MINUTES OF THE ASSEMBLY COMMITTEE ON WAYS AND MEANS Sixty-eighth Session April 26, 1995 The Committee on Ways and Means was called to order at 7:20 a.m., on Wednesday, April 26, 1995, Chairman Morse Arberry, Jr. presiding in Room 352 of the Legislative Building, Carson City, Nevada. Exhibit A is the Agenda. Exhibit B is the Attendance Roster. COMMITTEE MEMBERS PRESENT: Mr. Morse Arberry, Jr., Chairman Mr. John W. Marvel, Chairman Mrs. Jan Evans, Vice Chairman Ms. Sandra Tiffany, Vice Chairman Mr. Dennis L. Allard Mrs. Maureen E. Brower Mrs. Vonne Chowning Mr. Jack D. Close Mr. Joseph E. Dini, Jr. Mr. Thomas A. Fettic Ms. Chris Giunchigliani Mr. Lynn Hettrick Mr. Bob Price Mr. Larry L. Spitler COMMITTEE MEMBERS ABSENT: None STAFF MEMBERS PRESENT: Mr. Mark Stevens, Fiscal Analyst Mr. Gary Ghiggeri, Deputy Fiscal Analyst ASSEMBLY BILL 463 Makes various changes concerning fines and traffic citations. Gary Crews, Legislative Auditor, introduced Steve Wood, Deputy Legislative Auditor. Mr. Crews reported A.B. 463 was drafted in response to problems identified during an audit of the Judicial Branch of government. That audit identified significant weaknesses within Nevada's court system. Specifically, only $1.2 million of an estimated $6.7 million in fines from Nevada Highway Patrol (NHP) citations were recovered by the state. Local governments retained $5.5 million. This problem was largely the result of classifying money received from traffic citations as bail forfeitures rather than as fines. In addition, Justice and Municipal courts collected only 60 percent of fines and 74 percent of administrative assessments imposed within one year of the NHP citation. Poor collection procedures have allowed millions of dollars in fines to go uncollected. It is estimated the court could have collected approximately $2.4 million in additional fines and administrative assessments during fiscal year 1993 if better collection procedures had been used. According to NHP, as of September 1994, 74,000 bench warrants were outstanding as a result of NHP citations. These warrants are estimated to represent $16 million in fines and administrative assessments. Nevada law and constitution require that NHP fines for violation of NRS be deposited into the state treasury for credit to the permanent school fund. Administrative assessments are used to fund the Supreme Court and several other criminal justice programs. Mr. Crews said A.B. 463 would modify existing statutes by requiring the administrative officer of the courts to develop procedures for collection of fines, fees and assessments imposed by district justice and municipal courts; deleting language referring to "forfeiture of bail" and providing that a person may waive a court appearance and enter a plea of guilty or nolo contendere which would be treated as a conviction and the fine forwarded to the permanent school fund. This provision should clarify the disposition of money from traffic citations as issued by NHP. Steve Wood, Deputy Legislative Auditor, reported the audit identified that millions of dollars in fines and assessments go unpaid each year because many of the state's courts do not have effective collection procedures. The current collection rate is approximately 60 percent and could easily be increased with simple, effective collection procedures. Nearly one-third of the courts collected over 90 percent of the fines imposed and one court collected 100 percent. As collections of fines increase, so will collections of administrative assessments which are used to fund a variety of criminal justice programs. Better collection procedures should increase funding for local governments as well as the state. Mr. Wood said the bill clarifies that payments on NHP citations are fines, not bail forfeitures, even when the offender does not appear before a judge. The distinction is important because current law and the Nevada Constitution require that state fines go to the state permanent school fund whereas bail forfeitures are required by law to go to local governments. Many inconsistencies were found in the way courts classify payments on NHP citations. One court recorded fines paid in cash as state money but payments by check were considered local money. Most courts classified payments by mail as local fines but when the offender appeared in court and was found guilty, the payment was considered a state fine. Because of the inconsistencies, a legal opinion was sought from the Legislative Counsel. The legal opinion was that payment on NHP citations should be classified as state fines regardless of whether the offender appeared in court or paid the citation by mail. Mr. Marvel asked what real impact A.B. 463 would have on the collection of administrative fees. Mr. Crews explained A.B. 463 would set up the framework so fees could be collected; the Administrative Officer of the Court would be