MINUTES OF THE ASSEMBLY COMMITTEE ON WAYS AND MEANS Sixty-eighth Session May 17, 1995 The Committee on Ways and Means was called to order at 7:40 a.m., on Wednesday, May 17, 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 Ms. Debbra King, Program Analyst ASSEMBLY BILL 530 Revises provisions regarding renewal of drivers' licenses. Assemblywoman Deanna Braunlin, Assembly District 4, introduced Bruce Glover from the Department of Motor Vehicles. Ms. Braunlin explained A.B. 530 would allow Nevada residents to renew a driver's license by mail and would help alleviate the long lines at the Department of Motor Vehicles. Mr. Glover explained renewal by mail would help reduce lines in DMV field offices. It is estimated approximately 60 percent of those eligible would use the renewal by mail program for driver's licenses, reducing the number of customers in DMV offices by approximately 500 individuals daily. Mr. Glover stressed this could not result in reduction of numbers of staff because the program would change the manner in which transactions are processed but not the number of licenses that are processed. Those eligible to participate in the program would be between the ages of 25 and 70, have fewer than three convictions in the last four years and have no medical restrictions on their driver's licenses. An individual holding a commercial driver's license would not be eligible to renew by mail. Mr. Glover testified NRS 483 has been amended by adding a section to "establish a procedure to allow such persons as it deems appropriate to renew their driver's licenses by mail". In addition to the fees set forth in NRS 483.410, for every driver's license renewed by mail, a fee of $1.50 would be charged to offset the cost of the program. The fees collected would be deposited in the State Treasury for credit to the motor vehicle fund and would be allocated to the department to defray the costs associated with the program. The costs of the program involve only printing and postage charges. Staffing levels will not change. NRS 483 has also been amended to allow the department to require an applicant for the renewal of a driver's license by mail to successfully pass an eye test. In lieu of an eye test, documentation may be accepted from an ophthalmologist, optometrist or appropriate state agency. The bill would become effective January 1, 1996. Mr. Fettic asked how the driver's license photograph would be handled. Mr. Glover answered an individual would only be allowed to renew by mail once and would then be required to come into the office for the next renewal so a driver's license photo would never be more than eight years old. He indicated law enforcement had supported the concept. Mr. Price requested explanation of the requirement that an individual be at least 25 years old to renew by mail and asked why that requirement was not contained within the bill language. Mr. Glover indicated the criteria for renewal by mail are not contained in the bill but would be adopted into regulation. He said 25 years of age was chosen because those individuals would be renewing driver's licenses for the second time and there would be sufficient indication at that point of their driving records. Ms. Tiffany asked whether any staff would be added to process the paperwork. Mr. Glover responded negatively. Ms. Tiffany inquired whether overtime would be required to process the work. Mr. Glover reiterated that instead of those individuals coming into the office to renew their licenses, they would submit applications by mail; the number of licenses renewed would not change as a result of the program which is designed to provide better customer service. Ms. Tiffany stressed that additional staff should be requested if it would help alleviate the lines at DMV offices. Mr. Glover indicated the Department currently has funding for numerous new positions for southern Nevada. He said the Department would like to begin the renewal by mail program, analyze it throughout the first year and then determine whether additional staff is needed. Ms. Tiffany asked how many new staff members are recommended to be added. Debbra King, Program Analyst, said if the entire requested staffing programs are approved, the Department will receive 92 additional staff over the biennium for the Las Vegas area including 87 DMV technicians, two public information officers and three accounting clerks. Mr. Close confirmed the license granted by mail would be for eight years after which time an individual must come into the DMV office. After that another renewal by mail would be permitted. Mr. Close asked how long the turnaround time would be for renewals by mail. Mr. Glover said the Department's goal is five to seven days. Mrs. Chowning observed many court orders involve restriction of driver's licenses and asked whether an individual could inadvertently receive a driver's license who should not. Mr. Glover responded that would be a possibility; however, if a court order surfaced after a license was granted the license would be canceled and the number of instances when this occurred would be few. Chairman Arberry referred to discussion regarding documentation of an eye test and asked what an "agency of another state" meant. Mr. Glover said "agency of another state" was meant to refer to another Department of Motor Vehicles or a health officer from another state; he added that language could be amended to reflect the appropriate agencies. Chairman