MINUTES OF THE ASSEMBLY COMMITTEE ON WAYS AND MEANS Sixty-eighth Session May 5, 1995 The Committee on Ways and Means was called to order at 1:30 p.m., on Friday, May 5, 1995, Chairman John Marvel 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 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. Larry L. Spitler COMMITTEE MEMBERS ABSENT: Ms. Sandra Tiffany, Vice Chairman (Excused) Mr. Bob Price (Excused) STAFF MEMBERS PRESENT: Mr. Mark Stevens, Fiscal Analyst Mr. Gary Ghiggeri, Deputy Fiscal Analyst Mr. Larry Peri, Program Analyst Mr. Ronald Steele, Program Analyst SENATE BILL 117 Authorizes financing of parking facilities with certain revenue bonds of University and Community College System of Nevada. Senator Bob Coffin, District 3, Las Vegas, introduced Senator John Vergiels representing the University of Nevada, Las Vegas (UNLV) and Robert Dickens representing the University of Nevada, Reno (UNR). Senator Coffin spoke in support of S.B. 117 which would allow UNLV and UNR to construct free-standing parking garages using existing and proposed increased revenue bonding authority. The bill was requested by the president of UNLV when it was discovered a fund of proceeds from bond sales authorized by the original act was paying out more interest than it was receiving. The legislation allowed parking garages to be constructed only with dormitories. Additional parking is needed but additional dormitories are not. S.B. 117 would allow parking garages to be constructed apart from dormitories. The fund currently pays out approximately $1,000 more interest per day than it earns. Chairman Marvel asked whether there had been any opposition to S.B. 117 in the Senate. Senator Coffin responded negatively. Ms. Giunchigliani referred to discussion in an education committee regarding employee parking at the universities and asked whether employees would continue to pay for parking at both campuses. Dr. Dickens said the discussion in the education committee centered around a request to provide state employees free parking. UNR's policy has been to charge parking fees for students, faculty and staff and those fees pay for a portion of Parking Services which provides motorist assistance; for parking meters; for parking enforcement personnel; for a portion of the campus escort service; and for the shuttle service. Dr. Dickens said S.B. 117 increases existing bonding authority. Ms. Giunchigliani requested a report of parking fee collections and expenditures to ensure parking fees were not being used for construction or other purposes. Dr. Dickens added a parking structure has been included in the second level of CIP priorities for UNR. Mr. Close confirmed the original bonding was to be used for Greek Row at UNLV but was never built. He asked how much was originally authorized. Senator Coffin responded the original authorization was $10 million; $3.1 million remains in the fund. Approximately $6 million was spent on dormitory facilities at UNLV. The remaining $3 million will remain at UNLV. Dr. Dickens said the debt would be separate for each campus. Mrs. Chowning expressed her support of the services that can be provided from parking fees. Chairman Marvel called for public testimony. There was none. ASSEMBLYMAN ARBERRY MOVED DO PASS ON S.B. 117. ASSEMBLYWOMAN CHOWNING SECONDED THE MOTION. THE MOTION CARRIED. ASSEMBLYWOMAN EVANS ABSTAINED FROM VOTING. ASSEMBLYMAN PRICE AND ASSEMBLYWOMAN TIFFANY WERE NOT PRESENT AT THE TIME OF THE VOTE. ************** SENATE BILL 368 Makes appropriation to legislative fund. Lorne Malkiewich, Director of the Legislative Counsel Bureau, explained S.B. 368 is the second appropriation of the session to pay the costs of the session and would fund the session through June 15. If the entire appropriation is not used, the savings would carry forward to be used as start-up costs for the 1997 session. Chairman Marvel called for public testimony. There was none. ASSEMBLYMAN DINI MOVED DO PASS ON S.B. 368. ASSEMBLYMAN FETTIC SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. ASSEMBLYMAN PRICE AND ASSEMBLYWOMAN TIFFANY WERE NOT PRESENT AT THE TIME OF THE VOTE. **************** SENATE BILL 346 Makes supplemental appropriation to department of administration for personnel expenses of office of internal audits. Tracy Raxter, Chief of Administrative Services for the Department of Administration, reported S.B. 346 provides a supplemental appropriation of $4,000 to fund personnel expenses of the Office of Internal Audits through June 30. New positions are budgeted at step one; however, it was necessary to hire two new auditor positions at a level higher than step one. Due to a lack of personnel turnover, no salary savings have been realized. Chairman Marvel called for public testimony. There was none. ASSEMBLY BILL 217 Makes appropriation to division of child and family services of department of human resources for vehicles, equipment, supplies and building maintenance for northern and southern child and adolescent services. Barbara Qualls, Program Manager, Southern Nevada Child and Adolescent Services, explained the carpeting, patio covers and external building repairs requested in A.B. 217 relate to repairing outpatient, clinical and residential buildings. Equipment includes washers, dryers, vans and chairs for on-campus treatment home programs. Chairman Marvel asked if Ms. Qualls was aware of an analysis by fiscal staff which significantly impacted the request. Ms. Qualls responded negatively. Mrs. Brower requested an explanation of funding requests that were significantly higher