required to establish procedures and to monitor those procedures to ensure fines are collected. There should be a significant increase in revenues to both state and local governments. The bail forfeiture issue will result in approximately $5 million per year coming into the state permanent school fund rather than going to local governments. Mr. Dini questioned whether local governments could adopt ordinances parallel to state law to allow collection of fines. Mr. Crews responded only two or three local governments had applied to NDOT (Nevada Department of Transportation) for permission to collect fines. All of those applications were refused because of concern regarding loss of revenues to the state. Mr. Close recalled testimony that local governments considered any citations within their geographic boundaries to belong to them. Mr. Crews answered A.B. 463 should address that issue because legal counsel's interpretation indicated bail forfeitures have the characteristics of fines, should be treated as fines and go into the permanent school fund. Mr. Marvel asked whether A.B. 463 would address all the faults identified by the audit. Mr. Crews said A.B. 463 would not address all of them. A problem concerning amending citations from NRS violations to local ordinances will have to be dealt with administratively by the courts. Chairman Arberry called for public testimony. There was none. ASSEMBLY JOINT RESOLUTION 11 Proposes to amend Nevada constitution to authorize Governor to reduce or veto appropriations or authorizations to expend money. Assemblyman Max Bennett said the governors of 38 states have complete line item veto and the governors of 29 states have the authority to veto appropriations by a specified amount. A.J.R. 11 would allow either option. Mr. Price indicated legislators from other states where the line item veto is used have reported a considerable amount of pressure from governors who use the line item veto as a means of influence to gain support for certain legislation. Mr. Price added the line item veto also serves to shift the balance of power. Mr. Dini asked if the Governor's authority had been expanded in 1993. Mr. Stevens said the Governor does have the statutory authority to reduce levels of appropriations should a shortfall in revenues occur; however, he does not currently have the authority to line item veto a particular appropriation. Mr. Spitler remarked that in Nevada the appropriations bill is typically passed just before the Legislature adjourns and the Governor would not have 48 hours to examine the general appropriations bill. Mr. Hettrick requested clarification on how the Governor can reduce appropriations. Mr. Stevens responded the Governor has the ability to reduce expenses when revenues do not meet projected levels but he cannot veto line items in a budget. Mr. Hettrick observed A.J.R. 11 would allow the Governor to strike appropriations from a bill in the process of being approved rather than being contingent on a lack of revenue. Mr. Stevens agreed a line item veto would allow the Governor to strike individual appropriations within a bill and then to sign the bill. Mr. Fettic asked if language in the bill would allow the Legislature to overturn the Governor's line item veto on a specific item. Mr. Bennett concurred. Mr. Fettic then asked if the Governor would be able to exercise the line item veto after the Legislative Session has ended and whether those vetoes would then be effective for two years until the next Legislative Session. Mr. Bennett said this possibility did exist and probably the language in A.J.R. 11 should be revised. Mr. Price asked whether the Governor would be prohibited from reducing appropriations to the Legislature for its operation during the interim. Mr. Bennett said any budget item could be subject to veto. Mr. Spitler clarified language in A.J.R. 11 does specify the veto must occur within 48 hours after the bill is presented to the Governor and before the Legislature finally adjourns. Chairman Arberry called for public testimony. There was none. Chairman Arberry recognized Mr. Mark Stevens who presented an overview on the Economic Forum. Mr. Stevens distributed two schedules entitled "General Fund Revenues - Economic Forum - Summary" (Exhibit C) and "General Fund Revenues - Economic Forum" (Exhibit D). He explained the Economic Forum's revenue projections must be used by the Legislature to develop the budget. Mr. Stevens said the Economic Forum is a group of five individuals from outside state government who are charged with examining General Fund revenues and projecting General Fund revenues for each year of the biennium. Preliminary revenue estimates were made in November and were used to develop the Executive Budget. There are statutory provisions for a revenue re-projection before May 1. Mr. Stevens referred to Exhibit C and explained most General Fund