MINUTES OF THE ASSEMBLY COMMITTEE ON GOVERNMENT AFFAIRS Sixty-eighth Session March 9, 1995 The Committee on Government Affairs was called to order at 8:00 a.m., on Thursday, March 9, 1995, Chairman Joan A. 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 Mrs. Gene Wines Segerblom Mrs. Patricia A. Tripple Mr. Wendell P. Williams COMMITTEE MEMBERS ABSENT: Mr. Dennis Nolan, Excused GUEST LEGISLATORS PRESENT: None STAFF MEMBERS PRESENT: Denice Miller, Senior Research Analyst OTHERS PRESENT: Ms. Karen Kavanau, Director, Department of Information Services, State of Nevada; Mr. Ken West, Chief Deputy Controller, State of Nevada; Dr. Robert E. Dickens, Director of Governmental Relations, University of Nevada Reno ASSEMBLY BILL NO. 199 - Expands state agencies that are required to comply with procedure for employing or reclassifying persons who provide primarily information services. Ms. Karen Kavanau, Director, Department of Information Services, State of Nevada, testified. She advised A.B. 199 would change existing statutory language to make it consistent with changes the 1993 legislature made to statute. She explained, in 1993, statutes were changed to replace the term "data processing" with the term "information systems." She indicated NRS 242 defined information systems to mean any equipment, software, communications personnel or procedures involved in communicating information within the executive branch of government. She stated A.B. 199 would clarify "...that this section applies to all executive branch agencies except the university and the NCIC application." She explained NCIC (National Crime Identification Center) was the repository for the criminal data base in the Department of Motor Vehicles and Public Safety's computer. Ms. Kavanau contended A.B. 199 would not change any current practice or policy and declared it had the Governor's full support. Assemblyman Bennett referred to the language in A.B. 199 "`Appointing authority' does not include the University and Community College System of Nevada." and asked if NCIC should be included in that exemption in order to clarify A.B. 199. Ms. Kavanau responded affirmatively. Mrs. Freeman asked what NCIC was. Mr. Bennett explained it was the National Crime Identification Center. Mrs. Lambert asked if the legislative branch of government would be included under the provisions of A.B. 199. Ms. Kavanau replied the provisions of A.B. 199 would be restricted to the executive branch of government. Mr. Ken West, Chief Deputy Controller, State of Nevada, testified. He stated A.B. 199 placed hiring of those classified employees involved in information services throughout the state under the "perusal" of the Department of Information Services. He advised the Controller opposed A.B. 199 because hiring of such employees was a personnel function and belonged under the authority of the Department of Personnel. He contended the Controller would not support a constitutional officer, who was an elected official, being required to answer to an official appointed by another constitutional officer with respect to his programs and his goals. Mr. West proposed A.B. 199 be amended to exclude both constitutional officers and the Public Employees' Retirement System from its provisions. He advised the Public Employees' Retirement System was a "...quasi state agency of the executive branch." Ms. Kavanau gave further testimony. She pointed out constitutional officers were clearly identified in NRS 242 as being part of the Department of Information Services' customer base. Mr. West declared the Controller was attempting to change a structure he believed was inappropriate. Assemblyman Krenzer asked what problem necessitated the proposed change to statutory language. Ms. Kavanau responded the 1993 legislature "...passed this bill the way it is." She explained the legislature was concerned about the proliferation of technology, equipment and personnel occurring in state agencies and asked the Department of Information Services to review reclassification requests and hiring of personnel to ensure when an individual was either reclassified or hired, in an information systems classification, that individual was qualified to do the job for which he was reclassified or hired. She stated A.B. 199 was simply an attempt to clarify the Department of Information Services' customer base, as described in NRS 242. Ms. Kavanau declared she did not believe Mr. West spoke for all constitutional officers. She said Mr. West spoke for the Controller who had made