than written estimates and asked whether the lower estimates could be considered. Chairman Marvel requested that Larry Peri, Program Analyst, explain his analysis of the one-shot appropriations requested in A.B. 217. Mr. Peri explained the bill contains an estimate of $58,000 as the cost for patching, sealing and painting several buildings on the campus of Southern Nevada Child and Adolescent Services; a written estimate reflects a cost of $12,200, a discrepancy of $45,800. Ms. Qualls indicated she was not aware of that discrepancy. Chairman Marvel asked what the true amount to be requested in A.B. 217 should be. Mr. Peri explained some written estimates have been higher than amounts requested in A.B. 217. He noted the itemization for carpet replacement in A.B. 217 is $34,500 and the actual written estimate is $45,300. Replacement of wood fascia is requested in the amount of $11,500; the written estimate reflects a cost of $8,675. Replacement of four wood patio covers is requested in the amount of $7,500; the written estimate reflects $4,425. Chairman Marvel asked what the total amount needed for A.B. 217 would be. Mr. Stevens indicated the appropriation should be reduced downwards approximately $40,000. Chairman Marvel inquired why the requested appropriations and written estimates were different. Ms. Qualls responded she did not know. John Sarb, Administrator, Child and Family Services Division, suggested using the figures from the March 1, 1995 estimate referred to by Mr. Peri. Chairman Marvel asked who obtained the March 1, 1995 estimates. Mr. Sarb responded he did not know but would provide the information. Ms. Qualls explained the usual practice is for the maintenance chief to request companies to provide bids. Chairman Marvel inquired who provided Mr. Peri with the estimated figures. Mr. Peri responded copies of the estimates were provided by the agency as part of a response to a letter in the course of reviewing the budget and one-shot requests. He added some of the correspondence named Mr. Bob Snow of the Maintenance Department of Southern Nevada Mental Health. Mr. Arberry requested an explanation of the requested appropriation for patio covers. Ms. Qualls responded the patio covers are external to some of the older buildings. Mr. Peri reported the patio covers measure 12 feet by 11 feet. Chairman Arberry inquired what type of roofing material is being used. Mr. Peri responded the covers will be of wood lattice. Mr. Arberry requested further bids be obtained because the cost appeared to be extremely high. Mr. Allard suggested the agency obtain three bids for each requested item to be presented to the committee. He asked whether the bid included removal of the old patio covers and painting of the new covers. Ms. Qualls responded affirmatively. Mr. Allard then asked whether three bids had been obtained. Mr. Sarb responded negatively and explained for purposes of estimation the agency generally obtains one bid but does obtain three bids when a contract is to be awarded. Ms. Giunchigliani noted the Volunteers of America, who are currently leasing the Southern Nevada Children's Home from the Division of Child and Family Services, have requested that repairs be made to that facility. She inquired why the Division is paying for the repairs. Mr. Sarb said the contract called for the state to perform major maintenance and the operator to perform minor maintenance. Ms. Giunchigliani requested an explanation of the difference between major and minor repairs. Mr. Sarb said one item of negotiation is repair of the sprinkler system. Ms. Giunchigliani requested an itemization of the repairs requested by the Volunteers of America. Mr. Sarb indicated the information would be provided. Ms. Giunchigliani inquired when the contract with Volunteers of America was scheduled to end. Mr. Sarb answered the current contract will end June 30, 1995. Ms. Giunchigliani asked whether a report of the actual cost of operating that facility will be provided. Mr. Sarb said a report would be forthcoming. Chairman Marvel asked whether the contract with Volunteers of America will be renegotiated. Mr. Sarb responded affirmatively. Chairman Marvel requested Mr. Peri work with the agency to obtain verification of figures and answers to the committee's questions. Chairman Marvel called for public testimony. There was none. ASSEMBLY BILL 218 Makes appropriation to division of child and family services of department of human resources for vehicles, computers and miscellaneous equipment. Annette Swainston of the Division of Child and Family Services reported A.B. 218 requests $629,818 for computers and related equipment and 27 replacement vehicles. The vehicles would replace vehicles which have more than 100,000 miles and rising maintenance costs. A.B. 218 also provides $20,646 for replacement of broken office equipment and 12 cellular phones for individuals who work in the field. Chairman Arberry inquired whether the computer request had been approved by the Department of Information Services. Ms. Swainston responded affirmatively. Mr. Allard asked whether bids had been obtained for the requested vehicle purchases. Ms. Swainston reported the vehicle costs were provided by State Purchasing. Mr. Allard asked whether the old vehicles would be traded in. Ms. Swainston responded as the vehicles were in very poor condition it was likely they would be surplussed. Chairman Marvel asked whether fiscal staff had been provided with a list of the vehicles. Mr. Peri responded he did have the list and would work with the agency to obtain