MINUTES OF THE ASSEMBLY COMMITTEE ON GOVERNMENT AFFAIRS Sixty-eighth Session March 8, 1995 The Committee on Government Affairs was called to order at 8:06 a.m., on Wednesday, March 8, 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 GUEST LEGISLATORS PRESENT: Assemblyman John Marvel STAFF MEMBERS PRESENT: Denice Miller, Senior Research Analyst OTHERS PRESENT: David Pennington, Nevada National Guard; Dale Askew, Clark County; Randy Oaks, Las Vegas Metropolitan Police Dept.; Stephanie Licht, Elko County; John Russum, Humboldt County; Tom Fransway, Humboldt County. ASSEMBLY BILL 179 - Revises circumstances under which board of county commissioners may authorize use of certain county equipment on private roads. (BDR 20-1438) Assemblyman Marvel, sponsor of A.B. 179, introduced the bill. He mentioned this bill was passed by the Senate last session but did not make it through the Assembly. The bill sets up some guidelines to allow the county commissioners to declare when there is an emergency so county equipment can be used on private property. Many times in remote areas, water, gravel and things of that nature are often needed for road grading and other repairs. This bill would provide access to private roads in exchange for needed commodities. Mr. Tom Fransway, Humboldt County Commissioner, spoke in favor of A.B. 179. He stated this was a good bill for all counties in the state. It would give local government the flexibility to assist constituents in the manner needed. He related an incident about a rancher who had starving cows and could not get food to them due to heavy snow blockage of the road. He came to the county commission to ask for help plowing the road so he could feed his cows. Because of the current language in the statutes, the commission was unable to help the man. In another instance, a lady school bus driver who parked her bus on a farm 1/4 mile from the county road was snowed in and the children did not get to school because the county commission could not authorize the use of county equipment to plow the 1/4 mile to get the school bus out. The commission needs to be able to make those decisions and this bill will only allow those decisions in a public forum and through the consensus of local governing bodies. There would be no competition with private enterprise. It would just enable the commission to help citizens out in an emergency. Assemblyman Freeman wondered what type of commodities would be provided to the county as compensation for services. Mr. Fransway mentioned there are times when the road department would like to utilize private property for housing equipment or have access to water. If these generosities were provided and then some damage was done to their property, the commission would be able to authorize repairs. Mrs. Freeman questioned if this was to be a permanent arrangement. Mr. Fransway said it was definitely not a permanent arrangement. Assemblyman de Braga asked what the opposition to the bill was during the last session. Mr Marvel indicated it was personality conflicts. Assemblyman Bennett had a problem with the word "and" on line 12 of the bill as opposed to "or". Mr. Marvel stated it was in there to assure a piece of equipment would not be arbitrarily pulled off the line simply to satisfy a private owner's needs. Assemblyman Ernaut pointed out the word "may" in line 17 and wanted an example of why it said that and when the board would not require the property owner to repay. Mr. Marvel mentioned if an owner had a gravel pit, he might just exchange the gravel for a payment in kind. Mr. Fransway said some snow plowing of the homeowner's private road might be the exchange. Whatever it was, it would be equitable. John Russum, Humboldt County Road Superintendent, approached the commissioners a couple of years ago after a winter of heavy snows to propagate this bill. There are approximately 3,150 miles of road that are maintained by county forces. It is cut back to about 1,000 miles during the winter. This takes a great deal of time. Under the current law, the county was unable to help trapped residents reach the county roads which were the only ones plowed. If this bill passes, residents would no longer be victims of foul weather. There are other times the county would like to be of service to residents and mutual cooperation by being able to store trailers or equipment on private property in exchange for plowing services or whatever is needed. Assemblyman Segerblom queried if the county would use this bill to go through private property when the residents did not want them to. Mr. Fransway replied no, they would not access anyone's property against their wishes. He also mentioned Humboldt