it very clear he did not believe it appropriate for an appointee of the Governor to review anything done by a constitutional officer. She suggested the Controller's position contradicted NRS 242. She contended constitutional officers were and always had been part of the Department of Information Services' customer base. Assemblyman Bache asked Ms. Kavanau to address Mr. West's proposal to amend A.B. 199 to exclude the Public Employees' Retirement System from its provisions. Ms. Kavanau replied, "Same thing as the constitutional officers. They're in there." Chairman Lambert closed the hearing on A.B. 199. ASSEMBLY BILL NO. 200 - Revises provisions governing organization of department of information services and administration of state communications system. Ms. Karen Kavanau, Director, Department of Information Services, State of Nevada, testified. She advised A.B. 200 had two purposes. She said during the last legislative session, the legislature transferred two divisions, the Telecommunications Division and the Communications Division, from other agencies to the Department of Information Services (hereinafter referred to as the Department) but neglected to "...clean up the statutes where their authority was." She explained authority for the two divisions was contained in NRS 233F while authority for the Department was contained in NRS 242. She advised one purpose of A.B. 200 was to transfer portions of existing statutory language from NRS 233F to NRS 242 and to delete portions of existing statutory language from NRS 233F. She said, in addition, A.B. 200 would reduce the Department from five divisions to two divisions and would eliminate one senior management position. Ms. de Braga said a bill was pending before the legislature to split the Department of Motor Vehicles and Public Safety into two departments and asked, if that bill was passed, how emergency management would be affected. Ms. Kavanau replied there would be no effect on emergency management. She advised if there was an emergency in the state, the Division of Emergency Management had authority to do whatever it needed to do, regardless of what information system was involved. Mr. Bennett asked if he correctly understood that, if the Department was reduced from five divisions to two divisions, only one management position would be deleted. Ms. Kavanau explained neither of the two divisions transferred to the Department by the last legislature had a chief; however, each of the Department's three divisions had a chief. She indicated the Department now had five divisions and three chiefs. She advised, if the Department's five divisions were consolidated into two divisions, she would only need two chiefs. Chairman Lambert asked from where in NRS 233F the language contained in Section 2 of A.B. 200 was taken. Ms. Kavanau said she did not have that information immediately available but the language to which Chairman Lambert referred should be an exact duplicate of language in NRS 233F. Chairman Lambert asked, if NRS 233F.115, which designated a microwave channel for use by fire services, was repealed, how could the legislature be certain fire services' communications would be maintained. Ms. Kavanau replied A.B. 200 would make no changes in operations but, merely, place all authority for the Department in one chapter of NRS. Chairman Lambert referred to the provision of A.B. 200 for repeal of NRS 233F.060 and asked whether having no definition of the state communications system might create problems in the future. Ms. Kavanau responded it probably would not. She suggested there was sufficient language in NRS 242 to provide what was needed for information systems. Chairman Lambert referred to the provision of A.B. 200 to repeal NRS 233F.116 and asked if the Department could take over communications for a state agency only through an agreement with the state agency. Ms. Kavanau referred to Section 7 of A.B. 200 and advised she believed the provisions of that section addressed Chairman Lambert's concern. She suggested, however, subsection (a) of Section 7 was too broad. She proposed subsection (a) of Section 7 be amended by adding, at the end of subsection (a), the words "except for those agencies identified in NRS 242.131, subsection 2." Mrs. Krenzer referred to the deletion of statutory language proposed in lines 25 through 28 on page 3 of A.B. 200 and asked why it was proposed to delete that language. Ms. Kavanau explained, in its budget, the Department recommended not only the consolidation of three of its