revenue is in the tax category. The Economic Forum projected a 10.8 percent increase in sales and use tax for this fiscal year; for the remaining three months of this year, an average of a 9 percent increase in each month is necessary to meet the projected increase of 10.8 percent. The Economic Forum used growth rates of 7 percent and 6 percent in the first and second years of the biennium respectively. Mr. Stevens said the largest portion of Gaming Revenue is from percentage fees; a growth rate of 7.7 percent was used for the percentage fee portion. Growth rates of 4.4 percent and 4.6 percent were used in the first and second years of the biennium respectively. For the entire component of Gaming Revenue, the Economic Forum projected increases of 5.2 percent this year and 4.3 percent and 5.1 percent in the first and second years of the biennium. Large resorts being built in Las Vegas were taken into account as was gaming activity outside of Nevada. Mr. Stevens said the Casino Entertainment Tax increased and is expected to increase even further with the opening of a new show at the MGM in Las Vegas. Mr. Stevens said revenues from the Business License Fee were projected to increase this year by 5.8 percent and by 4.9 percent and 4 percent in the first and second years of the biennium. Mr. Stevens explained interest income on page 3 of Exhibit C is projected to be $15.5 million in this year, $16 million in FY 96 and $14 million in FY 97. Mr. Stevens noted overall the Economic Forum projects $1,245,000,000 in General Fund revenue this year. That projection lowers to $1,230,000,000 in FY 96. A one-time payment of $37 million for the insurance premium tax acceleration was made and the state is required to accrue an additional one month's sales tax by GASB (Governmental Accounting Standards Board) so 13 months of sales tax will be recorded, representing just under $40 million for this fiscal year. Those amounts will not occur during the first year of the biennium. The Economic Forum projected General Fund revenue of $1,294,000,000 in second year of the biennium. Revenue estimates have been increased from the December 1, 1994 figures by $14.9 million for this year and by $13.2 million and $16.3 million for the first and second years of the biennium. The cumulative increase in General Fund revenues for the three years is approximately $44.5 million available for appropriation by the 1995 Legislature. Mr. Marvel asked whether the accelerated insurance premium tax was taken into consideration. Mr. Stevens said all of the Economic Forum's figures are based on existing law so those figures are included. If the insurance premium tax acceleration is repealed, approximately $37 million will have to be eliminated from revenues during this fiscal year. Mr. Price referred to the $10,000 projected during this fiscal year in tax from Laetrile and Gerovital and asked whether there is a level at which it is not considered cost effective to collect a tax. Mr. Stevens indicated some revenue sources do result in higher administrative costs than others but said he was not familiar with the difficulties in collecting that particular revenue source. Mr. Stevens reported certain bills being considered during this Legislative Session will cause adjustments to the Economic Forum's revenue projections. If a bill is passed to eliminate the insurance premium tax acceleration, revenue projections will need to be adjusted. Bills relative to teacher certification fees could also impact General Fund revenue. Mr. Marvel asked how the $53 million "hole" in the second year of the biennium will be affected. Mr. Stevens said $16.3 million in additional revenue is projected for the second year of the biennium and could reduce the $53 million by that amount; or the "hole" could be left alone and the $16.3 million could be used for additional expenditures. Mr. Marvel inquired whether any problem is foreseen with Medicaid. Mr. Stevens noted in the second year of the biennium approximately $22 million in hospital provider tax surplus monies are projected; those funds will not be available during the first year of the following biennium and would add to the $53 million "hole" in the second year of the biennium. ASSEMBLY BILL 303 Requires state board of education to adopt program to provide pupils with skills to make transition from school to work. Assemblywoman Jan Evans, Assembly District 30, testified A.B. 303 represents legislation that is the product of a public/private partnership. For the better part of 1994, a task force of concerned individuals from the Department of Education, the Department of Employment and Training, the University System, local school districts, the Nevada Vocational Association, labor, business groups and the Nevada Manufacturer's Association worked to put together A.B. 303, an extension of work on occupational education from previous