted to the governing body of each political subdivision having territory within the region.

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(b) No project other than those to be reviewed and approved under the special provisions of subdivisions (d), (e), (f) and (g) may be developed in the region without obtaining the review and approval of the agency and no project may be approved unless it is found to comply with the regional plan and with the ordinances, rules and regulations enacted pursuant to subdivision (a) to effectuate that plan. The agency may approve a project in the region only after making the written findings required by this subdivision or subdivision (g) of Article V. Such findings shall be based on substantial evidence in the record. Before adoption by the agency of the ordinances required in subdivision (g) of Article V, the agency may approve a project in the region only after making written findings on the basis of substantial evidence in the record that the project is consistent with the regional plan then in effect and with applicable plans, ordinances, regulations, and standards of federal and state agencies relating to the protection, maintenance and enhancement of environmental quality in the region. (c) The legislatures of the states of California and Nevada find that in order to make effective the regional plan as revised by the agency, it is necessary to halt temporarily works of development in the region which might otherwise absorb the entire capability of the region for further development or direct it out of harmony with the ultimate plan. Subject to the limitation provided in this subdivision, from the effective date of the amendments to this compact until the regional plan is amended pursuant to subdivision (c) of Article V, or until May 1, 1983, whichever is earlier: (1) Except as otherwise provided in this paragraph, no new subdivision, planned unit development, or condominium project may be approved unless a complete tentative map or plan has been approved before the effective date of the amendments to this compact by all agencies having jurisdiction. The subdivision of land owned by a general improvement district, which existed and owned the land before the effective date of the amendments to this compact, may be approved if subdivision of the land is necessary to avoid insolvency of the district. (2) Except as provided in paragraph (3), no apartment building may be erected unless the required permits for such building have been secured from all agencies having

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jurisdiction, prior to the effective date of the amendments to this compact. (3) During each of the calendar years 1980, 1981 and 1982, no city or county may issue building permits which authorize the construction of a greater number of new residential units within the region than were authorized within the region by building permits issued by that city or county during the calendar year 1978. For the period of January through April, 1983, building permits authorizing the construction of no more than one-third of that number may be issued by each such city or county. For purposes of this paragraph a “residential unit” means either a single family residence or an individual residential unit within a larger building, such as an apartment building, a duplex or a condominium. The legislatures find the respective numbers of residential units authorized within the region during the calendar year 1978 to be as follows: 1. City of South Lake Tahoe and El Dorado County (combined) ......................................................... 252 2. Placer County ..................................................... 278 3. Carson City ......................................................... -0- 4. Douglas County .................................................. 339 5. Washoe County .................................................. 739 (4) During each of the calendar years 1980, 1981 and 1982, no city or county may issue building permits which authorize construction of a greater square footage of new commercial buildings within the region than were authorized within the region by building permits for commercial purposes issued by that city or county during the calendar year 1978. For the period of January through April, 1983, building permits authorizing the construction of no more than one-third the amount of that square footage may be issued by each such city or county. The legislatures find the respective square footages of commercial buildings authorized within the region during calendar year 1978 to be as follows: 1. City of South Lake Tahoe and El Dorado County (combined) .................................................... 64,324 2. Placer County ................................................ 23,000 3. Carson City .................................................... -0- 4. Douglas County ............................................. 57,354 5. Washoe County ............................................. 50,600

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(5) No structure may be erected to house gaming under a nonrestricted license. (6) No facility for the treatment of sewage may be constructed or enlarged except: (A) To comply, as ordered by the appropriate state agency for the control of water pollution, with existing limitations of effluent under the Clean Water Act, 33 U.S.C. §§ 1251 et seq., and the applicable state law for control of water pollution; (B) To accommodate development which is not prohibited or limited by this subdivision; or (C) In the case of Douglas County Sewer District # 1, to modify or otherwise alter sewage treatment facilities existing on the effective date of the amendments to this compact so that such facilities will be able to treat the total volume of effluent for which they were originally designed, which is 3.0 million gallons per day. Such modification or alteration is not a “project”; is not subject to the requirements of Article VII; and does not require a permit from the agency. Before commencing such modification or alteration, however, the district shall submit to the agency its report identifying any significant soil erosion problems which may be caused by such modifications or alterations and the measures which the district proposes to take to mitigate or avoid such problems. The moratorium imposed by this subdivision does not apply to work done pursuant to a right vested before the effective date of the amendments to this compact. Notwithstanding the expiration date of the moratorium imposed by this subdivision, no new highway may be built or existing highway widened to accommodate additional continuous lanes for automobiles until the regional transportation plan is revised and adopted. The moratorium imposed by this subdivision does not apply to the construction of any parking garage which has been approved by the agency prior to May 4, 1979, whether that approval was affirmative or by default. The provisions of this paragraph are not an expression of legislative intent that any such parking garage, the approval of which is the subject of litigation which was pending on the effective date of the amendments to this compact, should or should not be constructed. The provisions of this paragraph are intended solely to permit construction of such a parking garage if a judgment sustaining the agency’s approval to construct that

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parking garage has become final and no appeal is pending or may lawfully be taken to a higher court. (d) Subject to the final order of any court of competent jurisdiction entered in litigation contesting the validity of an approval by the Tahoe Regional Planning Agency, whether that approval was affirmative or by default, if that litigation was pending on May 4, 1979, the agency and the states of California and Nevada shall recognize as a permitted and conforming use: (1) Every structure housing gaming under a nonrestricted license which existed as a licensed gaming establishment on May 4, 1979, or whose construction was approved by the Tahoe Regional Planning Agency affirmatively or deemed approved before that date. The construction or use of any structure to house gaming under a nonrestricted license not so existing or approved, or the enlargement in cubic volume of any such existing or approved structure is prohibited. (2) Every other nonrestricted gaming establishment whose use was seasonal and whose license was issued before May 4, 1979, for the same season and for the number and type of games and slot machines on which taxes or fees were paid in the calendar year 1978. (3) Gaming conducted pursuant to a restricted gaming license issued before May 4, 1979, to the extent permitted by that license on that date. � The area within any structure housing gaming under a nonrestricted license which may be open to public use (as distinct from that devoted to the private use of guests and exclusive of any parking area) is limited to the area existing or approved for public use on May 4, 1979. Within these limits, any external modification of the structure which requires a permit from a local government also requires approval from the agency. The agency shall not permit restaurants, convention facilities, showrooms or other public areas to be constructed elsewhere in the region outside the structure in order to replace areas existing or approved for public use on May 4, 1979. (e) Any structure housing licensed gaming may be rebuilt or replaced to a size not to exceed the cubic volume, height and land coverage existing or approved on May 4, 1979, without the review or approval of the agency or any planning or regulatory authority of the State of Nevada whose review or approval would be required for a new structure.

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(f) The following provisions apply to any internal or external modification, remodeling, change in use, or repair of a structure housing gaming under a nonrestricted license which is not prohibited by Article VI (d): (1) The agency’s review of an external modification of the structure which requires a permit from a local government is limited to determining whether the external modification will do any of the following: (A) Enlarge the cubic volume of the structure; (B) Increase the total square footage of area open to or approved for public use on May 4, 1979; (C) Convert an area devoted to the private use of guests to an area open to public use; (D) Increase the public area open to public use which is used for gaming beyond the limits contained in paragraph (3); and (E) Conflict with or be subject to the provisions of any of the agency’s ordinances that are generally applicable throughout the region. � The agency shall make this determination within 60 days after the proposal is delivered to the agency in compliance with the agency’s rules or regulations governing such delivery unless the applicant has agreed to an extension of this time limit. If an external modification is determined to have any of the effects enumerated in subparagraphs (A) through (C), it is prohibited. If an external modification is determined to have any of the effects enumerated in subparagraph (D) or (E), it is subject to the applicable provisions of this compact. If an external modification is determined to have no such effect, it is not subject to the provisions of this compact. (2) Except as provided in paragraph (3), internal modification, remodeling, change in use or repair of a structure housing gaming under a nonrestricted license is not a project and does not require the review or approval of the agency. (3) Internal modification, remodeling, change in use or repair of areas open to public use within a structure housing gaming under a nonrestricted license which alone or in combination with any other such modification, remodeling, change in use or repair will increase the total portion of those areas which is actually used for gaming by more than the product of the total base area, as defined below, in square feet

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existing on or approved before August 4, 1980, multiplied by 15 percent constitutes a project and is subject to all of the provisions of this compact relating to projects. For purposes of this paragraph and the determination required by Article VI (g), base area means all of the area within a structure housing gaming under a nonrestricted license which may be open to public use, whether or not gaming is actually conducted or carried on in that area, except retail stores, convention centers and meeting rooms, administrative offices, kitchens, maintenance and storage areas, rest rooms, engineering and mechanical rooms, accounting rooms and counting rooms. (g) In order to administer and enforce the provisions of paragraphs (d), (e) and (f) the State of Nevada, through its appropriate planning or regulatory agency, shall require the owner or licensee of a structure housing gaming under a nonrestricted license to provide: (1) Documents containing sufficient information for the Nevada agency to establish the following relative to the structure: (A) The location of its external walls; (B) Its total cubic volume; (C) Within its external walls, the area in square feet open or approved for public use and the area in square feet devoted to or approved for the private use of guests on May 4, 1979; (D) The amount of surface area of land under the structure; and (E) The base area as defined in paragraph (f)(3) in square feet existing on or approved before August 4, 1980. (2) An informational report whenever any internal modification, remodeling, change in use, or repair will increase the total portion of the areas open to public use which is used for gaming. The Nevada agency shall transmit this information to the Tahoe Regional Planning Agency. (h) Gaming conducted pursuant to a restricted gaming license is exempt from review by the agency if it is incidental to the primary use of the premises. (i) The provisions of subdivisions (d) and (e) are intended only to limit gaming and related activities as conducted within a gaming establishment, or construction designed to permit the enlargement of such activities, and not to limit any

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other use of property zoned for commercial use or the accommodation of tourists, as approved by the agency. (j) Legal actions arising out of or alleging a violation of the provisions of this compact, of the regional plan or of an ordinance or regulation of the agency or of a permit or a condition of a permit issued by the agency are governed by the following provisions: (1) This subdivision applies to: (A) Actions arising out of activities directly undertaken by the agency. (B) Actions arising out of the issuance to a person of a lease, permit, license or other entitlement for use by the agency. (C) Actions arising out of any other act or failure to act by any person or public agency. � Such legal actions may be filed and the provisions of this subdivision apply equally in the appropriate courts of California and Nevada and of the United States. (2) Venue lies: (A) If a civil or criminal action challenges an activity by the agency or any person which is undertaken or to be undertaken upon a parcel of real property, in the state or federal judicial district where the real property is situated. (B) If an action challenges an activity which does not involve a specific parcel of land (such as an action challenging an ordinance of the agency), in any state or federal court having jurisdiction within the region. (3) Any aggrieved person may file an action in an appropriate court of the State of California or Nevada or of the United States alleging noncompliance with the provisions of this compact or with an ordinance or regulation of the agency. In the case of governmental agencies, “aggrieved person” means the Tahoe Regional Planning Agency or any state, federal or local agency. In the case of any person other than a governmental agency who challenges an action of the Tahoe Regional Planning Agency, “aggrieved person” means any person who has appeared, either in person, through an authorized representative, or in writing, before the agency at an appropriate administrative hearing to register objection to the action which is being challenged, or who had good cause for not making such an appearance. (4) A legal action arising out of the adoption or amendment of the regional plan or of any ordinance or

