MINUTES OF THE ASSEMBLY COMMITTEE ON GOVERNMENT AFFAIRS Sixty-eighth Session January 30, 1995 The Committee on Government Affairs was called to order at 8:00 a.m., on Monday, January 30, 1995, Chairman Lambert presiding in Room 330 of the Legislative Building, Carson City, Nevada. Exhibit A is the Agenda. Exhibit B is the Attendance Roster. COMMITTEE MEMBERS PRESENT: Mr. Douglas A. Bache, Chairman Mrs. Joan A. Lambert, Chairman Mrs. Deanna Braunlin, Vice Chairman Mr. P.M. Roy Neighbors, Vice Chairman Mr. Max Bennett Mrs. Marcia de Braga Mr. Pete Ernaut Mrs. Vivian L. Freeman Mr. William Z. (Bill) Harrington Ms. Saundra (Sandi) Krenzer Mr. Dennis Nolan Mrs. Gene Wines Segerblom Mrs. Patricia A. Tripple COMMITTEE MEMBERS ABSENT: Mr. Wendell P. Williams, excused GUEST LEGISLATORS PRESENT: None STAFF MEMBERS PRESENT: Denice Miller, Senior Research Analyst OTHERS PRESENT: Mr. Ronald M. James, State Historic Preservation Officer Ms. Bernadette Francke, Inspector Clerk/Comstock Historic District Commission Ms. Pat Eischeid, Chief/Office of Internal Audit Ms. Ande Engleman, Executive Director/Nevada Press Association Mr. Guy Rocha, State Archives and Records Administrator Mr. Robert H. Van Straten, State Records Manager Ms. Joan Kerschner, Director/Museums, Library and Arts Mr. Jeffrey M. Kintop, State Archives Manager ASSEMBLY BILL 14 - Revises provisions governing financial administration of Comstock historic district. Mr. Ronald James, State Historic Preservation Officer, after introducing Ms. Bernadette Francke, Inspector Clerk for the Comstock Historic District Commission, stated by virtue of reorganization the Comstock Historic District Commission now had a formal relationship with the State Historic Preservation office although it remained a distinct agency. Mr. James distributed a Walking/Driving brochure to committee members (Exhibit C) which is on file in the Research Library. A second handout (Exhibit D) describing an archaeological excavation is entitled "Unlocking the Second Big Bonanza." Regarding A.B. 14, Mr. James noted they were simply asking for authority to allow the commission to benefit with the interest invested from money obtained from public donations. It had the authority now to bring in gifts and donations which were placed in a separate gift account. Twenty Thousand dollars, he added, was the most money the gift account has had, so interest never amounted to much and not much money would go into the gift account unless that type of authority was granted. Answering Mrs. Segerblom's inquiry concerning interest, Mr. James explained by default, monies from all state agencies ending up with donations are invested by the state treasurer. The state then reaps the benefit of those investments unless their legislation specifically says they have the authority and the right to benefit themselves directly from that interest. Mr. James further explained his agency was funded by a General Fund allocation through the Executive branch budget bill. The current issue, he noted, pertained to private funds that had been solicited and were donated. Monies were held in a special account; however, interest generated from that special account would go to the General Fund. Ms. Bernadette Francke, Inspector Clerk/Comstock Historic District Commission, clarified one of the projects of the gift fund account was to access copies of historic photographs of the Comstock, the largest collection remaining here in Nevada at the Historical Society. ASSEMBLYMAN FREEMAN MOVED DO PASS ON A.B. 14. ASSEMBLYMAN ERNAUT SECONDED THE MOTION. A.B. 14 PASSED UNANIMOUSLY WITH ALL MEMBERS PRESENT. Assemblyman Freeman volunteered to handle A.B. 14 on the floor. ASSEMBLY BILL 15 - Revises scope of access of office of internal audits to state governmental records. Ms. Pat Eischeid, Chief/Office of Internal Audit, in describing the reason for A.B. 15, noted their agency had been up against closed doors and requested additional confidentiality. She reassured the committee any work file would become confidential unless released by Perry Comeaux, Budget Division Director. The report itself would become public information; however, anything in the files would be retained in a confidential nature...and if considered confidential enough, it would be shredded. She emphasized they were authorized to audit only those members of the executive branch who are not constitutional officers. Responding to Mr. Harrington's inquiry as to which records they did not have access to, Ms. Eischeid explained the Ethics committee raised a situation where they refused access of information. In an investigation involving the Department of Forestry, critical allegations were made and information was needed in order to prove or disprove them. At that point the advice from the Deputy Attorney General was to come to the committee with an addition to a BDR in order to expand that confidentiality. During committee discussion Ms. Eischeid noted her office was established by the 1993 legislature. It started as a legislative resource upon which the various departments could rely in determining how well their internal control was being handled. Many faults were uncovered and the sole intent was to find feasible solutions in order to create improvements and at the same time, cut costs. In expressing his concerns involving privacy acts, conflicts on the federal level and national security, Assemblyman Bennett wondered whether the Attorney General would be available for testimony. Ms. Eischeid volunteered to have Senior Deputy Attorney General Jim Spencer personally contact Mr. Bennett. Ms. Ande Engleman, Executive Director/Nevada Press Association, clarified the Press Association was composed of all the states' newspapers and there was a concern with open records, public meetings and access to government by the public. She emphasized they had no stand one way or the other on AB 15. She noted under Nevada's Ethics law a person who has been a subject of an ethics investigation does have the right to release information. Chairman Spike Wilson, according to Ms. Engleman, brought forward a bill to make public all ethics investigations having to do with previous behavior. The area in which he does feel confidentiality is needed is on the aspect of future behavior. Expanding on the idea, Ms. Engleman stated the way the law is, if a person goes along with what the Ethics Commission advises, it remains