legislative sessions. Mrs. Evans noted Governor Miller recommended a one-shot appropriation of $2 million per year for each year of the biennium to implement A.B. 303. Mrs. Evans reported A.B. 303 represents Nevada's proposal to implement the school to work transition program adopted as a federal act in 1993. The state has received some planning money and if an investment can be made, it is possible to leverage implementation money for the school to work transition program. Dr. Keith Rheault, Deputy Superintendent, Department of Education, read from prepared testimony (attached as Exhibit E). Dr. Rheault distributed a document entitled "State of Nevada School-to-Work Transition System, Executive Summary for Framework" (Exhibit F) and a sheet entitled "Projected Funds Available for School-to-Work Activities by Agency for FY 96" (Exhibit G). Ms. Giunchigliani asked what the proposed grant funds could be used for. Dr. Rheault said the Department hopes that decision will be made locally by partnerships between schools and businesses. Currently the grants provide very few placement services once students leave school. As more partnerships are formed a need for additional supervisory positions at local school districts may develop. Career planning and guidance programs and curriculum development also need work. Ms. Giunchigliani asked whether the State Board of Education has set career awareness and curriculum development as a priority in the program. Dr. Rheault said career awareness would begin with 7th and 8th grades. The course of study has been completed for grades 7 through 12. Mr. Allard asked whether some of the requested funds would be used for equipment or tools. Dr. Rheault answered equipment was not specified because it is hoped that necessary equipment will be available at job sites through partnerships with businesses and industry. Although it was not specified, the intent is not to use a large portion of the funding for equipment. Ms. Tiffany requested explanation of how the $4 million fiscal note was developed. Mrs. Evans explained an interim occupational education study in 1987-89 identified the need to be approximately $8 million. The decision was made to move incrementally toward a completely funded program. The $2 million requested in each year of the biennium will be subgranted to each school district based on the size of the school district. In many cases, programs are already in place and funding will augment those programs. Mrs. Evans indicated detailed information regarding how the money would be spent is not available at this time. However, an application process will be instituted whereby school districts must submit a plan and a budget proposal regarding how the funding will be used. The proposals will be screened and approved by the Nevada Work Force Agencies and an oversight group from the business community. Ms. Tiffany asked how the funding request of $4 million was chosen. Mrs. Evans said a minimum level was selected but it was hoped that by making a significant state investment additional dollars could be accessed. The request could have been $6 million or $8 million which would have a significant impact. Ms. Tiffany asked whether reports would be made to the Interim Finance Committee or whether performance indicators would be provided. Mrs. Evans said a reporting system through IFC has not been built in; reporting will be done through the Department of Education. Ms. Tiffany suggested quarterly or semiannual reports to IFC. Mrs. Evans indicated that would be acceptable and requested the committee's help to get funding for school-to-work built into the budget rather than requesting a series of one-shot appropriations. If there is a commitment to school- to-work and occupational education, the committee should devise a way to make it part of the mission of secondary education in the state. Ms. Tiffany reiterated she would like an approval mechanism back to the committee to see if the program is accomplishing its goals. Dr. Rheault observed an annual evaluation is built into the bill and a full report will be made to the 1997 Legislature and performance indicators will be provided at that time. Mrs. Brower requested a brief description of how the program might work for a 7th grade student who wanted to become an auto body technician. Dr. Rheault said a 7th or 8th grade student would explore different careers through a career information system. Teachers would discuss what different jobs entail. Students would receive introduction to technology courses and critical thinking and problem solving. At the 9th and 10th grade levels students would develop greater career awareness. Dr. Rheault indicated the 9th and 10th grade levels currently lack curriculum development in this area and much of the funding would probably target those age groups. At the 11th and 12th grade levels, technical skill