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regulation of the agency, or out of the granting or denial of any permit, shall be commenced within 60 days after final action by the agency. All other legal actions shall be commenced within 65 days after discovery of the cause of action. (5) In any legal action filed pursuant to this subdivision which challenges an adjudicatory act or decision of the agency to approve or disapprove a project, the scope of judicial inquiry shall extend only to whether there was prejudicial abuse of discretion. Prejudicial abuse of discretion is established if the agency has not proceeded in a manner required by law or if the act or decision of the agency was not supported by substantial evidence in light of the whole record. In making such a determination the court shall not exercise its independent judgment on evidence but shall only determine whether the act or decision was supported by substantial evidence in light of the whole record. In any legal action filed pursuant to this subdivision which challenges a legislative act or decision of the agency (such as the adoption of the regional plan and the enactment of implementing ordinances), the scope of the judicial inquiry shall extend only to the questions of whether the act or decision has been arbitrary, capricious or lacking substantial evidentiary support or whether the agency has failed to proceed in a manner required by law. (6) In addition to the provisions of paragraph (5) relating to judicial inquiry: (A) When adopting or amending a regional plan, the agency shall act in accordance with the requirements of the compact and the implementing ordinances, rules and regulations, and a party challenging the regional plan has the burden of showing that the regional plan is not in conformance with those requirements. (B) When taking an action or making a decision, the agency shall act in accordance with the requirements of the compact and the regional plan, including the implementing ordinances, rules and regulations, and a party challenging the action or decision has the burden of showing that the act or decision is not in conformance with those requirements. (7) The provisions of this subdivision do not apply to any legal proceeding pending on the date when this subdivision becomes effective. Any such legal proceeding shall be

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conducted and concluded under the provisions of law which were applicable prior to the effective date of this subdivision. (8) The security required for the issuance of a temporary restraining order or preliminary injunction based upon an alleged violation of this compact or any ordinance, plan, rule or regulation adopted pursuant thereto is governed by the rule or statute applicable to the court in which the action is brought, unless the action is brought by a public agency or political subdivision to enforce its own rules, regulations and ordinances in which case no security shall be required. (k) The agency shall monitor activities in the region and may bring enforcement actions in the region to ensure compliance with the regional plan and adopted ordinances, rules, regulations and policies. If it is found that the regional plan, or ordinances, rules, regulations and policies are not being enforced by a local jurisdiction, the agency may bring action in a court of competent jurisdiction to ensure compliance. (l) Any person who violates any provision of this compact or of any ordinance or regulation of the agency or of any condition of approval imposed by the agency is subject to a civil penalty not to exceed $5,000. Any such person is subject to an additional civil penalty not to exceed $5,000 per day, for each day on which such a violation persists. In imposing the penalties authorized by this subdivision, the court shall consider the nature of the violation and shall impose a greater penalty if it was willful or resulted from gross negligence than if it resulted from inadvertence or simple negligence. (m) The agency is hereby empowered to initiate, negotiate and participate in contracts and agreements among the local governmental authorities of the region, or any other intergovernmental contracts or agreements authorized by state or federal law. (n) Each intergovernmental contract or agreement shall provide for its own funding and staffing, but this shall not preclude financial contributions from the local authorities concerned or from supplementary sources. (o) Every record of the agency, whether public or not, shall be open for examination to the Legislature and Controller of the State of California and the legislative auditor of the State of Nevada. (p) Approval by the agency of any project expires 3 years after the date of final action by the agency or the effective

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date of the amendments to this compact, whichever is later, unless construction is begun within that time and diligently pursued thereafter, or the use or activity has commenced. In computing the 3-year period any period of time during which the project is the subject of a legal action which delays or renders impossible the diligent pursuit of that project shall not be counted. Any license, permit or certificate issued by the agency which has an expiration date shall be extended by that period of time during which the project is the subject of such legal action as provided in this subdivision. (q) The governing body shall maintain a current list of real property known to be available for exchange with the United States or with other owners of real property in order to facilitate exchanges of real property by owners of real property in the region.

ARTICLE VII. Environmental Impact Statements (a) The Tahoe Regional Planning Agency when acting upon matters that have a significant effect on the environment shall: (1) Utilize a systematic, interdisciplinary approach which will insure the integrated use of the natural and social sciences and the environmental design arts in planning and in decision making which may have an impact on man’s environment; (2) Prepare and consider a detailed environmental impact statement before deciding to approve or carry out any project. The detailed environmental impact statement shall include the following: (A) The significant environmental impacts of the proposed project; (B) Any significant adverse environmental effects which cannot be avoided should the project be implemented; (C) Alternatives to the proposed project; (D) Mitigation measures which must be implemented to assure meeting standards of the region; (E) The relationship between local short-term uses of man’s environment and the maintenance and enhancement of long-term productivity; (F) Any significant irreversible and irretrievable commitments of resources which would be involved in the proposed project should it be implemented; and

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(G) The growth-inducing impact of the proposed project; (3) Study, develop and describe appropriate alternatives to recommended courses of action for any project which involves unresolved conflicts concerning alternative uses of available resources; (4) Make available to states, counties, municipalities, institutions and individuals, advice and information useful in restoring, maintaining and enhancing the quality of the region’s environment; and (5) Initiate and utilize ecological information in the planning and development of resource-oriented projects. (b) Prior to completing an environmental impact statement, the agency shall consult with and obtain the comments of any federal, state or local agency which has jurisdiction by law or special expertise with respect to any environmental impact involved. Copies of such statement and the comments and views of the appropriate federal, state and local agencies which are authorized to develop and enforce environmental standards shall be made available to the public and shall accompany the project through the review processes. The public shall be consulted during the environmental impact statement process and views shall be solicited during a public comment period not to be less than 60 days. (c) Any environmental impact statement required pursuant to this article need not repeat in its entirety any information or data which is relevant to such a statement and is a matter of public record or is generally available to the public, such as information contained in an environmental impact report prepared pursuant to the California Environmental Quality Act or a federal environmental impact statement prepared pursuant to the National Environmental Policy Act of 1969. However, such information or data shall be briefly described in the environmental impact statement and its relationship to the environmental impact statement shall be indicated. In addition, any person may submit information relative to a proposed project which may be included, in whole or in part, in any environmental impact statement required by this article. (d) In addition to the written findings specified by agency ordinance to implement the regional plan, the agency shall make either of the following written findings before

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approving a project for which an environmental impact statement was prepared: (1) Changes or alterations have been required in or incorporated into such project which avoid or reduce the significant adverse environmental effects to a less than significant level; or (2) Specific considerations, such as economic, social or technical, make infeasible the mitigation measures or project alternatives discussed in the environmental impact statement on the project. � A separate written finding shall be made for each significant effect identified in the environmental impact statement on the project. All written findings must be supported by substantial evidence in the record. (e) The agency may charge and collect a reasonable fee from any person proposing a project subject to the provisions of this compact in order to recover the estimated costs incurred by the agency in preparing an environmental impact statement under this article. (f) The agency shall adopt by ordinance a list of classes of projects which the agency has determined will not have a significant effect on the environment and therefore will be exempt from the requirement for the preparation of an environmental impact statement under this article. Prior to adopting the list, the agency shall make a written finding supported by substantial evidence in the record that each class of projects will not have a significant effect on the environment.

ARTICLE VIII. Finances (a) On or before September 30 of each calendar year the agency shall establish the amount of money necessary to support its activities for the next succeeding fiscal year commencing July 1 of the following year. The agency shall apportion $75,000 of this amount among the counties within the region on the same ratio to the total sum required as the full cash valuation of taxable property within the region in each county bears to the total full cash valuation of taxable property within the region. In addition, each county within the region in California shall pay $18,750 to the agency and each county within the region in Nevada, including Carson City, shall pay $12,500 to the agency, from any funds

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available therefor. The State of California and the State of Nevada may pay to the agency by July 1 of each year any additional sums necessary to support the operations of the agency pursuant to this compact. If additional funds are required, the agency shall make a request for the funds to the states of California and Nevada. Requests for state funds must be apportioned two-thirds from California and one-third from Nevada. Money appropriated shall be paid within 30 days. (b) The agency may fix and collect reasonable fees for any services rendered by it. (c) The agency shall submit an itemized budget to the states for review with any request for state funds, shall be strictly accountable to any county in the region and the states for all funds paid by them to the agency and shall be strictly accountable to all participating bodies for all receipts and disbursement. (d) The agency is authorized to receive gifts, donations, subventions, grants, and other financial aids and funds; but the agency may not own land except as provided in subdivision (i) of Article III. (e) The agency shall not obligate itself beyond the moneys due under this article for its support from the several counties and the states for the current fiscal year, plus any moneys on hand or irrevocably pledged to its support from other sources. No obligation contracted by the agency shall bind either of the party states or any political subdivision thereof.

ARTICLE IX. Transportation District (a) The Tahoe transportation district is hereby established as a special purpose district. The boundaries of the district are coterminous with those of the region. (b) The business of the district shall be managed by a board of directors consisting of: (1) One member of the county board of supervisors of each of the counties of El Dorado and Placer; (2) One member of the city council of the City of South Lake Tahoe; (3) One member each of the board of county commissioners of Douglas County and of Washoe County; (4) One member of the board of supervisors of Carson City;

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(5) The director of the California Department of Transportation; and (6) The director of the department of transportation of the State of Nevada. � Any director may designate an alternate. (c) The vote of at least five of the directors must agree to take action. If at least five votes in favor of an action are not cast, an action of rejection shall be deemed to have been taken. (d) The Tahoe transportation district may in accordance with the adopted transportation plan: (1) Own and operate a public transportation system to the exclusion of all other publicly owned transportation systems in the region. (2) Acquire upon mutually agreeable terms any public transportation system or facility owned by a county, city or special purpose district within the region. (3) Hire the employees of existing public transportation systems that are acquired by the district without loss of benefits to the employees, bargain collectively with employee organizations, and extend pension and other collateral benefits to employees. (4) Fix the rates and charges for transit services provided pursuant to this subdivision. (5) Issue revenue bonds and other evidence of indebtedness. (6) By resolution, determine and propose for adoption a tax for the purpose of obtaining services of the district. The tax proposed must be general and of uniform operation throughout the region, and may not be graduated in any way. The district is prohibited from imposing an ad valorem tax, a tax measured by gross or net receipts on business, a tax or charge that is assessed against people or vehicles as they enter or leave the region, and any tax, direct or indirect, on gaming tables and devices. Any such proposition must be submitted to the voters of the district and shall become effective upon approval of two-thirds of the voters voting on the proposition. The revenues from any such tax must be used for the service for which it was imposed, and for no other purpose. (7) Provide service from inside the region to convenient airport, railroad and interstate bus terminals without regard to the boundaries of the region.

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(e) The legislatures of the states of California and Nevada may, by substantively identical enactments, amend this article.

ARTICLE X. Miscellaneous (a) It is intended that the provisions of this compact shall be reasonably and liberally construed to effectuate the purposes thereof. Except as provided in subdivision (c), the provisions of this compact shall be severable and if any phrase, clause, sentence or provision of this compact is declared to be contrary to the constitution of any participating state or of the United States or the applicability thereof to any government, agency, person or circumstance is held invalid, the validity of the remainder of this compact and the applicability thereof to any government, agency, person or circumstance shall not be affected thereby. If this compact shall be held contrary to the constitution of any state participating therein, the compact shall remain in full force and effect as to the remaining state and in full force and effect as to the state affected as to all severable matters. (b) The agency shall have such additional powers and duties as may hereafter be delegated or imposed upon it from time to time by the action of the Legislature of either state concurred in by the Legislature of the other. (c) A state party to this compact may withdraw therefrom by enacting a statute repealing the compact. Notice of withdrawal shall be communicated officially and in writing to the Governor of the other state and to the agency administrators. This provision is not severable, and if it is held to be unconstitutional or invalid, no other provision of this compact shall be binding upon the State of Nevada or the State of California. (d) No provision of this compact shall have any effect upon the allocation, distribution or storage of interstate waters or upon any appropriative water right.