confidential unless the person chooses to release it...but if it results in conflict with the Ethics Commission, then they have the right to release that information. Ms. Engleman stated she offered these facts in hopes it would help the committee make decisions. Mrs. Lambert closed the hearing on A.B. 15 after asserting there were obvious questions that needed to be addressed and suggested Auditor Gary Crews be consulted. ASSEMBLY BILL 36 - Revises provisions governing inspection of certain records in state archives. Prime sponsor, Mrs. Segerblom, stated A.B. 36 was brought to her attention by other free lance writers in order to make specific changes. Speaking in support of A.B. 36, Guy Rocha, State Archives and Records Administrator, said the bill related to records maintained in the State Archives. He explained the impetus of the bill related to a constituent involved in extensive research on subject matter relating to the history of Boulder City. Information was inaccessible from the state archives and would involve waiting extensive periods of time even though the person had been dead for over forty years. The law, according to Mr. Rocha, dated back to 1983 and contained the stipulation, "50 years or death, whichever comes later." He continued, "Relating to this particular aspect of the bill that after watching this legislation operate for twelve years, that we were erring on this side of privacy." Mr. Rocha further noted Mrs. Segerblom had the bill drafted to meet that particular need and would also allow greater public access to information maintained in the State Archives. Governors' executive records, according to Mr. Rocha, are maintained in the State Archives dating back to the Territorial period up through Richard Bryan. This bill would stipulate that records transferred after the leaving of office would remain confidential for 30 years or the death of the individual, whichever comes later. The only exception would be agreements entered into prior to 1983. Mr. Harrington raised the concern that under this legislation, if a governor left office and records were transferred, the presumption would be that constituent mail would be available to the public and could result in embarrassment to the family. Mrs. Lambert interjected it might be helpful for the committee to understand any records that have been declared by law to be confidential since the area of the law is extremely vague as to what is public record and what is confidential. Responding to an inquiry from Mrs. Lambert, Mr. Rocha specified prison inmate case files and state mental hospital files as records that had been transferred to the archives that would be deemed confidential. In the case of Childrens' Home records, those records are open exclusively to people who are in the institution and not to outside people. Mr. Rocha commented public access could be a very complex and compelling issue as many people desire to see things and others want certain things protected. He asserted it was their desire to construct a balancing test to ensure rights of privacy were maintained as well as public access. Ande Engleman, speaking in support of A.B. 36, said this bill was discussed with former Governor Mike O'Callaghan last session. Word from the State Archives at that time was that the confidentiality provision would take precedent over the section of the bill which allowed the governor to have some discretion in what was released and what was not during the 25 year period. She noted the governor was very sensitive to those citizens who may have written him in need during the time he was governor as well as being sensitive to the historical significance of things that happened during his term of office and realized there was a need for the public to know in order to get things in proper perspective. Referencing Section 2 (b) in A.B. 36, Ms. Engleman agreed that did hold true and that the confidentiality provision preceding it would not take precedence over it. She added, if in fact Governor O'Callaghan's agreement would not be harmed by this confidentiality, they would then support the entire bill. Mr. Robert van Straten, State Records Manager, declared his job involved appraising state records to see how long they must be maintained and whether they have the appropriate value to be transferred to the State Archives. He noted last year records of the Division of Child and Family Services were appraised dealing with adoption. It was found that they did have their records centralized. That occurred in 1991 when that function was transferred from Welfare to the Division of Child and Family Services. The way they protected those records was they were scheduled to be maintained in the office for a minimum period of 80 years...and then transferred to the State Archives. Ms. Engleman pointed out there is no provision in the State Archives law to release documents that may be of overwhelming public interest. Following committee discussion, Joan Kerschner, Director/Department of Museums, Library and Arts, spoke regarding the issue of gaming records, verifying the fact that their confidential records would in fact not be released earlier. Mr. Harrington reiterated his prior concern that individuals would be specifically identified and contended when a letter is written in confidence, it should remain confidential. He felt issues could be discussed without revealing the identity of individuals. Jeffrey Kintop, State Archives Manager, explained that basically, the language in A.B. 36 protects the confidentiality of those records that the legislature has declared to be confidential that are in the custody of the Governor's office. What it opens up is correspondence to the Governor from organizations inviting the governor to speak; from students who write letters to the governor; from people who in the past have written letters that have developed into legislation which is now considered progressive legislation. Due to the lack of simplicity in the bill, Mrs. Lambert recommended subcommittee consideration. Mrs. Braunlin was appointed chairman with Assemblymen Freeman, Segerblom and Harrington serving on the subcommittee. The meeting was adjourned at 9:40 A.M. RESPECTFULLY SUBMITTED: Christine Shaw, Committee Secretary APPROVED BY: Assemblyman Douglas A. Bache, Chairman Assemblyman Joan A. Lambert, Chairman Assembly Committee on Government Affairs January 30, 1995 Page