County was in the forefront of property rights advocacy. Assemblyman Neighbors reiterated there would be no competition with private enterprise if they were available to do the job. Mr. Fransway confirmed there would be no interference with private enterprise. Tom Grady, representing the Nevada League of Cities, spoke on behalf of Bob Hadfield and the League of Cities to support the bill. Stephanie Licht of Elko County indicated Elko County would support A.B. 179 as enabling legislation to allow the governing boards of counties more freedom to do the things necessary when they need to be done. Chairman Lambert closed the hearing on A.B. 179. ASSEMBLY BILL 198 - Creates alternative method of providing, and increases fees for, services of constable. (BDR 20-201) Dale Askew, Assistant Manager of Clark County, and Randy Oaks, Captain of the Las Vegas Metropolitan Police Department introduced A.B. 198. Mr. Askew spoke first. Mr. Bob Nolan, acting constable of Clark County, was also in attendance. He noted the bill summary and said although they did want to pursue an alternative method of creating services, they did not want to increase fees. Their desire was to maintain the current fees. The primary intent of this bill is to consolidate the sheriff's civil bureau with the former Las Vegas township constable's office into a single department. This issue began in 1993 when the incumbent constable resigned. This provided the board of county commissioners an opportunity to restructure the functions of both the civil bureau and the constable's office in Clark County. Under the statutes, the county commissioners had the authority to appoint a new constable or abolish the office upon vacancy. The commissioners decided to abolish the office, effective December, 1994. Bob Nolan was appointed as interim constable at that time. The Las Vegas constable is one of eleven elected constables in Clark County. The office covered by this bill would be just the Las Vegas constable; the other counties would not be affected. The constable appoints his own deputies and compensates them on a piecemeal basis. When Bob Nolan took over the office, from October 1993 to December 1994, he maintained the exact model that was being done under the former regime of Don Charlieboy. In January, 1995, things changed. At that time, the commissioners passed a resolution to appoint the sheriff as the constable as an interim measure until this legislation could be passed. Bob Nolan has been maintained as the Acting Director and the employees have been put on a salary basis rather than a piecemeal basis. The constable's function in the past and to this day has been accounted for in an enterprise fund because it is a self-supporting function; that is the cost of that office has been paid for by the users who receive the service. The civil bureau is not accounted for in an enterprise fund; it is part of the county's general fund. This is because the processes being served by the civil bureau do not have fees associated with them. Most of the papers being served out of that division emanate from the family court and this is done at no cost to the public. The bill does need some significant changes to accomplish the county's original intent. They would like to end up with a single department under the auspices of the county commissioners with a Director of Court Services to head the department with the combined functions of the civil bureau and the constable's office. He mentioned amending the language to accomplish their intent and to continue to provide services to the public in a more effective and cost-efficient manner. Captain Randy Oaks, representing Sheriff Jerry Keller and the Las Vegas Metropolitan Police Department, spoke next. He is the Acting Director of the sheriff's civil bureau. He explained some of the statutory duties of his department. His office has been delegated the responsibility of serving civil court orders which do not carry a fee recovery schedule. The county currently supports the bureau entirely, a budget in excess of $800,000. Last year only $200,000 was recovered in fees. The constable's office does not have the same financial problems; they operate in the black. Mr. Oaks remarked what first brought him to the civil bureau was a Channel 8 television news investigative report on irregularities in the sheriff's civil bureau which implied fraud, overcharging for mileage fees, serving out-of-state papers and failing in an obligation to serve civil warrants issued by a court. In the face of that investigation, the Director of that bureau, who had been appointed by the sheriff under the previous administration, resigned. The sheriff sent Mr. Oaks in with an