Sec. 3. Section 18 of chapter 530, Statutes of Nevada 2011, at page 3740, is hereby amended to read as follows:

Sec. 18. [1. NRS 244.153, 266.263, 267.123, 268.099, 269.123, 277.190, 277.200, 277.210, 277.215, 278.025, 278.826, 309.385 and 318.103 are hereby repealed. 2.] Sections 1 and 2 of chapter 442, Statutes of Nevada 1985, at pages 1257 and 1258, respectively, and sections 2

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and 3 of chapter 311, Statutes of Nevada 1997, at pages 1147 and 1169, respectively, are hereby repealed. [3. NRS 277.220 is repealed effective upon: (a) Payment of all of the outstanding obligations of the Account for the Tahoe Regional Planning Agency created by NRS 277.220; and (b) Transfer of the remaining balance, if any, in the Account for the Tahoe Regional Planning Agency to the Account for the Nevada Tahoe Regional Planning Agency created by section 3 of this act, as required by section 21 of this act.]

Sec. 4. Section 25 of chapter 530, Statutes of Nevada 2011, at page 3743, is hereby amended to read as follows:

Sec. 25. 1. This section , [and] sections [17.3,] 17.3, 17.7, 18, 22.5 [,] and 23 [and 23.5] of this act become effective upon passage and approval. 2. Section 22.5 of this act expires by limitation on January 1, 2013. 3. Section 1.5 of this act becomes effective upon proclamation by the Governor of this State of: (a)� The enactment by the State of California of amendments that are substantially identical to the amendments to the Tahoe Regional Planning Compact contained in section 1.5 of this act; and (b) The approval of the amendments to the Tahoe Regional Planning Compact contained in section 1.5 of this act pursuant to Public Law 96-551. [4. Except as otherwise provided in subsection 5, sections 1, 2 to 22, inclusive, and 24 of this act become effective on October 1, 2015, unless, by that date, all of the following events have occurred: (a) The State of California has enacted amendments that are substantially identical to the amendments to the Tahoe Regional Planning Compact contained in section 1.5 of this act; (b) The amendments to the Tahoe Regional Planning Compact contained in section 1.5 of this act have been approved pursuant to Public Law 96-551; and (c) The governing board of the Tahoe Regional Planning Agency has adopted an update to the 1987 Regional Plan. 5. In the event that the Governor of this State issues a proclamation pursuant to section 23.5 of this act, sections 1, 2

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to 22, inclusive, and 24 of this act become effective on October 1, 2017.]

Sec. 5. Sections 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 19, 19.5, 20, 21, 22, 23.5 and 24 of chapter 530, Statutes of Nevada 2011, at pages 3711 to 3743, inclusive, are hereby repealed. Sec. 6. The State of Nevada hereby: 1. Agrees to cooperate with the State of California in seeking to have the changes to the Tahoe Regional Planning Compact contained in section 1.5 of chapter 530, Statutes of Nevada 2011, at page 3711, as amended by section 2 of this act, approved by Congress; 2. Finds and declares support for the full implementation of the regional plan update adopted by the Tahoe Regional Planning Agency in December of 2012; and 3. Acknowledges the authority of either the State of California or the State of Nevada to withdraw from the Tahoe Regional Planning Compact pursuant to subdivision (c) of Article X of the Compact or pursuant to any other provision of the laws of each respective State. Sec. 7. If the State of California enacts legislation that is effective on or before January 1, 2014, which: 1. Adopts amendments to the Tahoe Regional Planning Compact that are substantially identical to the amendments contained in section 1.5 of chapter 530, Statutes of Nevada 2011, at page 3711, as amended by section 2 of this act; 2. Agrees to cooperate with the State of Nevada in seeking to have the changes to the Tahoe Regional Planning Compact contained in section 1.5 of chapter 530, Statutes of Nevada 2011, at page 3711, as amended by section 2 of this act, approved by Congress; 3. Adopts amendments to the Tahoe Regional Planning Compact substantially identical to the amendments contained in NRS 277.200, as amended by section 1 of this act; 4. Finds and declares support for the full implementation of the regional plan update adopted by the Tahoe Regional Planning Agency in December of 2012; and 5. Acknowledges the authority of either the State of California or the State of Nevada to withdraw from the Tahoe Regional Planning Compact pursuant to subdivision (c) of Article X of the Compact or pursuant to any other provision of the laws of each respective State, � the Governor of the State of Nevada shall issue a proclamation to that effect.

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Sec. 8. The Secretary of State shall transmit: 1. A certified copy of this act to: (a) The Governor of the State of California; and (b) The governing body of the Tahoe Regional Planning Agency. 2. Two certified copies of this act to the Secretary of State of California for delivery to the respective Houses of its Legislature. Sec. 9. 1. This section and sections 2, 6, 7 and 8 of this act become effective upon passage and approval. 2. Sections 1, 3, 4 and 5 of this act become effective on January 1, 2014, if the Governor of this State issues the proclamation described in section 7 of this act on or before that date. 3. If the Governor of this State does not issue a proclamation pursuant to section 7 of this act on or before January 1, 2014, this act expires by limitation on January 2, 2014.

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Senate Bill No. 630

CHAPTER 762

An act to amend Section 66801 of, to add Section 66802 to, and to addand repeal Section 66802.5 of, the Government Code, and to amend Section6217.6 of, and to add Section 6717.6.1 to, the Public Resources Code,relating to the California Tahoe Regional Planning Agency.

[Approved by Governor October 12, 2013. Filed withSecretary of State October 12, 2013.]

legislative counsel’s digest

SB 630, Pavley. California Tahoe Regional Planning Agency.(1) Existing law ratified the “Tahoe Regional Planning Compact,” a

bilateral agreement between the States of Nevada and California to regulatedevelopment in the Lake Tahoe basin. The compact established the TahoeRegional Planning Agency as a separate legal entity, comprised of membersfrom the States of Nevada and California, responsible for implementing a“regional plan,” as defined, regulating development in the Lake Tahoeregion, as defined.

Existing law also creates the California Tahoe Regional Planning Agencyas a separate legal entity and as a political subdivision of the State ofCalifornia, and prescribes the membership, functions, and duties of theagency, as specified. Existing law requires the agency, within 18 monthsof its formation, to prepare, adopt, and review and maintain a comprehensivelong-term general plan for the development of the Tahoe region, referredto as the “regional plan,” as prescribed.

This bill would make legislative findings and declarations relating to anagreement between the Governors of the States of Nevada and Californiacovering the implementation of the Tahoe Regional Planning Compact thatwas jointly announced by the governors of these states on May 14, 2013,which is proposed to be codified in specified legislation in Nevada andCalifornia. The bill would declare that the State of Nevada has agreed torepeal its 2011 statutory provisions requiring its withdrawal from the TahoeRegional Planning Compact and proposing a change in the voting structureof the Tahoe Regional Planning Agency.

Existing law, contained in the bistate Tahoe Regional Planning Compactin the Government Code, requires that within one year after adoption ofenvironmental threshold carrying capacities for the Tahoe region, the TahoeRegional Planning Agency amend its regional plan so that, at a minimum,the plan and all of its elements, as implemented through agency ordinances,rules, and regulations, achieves and maintains the adopted environmentalthreshold carrying capacities, and requires that the advisory planning

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commission appointed by the agency and the governing body of the agencycontinuously review and maintain the regional plan.

This bill would revise the compact to require that, in reviewing andmaintaining the plan, the planning commission and the governing body alsoensure that the regional plan reflects changing economic conditions and theeconomic effect of regulation on commerce. The bill would further revisethe compact to require that, when adopting or amending a regional plan ortaking an action or making a decision, the agency act in accordance withthe requirements of the compact and its implementing ordinances, rules,and regulations and to place upon a party challenging any element of theregional plan, or an action or decision of the agency, the burden of showingthat the regional plan is not in conformance with those requirements.

This bill would require the Tahoe Regional Planning Agency, until January1, 2018, to annually prepare and submit to the Department of Finance andthe appropriate legislative budget committees a report, in a format establishedby the department, of the revenues provided to the agency by the States ofNevada and California, including a complete summary and explanation ofthe expenditure of the revenues received and expended by the agency.

(2) Under existing law, the State Lands Commission may administer,sell, lease, or dispose of public lands owned or controlled by this state.Under existing law, with specified exceptions, all rental income receivedfor surface uses upon lands under the jurisdiction of the commission isrequired to be deposited in the General Fund.

This bill would additionally exclude from the requirement for deposit ofthis rental income in the General Fund the rental income from surface usesfor lands at Lake Tahoe. The bill would require this income to be depositedin the Lake Tahoe Science and Lake Improvement Account, which this billwould create in the General Fund. The bill would authorize the moneys inthe account to be expended by the Natural Resources Agency, uponappropriation by the Legislature, and would require that informationregarding finding activity be annually available on a publicly accessibleInternet Web site. The bill would allow the funds in the account to beexpended for activities and projects that include, but are not limited to,aquatic invasive species prevention projects, projects to improve publicaccess to sovereign land in Lake Tahoe, and projects to improve near-shorewater quality monitoring, as specified. The bill would also authorize themoneys in the account to be expended for the costs associated withestablishing and operating a bistate science-based advisory council, andwould authorize the Secretary of the Natural Resources Agency to enterinto a memorandum of agreement with the Nevada Department ofConservation and Natural Resources to establish the council. The bill wouldrequire the agency, or another agency designated by it, to annually makecertain information available regarding any activity funded from the account.

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The people of the State of California do enact as follows:

SECTION 1. The Legislature finds and declares all of the following:(a) Since 1980, the States of Nevada and California have cooperated in

protecting Lake Tahoe’s exceptional natural resources by having a singleentity, the Tahoe Regional Planning Agency (TRPA), be responsible forregulating development in the Tahoe Basin. The states and Congress createdthe Tahoe Regional Planning Agency through the Tahoe Regional PlanningCompact, as prescribed in Title 7.4 (commencing with Section 66800) ofthe Government Code (bistate compact). It is the intent of the Legislatureto maintain that cooperation by having a single entity continue to regulatedevelopment in the Tahoe Basin. A single entity will continue to enhancethe efficiency and governmental effectiveness of the region, and therebyhelp to maintain the social and economic health of the region by protecting,preserving, and enhancing the region’s unique environmental and ecologicalvalues.

(b) The States of California and Nevada have agreed to two amendmentsto the bistate compact. One proposed amendment would clarify that a partychallenging the Tahoe Regional Planning Agency regional plan or an actionof the Tahoe Regional Planning Agency has the burden of proof. The secondproposed amendment, upon ratification by Congress, would direct the agencyto ensure that the regional plan reflects economic considerations in theTahoe basin. The purpose of this act, as summarized in this section, is toensure the continuation of the bistate compact and the Tahoe RegionalPlanning Agency. The Tahoe Regional Planning Agency has a duty, whenadopting or amending the regional plan, to act in accordance with thecompact and the implementing ordinances, rules, and regulations.

(c) An agreement between the Governors of the States of California andNevada relating to the implementation of the bistate compact was jointlyannounced by the governors of those states on May 14, 2013, and theagreement is proposed to be codified in 2013 in Senate Bill 229 in Nevadaand Senate Bill 630 in California. Nevada Senate Bill 229 was signed intolaw on June 6, 2013 (Chapter 424, Nevada Statutes, 2013), by NevadaGovernor Brian Sandoval.