courses are taught. Mrs. Brower asked whether classes on specific industries would be provided or whether classes would relate to the workplace in general. Dr. Rheault said grades 7 through 10 would be exposed to generalized, broad transferrable skills in a broad area of industry. Ms. Giunchigliani requested information be provided regarding how many businesses have taken advantage of the apprenticeship program. Ms. Giunchigliani asked how much funding has gone toward a school-to-work program thus far. Dr. Rheault said since 1991, $1.6 million was provided for the Introduction to Technology program and $200,000 was provided to fund career information computer systems for every high school and middle school. Local partnerships will identify where funding needs to be used. Mr. Spitler requested information reflective of how school districts requested and used the $1.6 million be provided. Dr. Rheault said an Executive Summary was published in 1993 which contained that information and he would forward that to the committee. Mr. Spitler referred to Exhibit G and asked if the student count reflected the total number of students in school. Dr. Rheault said the count used was the current fiscal year for grades 7 through 12. Mr. Spitler asked how many students would potentially benefit from funding provided in A.B. 303. Dr. Rheault responded nearly all students in grades 7 through 10 would be exposed to career exploration. Expansion of work site and job shadowing opportunities needs to take place so that additional 11th and 12th grade students can access the program. Mr. Spitler asked what the Department of Education is doing to change its existing programs to address this need. Dr. Rheault indicated most funding comes from federal funds and enhancing school-to-work transition was one of the priorities set for the Carl Perkins Grant which provides approximately $5 million per year for vocational and occupational training. The Department of Education also works with the Job Training Partnership Act and Vocational Rehabilitation to save state money and avoid duplication of services. Mr. Spitler expressed doubt that the Department of Education has taken an aggressive role in analyzing Nevada's educational needs and working toward solving education problems for Nevada's students. Dr. Rheault said the State Board of Education approved a secondary school task force which developed fourteen recommendations relating to education needs in the state. A part of Goals 2000 is a large planning group addressing items such as preventing dropouts, school-to-work and curriculum. That planning group is finalizing its work and its recommendations will be available in approximately one month. Mr. Spitler observed the Department of Education needs to move in a direction where the solutions to problems come from the people who work with the problems on a daily basis. Mr. Spitler requested the committee be provided with a report of how the Carl Perkins funds are used. Dr. Rheault said the information would be forthcoming. Mr. Price asked if bill language referring to a basic $25,000 allocation to community colleges meant each campus would receive an allocation. Dr. Rheault said the Community College of Southern Nevada would receive a base of $25,000 and the remainder of the allocation would be based on the number of full time equivalent students. Mr. Price noted some counties do not have high schools and asked whether students in those counties would have access to the school-to-work program. Dr. Rheault said that issue had not been discussed but most likely funding would follow the students to the schools they attend so they would have access to the program. Chairman Arberry called for public testimony. Timothy Cashman, Chairman of the Education Task Force of the Government Affairs Committee of the Las Vegas Chamber of Commerce, indicated the Chamber, its Task Force and its members strongly support A.B. 303 which begins a comprehensive program that will provide children with the skills to make the transition to work, should help decrease the dropout rate and produce a more competent work force. Mr. Cashman indicated the bill provides accountability and oversight which involves business in the ongoing evaluation and improvement of the program. There are currently 500 partnerships between business and education in Clark County. The Chamber appealed to the Governor to build the school-to-work program into the budget. Ms. Tiffany asked how the oversight committee planned to measure the success of the program through the reduction in dropout rate and increased capability of the work force. Mr. Cashman responded a meaningful reduction in the dropout rate would take time. He suggested that looking at the success of students who were exposed to the curriculum would be the best indicator. Ms. Tiffany encouraged the private sector to help make school-to-work