additional information. Mrs. Evans inquired whether any federal funds were available to help with the vehicle purchase. Ms. Swainston indicated vehicle funding could be built into the budget so federal dollars could be accessed to support a portion of the cost. Mr. Close asked when the agency's business process re-engineering would be finished relative to the Statewide Automated Child Welfare Information System (SACWIS). Mr. Sarb responded May 31. Mr. Close then asked whether the computers and associated items requested in A.B. 218 were needed May 31 to provide startup of that system. Mr. Sarb responded the computers and associated items requested in A.B. 218 were not part of SACWIS. Mr. Arberry asked whether it might be possible to obtain 75 percent federal participation for the computer purchases. Mr. Sarb said in order to consider the computers requested in A.B. 218 as part of SACWIS, they would have to be used for SACWIS preparation and that would involve only one or two computers. Once implementation of SACWIS begins, computers used by staff working on SACWIS could be purchased with 75 percent federal participation. Mr. Arberry asked whether the entire request for 30 laptop computers needed to be filled immediately. Mr. Sarb said 30 laptop computers could be put to immediate use by individuals who work in the field. Mr. Arberry asked whether any federal funding could be found to offset the computer costs. Ms. Swainston said the costs for the computer purchase could be included in the Division's cost allocation which would pass some of the cost of the computers on to the various federal programs. She indicated the potential reimbursement would be calculated and provided to the committee. Ms. Giunchigliani observed the cost of $4,000 for each laptop seemed high and asked why a software package needed to be purchased for each computer. Ms. Swainston indicated the purchase was handled through the Department of Information Services (DIS). Mr. Allard questioned whether one software package could be used for several computers within the same business. Mr. Close understood one licensee could use one software package in multiple computers. Pam Case, Deputy Director of the Department of Information Services, clarified that how many computers owned by one licensee could use the same software package related to how the computer and software were purchased and licensed. However, the licensee must pay for the number of work stations used. DIS attempts to negotiate the best price for volume purchases; if there will be 50 users on a LAN, DIS would purchase a 50 user license but would still be required to pay for 50 users. She noted it is against the law to infringe copyrights and governments are more subject to audits than private enterprise. Chairman Marvel called for public testimony. There was none. ASSEMBLY BILL 255 Makes appropriation to division of child and family services of department of human resources for state automated child welfare information system. Mr. Sarb reported A.B. 255 provides a one-shot appropriation of $1,687,500 over the biennium to the Division of Child and Family Services for the General fund match required for the Statewide Automated Child Welfare Information System. Mr. Peri noted Mr. Sarb testified that business process re-engineering would be completed by May 31 and asked if that phase would provide firm costs for phase II. The federal share totals $2,062,500. Ms. Case indicated DIS is managing the project for the Division of Child and Family Services. She confirmed phase I for business process re-engineering will be completed by the end of May; phase II will probably cost more than the original estimate of $750,000 for the consultant portion and several million for the other phases, but a firm figure will not be known until an RFP is let and phase II is awarded to a contractor. At this point, it is projected the phase II consultant will cost $950,000. Mrs. Evans inquired when the juvenile justice data portion of SACWIS would be fully operational. Mr. Sarb responded the system is projected to be operational in two years. Mrs. Evans expressed her displeasure at the projected time line. Mr. Sarb said independent technical advisors had projected a similar time frame. Ms. Giunchigliani asked who performed the business process engineering and inquired how the firm had received authorization to perform the work. Mr. Sarb indicated Peat Marwick had performed the process. Ms. Case said the process had been approved by the Interim Finance Committee. Ms. Giunchigliani asked what cost had been authorized. Mr. Sarb answered $375,000. Ms. Giunchigliani asked what consultant would review SACWIS. Ms. Case said the consultant would be selected through a competitive bid process. Ms. Giunchigliani asked how the consultant cost had been raised from $750,000 to $950,000 when a consultant had not been hired. Ms. Case explained the $750,000 was an arbitrary figure used for estimates; the $950,000 was based on an estimate by the phase I consultant and on the scope of the project from phase I. Chairman Marvel asked if those costs would be known before the end of May. Ms. Case responded negatively. Ms. Case noted in any project, total costs and the scope of the project could not be known until phase I is complete. In the SACWIS project, phase I was to accomplish business process re-engineering. The consultant has identified the Division's current work processes and has made suggestions on how those processes might change. As the size, scope and complexity of the Division's work processes