(d) As part of that agreement between the two states, the State of Nevadahas agreed to repeal its 2011 statutory provisions requiring its withdrawalfrom the bistate compact and a proposed change in the voting structure ofthe Tahoe Regional Planning Agency.

(e) The agreement between the two states also includes provisions thatspecify that the two states will cooperate in implementing the new regionalplan update of the Tahoe Regional Planning Agency that was adopted inDecember 2012. The States of California and Nevada also reaffirmed theprovisions of the bistate compact that allow each state to withdraw fromthe compact.

SEC. 2. Section 66801 of the Government Code is amended to read:66801. The provisions of this interstate compact executed between the

States of Nevada and California are as follows:

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Ch. 762— 3 —

TAHOE REGIONAL PLANNING COMPACT

ARTICLE I. FINDINGS AND DECLARATIONS OF POLICY

(a) It is found and declared that:(1) The waters of Lake Tahoe and other resources of the region are

threatened with deterioration or degeneration, which endangers the naturalbeauty and economic productivity of the region.

(2) The public and private interests and investments in the region aresubstantial.

(3) The region exhibits unique environmental and ecological valueswhich are irreplaceable.

(4) By virtue of the special conditions and circumstances of the region’snatural ecology, developmental pattern, population distribution and humanneeds, the region is experiencing problems of resource use and deficienciesof environmental control.

(5) Increasing urbanization is threatening the ecological values of theregion and threatening the public opportunities for use of the public lands.

(6) Maintenance of the social and economic health of the region dependson maintaining the significant scenic, recreational, educational, scientific,natural, and public health values provided by the Lake Tahoe Basin.

(7) There is a public interest in protecting, preserving and enhancingthese values for the residents of the region and for visitors to the region.

(8) Responsibilities for providing recreational and scientific opportunities,preserving scenic and natural areas, and safeguarding the public who live,work and play in or visit the region are divided among local governments,regional agencies, the States of California and Nevada, and the federalgovernment.

(9) In recognition of the public investment and multistate and nationalsignificance of the recreational values, the federal government has an interestin the acquisition of recreational property and the management of resourcesin the region to preserve environmental and recreational values, and thefederal government should assist the states in fulfilling their responsibilities.

(10) In order to preserve the scenic beauty and outdoor recreationalopportunities of the region, there is a need to ensure an equilibrium betweenthe region’s natural endowment and its manmade environment.

(b) In order to enhance the efficiency and governmental effectiveness ofthe region, it is imperative that there be established a Tahoe RegionalPlanning Agency with the powers conferred by this compact including thepower to establish environmental threshold carrying capacities and to adoptand enforce a regional plan and implementing ordinances which will achieveand maintain such capacities while providing opportunities for orderlygrowth and development consistent with such capacities.

(c) The Tahoe Regional Planning Agency shall interpret and administerits plans, ordinances, rules and regulations in accordance with the provisionsof this compact.

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ARTICLE II. DEFINITIONS

As used in this compact, the following terms have the following meanings:(a) “Region,” includes Lake Tahoe, the adjacent parts of Douglas and

Washoe Counties and Carson City, which for the purposes of this compactshall be deemed a county, lying within the Tahoe Basin in the State ofNevada, and the adjacent parts of the Counties of Placer and El Doradolying within the Tahoe Basin in the State of California, and that additionaland adjacent part of the County of Placer outside of the Tahoe Basin in theState of California which lies southward and eastward of a line starting atthe intersection of the basin crestline and the north boundary of Section 1,thence west to the northwest corner of Section 3, thence south to theintersection of the basin crestline and the west boundary of Section 10; allsections referring to Township 15 North, Range 16 East, M.D.B. & M. Theregion defined and described herein shall be as precisely delineated onofficial maps of the agency.

(b) “Agency” means the Tahoe Regional Planning Agency.(c) “Governing body” means the governing board of the Tahoe Regional

Planning Agency.(d) “Regional plan” means the long-term general plan for the development

of the region.(e) “Planning commission” means the advisory planning commission

appointed pursuant to subdivision (h) of Article III.(f) “Gaming” means to deal, operate, carry on, conduct, maintain or

expose for play any banking or percentage game played with cards, dice orany mechanical device or machine for money, property, checks, credit orany representative of value, including, without limiting the generality ofthe foregoing, faro, monte, roulette, keno, bingo, fan-tan, twenty-one,blackjack, seven-and-a-half, big injun, klondike, craps, stud poker, drawpoker or slot machine, but does not include social games played solely fordrinks, or cigars or cigarettes served individually, games played in privatehomes or residences for prizes or games operated by charitable or educationalorganizations, to the extent excluded by applicable state law.

(g) “Restricted gaming license” means a license to operate not more than15 slot machines on which a quarterly fee is charged pursuant to NRS463.373 and no other games.

(h) “Project” means an activity undertaken by any person, including anypublic agency, if the activity may substantially affect the land, water, air,space or any other natural resources of the region.

(i) “Environmental threshold carrying capacity” means an environmentalstandard necessary to maintain a significant scenic, recreational, educational,scientific or natural value of the region or to maintain public health andsafety within the region. Such standards shall include but not be limited tostandards for air quality, water quality, soil conservation, vegetationpreservation and noise.

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Ch. 762— 5 —

(j) “Feasible” means capable of being accomplished in a successfulmanner within a reasonable period of time, taking into account economic,environmental, social and technological factors.

(k) “Areas open to public use” means all of the areas within a structurehousing gaming under a nonrestricted license except areas devoted to theprivate use of guests.

(l) “Areas devoted to private use of guests” means hotel rooms andhallways to serve hotel room areas, and any parking areas. A hallway serveshotel room areas if more than 50 percent of the areas of each side of thehallway are hotel rooms.

(m) “Nonrestricted license” means a gaming license which is not arestricted gaming license.

ARTICLE III. ORGANIZATION

(a) There is created the Tahoe Regional Planning Agency as a separatelegal entity.

The governing body of the agency shall be constituted as follows:(1) California delegation:(A) One member appointed by each of the County Boards of Supervisors

of the Counties of El Dorado and Placer and one member appointed by theCity Council of the City of South Lake Tahoe. Any such member may bea member of the county board of supervisors or city council, respectively,and shall reside in the territorial jurisdiction of the governmental bodymaking the appointment.

(B) Two members appointed by the Governor of California, one memberappointed by the Speaker of the Assembly of California and one memberappointed by the Senate Rules Committee of the State of California. Themembers appointed pursuant to this subparagraph shall not be residents ofthe region and shall represent the public at large within the State ofCalifornia. A member appointed by the Speaker of the Assembly or theSenate Rules Committee may, subject to confirmation by his or herappointing power, designate an alternate to attend meetings and vote in theabsence of the appointed member. The designation of a named alternate,which shall be in writing and contain evidence of confirmation by theappointing power, shall be kept on file with the agency. An appointedmember may change his or her alternate from time to time, with theconfirmation of the appointing power, but shall have only one designatedalternate at a time. An alternate shall be subject to those qualifications andrequirements prescribed by this compact that are applicable to the appointedmember.

(2) Nevada delegation:(A) One member appointed by each of the boards of county

commissioners of Douglas and Washoe Counties and one member appointedby the Board of Supervisors of Carson City. Any such member may be amember of the board of county commissioners or board of supervisors,

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respectively, and shall reside in the territorial jurisdiction of the governmentalbody making the appointment.

(B) Two members appointed by the Governor of Nevada, one memberappointed by the Speaker of the Assembly and one member appointed bythe Majority Leader of the Nevada Senate. All members appointed pursuantto this subparagraph shall not be residents of the region and shall representthe public at large within the State of Nevada. A member appointed by theSpeaker of the Nevada Assembly or the Majority Leader of the NevadaSenate may, subject to confirmation by his or her appointing power,designate an alternate to attend meetings and vote in the absence of theappointed member. The designation of a named alternate, which shall be inwriting and contain evidence of confirmation by the appointing power, shallbe kept on file with the agency. An appointed member may change his orher alternate from time to time, with the confirmation of the appointingpower, but shall have only one designated alternate at a time. An alternateshall be subject to those qualifications and requirements prescribed by thiscompact that are applicable to the appointed member.

(3) If any appointing authority under subparagraphs (A) and (B) ofparagraph (1) and subparagraph (A) or (B) of paragraph (2) fails to makesuch an appointment within 60 days after the effective date of theamendments to this compact or the occurrence of a vacancy on the governingbody, the governor of the state in which the appointing authority is locatedshall make the appointment. The term of any member so appointed shall beone year.

(4) The position of any member of the governing body shall be deemedvacant if such a member is absent from three consecutive meetings of thegoverning body in any calendar year.

(5) Each member and employee of the agency shall disclose his or hereconomic interests in the region within 10 days after taking his or her seaton the governing board or being employed by the agency and shall thereafterdisclose any further economic interest which he or she acquires, as soon asfeasible after he or she acquires it. As used in this paragraph, “economicinterests” means:

(A) Any business entity operating in the region in which the member oremployee has a direct or indirect investment worth more than one thousanddollars ($1,000).

(B) Any real property located in the region in which the member oremployee has a direct or indirect interest worth more than one thousanddollars ($1,000).

(C) Any source of income attributable to activities in the region, otherthan loans by or deposits with a commercial lending institution in the regularcourse of business, aggregating two hundred fifty dollars ($250) or morein value received by or promised to the member within the preceding 12months; or

(D) Any business entity operating in the region in which the member oremployee is a director, officer, partner, trustee, employee or holds anyposition of management.

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Ch. 762— 7 —

No member or employee of the agency shall make, or attempt to influence,an agency decision in which he or she knows or has reason to know he orshe has an economic interest. Members and employees of the agency mustdisqualify themselves from making or participating in the making of anydecision of the agency when it is reasonably foreseeable that the decisionwill have a material financial effect, distinguishable from its effect on thepublic generally, on the economic interests of the member or employee.

(b) The members of the agency shall serve without compensation, butthe expenses of each member shall be met by the body which he or sherepresents in accordance with the law of that body. All other expensesincurred by the governing body in the course of exercising the powersconferred upon it by this compact unless met in some other mannerspecifically provided, shall be paid by the agency out of its own funds.

(c) The members of the governing body serve at the pleasure of theappointing authority in each case, but each appointment shall be reviewedno less often than every four years. Members may be reappointed.

(d) The governing body of the agency shall meet at least monthly. Allmeetings shall be opened to the public to the extent required by the law ofthe State of California or the State of Nevada, whichever imposes the greaterrequirement, applicable to local governments at the time such meeting isheld. The governing body shall fix a date for its regular monthly meetingin such terms as “the first Monday of each month,” and shall not changesuch date more often than once in any calendar year. Notice of the date sofixed shall be given by publication at least once in a newspaper orcombination of newspapers whose circulation is general throughout theregion and in each county a portion of whose territory lies within the region.Notice of any special meeting, except an emergency meeting, shall be givenby publishing the date and place and posting an agenda at least five daysprior to the meeting.

(e) The position of a member of the governing body shall be consideredvacated upon his or her loss of any of the qualifications required for his orher appointment and in such event the appointing authority shall appoint asuccessor.

(f) The governing body shall elect from its own members a chairpersonand vice chairperson, whose terms of office shall be two years, and whomay be reelected. If a vacancy occurs in either office, the governing bodymay fill such vacancy for the unexpired term.