audit team and appointed him as Acting Director of the civil bureau at that time. He was instructed to "fix it" and submit a recommendation to the sheriff on what should be done with the agency. The Metropolitan Police Department has gone to some length to distance itself from the civil obligation. When the Metro became an accredited police agency about 5 years ago, the accrediting commission was told the bureau was not part of Metro. That is a duty and obligation of the sheriff by statute, not by department. That probably led to some of the neglect the civil bureau has suffered. His recommendation to the sheriff was to combine the two offices and put them under the jurisdiction of the county. This would cut the ties between the Metropolitan Police Department and the unit of civil process. Although Sheriff Keller agreed with the recommendation and wishes to proceed, this bill in its present form does not encompass the sheriff's civil bureau and needs to be amended to reflect that it does indeed cover that as well. Mrs. Lambert wondered when the proposed amendments would be available. Mr. Oaks said he would get them ready by the end of the week. Mrs. Segerblom wanted reassurance that Mr. Oaks was not referring to the constables in Boulder City or other towns. Mr. Oaks stated they were not talking about those constables. The amended language would be clarified to exclude them. Mrs. Freeman requested Washoe County be informed should they proceed with any type of consolidation. Mr. Oaks assured her they would definitely assist if and when needed. Mrs. Lambert closed the hearing on A.B. 198 pending the amended language. SENATE BILL 57 - Prohibits member of state militia or his dependents from receiving workers' compensation under certain circumstances. (BDR 36-866) Colonel David Pennington, General Counsel for the Nevada National Guard, spoke in support of S.B. 57. He indicated the purpose of S.B. 57 was to amend NRS 412.142 which would prevent National Guard members from recovering twice for the same illness or injury; once from the federal government and again from the state. This happens because the National Guard has a two-fold purpose. On the one hand, it is a military force available to the Governor for state emergencies such as fires or riots. Secondly, the Guard is part of the federal reserve force available to the President for national emergencies such as the Gulf War. Unlike other federal reserve forces such as the Army or Air Force, all federal training of the Guard is carried out by the Governors of the states; it is not carried out by the Department of Defense. Because their training is for a federal mission, it is funded 100% by the Department of Defense. When a Guard member becomes ill or is injured in the line of duty, they are fully compensated by the federal government. The problem is, when some Guard members have qualified for their federal benefits, they also apply for state benefits through SIIS for workers' compensation. These claims have been allowed by SIIS. During a claims dispute with one member, SIIS pointed out that duty under Title 32, the United States code title under which the National Guard performs its training, is not service to the state since the purpose of such training is to fulfill the Guard's federal mission as a reserve component of the United States armed forces. There is no statutory authority under NRS 412.142 which indicates the state legislature intended to provide duplicate state benefits for Guard members already eligible and receiving federal benefits. The National Guard is asking the legislature to codify that finding in order to avoid litigation and the unnecessary expenditure of state funds through the workers' compensation bureau. They are also requesting the passage of S.B. 57. Mrs. de Braga asked if it was the policy to pay into SIIS 100% or was there a differentiation made as to what is covered under state and what is covered under federal law. Mr. Pennington indicated when SIIS payments are made, they are for the purpose of covering a National Guard member in the event of an injury in the course of state military duty. That is the basis on which SIIS payments are made to the state. The type of benefits to which the member is entitled depends on whether he was in federal or state service at the time of injury. Mrs. Lambert questioned line 4, "service of the state" and wondered if it needed clarification. Mr. Pennington said he did not believe so. He mentioned the problem was in the militia clause of the United States Constitution which states all federal training is conducted under the auspices of the Governor and so all military orders are executed by the Governor. When SIIS sees