become apparent, more accurate project cost estimates are possible. The outcome of phase I will be used to produce detailed requirements definition for high level system design. Ms. Giunchigliani asked whether the consultant would bid on the project. Ms. Case said the RFP's state that those who bid on one phase will not be allowed to bid on subsequent phases. Chairman Marvel called for public testimony. There was none. SENATE BILL 205 Makes appropriation to University and Community College System of Nevada for scholarships for students. A packet of materials was distributed which provided answers to questions raised by the committee at a previous hearing (Exhibit C). Ms. Giunchigliani questioned a shortfall in the Governor's budget referred to in Exhibit C. Tom Anderes, Vice Chancellor for Finance and Administration, University and Community College System of Nevada, indicated UCCSN was attempting to explain the rationale for distribution of the funding. The Governor recommended $3.5 million in the operating budget under the Board of Regents' access policy and UCCSN would like to fully fund this policy. The shortfall relates to fully funding the access formula which would require an additional $4.4 million. Mr. Anderes pointed out a May 3, 1995 memo in Exhibit C reflecting projected distribution of student access funds by institution and including both the Governor's recommendation and the additional funding requested in S.B. 205. Ms. Giunchigliani asked whether the Governor had indicated how funding should be distributed or whether that decision had been left to the Board of Regents. Mr. Anderes noted discussions with the Governor had focused on the need for support for financial aid. Ms. Giunchigliani confirmed that tuition and fee increases would be dedicated to the student access fund. Ms. Anderes noted a major portion of dollars related to the student access fund are part of the operating budget. Ms. Giunchigliani asked whether student access funds could be used for non resident students. Mr. Anderes responded affirmatively. Ms. Giunchigliani confirmed of the $7.9 million, $4.5 million would be used for Nevada residents only; $3.5 million could be used for non residents. Ms. Giunchigliani expressed concern the base budget would be obligated by using some of the one-shot appropriation for operating expenses. Mr. Anderes responded that was not the intent; the $7 million would be retained outside the budget as a one-shot appropriation and would not become part of the operating base. Mr. Stevens recalled at the previous hearing on S.B. 205 it had been suggested a letter be sent to UCCSN indicating the funding in S.B. 205 was one-time funding and would not be built into the base budget. Mr. Stevens observed the funding could be built into the Governor's budget for the next biennium as a maintenance or enhancement item but would not be built into the base budget. Mr. Allard asked whether each institution within UCCSN was in agreement with the projected distribution of access funds. Mr. Anderes responded affirmatively. Chairman Marvel called for a motion on S.B. 205. ASSEMBLYMAN DINI MOVED DO PASS ON S.B. 205. ASSEMBLYWOMAN CHOWNING SECONDED THE MOTION. THE MOTION CARRIED. ASSEMBLYWOMAN EVANS ABSTAINED FROM VOTING. ASSEMBLYMAN CLOSE AND ASSEMBLYWOMAN GIUNCHIGLIANI VOTED NO. ASSEMBLYWOMAN TIFFANY AND ASSEMBLYMAN PRICE WERE NOT PRESENT AT THE TIME OF THE VOTE. ************** ASSEMBLY BILL 210 Makes various changes regarding preparation of governmental budgets. Mr. Stevens explained A.B. 210 resulted from the interim study committee on methods of establishing a legislative budget office. Page 4, line 31 requires the Budget Division submit to the Fiscal Analysis Division on December 1 the base budget to be included in the Executive Budget; a proposed amendment would change that date to December 15. Mr. Stevens said a second proposed amendment affects page 8, line 20 which provides for appointment of a budget subcommittee to be comprised of newly appointed members of the Assembly Committee on Ways and Means and the Senate Committee on Finance; line 20 provides the initial meeting to be held on or before January 5; the proposed amendment is to not specify a date but just to specify the committee complete its work before the session begins. ASSEMBLYMAN ARBERRY MOVED AMEND AND DO PASS ON A.B. 210, CHANGING PAGE 4, LINE 31 TO REFLECT DECEMBER 15 RATHER THAN DECEMBER 1 AND CHANGING PAGE 8, LINES 19-21 TO READ "THE BUDGET SUBCOMMITTEE SHALL CONCLUDE ITS ACTIVITIES BEFORE THE NEXT REGULAR LEGISLATIVE SESSION IS CONVENED". ASSEMBLYMAN CLOSE SECONDED THE MOTION. Mr. Hettrick recalled discussion regarding page 4, line 31 which suggested language specifying 45 days before the start of the session rather than a specific date. Mr. Stevens said 45 days before the start of the session could be extremely difficult for the Budget Division depending on what date the session actually convened. He noted the December 15 date had been agreed upon by the Budget Director, the chairman of the interim study committee and the Fiscal Analysis Division. Mr. Hettrick commented several bills are in process with the potential of changing the starting date of the session and his intent was to avoid confusion in the future should the opening date of the session be changed. Mr. Dini said a constitutional change would be required to alter the opening date of the session and that could not occur for at least five years so there would be ample time to adjust the date in A.B. 210 if necessary. Mrs. Evans observed it was not known