(g) Four of the members of the governing body from each state constitutea quorum for the transaction of the business of the agency. The votingprocedures shall be as follows:

(1) For adopting, amending or repealing environmental threshold carryingcapacities, the regional plan, and ordinances, rules and regulations, and forgranting variances from the ordinances, rules and regulations, the vote ofat least four of the members of each state agreeing with the vote of at leastfour members of the other state shall be required to take action. If there isno vote of at least four of the members from one state agreeing with the

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vote of at least four of the members of the other state on the actions specifiedin this paragraph, an action of rejection shall be deemed to have been taken.

(2) For approving a project, the affirmative vote of at least five membersfrom the state in which the project is located and the affirmative vote of atleast nine members of the governing body are required. If at least fivemembers of the governing body from the state in which the project is locatedand at least nine members of the entire governing body do not vote in favorof the project, upon a motion for approval, an action of rejection shall bedeemed to have been taken. A decision by the agency to approve a projectshall be supported by a statement of findings, adopted by the agency, whichindicates that the project complies with the regional plan and with applicableordinances, rules and regulations of the agency.

(3) For routine business and for directing the agency’s staff on litigationand enforcement actions, at least eight members of the governing body mustagree to take action. If at least eight votes in favor of such action are notcast, an action of rejection shall be deemed to have been taken.

Whenever under the provisions of this compact or any ordinance, rule,regulation or policy adopted pursuant thereto, the agency is required toreview or approve any project, public or private, the agency shall take finalaction by vote, whether to approve, to require modification or to reject suchproject, within 180 days after the application for such project is acceptedas complete by the agency in compliance with the agency’s rules andregulations governing such delivery unless the applicant has agreed to anextension of this time limit. If a final action by vote does not take placewithin 180 days, the applicant may bring an action in a court of competentjurisdiction to compel a vote unless he or she has agreed to an extension.This provision does not limit the right of any person to obtain judicial reviewof agency action under subdivision (h) of Article VI. The vote of eachmember of the governing body shall be individually recorded. The governingbody shall adopt its own rules, regulations and procedures.

(h) An advisory planning commission shall be appointed by the agency.The commission shall include: the chief planning officers of Placer County,El Dorado County, and the City of South Lake Tahoe in California and ofDouglas County, Washoe County and Carson City in Nevada, the executiveofficer of the Lahontan Regional Water Quality Control Board of the Stateof California, the executive officer of the Air Resources Board of the Stateof California, the Director of the State Department of Conservation andNatural Resources of the State of Nevada, the Administrator of the Divisionof Environmental Protection in the State Department of Conservation andNatural Resources of the State of Nevada, the Administrator of the LakeTahoe Management Unit of the United States Forest Service, and at leastfour lay members with an equal number from each state, at least one-halfof whom shall be residents of the region. Any official member may designatean alternate.

The term of office of each lay member of the advisory planningcommission shall be two years. Members may be reappointed.

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The position of each member of the advisory planning commission shallbe considered vacated upon loss of any of the qualifications required forappointment, and in such an event the appointing authority shall appoint asuccessor.

The advisory planning commission shall elect from its own members achairperson and a vice chairperson, whose terms of office shall be two yearsand who may be reelected. If a vacancy occurs in either office, the advisoryplanning commission shall fill such vacancy for the unexpired term.

A majority of the members of the advisory planning commissionconstitutes a quorum for the transaction of the business of the commission.A majority vote of the quorum present shall be required to take action withrespect to any matter.

(i) The agency shall establish and maintain an office within the region,and for this purpose the agency may rent or own property and equipment.Every plan, ordinance and other record of the agency which is of such natureas to constitute a public record under the law of either the State of Californiaor the State of Nevada shall be opened to inspection and copying duringregular office hours.

(j) Each authority charged under this compact or by the law of eitherstate with the duty of appointing a member of the governing body of theagency shall by certified copy of its resolution or other action notify theSecretary of State of its own state of the action taken.

ARTICLE IV. PERSONNEL

(a) The governing body shall determine the qualification of, and it shallappoint and fix the salary of, the executive officer of the agency, and shallemploy such other staff and legal counsel as may be necessary to executethe powers and functions provided for under this compact or in accordancewith any intergovernmental contracts or agreements the agency may beresponsible for administering.

(b) Agency personnel standards and regulations shall conform insofaras possible to the regulations and procedures of the civil service of the Stateof California or the State of Nevada, as may be determined by the governingbody of the agency; and shall be regional and bistate in application andeffect; provided that the governing body may, for administrative convenienceand at its discretion, assign the administration of designated personnelarrangements to an agency of either state, and provided that administrativelyconvenient adjustments be made in the standards and regulations governingpersonnel assigned under intergovernmental agreements.

(c) The agency may establish and maintain or participate in suchadditional programs of employee benefits as may be appropriate to affordemployees of the agency terms and conditions of employment similar tothose enjoyed by employees of California and Nevada generally.

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ARTICLE V. PLANNING

(a) In preparing each of the plans required by this article and eachamendment thereto, if any, subsequent to its adoption, the planningcommission after due notice shall hold at least one public hearing whichmay be continued from time to time, and shall review the testimony andany written recommendations presented at such hearing beforerecommending the plan or amendment. The notice required by thissubdivision shall be given at least 20 days prior to the public hearing bypublication at least once in a newspaper or combination of newspaperswhose circulation is general throughout the region and in each county aportion of whose territory lies within the region.

The planning commission shall then recommend such plan or amendmentto the governing body for adoption by ordinance. The governing body mayadopt, modify or reject the proposed plan or amendment, or may initiateand adopt a plan or amendment without referring it to the planningcommission. If the governing body initiates or substantially modifies a planor amendment, it shall hold at least one public hearing thereon after duenotice as required in this subdivision.

If a request is made for the amendment of the regional plan by:(1) A political subdivision a part of whose territory would be affected

by such amendment; or(2) The owner or lessee of real property that would be affected by such

amendment, the governing body shall complete its action on such amendmentwithin 180 days after that request is accepted as complete according tostandards that must be prescribed by ordinance of the agency.

(b) The agency shall develop, in cooperation with the States of Californiaand Nevada, environmental threshold carrying capacities for the region.The agency should request the President’s Council on EnvironmentalQuality, the United States Forest Service and other appropriate agencies toassist in developing such environmental threshold carrying capacities. Within18 months after the effective date of the amendments to this compact, theagency shall adopt environmental threshold carrying capacities for theregion.

(c) Within one year after the adoption of the environmental thresholdcarrying capacities for the region, the agency shall amend the regional planso that, at a minimum, the plan and all of its elements, as implementedthrough agency ordinances, rules and regulations, achieves and maintainsthe adopted environmental threshold carrying capacities. Each element ofthe plan shall contain implementation provisions and time schedules forsuch implementation by ordinance. The planning commission and governingbody shall continuously review and maintain the regional plan, and, in sodoing, shall ensure that the regional plan reflects changing economicconditions and the economic effect of regulation on commerce. The regionalplan shall consist of a diagram, or diagrams, and text, or texts setting forththe projects and proposals for implementation of the regional plan, a

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description of the needs and goals of the region and a statement of thepolicies, standards and elements of the regional plan.

The regional plan shall be a single enforceable plan and include all of thefollowing correlated elements:

(1) A land use plan for the integrated arrangement and general locationand extent of, and the criteria and standards for, the uses of land, water, air,space, and other natural resources within the region, including, but notlimited to, an indication or allocation of maximum population densities andpermitted uses.

(2) A transportation plan for the integrated development of a regionalsystem of transportation, including, but not limited to, parkways, highways,transportation facilities, transit routes, waterways, navigation facilities,public transportation facilities, bicycle facilities, and appurtenant terminalsand facilities for the movement of people and goods within the region. Thegoal of transportation planning shall be:

(A) To reduce dependency on the automobile by making more effectiveuse of existing transportation modes and of public transit to move peopleand goods within the region.

(B) To reduce to the extent feasible air pollution that is caused by motorvehicles.

If increases in capacity are required, the agency shall give preference toproviding that capacity through public transportation and public programsand projects related to transportation. The agency shall review and considerall existing transportation plans in preparing its regional transportation planpursuant to this paragraph.

The plan shall provide for an appropriate transit system for the region.The plan shall give consideration to:(A) Completion of the Loop Road in the States of Nevada and California;(B) Utilization of a light rail mass transit system in the south shore area;

and(C) Utilization of a transit terminal in the Kingsbury Grade area.Until the regional plan is revised, or a new transportation plan is adopted

in accordance with this paragraph, the agency has no effective transportationplan.

(3) A conservation plan for the preservation, development, utilization,and management of the scenic and other natural resources within the basin,including, but not limited to, soils, shoreline and submerged lands, sceniccorridors along transportation routes, open spaces, recreational and historicalfacilities.

(4) A recreation plan for the development, utilization, and managementof the recreational resources of the region, including, but not limited to,wilderness and forested lands, parks and parkways, riding and hiking trails,beaches and playgrounds, marinas, areas for skiing and other recreationalfacilities.

(5) A public services and facilities plan for the general location, scaleand provision of public services and facilities, which, by the nature of their

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function, size, extent and other characteristics are necessary or appropriatefor inclusion in the regional plan.

In formulating and maintaining the regional plan, the planning commissionand governing body shall take account of and shall seek to harmonize theneeds of the region as a whole, the plans of the counties and cities withinthe region, the plans and planning activities of the state, federal and otherpublic agencies and nongovernmental agencies and organizations whichaffect or are concerned with planning and development within the region.

(d) The regional plan shall provide for attaining and maintaining federal,state, or local air and water quality standards, whichever are strictest, in therespective portions of the region for which the standards are applicable.

The agency may, however, adopt air or water quality standards or controlmeasures more stringent than the applicable state implementation plan orthe applicable federal, state, or local standards for the region, if it finds thatsuch additional standards or control measures are necessary to achieve thepurposes of this compact. Each element of the regional plan, whereapplicable, shall, by ordinance, identify the means and time schedule bywhich air and water quality standards will be attained.

(e) Except for the Regional Transportation Plan of the California TahoeRegional Planning Agency, the regional plan, ordinances, rules andregulations adopted by the California Tahoe Regional Planning Agency ineffect on July 1, 1980, shall be the regional plan, ordinances, rules andregulations of the Tahoe Regional Planning Agency for that portion of theTahoe region located in the State of California. The plan, ordinance, ruleor regulation may be amended or repealed by the governing body of theagency. The plans, ordinances, rules and regulations of the Tahoe RegionalPlanning Agency that do not conflict with, or are not addressed by, theCalifornia Tahoe Regional Planning Agency’s plans, ordinances, rules andregulations referred to in this subdivision shall continue to be applicableunless amended or repealed by the governing body of the agency. Noprovision of the regional plan, ordinances, rules and regulations of theCalifornia Tahoe Regional Planning Agency referred to in this subdivisionshall apply to that portion of the region within the State of Nevada, unlesssuch provision is adopted for the Nevada portion of the region by thegoverning body of the agency.

(f) The regional plan, ordinances, rules and regulations of the TahoeRegional Planning Agency apply to that portion of the region within theState of Nevada.

(g) The agency shall adopt ordinances prescribing specific writtenfindings that the agency must make prior to approving any project in theregion. These findings shall relate to environmental protection and shallensure that the project under review will not adversely affect implementationof the regional plan and will not cause the adopted environmental thresholdcarrying capacities of the region to be exceeded.

(h) The agency shall maintain the data, maps and other informationdeveloped in the course of formulating and administering the regional plan,in a form suitable to ensure a consistent view of developmental trends and

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other relevant information for the availability of and use by other agenciesof government and by private organizations and individuals concerned.