Arberry called for public testimony. There was none. ASSEMBLY BILL 226 Makes appropriation to office of the attorney general for applying for federal grants concerning family violence. Frances Doherty, Deputy Attorney General, introduced Justice Bob Rose, who spoke in support of A.B. 226. Justice Rose testified Nevada has been in the forefront in combating domestic violence. The Nevada Legislature and courts have also been concerned with taking affirmative steps to combat the problem. Two years ago there was a landmark conference of courts and communities to combat violence in the family. A Nevada team attended to learn more about domestic violence and how to adopt a comprehensive plan of action. The team joined with the Nevada Network Against Domestic Violence and applied for a federal grant from the State Justice Institute to hold a number of hearings throughout the state where testimony was heard from victims, law enforcement and prosecutors. The team and Nevada Network compiled a plan of action in response to domestic violence in Nevada. Justice Rose requested the Governor create a council and appoint its members which the Governor agreed to do. The Governor has requested the Nevada Domestic Violence Prevention Council be led by the attorney general to implement the plan and any other action deemed necessary by the Council and to apply for available funding provided by the crime bill and the federal Violence Against Women Act ($426,000 per year earmarked for Nevada). The $20,000 requested in A.B. 226 will provide funding for the Council to begin its work. A proposed amendment to A.B. 226 would provide broader spending authority and would allow the Council to begin to organize. Ms. Giunchigliani asked who would be members of the Council. Ms. Doherty responded the goal of the Council is to represent Nevada's diversified population including geographical representation, tribal governments, local governments, city governments, survivors of domestic violence who would compose 51 percent of the Council, prosecutors, law enforcement, advocates and treatment providers. Ms. Giunchigliani suggested high school students be included to represent the younger members of the population. Mr. Spitler asked if the Council has to be in place in order to be eligible for the $426,000. Ms. Doherty responded that although federal requirements do not mandate a council be in place, federal regulations do require the state work with all of the types of individuals who will be on the council. Ms. Doherty distributed prepared testimony (Exhibit C) and pointed out attachment A to Exhibit C which contains language for a proposed amendment; attachment B contains highlights of the proposed action plan; attachment C reports the various types of grants available under the 1994 Violence Against Women Act. Also included in Exhibit C is a letter of support from Judge Janet Berry. Ms. Doherty read a letter of support from Governor Bob Miller, attached as Exhibit D. Mr. Close asked whether the state would incur continued financial responsibility for the Council after this biennium. Ms. Doherty responded the financial responsibility of the state would only be recognizing whether or not in two years a need existed to invest any additional funding to bring in federal grant funds. She noted the funding requested in A.B. 226 is for the purpose of allowing the Council to begin its work and there is no intent at this time to return for additional funding. Chairman Arberry called for public testimony. Katy Weber, Program Coordinator for Domestic Violence and Sexual Assault Program in Douglas County, spoke in support of A.B. 226. Paula Berkley, representing the Reno-Sparks Indian Colony, distributed testimony from Chairman Arlan Melendez of the Reno-Sparks Indian Colony in support of A.B. 226, attached as Exhibit E. Chairman Arberry called for further public testimony. There was none. ASSEMBLY BILL 227 Makes appropriation to office of attorney general for computer hardware and software and communication enhancements. Brooke Nielsen, Assistant Attorney General, spoke in support of A.B. 227. Ms. Nielsen explained the one-shot appropriation requested in A.B. 227 would provide funding for computer equipment, telephone equipment, laptop computers, filing cabinets, bookcases and other miscellaneous equipment. Ms. Tiffany asked whether the Attorney General's Office had access to the services of a microcomputer specialist to help integrate the equipment. Ms. Nielsen responded there are two microcomputer specialists, one in Carson City and one in Las Vegas, who are available to install the equipment. Mr. Hettrick requested explanation of "computer upgrades from 286". Ms. Nielsen confirmed 17 new computers would be purchased to replace 286 computers. Mr. Spitler disclosed that he would participate in discussion and voting, even though some telephone items were included in A.B. 227. He inquired whether the computers requested in A.B. 227 would bring the Attorney General's Office to the same technology level other large law firms have in terms of time management, access to data and ways to build cases. Ms. Nielsen responded A.B. 227 would provide the ability to network, to perform on-line research, to build a form library and improve efficiency. Mr. Spitler expressed his support for A.B. 227, noting in 1991 as many as seven attorneys used one computer terminal to access research. Ms. Tiffany asked whether the budget included maintenance