Assembly committee opens hearing on AB 32 to study future of Virginia & Truckee Railway commission

Carson City — The Assembly Committee on Growth and Infrastructure opened and closed a hearing on Assembly Bill 32 on Feb. 6, a bill that would direct the interim committee to study the Nevada Commission for the reconstruction of the Virginia & Truckee Railway and consider options including reorganization, improved financing or termination and disposition of assets.

"We're unable to identify a way forward," said Cameron Gresch, government affairs liaison for Carson City, summarizing the reasons local leaders brought AB 32 to the committee. "The citizenry of Carson City and Story County are no longer able to fund the railroad's operations in the face of pressing local infrastructure needs."

Carson City Mayor Lori Bagwell and Story County Commissioner Clay Mitchell told the committee that local funding sources historically have supported reconstruction and operations but that continuing to subsidize the line is increasingly difficult. Bagwell said Carson City imposed a 2% room tax and issued a $4,150,000 bond in 2002 and a $15,000,000 bond in 2005 to support reconstruction; that bond repayment ends in December 2025. The city also uses an eighth‑cent sales tax and a visitors bureau fund to support operations and occasional capital expenses.

Story County levied a quarter‑cent countywide sales tax in 1995 to help construction and later agreed to place a 30‑year extension before voters; the county also entered an interlocal agreement that provides $250,000 a year for operational support. The commission has received federal grants (about $2.7 million cited in testimony), roughly $800,000 in Economic Development Administration funds, a $500,000 legislative appropriation in 2005, and other support, including a railroad bridge donated by the Department of Transportation and more than $600,000 from the Nevada Commission on Tourism.

Despite those investments, Bagwell said the commission today effectively owns only a steam locomotive (engine No. 18) and lacks rail cars, storage and dedicated staff. "We would actually be at a loss if all we were doing is depending upon the rider to pay a fee and to sustain the project," she said. Bagwell asked the Legislature to authorize the study so the state and local partners can "decide what's the right answer for this asset that I think belongs to Nevada."

Commissioner Mitchell said the commission at one point included multiple counties and had a nine‑member board; it now has representation only from Carson City and Story County. He estimated the operation could "tread water" but raised succession and capital concerns: the current operator is aging, the operator owns the final two miles of track, and the commission lacks a long‑term plan for rolling stock, storage and operations. Mitchell said Story County's subsidy has left the operation roughly break‑even in recent reporting, and that without county subsidy the commission would be losing approximately $150,000 annually.

Two supporters who testified said the railway is a regional tourism asset. Dwight Maard, who said he was appointed commission chair by former Gov. Brian Sandoval, called the V&T a "regional treasure" and urged study; Thomas Gray, owner/operator with the Virginia & Truckee Railroad Company, said the Polar Express and other seasonal events help subsidize summer operations and offered to assist with the committee's review.

Committee members asked clarifying questions about past discussions with the Nevada State Railroad Museum and other state entities. Both Bagwell and Mitchell said they approached museum and tourism officials but were told those entities lacked capacity to take on the commission's responsibilities and deferred because of their own deferred‑maintenance workloads.

Assemblymember Karas asked whether local officials want to keep the operation running or dissolve it. "Do we think it is a viable treasure? Not necessarily," Bagwell said, but she added that the historic asset is important even as Carson City's budget priorities — such as roads and other core infrastructure — limit the city's appetite for ongoing subsidies.

Ticketing and revenue examples were provided to show the operation's current business model: Polar Express individual seats sell for $60–$70 depending on timing; a private family lounge for 12 seats can price at roughly $840; two‑bench seats are priced about $62–$82 (roughly $31–$41 per person). Those higher‑margin seasonal events are credited with substantially supporting the annual budget, but capital needs and staffing constraints remain.

Cameron Gresch summarized the study's core questions: whether to reorganize the commission or modify its duties or powers; how to improve long‑term financial viability; or whether to terminate the commission and address disposition of assets. The presenters told the committee they can provide staff and interlocal support for an interim study but asked that the Legislature formally authorize and structure the review so that asset ownership, funding streams and disposition options are clarified in statute or committee findings.

The committee heard pro‑bill testimony and no registered opposition; Chair Watts opened the hearing, took testimony, and closed the hearing without a vote. The bill would send the matter to the interim committee for a 2025–26 study if enacted.

"At some point, we have to admit it just didn't get there, and we have to examine it as a group," Bagwell said. "That's really what we're looking for."