divisions but, also, consolidation of those divisions' funds into a single fund, the information services fund, which was dealt with by NRS 242. She said, for years, the Department had operated under all state policies, parameters, procedures, laws and regulations and believed it was not necessary to "...move this language in, when we moved the division in, because they could just fall under the same rules that we apply to all of our other divisions." Mr. Ken West, Chief Deputy Controller, State of Nevada, testified. He said the Controller had intended to request a bill draft to consolidate all funds which fell under the Department into one fund. He advised A.B. 200 accomplished such consolidation and said the Controller supported A.B. 200. He referred to Mrs. Krenzer's last question and advised A.B. 200 provided all claims against the consolidated funds would have to be paid in the same manner as all other claims in the state were paid. Mr. West said Ms. Kavanau's proposed amendment to A.B. 200 addressed the problem which was the subject of an amendment proposed by the Controller and submitted to the committee previously. Dr. Robert E. Dickens, Director of Governmental Relations, University of Nevada, Reno, testified. He advised he represented the university and college system of Nevada. He suggested Section 2 of A.B. 200 needed clarification. He said the university and college system was moving into "electronic distance education," which used mixed modes of telecommunications to provide educational courses in distant points of Nevada. He indicated Section 2, subsection 1, of A.B. 200 was not clear as to whether or not the university and community college system was excluded from those provisions. Mr. Dickens referred to Section 5 of A.B. 200, specifically the reference to "chapter", contained in line 9 on page 2, and suggested the word "chapter" might be all inclusive and cause the university system to fall under some of the provisions of A.B. 200. Mr. Dickens expressed concern about the provision for maintenance of information systems for agencies of the executive branch of government, contained in Section 7 of A.B. 200. He suggested no one knew what the university system was (with respect to the government) and contended "...our needs are quite different..." Mr. Dickens summarized by saying he was present neither to support nor to oppose A.B. 200 but to request its clarification. Ms. Kavanau advised the amendment she proposed be made to Section 7 of A.B. 200 would exclude the university. Mr. Dickens asked Ms. Kavanau if the proposed amendment would exclude the university from all provisions of A.B. 200. Ms. Kavanau replied, "Any language that would satisfy you and the university is acceptable to the Department." Chairman Lambert closed the hearing on A.B. 200. The committee held a work session. ASSEMBLY BILL NO. 48 - Provides for establishment of funds for extraordinary repair, maintenance or improvement of certain buildings of local government. Chairman Lambert asked if the committee had reviewed the proposed amendments to A.B. 48 (Exhibit C). ASSEMBLYMAN ERNAUT MOVED TO AMEND (as provided in Exhibit C) AND DO PASS A.B. 48. ASSEMBLYMAN BACHE SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY BY ALL MEMBERS PRESENT. Chairman Lambert assigned A.B. 48 to Mr. Bache for the purpose of making a floor statement. ASSEMBLY BILL NO. 50 - Authorizes medium-term financing for municipalities in lieu of short-term financing. Chairman Bache distributed a one-page document setting forth proposed amendments to A.B. 50 (Exhibit D). Mrs. Lambert advised the proposed amendments (Exhibit D) would delete the following portions of A.B. 50: lines 16 through 22 on page 1; lines 23 through 25 on page 1; lines 1 and 2 on page 2; lines 19 through 23 on page 2; and lines 29 through 36 on page 3. Mr. Ernaut indicated the committee understood the proposed amendment (Exhibit D). ASSEMBLYMAN ERNAUT MOVED TO AMEND (as set forth in Exhibit D) AND DO PASS A.B. 50. ASSEMBLYMAN FREEMAN SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY BY ALL MEMBERS PRESENT. Chairman Lambert assigned A.B. 50 to Mr. Bache for the purpose of making a floor statement. ASSEMBLY BILL NO. 35 - Recognizes nevada rural housing authority. ASSEMBLYMAN BACHE MOVED DO PASS A.B. 35 AND RE-REFER TO THE ASSEMBLY COMMITTEE ON WAYS AND MEANS. ASSEMBLYMAN HARRINGTON SECONDED THE MOTION. Chairman Lambert said she was under the impression the entire committee was concerned about the $60,000 assessment. She advised the