what would happen with the other bills and if the constitution were to be amended, the provisions in A.B. 210 could also be amended at that time. Mr. Spitler expressed concern regarding section 10. He noted it can be difficult for legislators to plan their leaves of absence from work and section 10 asks individuals on the Committee on Ways and Means to be available from January 5 with no foreknowledge of how much time would be involved. For that reason, he would continue to oppose the measure. Ms. Giunchigliani agreed with Mr. Spitler and also noted legislators would be asked to review budgets before leadership was decided and before anyone was sworn in. Chairman Marvel noted normally within one week after the election the make-up of most committees is known. Mrs. Evans observed this session an informational presentation had been made during orientation; no budgets were reviewed and no action was taken. Mr. Spitler observed the language on page 8, line 19 indicates a member of the Committee on Ways and Means must notify his employer he will not be available after January 5. Mr. Stevens pointed out the motion on the floor included amending this section by deleting the January 5 date. Chairman Marvel called for a vote. THE MOTION CARRIED. ASSEMBLYMAN SPITLER AND ASSEMBLYWOMAN GIUNCHIGLIANI VOTED NO. ASSEMBLYWOMAN TIFFANY AND ASSEMBLYMAN PRICE WERE NOT PRESENT AT THE TIME OF THE VOTE. *************** ASSEMBLY BILL 105 Requires state board of education to provide for instruction relating to crimes. Mr. Stevens distributed copies of proposed amendments. To amend section 1, page 1, by deleting lines 3 through 7 and inserting: "1. The state board shall, by regulation, require to be included in the existing course of study for American government at the secondary level, instruction relating to violent and other crimes. 2. The instruction must be developed respectively by the board of trustees of each school district and may include information regarding those acts that constitute violent and other crimes in the State of Nevada, the maximum punishments established by law for the commission of such acts and the physiological and psychologi-". Amend section 2, page 1, line 10, after "1995" by deleting the period and inserting: "and expires by limitation on July 1, 1999." Amend the title of the bill, first line, by deleting: "the state board of education" and inserting "each school district". Amend the summary of the bill to read as follows: "SUMMARY--Requires each school district to provide for instruction relating to violent and other crimes. (BDR 34-1144)". Chairman Marvel requested the committee review the amendments, noted assurance had been provided there would be no fiscal note and called for a motion on A.B. 105. ASSEMBLYMAN ALLARD MOVED AMEND AND DO PASS ON A.B. 105. ASSEMBLYMAN CLOSE SECONDED THE MOTION. Ms. Giunchigliani maintained A.B. 105 represents an unfunded mandate and asked what course material would be deleted in order to include the material in A.B. 105. She noted definition had not been provided regarding what constitutes "violent and other crimes" or "psychological and physiological" and suggested making the course elective rather than required. She expressed support for the intent of A.B. 105 but indicated the bill did not accomplish its intent. Chairman Marvel noted concerns could be addressed through the Senate. Mrs. Chowning observed the original version of A.B. 105 had provided the instruction be included in Social Studies, a course not required for graduation; however, the amendment includes the instruction in American Government, a course which is required for graduation. She expressed her support for the intent of A.B. 105 but felt the instruction should be included in Social Studies. Mr. Close noted Assemblyman Nolan wished the instruction to be included in a course where all students would have the opportunity to receive the instruction. Mr. Spitler indicated Mr. Nolan met with the school boards to discuss A.B. 105 and that American Government already incorporates some elements of the instruction provided in A.B. 105. THE MOTION CARRIED. ASSEMBLYMAN ARBERRY AND ASSEMBLYWOMEN EVANS, GIUNCHIGLIANI AND BROWER VOTED NO. ASSEMBLYMAN PRICE AND ASSEMBLYWOMAN TIFFANY WERE NOT PRESENT AT THE TIME OF THE VOTE. **************** ASSEMBLY BILL 182 Makes supplemental appropriation to supreme court for anticipated shortfall in revenue from administrative assessments. Mr. Stevens reported A.B. 182 provides a supplemental appropriation to the Judicial Branch to compensate for shortfalls in administrative assessment revenue. The appropriation can be reduced dramatically because the court has agreed to transfer some of the reserve administrative assessment funds from the Judicial Education budget and the Retired Justice Duty budget to the Supreme Court to offset the need for a General Fund supplemental. If the committee agrees to that proposal, the appropriation in line 2 would be reduced to $25,428 and sections would be added authorizing the transfer of assessment fee revenue from the Judicial Education budget to the Supreme Court budget of $177,198 and a transfer of administrative assessment revenues from the Retired Justice Duty budget to the Supreme Court budget of $71,000. Mr. Close asked whether the shortfall is expected to be a recurring problem. Mr. Stevens indicated the problem is a one-time event because administrative assessment revenues did not come in at budgeted levels and resulted in a shortfall in the Supreme Court budget; some expenditures were reduced but a shortfall