those orders that are signed by the Governor, they automatically assume the service was for the state when that is not necessarily so. Mrs. Krenzer wanted some clarification on subsection 2. Mr. Pennington defined the duties which would be deemed federal and those which would be seen as state duties. Mrs. Krenzer referred to Mrs. de Braga's question about SIIS payments. She asked if the premium took into account service in both a federal and state capacity . Mr. Pennington indicated he was not an expert and offered to seek out additional information if necessary. Mrs. Lambert closed the hearing on S.B. 57. A work session followed. ASSEMBLY BILL 174 - Eliminates requirement of residency for city clerk of City of Sparks. (BDR S-1219) MR. BENNETT MOVED DO PASS ON A.B. 174. MR. BACHE SECONDED THE MOTION. Mr. Bennett stated this was a common sense bill. City clerk is not an elected position and this bill will allow the most qualified person to be hired. THE MOTION PASSED UNANIMOUSLY. SENATE BILL 80 - Designates tule duck decoy as official state artifact of State of Nevada. (BDR 19-172) MR. BACHE MOVED DO PASS S.B. 80. MRS. KRENZER SECONDED THE MOTION. THE MOTION PASSED UNANIMOUSLY. SENATE BILL 116 - Designates December 7 as Pearl Harbor Remembrance Day. (BDR 19-1309) MR. NOLAN MOVED DO PASS ON S.B. 116. MRS. DE BRAGA SECONDED THE MOTION. Mrs. Lambert affirmed this was not a state holiday. The committee agreed it was not. THE MOTION PASSED UNANIMOUSLY. ASSEMBLY BILL 179 - Revises circumstances under which board of county commissioners may authorize use of certain county equipment on private roads. (BDR 20-1438) MS. TRIPPLE MOVED DO PASS ON A.B. 179. MRS. SEGERBLOM SECONDED THE MOTION. THE MOTION PASSED UNANIMOUSLY. The bill was assigned to Mrs. Segerblom on the floor. Mrs. Lambert also assigned S.B. 116 to Mr. Neighbors, S.B. 80 to Mrs. de Braga and A.B. 174 to Ms. Tripple. ASSEMBLY BILL 137 - Prohibits restraint of competition to purchase or lease county property. (BDR 20-166) Mrs. Lambert recalled the bill had dealt with collusion on bidding for county property. Mr. Ernaut could not remember if the bill had a fiscal note or not. He mentioned a penalty was provided, but could not figure out what that meant except for the bid becoming void. Mrs. Lambert wondered how collusion could be proved and laws against it enforced. Mr. Nolan referred to Terry Lamuraglia's testimony where he indicated in NRS 332.165-244 the law was currently in place. Denice Miller, Senior Research Analyst for the Legislative Counsel Bureau, read an explanation on the fiscal note in question. She said the statute states that collusion would amount to a default misdemeanor which is punishable by six months in the county jail for not more than six months or a fine or both. That is why there is a fiscal note in the bill. The most likely result of the discovery of collusion or disclosure before the execution of the lease or sale is that the whole bidding process could be thrown out. If the collusion was only between one or two of the bidders and did not affect the remainder of the process, the bids of the colluding bidders would be thrown out and one of the next lowest bids would be accepted. If the collusion or disclosure was discovered five years after the execution of the sale and the colluders still have possession of the property the board of county commissioners could bring action, recover the property and file for damages. If the colluder was not still in possession and had sold or sub-let the property to a bonafide good faith purchaser, there would not be much recourse available. Subsection 2 is not a prohibition against disclosure so no penalty would attach, however in most cases such disclosure would result in an ethics code violation for which a civil penalty of up to $5,000 would be imposed. Mr. Neighbors was sure this was covered in the purchasing act. Mrs. Lambert pointed out this was involved in selling, not buying. She suggested waiting to take action on A.B. 137. A.B. 143 was mentioned, but Mrs. Lambert stated it needed clarification and would be dealt with at a later date. ASSEMBLY BILL 144 - Broadens permissible investment of money pooled by public agencies or nonprofit medical facilities for insurance. (BDR 22-811) MRS. KRENZER MOVED TO INDEFINITELY POSTPONE A.B. 144. MRS. FREEMAN SECONDED THE MOTION. THE MOTION WAS UNANIMOUSLY APPROVED. ASSEMBLY BILL 164 - Revises provisions governing jurisdiction and authority of certain units of specialized law enforcement established by political subdivision. (BDR 22-687) MR. BACHE MOVED DO PASS ON A.B. 164. MR. NEIGHBORS SECONDED THE MOTION. THE MOTION PASSED UNANIMOUSLY. Mrs. Lambert assigned the bill to Mr. Bache