(i) Where necessary for the realization of the regional plan, the agencymay engage in collaborative planning with local governmental jurisdictionslocated outside the region, but contiguous to its boundaries. In formulatingand implementing the regional plan, the agency shall seek the cooperationand consider the recommendations of counties and cities and other agenciesof local government, of state and federal agencies, of educational institutionsand research organizations, whether public or private, and of civic groupsand private persons.

ARTICLE VI. AGENCY’S POWERS

(a) The governing body shall adopt all necessary ordinances, rules, andregulations to effectuate the adopted regional plan. Except as otherwiseprovided in this compact, every such ordinance, rule or regulation shallestablish a minimum standard applicable throughout the region. Any politicalsubdivision or public agency may adopt and enforce an equal or higherrequirement applicable to the same subject of regulation in its territory. Theregulations of the agency shall contain standards including, but not limitedto, the following: water purity and clarity; subdivision; zoning; tree removal;solid waste disposal; sewage disposal; landfills, excavations, cuts andgrading; piers, harbors, breakwaters or channels and other shorelinedevelopments; waste disposal in shoreline areas; waste disposal from boats;mobilehome parks; house relocation; outdoor advertising; flood plainprotection; soil and sedimentation control; air pollution; and watershedprotection. Whenever possible without diminishing the effectiveness of theregional plan, the ordinances, rules, regulations and policies shall be confinedto matters which are general and regional in application, leaving to thejurisdiction of the respective states, counties and cities the enactment ofspecific and local ordinances, rules, regulations and policies which conformto the regional plan.

The agency shall prescribe by ordinance those activities which it hasdetermined will not have substantial effect on the land, water, air, space orany other natural resources in the region and therefore will be exempt fromits review and approval.

Every ordinance adopted by the agency shall be published at least onceby title in a newspaper or combination of newspapers whose circulation isgeneral throughout the region. Except an ordinance adopting or amendingthe regional plan, no ordinance shall become effective until 60 days afterits adoption. Immediately after its adoption, a copy of each ordinance shallbe transmitted to the governing body of each political subdivision havingterritory within the region.

(b) No project other than those to be reviewed and approved under thespecial provisions of subdivisions (d), (e), (f) and (g) may be developed inthe region without obtaining the review and approval of the agency and noproject may be approved unless it is found to comply with the regional plan

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and with the ordinances, rules and regulations enacted pursuant tosubdivision (a) to effectuate that plan.

The agency may approve a project in the region only after making thewritten findings required by this subdivision or subdivision (g) of ArticleV. Such findings shall be based on substantial evidence in the record.

Before adoption by the agency of the ordinances required in subdivision(g) of Article V, the agency may approve a project in the region only aftermaking written findings on the basis of substantial evidence in the recordthat the project is consistent with the regional plan then in effect and withapplicable plans, ordinances, regulations and standards of federal and stateagencies relating to the protection, maintenance and enhancement ofenvironmental quality in the region.

(c) The Legislatures of the States of California and Nevada find that inorder to make effective the regional plan as revised by the agency, it isnecessary to halt temporarily works of development in the region whichmight otherwise absorb the entire capability of the region for furtherdevelopment or direct it out of harmony with the ultimate plan. Subject tothe limitation provided in this subdivision, from the effective date of theamendments to this compact until the regional plan is amended pursuant tosubdivision (c) of Article V, or until May 1, 1983, whichever is earlier:

(1) Except as otherwise provided in this paragraph, no new subdivision,planned unit development, or condominium project may be approved unlessa complete tentative map or plan has been approved before the effectivedate of the amendments to this compact by all agencies having jurisdiction.The subdivision of land owned by a general improvement district, whichexisted and owned the land before the effective date of the amendments tothis compact, may be approved if subdivision of the land is necessary toavoid insolvency of the district.

(2) Except as provided in paragraph (3), no apartment building may beerected unless the required permits for such building have been securedfrom all agencies having jurisdiction, prior to the effective date of theamendments to this compact.

(3) During each of the calendar years 1980, 1981, and 1982 no city orcounty may issue building permits which authorize the construction of agreater number of new residential units within the region than wereauthorized within the region by building permits issued by that city or countyduring the calendar year 1978. For the period of January through April 1983,building permits authorizing the construction of no more than one-third ofthat number may be issued by each such city or county. For purposes of thisparagraph, a “residential unit” means either a single family residence or anindividual residential unit within a larger building, such as an apartmentbuilding, a duplex, or a condominium.

The Legislatures find the respective numbers of residential units authorizedwithin the region during the calendar year 1978 to be as follows:

2521. City of South Lake Tahoe and El Dorado County

(combined) .......................................................................

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2782. Placer County ................................................................... 03. Carson City ...................................................................... 3394. Douglas County ................................................................ 7395. Washoe County ................................................................

(4) During each of the calendar years 1980, 1981, and 1982, no city orcounty may issue building permits which authorize construction of a greatersquare footage of new commercial buildings within the region than wereauthorized within the region by building permits for commercial purposesissued by that city or county during the calendar year 1978. For the periodof January through April 1983, building permits authorizing the constructionof no more than one-third the amount of that square footage may be issuedby each such city or county.

The Legislatures find the respective square footages of commercialbuildings authorized within the region during the calendar year 1978 to beas follows:

64,3241. City of South Lake Tahoe and El Dorado County

(combined) ............................................................................23,0002. Placer County ........................................................................ 03. Carson City ............................................................................

57,3544. Douglas County .....................................................................50,6005. Washoe County ......................................................................

(5) No structure may be erected to house gaming under a nonrestrictedlicense.

(6) No facility for the treatment of sewage may be constructed or enlargedexcept:

(A) To comply, as ordered by the appropriate state agency for the controlof water pollution, with existing limitations of effluence under the federalClean Water Act (33 U.S.C. Sec. 1251 et seq.) and the applicable state lawfor control of water pollution; or

(B) To accommodate development which is not prohibited or limited bythis subdivision; or

(C) In the case of Douglas County Sewer District #1, to modify orotherwise alter sewage treatment facilities existing on the effective date ofthe amendments to this compact so that such facilities will be able to treatthe total volume of effluence for which they were originally designed whichis 3.0 mgd. Such modification or alteration is not a “project”; is not subjectto the requirements of Article VII; and does not require a permit from theagency. Before commencing that modification or alternative, however, thedistrict shall submit to the agency its report identifying any significant soilerosion problems that may be caused by such modifications or alterationsand the measures that the district proposes to take to mitigate or avoid suchproblems.

The moratorium imposed by this subdivision does not apply to work donepursuant to a right vested before the effective date of the amendments to

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this compact. Notwithstanding the expiration date of the moratorium imposedby this subdivision, no new highway may be built or existing highwaywidened to accommodate additional continuous lanes for automobiles untilthe regional transportation plan is revised and adopted.

The moratorium imposed by this subdivision does not apply to theconstruction of any parking garage that has been approved by the agencyprior to May 4, 1979, whether that approval was affirmative or by default.The provisions of this paragraph are not an expression of legislative intentthat any such parking garage, the approval of which is the subject of litigationwhich was pending on the effective date of the amendments to this compact,should, or should not, be constructed. The provisions of this paragraph areintended solely to permit construction of such a parking garage if judgmentsustaining the agency’s approval to construct that parking garage has becomefinal and no appeal is pending or may lawfully be taken to a higher court.

(d) Subject to the final order of any court of competent jurisdiction enteredin litigation contesting the validity of an approval by the Tahoe RegionalPlanning Agency, whether that approval was affirmative or by default, ifthat litigation was pending on May 4, 1979, the agency and the States ofCalifornia and Nevada shall recognize as a permitted and conforming use:

(1) Every structure housing gaming under a nonrestricted license whichexisted as a licensed gaming establishment on May 4, 1979, or whoseconstruction was approved by the Tahoe Regional Planning Agencyaffirmatively or deemed approved before that date. The construction or useof any structure to house gaming under a nonrestricted license not so existingor approved, or the enlargement in cubic volume of any such existing orapproved structure is prohibited.

(2) Every other nonrestricted gaming establishment whose use wasseasonal and whose license was issued before May 4, 1979, for the sameseason and for the number and type of games and slot machines on whichtaxes or fees were paid in the calendar year 1978.

(3) Gaming conducted pursuant to a restricted gaming license issuedbefore May 4, 1979, to the extent permitted by that license on that date. Thearea within any structure housing gaming under a nonrestricted licensewhich may be open to public use (as distinct from that devoted to the privateuse of guests and exclusive of any parking area) is limited to the area existingor approved for public use on May 4, 1979. Within these limits, any externalmodification of the structure which requires a permit from a localgovernment also requires approval from the agency. The agency shall notpermit restaurants, convention facilities, showrooms or other public areasto be constructed elsewhere in the region outside the structure in order toreplace areas existing or approved for public use on May 4, 1979.

(e) Any structure housing licensed gaming may be rebuilt or replaced toa size not to exceed the cubic volume, height and land coverage existing orapproved on May 4, 1979, without the review or approval of the agency orany planning or regulatory authority of the State of Nevada whose reviewor approval would be required for a new structure.

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(f) The following provisions apply to any internal or externalmodification, remodeling, change in use, or repair of a structure housinggaming under a nonrestricted license which is not prohibited by subdivision(d):

(1) The agency’s review of an external modification of the structurewhich requires a permit from a local government is limited to determiningwhether the external modification will do any of the following:

(A) Enlarge the cubic volume of the structure;(B) Increase the total square footage of area open to or approved for

public use on May 4, 1979;(C) Convert an area devoted to the private use of guests to an area open

to public use;(D) Increase the public area open to public use which is used for gaming

beyond the limits contained in paragraph (3); and(E) Conflict with or be subject to the provisions of any of the agency’s

ordinances that are generally applicable throughout the region.The agency shall make this determination within 60 days after the proposal

is delivered to the agency in compliance with the agency’s rules orregulations governing such delivery unless the applicant has agreed to anextension of this time limit. If an external modification is determined tohave any of the effects enumerated in subparagraphs (A) through (C), it isprohibited. If an external modification is determined to have any of theeffects enumerated in subparagraph (D) or (E), it is subject to the applicableprovisions of this compact. If an external modification is determined to haveno such effect, it is not subject to the provisions of this compact.

(2) Except as provided in paragraph (3), internal modification,remodeling, change in use, or repair of a structure housing gaming under anonrestricted license is not a project and does not require the review orapproval of the agency.

(3) Internal modification, remodeling, change in use or repair of areasopen to the public use within a structure housing gaming under anonrestricted license which alone or in combination with any other suchmodification, remodeling, change in use or repair will increase the totalportion of those areas which are used for gaming by more than the productof the total base area, as defined below, in square feet existing on or approvedbefore August 4, 1980, multiplied by 15 percent constitutes a project andis subject to all of the provisions of this compact relating to projects. Forpurposes of this paragraph and the determination required by subdivision(g), base area means all of the area within a structure housing gaming undera nonrestricted license which may be open to public use, whether or notgaming is actually conducted or carried on in that area, except retail stores,convention centers and meeting rooms, administrative offices, kitchens,maintenance and storage areas, rest rooms, engineering and mechanicalrooms, accounting rooms and counting rooms.

(g) In order to administer and enforce the provisions of subdivisions (d),(e) and (f), the State of Nevada, through its appropriate planning or

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regulatory agency, shall require the owner or licensee of a structure housinggaming under a nonrestricted license to provide:

(1) Documents containing sufficient information for the Nevada agencyto establish the following relative to the structure:

(A) The location of its external walls;(B) Its total cubic volume;(C) Within its external walls, the area in square feet open or approved

for public use and the area in square feet devoted to or approved for theprivate use of guests on May 4, 1979;

(D) The amount of surface area of land under the structure; and(E) The base area as defined in paragraph (3) of subdivision (f) in square

feet existing on or approved before August 4, 1980.(2) An informational report whenever any internal modification,

remodeling, change in use, or repair will increase the total portion of theareas open to public use which is used for gaming.