remains. A shortfall in administrative revenues did take place six or eight years ago, but the majority of the time administrative assessment revenues have reached or exceeded budgeted levels. Chairman Marvel added that at one time the Supreme Court received 100 percent of its funding from the General Fund. Mr. Dini said a portion of the problem was brought to light in a legislative audit; local governments can opt out of the state statute and when they do so, the administrative assessments are not always forthcoming to the Supreme Court. He noted a bill is in process to try to solve that problem. Chairman Marvel called for a motion. ASSEMBLYMAN ALLARD MOVED AMEND AND DO PASS ON A.B. 182 BY REDUCING THE APPROPRIATION IN LINE 2 TO $25,428 AND BY ADDING SECTIONS AUTHORIZING THE TRANSFER OF $177,198 IN ASSESSMENT FEE REVENUE FROM THE JUDICIAL EDUCATION BUDGET AND OF $71,000 IN ADMINISTRATIVE ASSESSMENT REVENUES FROM THE RETIRED JUSTICE DUTY BUDGET TO THE SUPREME COURT BUDGET. ASSEMBLYMAN ARBERRY SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. ASSEMBLYMAN PRICE AND ASSEMBLYWOMAN TIFFANY WERE NOT PRESENT AT THE TIME OF THE VOTE. *************** Assemblywoman Giunchigliani, Co-Chairman of the Subcommittee on General Government presented the subcommittee's report on the Division of Agriculture. ASSEMBLY COMMITTEE ON WAYS AND MEANS SUBCOMMITTEE ON GENERAL GOVERNMENT REPORT DIVISION OF AGRICULTURE THE JOINT SUBCOMMITTEE ON GENERAL GOVERNMENT HAS REVIEWED THE BUDGETS OF THE AGRICULTURE DIVISION. THE SUBCOMMITTEE RECOMMENDS A NET GENERAL FUND DECREASE OF $70,600 IN FY 96, AND $72,700 IN FY 97. THE FOLLOWING MAJOR ISSUES WERE DISCUSSED DURING THE SUBCOMMITTEE'S REVIEW OF THE DIVISION'S BUDGETS. PLANT INDUSTRY (Executive Budget Page - 845): ? The Joint Subcommittee recommends transferring one Agriculturist position to Registration/Enforcement and a one-half time Chemist position to Gas Pollution. These position transfers should more accurately reflect the job responsibilities. The transfers will save General Fund appropriations of $70, 600 in FY 96 and $72,700 in FY 97. The Subcommittee also recommends the addition of one Weights and Measures Inspector and vehicle as presented in the Executive Budget. The additional Weights and Measures Inspector is recommended to address increased service demands. In addition, the Subcommittee recommends funding to replace two pickups per year as part of the Governor's vehicle replacement plan. REGISTRATION AND ENFORCEMENT (Executive Budget Page - 857): ? The Joint Subcommittee recommends the transfer of one Agriculturist II position from the Plant Industry budget. The transfer more accurately reflects the job responsibilities and saves General Fund appropriation of $34,400 in FY 96 and $36,200 in FY 97. The Subcommittee also recommends the purchase of one liquid chromatograph for $47,000 in FY 96, and one spectrometer for $120,000 in FY 97, as recommended in the Executive Budget. LIVESTOCK INSPECTION (Executive Budget Page - 865): ? The Joint Subcommittee recommends increasing the Livestock Inspection's reserve from $27,011 to $201,608 at the end of FY 1997. This was accomplished through Agency recommended increases in lifetime horse transportation permits, a 3% collection fee transferred from the Beef Council, elimination of a full time District Brand Inspector, a $10,000 decrease in the livestock inspection tax, and elimination of an incorrect transfer to the Veterinary Medical Services budget. The Subcommittee recommends closing the Livestock Inspections budget with the ten cent ($.10) per head increase recommended by the Cattlemen's Association and built into the Governor's Budget. It is expected the ten cent per head fee increase will generate $50,000 per year and is presented in the Enhancement section of the Executive Budget. GAS POLLUTION STANDARDS (Executive Budget Page - 879): ? The Joint Subcommittee recommends the transfer of a one-half time Chemist II position from the Plant Industry budget. The transfer more accurately reflects the job responsibilities and saves General Fund appropriation of $36,200 in FY 96 and $36,600 in FY 97. The Subcommittee also recommends the purchase of one gas chromatograph for $160,000 in FY 96, and one infra-red octane analyzer for $121,500 in FY 97, as recommended in the Executive Budget. MISCELLANEOUS AGRICULTURE BUDGETS: ? The Subcommittee recommends the closure of the following budgets based upon the recommendations made by the Governor: Grade & Certification of Agriculture Products 851 Alfalfa Seed Research 855 Apiary Inspection 863 Veterinary Medical Services 869 Insect Abatement 873 Rural Rehabilitation Trust Fund 875 Predatory Animal & Rodent Control 883 Grazing Board 889 Woolgrowers Predatory Animal 891 Nevada Junior Livestock Show Board 927 High School Rodeo Association 931 Sheep Commission 945 Ms. Giunchigliani added consideration may be given to changing the manner in which many of the boards and commissions are managed so that the Legislature would provide review and oversight but would allow those organizations greater latitude in their operations. The Division of Business and Industry will also investigate what information it provides to those organizations that may not be necessary or pertinent to their operations. Chairman Marvel called for a motion. ASSEMBLYWOMAN CHOWNING MOVED TO ACCEPT THE RECOMMENDATIONS OF THE GENERAL GOVERNMENT SUBCOMMITTEE CONCERNING THE DIVISION OF AGRICULTURE'S BUDGETS. ASSEMBLYWOMAN BROWER SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. ASSEMBLYMEN ALLARD, HETTRICK AND