on the floor. ASSEMBLY BILL 49 - Revises provisions relating to alteration of boundaries of certain districts for support of public parks. (BDR 20-401) Mr. Bache passed out an amendment to the bill (Exhibit C). Mr. Bache explained the amendment was submitted by Clark County. In subsection 3, lines 13-19 are deleted and replaced with similar language and an additional subsection which states "receiving a petition from 100 percent of the property owners in the proposed area which was not previously included in the district requesting inclusion in the park district." MR. NEIGHBORS MOVED AMEND AND DO PASS A.B. 49. MR. BACHE SECONDED THE MOTION. Mrs. Tripple asked if it was reasonable to require 100% on the petition. Mrs. Lambert mentioned it was already in annexation law and often it involved only one or two property owners. She said there have been no complaints as there is always the other option of going for an election. THE MOTION PASSED UNANIMOUSLY. Mrs. Lambert assigned the bill to Mr. Bache on the floor. ASSEMBLY BILL 48 - Provides for establishment of funds for extraordinary repair, maintenance or improvement of certain buildings of local government. (BDR 31- 402) Mrs. Lambert commended Mr. Bache on all the hard work put forth to amend this bill. He passed out copies of the amendment to the committee (Exhibit D). Mr. Bache explained in section 2 the establishment of a population cap for local governments. He also mentioned the formation of a fund with separate accounts which Mr. Leavitt had deemed necessary during the hearing of the bill. An additional statement was included saying "Upon the sale of the capital project for which the account in the fund was established, any remaining balance in the account must be used to offset the debt service of the local government." Section 2.5 parallels section 2 but makes it permissive for those under 100,000 but mandatory for those over 100,000. Section 3 deletes the provision for the legislative auditor. Sections 5 and 6 will be deleted. Mrs. Lambert stated she was not ready to vote and encouraged the committee to ask as many questions as they needed to resolve any remaining concerns with the bill. Mr. Ernaut questioned Mr. Bache as to whether the Nevada Association of Counties (NACO) and other involved groups had signed off on the bill. Mr. Bache indicated there were no problems with the bill. Mr. Ernaut thought Washoe and Clark counties were more interested in the bill. Mr. Bache said he had discussed it with Tom Grady of NACO and the permissive language in the amendment takes care of everything. Mr. Harrington wanted to know if there was a way to retire the fund and if that was in the amendment. Mr. Bache stated that was covered in section 3. Mrs. Lambert queried if it was transferred to another government, was there language in the bill to address that. Mr. Bache stated the language was not set up that way because it would not be appropriate to transfer that money to another local government because it was the original local government's bond issue and the money from their taxpayers should go back to pay off their taxpayers' debt service. Mrs. Segerblom mentioned doing away with sections 5 and 6. Mr. Bache said the legislative auditor was not appropriately included in those sections. Mrs. Lambert thanked Mr. Bache for his work on this complicated issue. She suggested all committee members study the bill and amendments thoroughly. Mrs. Lambert asked Mrs. de Braga if she had checked on A.B. 50 and the reference to the farm bureau. She said yes, she spoke with Doug Bussleman and he felt that section could be deleted. Denice Miller had talked with him and she stated the farm bureau should not be in there. Mrs. Lambert asked Ms. Miller if she had conferred with the tax experts to see if there would be repercussions if taken out. She indicated Mr. Bussleman spoke directly with Paul Mouritsen of the Research Division which would indicate no problems in that area. Mrs. Lambert stressed a review of A.B. 50. Mrs. de Braga suggested deleting lines 24-29 in section 6. Mrs. Lambert said lines 16-22 on page one needed to be amended as well. She also had problems with the capital expenditure for public safety being outside the caps and would like to amend that as well. Mr. Bache pointed out in A.B. 50 the only change was to pull language out of chapter 354 and put it into chapter 350 and to change short-term financing to medium-term financing. Mrs. Lambert adjourned the meeting at 9:45 a.m. RESPECTFULLY SUBMITTED: Denise Sins, Committee Secretary APPROVED BY: Assemblyman Douglas A. Bache, Chairman Assemblyman Joan A. Lambert, Chairman Assembly Committee on Government Affairs March 8, 1995 Page