a core portion of education reform. Mark Smith, President of the Las Vegas Chamber of Commerce, said school-to- work transition was the number one education issue with the Chamber's membership and indicated the Chamber would like to play an active role on the oversight committee. Eric Cooper of the Las Vegas Chamber of Commerce endorsed the school-to-work transition program as a means to deter young people from becoming involved in gang activity. The Las Vegas Police Department found that many gang members left that activity upon becoming employed. He suggested the criminal justice system would be able to track individuals to determine whether the school-to-work program was instrumental in keeping youngsters out of the criminal justice system. Mr. Allard asked whether the role of the oversight committee would include connecting students with private sector businesses for job opportunities. Mr. Cashman agreed business has to be involved for the program to work. He noted the Chamber of Commerce would make a very strong effort to link students with businesses. David Howard of the Reno-Sparks Chamber of Commerce reported the 2,300 members of the Chamber support A.B. 303. He noted performance indicators would be difficult to establish unless school-to-work is included in the Executive Budget and unless business becomes more involved with the Department of Education to develop programs and curriculum. Ms. Giunchigliani observed the oversight committee might consider working with businesses to show them how to incorporate apprenticeship or training programs. She also suggested that teachers would benefit from working with businesses and would be more effective in teaching students about school-to-work. Doug Burris, Director of Community College Affairs for the University and Community College System of Nevada, Vice-President of the Nevada Council on Occupational Education, and representing the Nevada Workforce Agencies (NWA), spoke in support of A.B. 303. Mr. Burris referred to a newspaper editorial regarding the lack of a high tech work force in Nevada and how that deters high tech businesses from locating in the state. He reported the NWA is developing a state plan for presentation to the federal government in an effort to obtain federal funding. Mr. Burris pointed out federal funding would be largely contingent on a strong state commitment to school-to-work and that Nevada is 50th out of 50 states in the number of high school students that go on to attend college. Erik Beyer spoke in support of A.B. 303 and in support of a commitment to funding vocational education. He cited statistics showing four out of five high school students will not require a college education for their careers and only one out of five will receive a professional degree from a university; however, high school education is geared toward college preparatory courses. Mr. Beyer emphasized the majority of high school graduates will never need a college degree but will need postsecondary technical training. Mike Rask, Director of the State Council on Occupational Education, said the group is a private sector organization that evaluates, oversees and advises the State Board of Education on the effectiveness of occupational education. Mr. Rask spoke in support of A.B. 303 and said Nevada is one of three states in the nation without a continuing appropriation for the support of occupational education school-to-work transition. One state has authorized a mill levy to each county for the purpose of support of occupational education. Employment growth in Nevada is 21,400 people per year; if all available vocational educational facilities were used, only 24.5 percent of the employees needed by the state could be produced. Elizabeth Livington, Nevada Women's Lobby, spoke in support of A.B. 303. Mr. Dini observed he had seen high school vocational education work in Yerington and that he believed classes should be held and the students put to work. Mr. Beyer noted Lyon County has been one of the leading school districts in vocational education. Doug Burris commented rather than teaching stand-alone academic courses, the trend is to teach applied academics and to relate academic subjects to job skills. Barbara Clark representing the Nevada PTA indicated the PTA firmly believes the education and training of the work force of Nevada are essential to its economic development and strongly supports A.B. 303. Chairman Arberry called for additional public testimony. There was none. ASSEMBLY BILL 216 Increases salary of members of boards of trustees in certain school districts. Assemblywoman Gene Segerblom, Assembly District 22, explained A.B. 216 leaves the decision of whether to raise salaries up to the individual school boards and funding would come from each school district. Mrs. Segerblom explained school board members currently receive $80 for attending one regular