PRICE AND ASSEMBLYWOMAN TIFFANY WERE NOT PRESENT AT THE TIME OF THE VOTE. BUDGETS CLOSED. THE DIVISION OF AGRICULTURE'S BUDGETS WILL BE REPORTED BACK TO THE COMMITTEE ON WAYS AND MEANS. *************** Ms. Giunchigliani presented the report of the Subcommittee on General Government on the Division of Business and Industry. ASSEMBLY COMMITTEE ON WAYS AND MEANS SUBCOMMITTEE ON GENERAL GOVERNMENT REPORT DEPARTMENT OF BUSINESS AND INDUSTRY THE JOINT SUBCOMMITTEE ON GENERAL GOVERNMENT RECOMMENDS A NUMBER OF THE DEPARTMENT OF BUSINESS AND INDUSTRY BUDGETS FOR CLOSURE. THE SUBCOMMITTEE'S RECOMMENDATIONS INCLUDE A NET GENERAL FUND INCREASE OF APPROXIMATELY $115,100 IN FY 96, AND $80,300 IN FY 97. THE SUBCOMMITTEE RECOMMENDS CLOSING THE FOLLOWING BUDGETS: UNCLAIMED PROPERTY, FINANCIAL INSTITUTIONS, REAL ESTATE, MANUFACTURED HOUSING, COMMISSION FOR HOSPITAL PATIENTS, ENERGY CONSERVATION, HOUSING DIVISION, MINERALS DIVISION, ATHLETIC COMMISSION, EMRB, OFFICE OF PROTECTION AND ADVOCACY, RURAL HOUSING, TAXICAB AUTHORITY, AND A MAJORITY OF THE LICENSING BOARDS. UNCLAIMED PROPERTY DIVISION (Executive Budget Page - 703): ? The Joint Subcommittee on General Government recommends the expenditure of $39,200 for an automated Management Information System with annual maintenance and support fees of $16,000. The automated Management Information System eliminates the need for a Governor recommended Management Assistant I position and $900 of EDP system programming charges in each year of the biennium. In addition, the Joint Subcommittee recommends accelerating the hiring date of the Auditor position from July 1, 1996, to October 1, 1995. The accelerated hiring date is estimated to cost $27,134 above that recommended in the Executive Budget for FY 96. FINANCIAL INSTITUTIONS (Executive Budget Page - 761-769): ? The Joint Subcommittee on General Government recommends closing the three Financial Institutions budgets as "Governor Recommends". The recommendation provides for two additional Financial Examiner positions and related costs as recommended by the Governor in decision unit M-200 on page 762 of the Executive Budget. REAL ESTATE ADMINISTRATION (Executive Budget Page - 771): ? In addition to amounts recommended in the Executive Budget, the Joint Subcommittee recommends the acquisition of 12 legal size file cabinets in FY 96, and the addition of one Program Officer II starting October 1, 1995, in Las Vegas. The additional recommendations will be funded with General Fund appropriation and are recommended to assist the Administrator with an increasing caseload and responsibilities. The Subcommittee also recommends approval of one Management Assistant and one Administrative Aid as recommended in the Executive Budget. The positions are recommended to assist with increased caseloads. REAL ESTATE EDUCATION AND RESEARCH (Executive Budget Page - 777): ? In addition to amounts recommended in the Executive Budget, the Joint Subcommittee recommends the addition of one Compliance Training Officer starting October 1, 1995, in Las Vegas. The position will be funded from Real Estate license fees and will assist the Division with an increasing caseload. The Subcommittee also recommends approval of one Administrative Aid as presented in the Executive Budget. The position is recommended to assist with increasing caseloads. MANUFACTURED HOUSING LOT RENT TRUST SUBSIDY (Executive Budget Page - 799): ? The Joint Subcommittee recommends increased Lot Rent Subsidy payments of $295,000 in both years of the biennium. The increased Lot Rent Subsidy payments leave a reserve balance of $303,000 at the end of FY 1997. The remaining Manufactured Housing budgets were closed as "Governor Recommends". ENERGY CONSERVATION (Executive Budget Page - 827): ? The Joint Subcommittee recommends making a technical adjustment to correct an overage of $100,000 in Federal Funds in each fiscal year of the 1995-97 biennium. The correction leaves a reserve balance of $36,664 at the end of FY 1997. HOUSING DIVISION (Executive Budget Page 833): ? The Joint Subcommittee recommends closing the budget "Governor Recommends" with a $1,500 addition in each year for a W.E.F.A. Economic Outlook Subscription service. The Subcommittee also recommends the inclusion of decision unit E-125 which creates a Loan Servicing Operation within the Housing Division. The Loan Servicing Operation is projected to finance a $10,000 contribution to the Down Payment Assistance program beginning in FY 1997. LOW INCOME HOUSING TRUST FUND (Executive Budget Page 841): ? The Joint Subcommittee recommends closing the budget "Governor Recommends" with an adjustment to redistribute the funds for the Energy Assistance Program for Low Income Families. The Welfare Division no longer desires to run the Energy Assistance Program and as a result, the adjustment redistributes the funds to similar programs. MINERALS - RECLAMATION BOND POOL (Executive Budget Page - N/A): ? The Joint Subcommittee recommends recording the Reclamation Bond Pool in the State's budgetary system. The Reclamation Bond Pool operates by accepting a fee to provide reclamation bonds to private business not otherwise able to obtain surety bonds sufficient to meet federal reclamation requirements. In this capacity, the State operates a surety company providing reclamation performance bonds to Nevada mining and exploration operators. The Reclamation Bond Pool does not have a Legislatively approved budget and was not included in the Executive Budget for the 1995 - 1997 biennium. The Subcommittee's recommendation improves budgetary