The Nevada agency shall transmit this information to the Tahoe RegionalPlanning Agency.

(h) Gaming conducted pursuant to a restricted gaming license is exemptfrom review by the agency if it is incidental to the primary use of thepremises.

(i) The provisions of subdivisions (d) and (e) are intended only to limitgaming and related activities as conducted within a gaming establishment,or construction designed to permit the enlargement of such activities, andnot to limit any other use of property zoned for commercial use or theaccommodation of tourists, as approved by the agency.

(j) Legal actions arising out of or alleging a violation of the provisionsof this compact, of the regional plan or of an ordinance or regulation of theagency or of a permit or a condition of a permit issued by the agency aregoverned by the following provisions:

(1) This subdivision applies to:(A) Actions arising out of activities directly undertaken by the agency.(B) Actions arising out of the issuance to a person of a lease, permit,

license or other entitlement for use by the agency.(C) Actions arising out of any other act or failure to act by any person

or public agency.Those legal actions may be filed and the provisions of this subdivision

apply equally in the appropriate courts of California and Nevada and of theUnited States.

(2) Venue lies:(A) If a civil or criminal action challenges an activity by the agency or

any person which is undertaken or to be undertaken upon a parcel of realproperty, in the state or federal judicial district where the real property issituated.

(B) If an action challenges an activity which does not involve a specificparcel of land (such as an action challenging an ordinance of the agency),in any state or federal court having jurisdiction within the region.

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(3) Any aggrieved person may file an action in an appropriate court ofthe State of California or Nevada or of the United States allegingnoncompliance with the provisions of this compact or with an ordinance orregulation of the agency. In the case of governmental agencies, “aggrievedperson” means the Tahoe Regional Planning Agency or any state, federalor local agency. In the case of any person other than a governmental agencywho challenges an action of the Tahoe Regional Planning Agency,“aggrieved person” means any person who has appeared, either in person,through an authorized representative, or in writing, before the agency at anappropriate administrative hearing to register objection to the action whichis being challenged, or who had good cause for not making such anappearance.

(4) A legal action arising out of the adoption or amendment of the regionalplan or of any ordinance or regulation of the agency, or out of the grantingor denial of any permit, shall be commenced within 60 days after final actionby the agency. All other legal actions shall be commenced within 65 daysafter discovery of the cause of action.

(5) (A) In any legal action filed pursuant to this subdivision thatchallenges an adjudicatory act or decision of the agency to approve ordisapprove a project, the scope of judicial inquiry shall extend only towhether there was prejudicial abuse of discretion. Prejudicial abuse ofdiscretion is established if the agency has not proceeded in a manner requiredby law or if the act or decision of the agency was not supported by substantialevidence in light of the whole record. In making such a determination thecourt shall not exercise its independent judgment on evidence but shall onlydetermine whether the act or decision was supported by substantial evidencein light of the whole record. In any legal action filed pursuant to thissubdivision that challenges a legislative act or decision of the agency (suchas the adoption of the regional plan and the enactment of implementingordinances), the scope of the judicial inquiry shall extend only to thequestions of whether the act or decision has been arbitrary, capricious orlacking substantial evidentiary support or whether the agency has failed toproceed in a manner required by law.

(B) (i) When adopting or amending a regional plan, the agency shall actin accordance with the requirements of the compact and its implementingordinances, rules, and regulations, and a party challenging the regional planhas the burden of showing that the regional plan is not in conformance withthose requirements.

(ii) When taking an action or making a decision, the agency shall act inaccordance with the requirements of the compact and the regional plan,including the implementing ordinances, rules, and regulations, and a partychallenging the action or decision has the burden of showing that the act ordecision is not in conformance with those requirements.

(6) The provisions of this subdivision do not apply to any legal proceedingpending on the date when this subdivision becomes effective. Any suchlegal proceeding shall be conducted and concluded under the provisions oflaw which were applicable prior to the effective date of this subdivision.

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(7) The security required for the issuance of a temporary restraining orderor preliminary injunction based upon an alleged violation of this compactor any ordinance, plan, rule or regulation adopted pursuant thereto isgoverned by the rule or statute applicable to the court in which the actionis brought unless the action is brought by a public agency or politicalsubdivision to enforce its own rules, regulations and ordinances in whichcase no security shall be required.

(k) The agency shall monitor activities in the region and may bringenforcement actions in the region to ensure compliance with the regionalplan and adopted ordinances, rules, regulations and policies. If it is foundthat the regional plan, or ordinances, rules, regulations and policies are notbeing enforced by a local jurisdiction, the agency may bring action in acourt of competent jurisdiction to ensure compliance.

(l) Any person who violates any provision of this compact or of anyordinance or regulation of the agency or of any condition of approvalimposed by the agency is subject to a civil penalty not to exceed fivethousand dollars ($5,000). Any such person is subject to an additional civilpenalty not to exceed five thousand dollars ($5,000) per day, for each dayon which such a violation persists. In imposing the penalties authorized bythis subdivision, the court shall consider the nature of the violation and shallimpose a greater penalty if it was willful or resulted from gross negligencethan if it resulted from inadvertence or simple negligence.

(m) The agency is hereby empowered to initiate, negotiate and participatein contracts and agreements among the local governmental authorities ofthe region, or any other intergovernmental contracts or agreements authorizedby state or federal law.

(n) Each intergovernmental contract or agreement shall provide for itsown funding and staffing, but this shall not preclude financial contributionsfrom the local authorities concerned or from supplementary sources.

(o) Every record of the agency, whether public or not, shall be open forexamination to the Legislature and Controller of the State of California andthe Legislative Auditor of the State of Nevada.

(p) Approval by the agency of any project expires three years after thedate of final action by the agency or the effective date of the amendmentsto this compact, whichever is later, unless construction is begun within thattime and diligently pursued thereafter, or the use or activity has commenced.In computing the three-year period any period of time during which theproject is the subject of a legal action which delays or renders impossiblethe diligent pursuit of that project shall not be counted. Any license, permitor certificate issued by the agency which has an expiration date shall beextended by that period of time during which the project is the subject ofsuch legal action as provided in this subdivision.

(q) The governing body shall maintain a current list of real propertyknown to be available for exchange with the United States or with otherowners of real property in order to facilitate exchanges of real property byowners of real property in the region.

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ARTICLE VII. ENVIRONMENTAL IMPACT STATEMENTS

(a) The Tahoe Regional Planning Agency when acting upon matters thathave a significant effect on the environment shall:

(1) Utilize a systematic, interdisciplinary approach which will ensure theintegrated use of the natural and social sciences and the environmentaldesign arts in planning and in decisionmaking which may have an impacton man’s environment;

(2) Prepare and consider a detailed environmental impact statementbefore deciding to approve or carry out any project. The detailedenvironmental impact statement shall include the following:

(A) The significant environmental impacts of the proposed project;(B) Any significant adverse environmental effects which cannot be

avoided should the project be implemented;(C) Alternatives to the proposed project;(D) Mitigation measures which must be implemented to ensure meeting

standards of the region;(E) The relationship between local short-term uses of man’s environment

and the maintenance and enhancement of long-term productivity;(F) Any significant irreversible and irretrievable commitments of

resources which would be involved in the proposed project should it beimplemented; and

(G) The growth-inducing impact of the proposed project.(3) Study, develop and describe appropriate alternatives to recommended

courses of action for any project which involves unresolved conflictsconcerning alternative uses of available resources;

(4) Make available to states, counties, municipalities, institutions andindividuals, advice and information useful in restoring, maintaining andenhancing the quality of the region’s environment; and

(5) Initiate and utilize ecological information in the planning anddevelopment of resource-oriented projects.

(b) Prior to completing an environmental impact statement, the agencyshall consult with and obtain the comments of any federal, state or localagency which has jurisdiction by law or special expertise with respect toany environmental impact involved. Copies of such statement and thecomments and views of the appropriate federal, state and local agencieswhich are authorized to develop and enforce environmental standards shallbe made available to the public and shall accompany the project throughthe review processes. The public shall be consulted during the environmentalimpact statement process and views shall be solicited during a publiccomment period not to be less than 60 days.

(c) Any environmental impact statement required pursuant to this articleneed not repeat in its entirety any information or data which is relevant tosuch a statement and is a matter of public record or is generally availableto the public, such as information contained in an environmental impactreport prepared pursuant to the California Environmental Quality Act or afederal environmental impact statement prepared pursuant to the National

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Environmental Policy Act of 1969. However, the information or data shallbe briefly described in the environmental impact statement and itsrelationship to the environmental impact statement shall be indicated.

In addition, any person may submit information relative to a proposedproject which may be included, in whole or in part, in any environmentalimpact statement required by this article.

(d) In addition to the written findings specified by agency ordinance toimplement the regional plan, the agency shall make either of the followingwritten findings before approving a project for which an environmentalimpact statement was prepared:

(1) Changes or alterations have been required in or incorporated intosuch project which avoid or reduce the significant adverse environmentaleffects to a less than significant level; or

(2) Specific considerations, such as economic, social or technical, makeinfeasible the mitigation measures or project alternatives discussed in theenvironmental impact statement on the project.

A separate written finding shall be made for each significant effectidentified in the environmental impact statement on the project. All writtenfindings must be supported by substantial evidence in the record.

(e) The agency may charge and collect a reasonable fee from any personproposing a project subject to the provisions of this compact in order torecover the estimated costs incurred by the agency in preparing anenvironmental impact statement under this article.

(f) The agency shall adopt by ordinance a list of classes of projects whichthe agency has determined will not have a significant effect on theenvironment and therefore will be exempt from the requirement for thepreparation of an environmental impact statement under this article. Priorto adopting the list, the agency shall make a written finding supported bysubstantial evidence in the record that each class of projects will not havea significant effect on the environment.

ARTICLE VIII. FINANCES

(a) On or before September 30 of each calendar year the agency shallestablish the amount of money necessary to support its activities for thenext succeeding fiscal year commencing July 1 of the following year. Theagency shall apportion seventy-five thousand dollars ($75,000) of thisamount among the counties within the region on the same ratio to the totalsum required as the full cash valuation of taxable property within the regionin each county bears to the total full cash valuation of taxable propertywithin the region. In addition, each county within the region in Californiashall pay eighteen thousand seven hundred fifty dollars ($18,750) to theagency and each county within the region in Nevada, including Carson City,shall pay twelve thousand five hundred dollars ($12,500) to the agency,from any funds available therefor. The State of California and the State ofNevada may pay to the agency by July 1, of each year any additional sumsnecessary to support the operations of the agency pursuant to this compact.

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If additional funds are required, the agency shall make a request for thefunds to the States of California and Nevada. Requests for state funds mustbe apportioned two-thirds from California and one-third from Nevada.Money appropriated shall be paid within 30 days.

(b) The agency may fix and collect reasonable fees for any servicesrendered by it.

(c) The agency shall submit an itemized budget to the states for reviewwith any request for state funds, shall be strictly accountable to any countyin the region and the states for all funds paid by them to the agency andshall be strictly accountable to all participating bodies for all receipts anddisbursement.

(d) The agency is authorized to receive gifts, donations, subventions,grants, and other financial aids and funds; but the agency may not own landexcept as provided in subdivision (i) of Article III.

(e) The agency shall not obligate itself beyond the moneys due underthis article for its support from the several counties and the states for thecurrent fiscal year, plus any moneys on hand or irrevocably pledged to itssupport from other sources. No obligation contracted by the agency shallbind either of the party states or any political subdivision thereof.