Senate Finance Committee acknowledged the assessment would create a budget problem in the future and should be dealt with by the legislative committees concerned with finance. Mrs. Krenzer indicated she believed one of the commissioners of the rural housing authority should be a tenant. Chairman Lambert suggested it might be unfair to ask the committee to vote on A.B. 35 until the committee held a hearing on another bill which was proposed by Mr. Williams. Mr. Ernaut referred to Section 21 of A.B. 35 and said he made a note that the end of line 38 and all of line 39 were to be amended to read "...Nevada Rural Housing Authority on the effective date." Mrs. Krenzer said she could not vote, in good conscience, to pass A.B. 35, as a statement of public policy, unless one of the commissioners was to be a tenant. Mrs. Freeman said she recalled Mr. Bob Hatfield and Ms. Rose McKinney-James were to discuss A.B. 35 and indicated she'd heard nothing regarding those discussions and was not prepared to vote. Chairman Lambert suggested the question of the budget issue would be solved by a motion of "Do pass and refer to Ways and Means" and advised such a motion was before the committee. Mrs. de Braga asked, if the committee was unready to vote on A.B. 35 and, therefore, voted "no," the effect would be to kill A.B. 35. Chairman Lambert replied affirmatively. Mrs. de Braga indicated she would prefer not to vote on A.B. 35 at this time. Discussions were held among committee members. Mrs. Segerblom said she would prefer not to vote on A.B. 35 at this time unless "...Mr Williams can assure us that the problem that we have will be solved." Ms. Tripple said she would prefer not to vote on A.B. 35 at this time. She stated she was also interested in seeing a tenant be one of the commissioners. Mr. Bache withdrew his motion to do pass A.B. 35 and re-refer to the Assembly Committee on Ways and Means. Mr. Harrington withdrew his second to Mr. Bache's motion. Chairman Lambert observed it appeared the committee needed to hold a hearing on another bill before it could consider A.B. 35. Mr. Ernaut referred to Assembly Bill No. 204 and indicated, as he read the bill, it did not deal with the rural housing authority. Chairman Lambert pointed out Section 3 on page 2 of A.B. 204 dealt with the rural housing authority. Chairman Lambert advised the committee would hold a hearing on A.B. 204 on March 16, 1995, and suggested the committee might be able to act on A.B. 35 on that same date. ASSEMBLY BILL NO. 163 - Authorizes community redevelopment agencies to issue bonds at discount. Chairman Lambert asked if the committee wished to vote on A.B. 163. ASSEMBLYMAN ERNAUT MOVED TO AMEND A.B. 163 TO BE EFFECTIVE UPON PASSAGE AND APPROVAL. ASSEMBLYMAN BACHE SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY BY ALL MEMBERS PRESENT. ASSEMBLY BILL NO. 141 - Revises provisions governing expenditure of certain money distributed to redevelopment agency. Mr. Neighbors discussed the effect of the provisions of A.B. 141. Mr. Bennett said his notes reflected Mr. Douglas Dickerson had asked that a population cap be included in the provisions of A.B. 141 in order to exclude the city of Las Vegas from those provisions. He suggested A.B. 141 was in direct opposition to the purpose the city of Las Vegas wished to accomplish. Chairman Lambert said the committee would take no action on A.B. 141 at this time. Chairman Lambert advised Denice Miller, Senior Research Analyst, had provided some written information concerning Assembly Bill 137 (Exhibit E) and requested the committee to review that information. Chairman Lambert distributed proposed amendments to Assembly Bill No. 15 and Assembly Bill No. 138 (Exhibits F and G, respectively) for the committees' review. BILL DRAFT REQUEST NO. 23-799 - revises provision governing requirements for early retirement of police officers. Chairman Lambert advised if B.D.R. 23-799 was introduced it would be referred, concurrently, to the Committee on Government Affairs and the Committee on Ways and Means. ASSEMBLYMAN WILLIAMS MOVED FOR COMMITTEE INTRODUCTION OF B.D.R. 23-799. ASSEMBLYMAN BACHE SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY BY ALL MEMBERS PRESENT. There being no further business to come before the committee, Chairman Lambert adjourned the meeting at 8:55 a.m. RESPECTFULLY SUBMITTED: Sara Kaufman, Committee Secretary APPROVED BY: Assemblyman Douglas A. Bache, Chairman Assemblyman Joan A. Lambert, Chairman Assembly Committee on Government Affairs March 9, 1995 Page