meeting. However, members do not receive payment for any additional meetings and A.B. 216 would provide payment for six meetings, a total of $480. Ms. Giunchigliani asked if A.B. 216 applied to rural school districts. Mrs. Segerblom responded negatively. Ms. Giunchigliani expressed concern that A.B. 216 established a different standard for urban and rural areas. Mrs. Segerblom indicated the population level was established so that rural counties with less funding would not be obligated to increase expenditures to pay for trustee salaries. Ms. Giunchigliani suggested since A.B. 216 merely provides permission for school districts to raise salaries and does not require they do so, rural school districts be included. Chairman Arberry called for public testimony. There was none. ASSEMBLY BILL 65 Requires investigation and reporting of criminal history of certain applicants for licensure or employment in positions related to education. Dr. George Ann Rice, Assistant Superintendent of the Human Resources Division of the Clark County School District, spoke in support of A.B. 65. Dr. Rice said under current state law, fingerprints of all employees applying for a job are submitted to the central repository to be checked through the Nevada Highway Patrol and through the Federal Bureau of Investigation. A report is made of any arrests prior to the time of application; however, any arrests subsequent to employment are not reported. A.B. 65 provides for the central repository to retain fingerprints submitted and if there should be a subsequent arrest for a felony or any crime involving moral turpitude for anyone working for a school district, the superintendent of that district would be notified so the district could perform further investigation. Ms. Giunchigliani disclosed she is a public school teacher. She requested a definition of language relating to moral turpitude. Dr. Rice responded the language was used to correspond to language already in the statutes. Ms. Giunchigliani confirmed under present statutes the central repository keeps no records of inquiries made by a school district or superintendent so if there is a subsequent arrest, no notification would be possible. Ms. Giunchigliani questioned whether A.B. 65 changed notification from the state superintendent to the district level. Dr. Rice said currently new employees sign a waiver consenting to notification of the local school district in the event of an arrest. Chairman Arberry asked why both the FBI and the school district take fingerprints. Dr. Rice responded the FBI does not take fingerprints; fingerprints are submitted through the Nevada Highway Patrol to the FBI. The Nevada State Department of Education requires fingerprints for licensure. There is a four month delay between the time fingerprints are submitted and the time a report is received. If a teacher is hired in February for the following school year, there would be enough time to get a report back before the teacher entered a classroom. Sometimes newly hired individuals wait until July or August to submit their fingerprints to the State Department of Education. Mr. Spitler asked whether the time period involved creates additional liability. Dr. Rice indicated once a record had been made, there would be very little lag time between subsequent felony arrests and notification of the school districts. Mr. Spitler inquired whether new liability is created for the state and whether the fiscal note is sufficient to cover that liability. Dr. Rice said she could not speak to that issue; however, the intent of A.B. 65 is to decrease liability because additional information would be provided that had not been previously accessible. Mr. Spitler asked how many cases were expected from A.B. 65. Dr. Rice said the number should be very small but indicated the number could not be predicted because the information regarding subsequent felony arrests is not currently available. Dennis DeBacco, manager of the state's Criminal History Records Repository, offered further explanation of questions previously asked by the committee. He explained there is some duplication of effort because if a fingerprint check is negative within Nevada or the western states, those records are forwarded to the FBI for a national check. Mr. DeBacco observed A.B. 65 provides enhancement to the existing program. He pointed out page 3, from line 39 to page 4, line 6 reflects the current service provided to any licensing and employment agency. From line 7 on page 4 through line 16 is the enhanced service being requested in A.B. 65. Mr. DeBacco indicated the technology is in place to provide this service. Chairman Arberry asked how much the expanded service would cost. Mr. DeBacco said when the fiscal note was prepared, $126,992 was projected in the first fiscal year and $118,192 was projected in the second fiscal year. Mr. DeBacco asked to withdraw