ARTICLE IX. TRANSPORTATION DISTRICT

(a) The Tahoe Transportation District is hereby established as a specialpurpose district authorized and operating under the federal authority providedby Public Law 96-551. The boundaries of the district are conterminous withthose of the region as established under Public Law 96-551 for the TahoeRegional Planning Agency.

(b) The business of the district shall be managed by a board of directorsconsisting of the following members:

(1) One member of the Board of Supervisors of each of the Counties ofEl Dorado and Placer appointed by the respective board of supervisors.

(2) One member of the City Council of South Lake Tahoe appointed bythe city council.

(3) One member each of the Board of County Commissioners of DouglasCounty and Washoe County appointed by the respective board of countycommissioners.

(4) One member of the Board of Supervisors of Carson City appointedby the board of supervisors.

(5) One member of the South Shore Transportation ManagementAssociation, or its successor organization, appointed by the association.

(6) One member of the North Shore Transportation ManagementAssociation, or its successor organization, appointed by the association.

(7) One member of each local transportation district in the region that isauthorized by the State of Nevada or the State of California.

(8) One member appointed by a majority of the other voting directorswho represents a public or private transportation system operating in theregion.

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(9) The Director of the Department of Transportation of the State ofCalifornia.

(10) The Director of the Department of Transportation of the State ofNevada.

(c) Any appointing authority may designate an alternate.(d) Before a member is appointed pursuant to paragraph (7) of subdivision

(b), the local transportation district of which the person is a member andthe Tahoe Transportation District shall agree in writing on the allocation offiscal and policy responsibilities between the two entities, including, butnot limited to, the distribution of revenue.

(e) The Director of the Department of Transportation of the State ofCalifornia and the Director of the Department of Transportation of the Stateof Nevada shall serve as nonvoting directors, but shall provide technicaland professional advice to the district as necessary and appropriate.

(f) The affirmative vote of at least a majority of the directors shall berequired for the transaction of any business of the board of directors. If amajority of votes in favor of an action are not cast, an action of rejectionshall be deemed to have been taken.

(g) The district may by resolution establish procedures for the adoptionof its budgets, the appropriation of money, and the carrying on of its otherfinancial activities. Those procedures shall conform insofar as is practicableto the procedures for financial administration of the State of California orthe State of Nevada or one or more of the local governments in the district.

(h) The district may, in accordance with its adopted transportation plan,do all of the following:

(1) Own and operate a public transportation system to the exclusion ofall other publicly owned transportation systems in the region.

(2) Own and operate support facilities for public or private transportationsystems, including, but not limited to, parking lots, maintenance facilities,terminals, and related equipment, including revenue collection devices.

(3) Acquire and enter into agreements to operate upon mutually acceptableterms any public or private transportation system or facility within the region.

(4) Hire the employees of existing public transportation systems that areacquired by the district, without loss of benefits to the employees, bargaincollectively with the employees, and extend pension and other collateralbenefits to employees.

(5) Fix the rates and charges for transportation services provided pursuantto this article.

(6) Issue revenue bonds and other evidence of indebtedness and makeother financial arrangements appropriate for developing and operating apublic transportation system.

(7) Contract with private companies to provide supplementarytransportation or provide any of the services needed in operating a systemof transportation for the region.

(8) Contract with local governments in the region to operate transportationfacilities and services under mutually agreeable terms and conditions.

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(9) By resolution, determine and propose for adoption a tax for thepurpose of obtaining services of the district. The proposed tax shall be ofgeneral and of uniform operation throughout the region and may not begraduated in any way, except for a sales and use tax. If a sales and use taxis approved by the voters, as provided in this paragraph, it may beadministered through the State of California and the State of Nevada,respectively, in accordance with the laws that apply within their respectivejurisdictions and shall not exceed a rate of 1 percent of the gross receiptsfrom the sale of tangible personal property sold in the district. The districtis prohibited from imposing an ad valorem tax, a tax measured by gross ornet receipts on business, a tax or charge that is assessed against persons orvehicles as they enter or leave the region, or any tax, direct or indirect, ongaming tables and devices. Any such proposition shall be submitted to thevoters of the district and shall become effective upon approval in accordancewith the applicable voter approval requirement for the voters voting on theproposition who reside in the State of California and upon approval inaccordance with the applicable voter approval requirement for the votersvoting on the proposition who reside in the State of Nevada. The revenuesfrom the tax shall be used for the services for which it was imposed and forno other purpose.

(10) Provide services from inside the region to convenient airport,railroad, and bus terminals without regard to the boundaries of the region.

(11) If the Legislature of the State of California or the State of Nevadaauthorizes the creation of local transportation districts at Lake Tahoe, theselocal districts shall be entitled to a voting seat on the board of directors.Prior to assuming that seat, the local district and the district shall agree inwriting on the allocation of fiscal and policy responsibilities between thetwo entities, including, but not limited to, the distribution of anyvoter-approved revenues. If a seat is assumed under this subdivision, thevoting requirements under subdivision (e) shall be deemed adjusted byoperation of law to require a majority vote to take action.

(12) The Legislature of the State of California and the Legislature of theState of Nevada may, by substantially identical enactments, amend thisarticle.

ARTICLE X. MISCELLANEOUS

(a) It is intended that the provisions of this compact shall be reasonablyand liberally construed to effectuate the purposes thereof. Except as providedin subdivision (c), the provisions of this compact shall be severable and ifany phrase, clause, sentence or provision of this compact is declared to becontrary to the Constitution of any participating state or of the United Statesor the applicability thereof to any government, agency, person orcircumstance is held invalid, the validity of the remainder of this compactand the applicability thereof to any government, agency, person orcircumstance shall not be affected thereby. If this compact shall be heldcontrary to the Constitution of any state participating therein, the compact

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shall remain in full force and effect as to the remaining state and in fullforce and effect as to the state affected as to all severable matters.

(b) The agency shall have such additional powers and duties as mayhereafter be delegated or imposed upon it from time to time by the actionof the Legislature of either state concurred in by the Legislature of the other.

(c) A state party to this compact may withdraw therefrom by enacting astatute repealing the compact. Notice of withdrawal shall be communicatedofficially and in writing to the Governor of the other state and to the agencyadministrators. This provision is not severable, and if it is held to beunconstitutional or invalid, no other provision of this compact shall bebinding upon the State of Nevada or the State of California.

(d) No provision of this compact shall have any effect upon the allocation,distribution or storage of interstate waters or upon any appropriative waterright.

SEC. 3. Section 66802 is added to the Government Code, to read:66802. (a) The Legislature finds and declares all of the following:(1) The State of California, by and through the Governor, agrees to

cooperate with the State of Nevada in seeking to have the amendment toSection 66801 made by Senate Bill 630 of the 2013–14 Regular Sessionthat requires approval of Congress ratified by Congress as amendments tothe Tahoe Regional Planning Compact.

(2) The State of California supports the full implementation of theregional plan update adopted by the Tahoe Regional Planning Agency inDecember 2012.

(3) The State of California acknowledges the authority of either the Stateof California or the State of Nevada to withdraw from the Tahoe RegionalPlanning Compact pursuant to subdivision (c) of Article X of the compact,or pursuant to any other provision of the laws of each respective state.

(b) The Secretary of the Senate shall transmit certified copies of SenateBill 630 of the 2013–14 Regular Session to the Governor of the State ofNevada and the governing body of the Tahoe Regional Planning Agency,and shall also provide two certified copies of that legislation to the Secretaryof the State of Nevada for delivery to the respective houses of its Legislature.

SEC. 4. Section 66802.5 is added to the Government Code, to read:66802.5. (a) The Tahoe Regional Planning Agency shall annually

prepare and submit to the Department of Finance and to the appropriatelegislative budget committees a report, in a format established by theDepartment of Finance, of the revenues provided to the agency by the Statesof Nevada and California, including a complete summary and explanationof the revenues received and expended by the agency.

(b) (1) The report submitted pursuant to subdivision (a) shall be submittedin compliance with Section 9795.

(2) Pursuant to Section 10231.5, this section is repealed on January 1,2018.

SEC. 5. Section 6217.6 of the Public Resources Code is amended toread:

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6217.6. All rental income received for surface uses including, but notlimited to, surface drilling rights, upon lands under the jurisdiction of theState Lands Commission shall be deposited in the State Treasury to thecredit of the General Fund, except as follows:

(a) Income from state school lands, as provided in Section 6217.5.(b) Royalties received from extraction of minerals on the surface of those

lands, as provided in Section 6217.(c) (1) All rental income from surface uses for lands at Lake Tahoe.(2) The rental income specified in paragraph (1) shall be deposited into

the Lake Tahoe Science and Lake Improvement Account, for expenditureupon appropriation by the Legislature pursuant to Section 6717.6.1.

SEC. 6. Section 6717.6.1 is added to the Public Resources Code, to read:6717.6.1. (a) For purposes of this section, the following definitions

shall apply:(1) “Account” means the Lake Tahoe Science and Lake Improvement

Account created pursuant to this section.(2) “Compact” means the Tahoe Regional Planning Compact.(3) “Resources agency” means the Natural Resources Agency.(4) “Secretary” means the Secretary of the Natural Resources Agency.(b) The Lake Tahoe Science and Lake Improvement Account is hereby

created in the General Fund. The moneys in the account may be expendedby the agency, upon appropriation by the Legislature, for the purposes ofthis section, with appropriate disclosure pursuant to subdivision (d). Thesecretary shall administer the account.

(c) Notwithstanding Section 6217, the funds in the account shall beexpended as follows:

(1) The costs associated with establishing the bistate science-basedadvisory council established pursuant to subdivision (e).

(2) For near-shore environmental improvement program activities andprojects that include, but are not limited to, all of the following:

(A) (i) Near-shore aquatic invasive species projects and projects toimprove public access to sovereign land in Lake Tahoe, including planningand site improvement or reconstruction projects on public land, and landacquisitions from willing sellers, subject to clause (ii).

(ii) Near-shore aquatic invasive species projects and projects to improvepublic access to sovereign land in Lake Tahoe may be funded only ifmatching funds for this purpose are provided by the California TahoeConservancy or by another public entity. The conservancy shall coordinatethe selection of projects to be funded through a collaborative process thatincludes the participation of other public agencies, nonprofit organizations,and private landowners, including those persons or organizations that paythe rental income described in paragraph (1) of subdivision (c) of Section6217.6.

(B) (i) Near-shore water quality monitoring, subject to clause (ii).(ii) Near-shore water quality monitoring may be funded only if matching

funds for this purpose are provided from the Lahontan Regional WaterQuality Control Board or by another public entity.

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(d) The agency, or another agency designated by it, shall, on a publiclyaccessible Internet Web site, annually make available information regardingany activity funded pursuant to this section. The information shall include,at a minimum, all of the following:

(1) The name of the agency, or agencies, to which funding was allocated.(2) A summary of the activities and projects funded by the account.(3) The amount allocated for the activity.(4) An anticipated timeline and total cost for completion of the activity.(e) The secretary may enter into a memorandum of agreement with the

Nevada Department of Conservation and Natural Resources to establishand operate a bistate science-based advisory council in the Tahoe basinwhose purpose is to promote and enhance the use of the best availablescientific information on matters of interest to both states. The organizationshall be nonregulatory, and shall focus on activities that will advanceattainment of environmental thresholds, as provided in the compact. Amajority of the governing body of that organization shall be comprised ofscientists with expertise in disciplines pertinent to achieving and maintainingthe goals of the compact.

O

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