control and does not change the existing budget of the State or the Reclamation Bond Pool. ATHLETIC COMMISSION (Executive Budget Page - 903): ? In addition to amounts recommended in the Executive Budget, the Joint Subcommittee recommends $7,705 for computer hardware and $1,208 for computer software in FY 96. The Subcommittee also recommends the Administrative Aid start October 1, 1995, in Las Vegas at a cost of $17,500 in FY 96, and $24,500 in FY 97. OFFICE OF PROTECTION AND ADVOCACY (Executive Budget Page - 933): ? The Joint Subcommittee recommends closing the budgets as "Governor Recommends". Effective February 7, 1995, the Governor redesignated the responsibilities of the Office of Protection and Advocacy to the Nevada Disability and Law Center Inc., a private non-profit corporation. The new Disability and Law Center Inc., is no longer a State agency, but is required to submit its annual budget and audit reports to allow the Legislature some fiscal oversight due to the $62,373 General Fund appropriation recommended in each year of the 1995-97 biennium. TAXICAB AUTHORITY (Executive Budget Page - 949): ? The Joint Subcommittee recommends transferring the subsidized Senior Ride Program to the Division of Aging Services effective July 1, 1995. Testimony indicated that the Division of Aging Services will be better able to operate the subsidized Senior Ride Program since they are more familiar with the needs of senior citizens. The Taxicab Authority concurred with the recommendation to transfer the administration of the Senior Ride Program to the Division of Aging Services. Chairman Marvel asked whether the Athletic Commission agreed with the subcommittee's recommendations. Ms. Giunchigliani responded no concerns had been reported. Ms. Giunchigliani indicated the subcommittee raised the question of whether the Taxicab Authority should oversee both Washoe and Clark Counties. Chairman Marvel inquired whether Washoe County was supportive of the Taxicab Authority's regulation. Ms. Giunchigliani suggested an interim study might take place to determine the impact, needs and potential costs. Mrs. Chowning pointed out the Transportation Committee is drafting a bill in response to taxicab company owners from Washoe County who have expressed the desire for a taxicab authority in Washoe County. Mr. Spitler asked how much oversight the state would have over the Office of Protection and Advocacy. Ms. Giunchigliani answered state oversight would be minimal. Mr. Hettrick referred to the Real Estate Administration budget and inquired if the 12 legal size file cabinets are those needed for the 1031 exchange; a fiscal note of $1,500 - $3,000 was associated with that request. He expressed his support for the work done by the Division. Mr. Stevens said if these budgets were to close, a one-shot appropriation for the Real Estate Division could include the filing cabinets for the 1031 exchange if necessary. Mr. Hettrick agreed. Mr. Close asked why the subcommittee chose to fund the two additional Financial Examiner positions rather than requiring the Division to appear before the Interim Finance Committee and whether there had been discussion regarding when the positions would be hired. Mr. Stevens indicated those positions have traditionally been vacant and are only filled when workload demands. Whatever costs incurred by Financial Institutions are directly billed out to those entities so there is a direct one to one relationship between expenses and revenues. If those positions are hired, no General Fund dollars will be used because the cost will be passed on to the financial institution. Mr. Close referred to the Mobile Home Parks budget and asked whether the amount of fee increase had been identified. Mr. Steele said an across the board fee increase for mobile home parks was instituted and added he would report back with the dollar amount. Mr. Close expressed opposition to raising fees because residents in the mobile home parks ultimately pay for those costs and observed the budget should not be closed until the information is available. Ms. Giunchigliani noted there had not been a fee increase in approximately ten years. Mrs. Chowning added she also would like to know the exact amount of the fee increase before the Mobile Home Parks budget is closed. Mrs. Chowning disclosed for the record she would abstain from voting on any budgets regarding real estate. Mr. Spitler asked whether the fee under discussion was that assessed for space within a mobile home park. Ms. Giunchigliani responded affirmatively. Mr. Spitler observed there had been discussion in the Commerce Committee to expand that fee to unoccupied spaces as well as occupied spaces. Ms. Giunchigliani suggested the Mobile Home Parks budget be held pending answers to questions raised by the committee. Chairman Marvel called for a motion to accept the report of the subcommittee with the exception of the Mobile Home Parks budget. ASSEMBLYMAN SPITLER MOVED TO ACCEPT THE SUBCOMMITTEE'S REPORT WITH THE EXCEPTION OF THE MOBILE HOME PARKS BUDGET. ASSEMBLYMAN ARBERRY SECONDED THE MOTION. THE MOTION CARRIED. ASSEMBLYWOMAN CHOWNING ABSTAINED FROM VOTING. ASSEMBLYMAN PRICE AND ASSEMBLYWOMAN TIFFANY WERE NOT PRESENT AT THE TIME OF THE VOTE. BUDGETS CLOSED. ************** Ms. Giunchigliani expressed her appreciation to the members of the subcommittee. With no further business to come before the committee, Chairman Marvel adjourned the hearing at 3:40 p.m. RESPECTFULLY SUBMITTED: Deborah Salaber, Committee Secretary Assembly Committee on Ways and Means May 5, 1995 Page