the fiscal note because through consolidation of various budget accounts, some efficiency savings will be realized; the fiscal note calls for additional staffing to accommodate the Department of Education and the additional staff is now considered unnecessary. With these two adjustments, ongoing costs of $50,000 a year remain. Chairman Arberry clarified that if A.B. 65 passes, no additional costs or personnel will be required. Mr. DeBacco concurred but added other bills pending could affect potential costs; if costs increase, the Interim Finance Committee would be requested to provide funding at a later date to upgrade the computer system. Mr. Hettrick questioned the number of felonies that would require notification of school districts. He suggested a list of felonies be generated and provided to school districts. The districts could then inspect that list for its own employees. Mr. DeBacco said that practice would violate privacy concerns for individuals not associated with a school district. Mr. Hettrick inquired whether the technology is in place to separately report those individuals who are employees of school districts, are licensed and have felony records so only that list could be provided to school districts. Mr. Hettrick indicated he wished to explore options that would eliminate the necessity to come before the Interim Finance Committee to request any additional money in regard to A.B. 65. Mr. DeBacco indicated the appropriate technology is in place, however more data storage space is necessary in order to register approximately 8,000 school employees per year to the automated fingerprint identification system. To upgrade the storage space for that fractional amount is not efficient. However, bills pending concerning concealed weapons permits could require a much larger upgrade later on. Mr. Hettrick asked if requests to process fingerprints are stored in the computer system. Mr. DeBacco responded that is not currently done; in order for the provisions of A.B. 65 to work, the fingerprint images of school district employees will be registered to the automated fingerprint identification system. If an individual is arrested anywhere in Nevada or in any of the western states who is registered in the automated fingerprint identification system, a report would be made. Mr. Hettrick asked whether a staff member was available who could judge whether an arrest constituted moral turpitude and who would be prepared to assume that liability. Mr. DeBacco said judgments of that type are already made by staff members on a daily basis. Mr. Hettrick referred to language on page 4, lines 12 through 14, stating "the central repository's records indicate have been arrested or convicted of a felony" and noted the words should be added "since the central repository's initial investigation." Mr. DeBacco said if an individual is arrested in a state not participating in the automated fingerprint identification system, the arrest would not be reported unless an inquiry regarding that individual was made of the FBI's system. Mr. Hettrick noted it might be better to check all employees once a year so all states could be included in the inquiry. Mr. DeBacco said this would be the better solution; however, every time an inquiry is made to the FBI's national file, a $24 fee is charged which would become cost-prohibitive for this large group of employees. Mr. DeBacco cautioned the committee that the release of arrest information is outside the norm for licensing and employment issues and that employment is not usually denied without benefit of a conviction. Mr. Hettrick asked whether it would be necessary to increase the capacity of the central repository's computer system in the event only A.B. 65 were to pass of the bills potentially affecting the computer system. Mr. DeBacco said the impact to the system would be approximately $50,000; however, the $15 fee charged for fingerprint checks should enable that level of service to be provided. Mr. DeBacco requested language in line 7, "on or before the first day of each month," be changed to "upon discovery by the repository" or similar language. Mr. DeBacco noted limiting reportable incidents to felonies could potentially allow a school bus driver convicted of numerous DUI offenses to continue to drive a school bus. Ms. Giunchigliani read statute which outlines circumstances leading to termination of a school district employee. Ms. Giunchigliani asked how moral turpitude is defined and requested Mr. DeBacco provide written information concerning the definition of moral turpitude. SENATE BILL 205 Makes appropriation to University and Community College System of Nevada for scholarships for students. S.B. 205 was not heard. Chairman Arberry adjourned the meeting at 10:19 a.m. RESPECTFULLY SUBMITTED: Deborah Salaber, Committee Secretary Assembly Committee on Ways and Means April 26, 1995 Page