or warranty for the new computers. Chuck Moltz of the Attorney General's Office said all new computers have come with a three year on-site warranty. Additional warranty or maintenance contracts are not purchased because two individuals in the Attorney General's Office are capable of making any necessary repairs. Chairman Arberry called for public testimony. There was none. ASSEMBLY BILL 240 Makes appropriation to bureau of alcohol and drug abuse in rehabilitation division of the department of employment, training and rehabilitation for equipment. Liz Breshears, Chief of the Bureau of Alcohol and Drug Abuse (BADA), distributed a publication entitled "Screening for Infectious Diseases Among Substance Abusers" (Exhibit F). Ms. Breshears explained A.B. 240 requests a one-shot appropriation to pay for equipment and filter systems for BADA funded treatment facilities in response to tuberculosis issues. The request is designed to ensure that all funded treatment programs meet the OSHA requirements for the control of communicable disease. In late 1994, the Center for Disease Control published "Guidelines for Preventing the Transmission of Mycobacterium Tuberculosis in Health-Care Facilities" which outlines very specific procedures to be followed to protect clients and health care workers from contracting tuberculosis. Treatment facilities must ensure that they meet OSHA standards regarding communicable diseases. The CDC guidelines identify subgroups with a higher risk of TB, either because they are more likely than the general population to have been exposed to and infected by M. tuberculosis or because they are more likely to progress to active TB once infected. High risk subgroups include alcoholics, injecting drug users, and persons with certain medical conditions including HIV infection. Because M. tuberculosis is carried in airborne particles, care givers of these populations are also at greater risk. An additional concern is that of multi-drug resistant strains of tuberculosis. If in treatment of tuberculosis, medications are not prescribed properly or taken regularly, the TB organisms can become resistant to the drugs, and drug-resistant TB may then be transmitted to other persons. Multi-drug resistant strains of tuberculosis pose a serious health issue in substance abuse treatment facilities. This fiscal request includes: The possible retrofitting of at least part of 13 residential facilities with ultraviolet lighting, air purification systems, and the purchase of supplies such as respirators at a cost to the state of approximately $275,000. The cost figure was based on an average of 4,000 square feet per facility at a cost of $5.00 per square foot for the equipment and installation. Additionally, this includes HEPA respirators at $148 per employee per year X 100 employees. The twin epidemics of HIV infection and tuberculosis have greatly impacted the field of substance abuse treatment in recent years. According to documents from the U.S. Occupational Safety and Health Administration (OSHA), since 1985 the rate of new cases of TB in the general U.S. population has increased 18 percent, reversing a 30 year downward trend. Concurrently, HIV infections among Injecting Drug Users are rising dramatically. According to Division of Health Statistics, nearly 28 percent of the AIDS cases in Nevada result from injecting drug use. HIV infected patients are at increased risk of TB because of their impaired immune systems and particularly in light of the development of multi-drug resistant strains of TB. The one time request falls within the statewide functional goal of "public safety of citizens and visitors". Some treatment center personnel have tested positive for tuberculosis which places other treatment center employees, patients and families of those exposed at potential risk for contracting tuberculosis. Chairman Arberry asked where the 13 residential facilities are located. Ms. Breshears indicated the facilities are located throughout the state and serve different populations. Chairman Arberry inquired whether $275,000 would provide enough funding. Ms. Breshears responded affirmatively because only portions of facilities will be converted to isolation rooms. Chairman Arberry requested Ms. Breshears return to the Interim Finance Committee if an increase in caseload should necessitate additional funding. Ms. Tiffany asked whether any of the 13 facilities are rented and if any were close to the end of a lease. Ms. Breshears responded some facilities are rented and lease dates would be taken into consideration before retrofitting a facility. Ms. Tiffany asked if the state is in violation of OSHA. Ms. Breshears said OSHA has not issued any fines or citations to the state. Ms. Tiffany asked whether the state would be in jeopardy if any state employees contracted TB. Ms. Breshears said the state is in jeopardy of being in violation of OSHA regulations but no violations have occurred. Ms. Tiffany inquired whether attempts had been made to obtain federal funding. Ms. Breshears noted that 60-65 percent of the BADA budget comes from a federal block grant and that federal funding cannot be used for capital projects. Ms. Breshears indicated she was not aware of any other federal sources for retrofitting facilities. Ms. Giunchigliani suggested the Division's safety plan include provisions for any employees who contracted TB through their employment. Chairman Arberry called for public testimony. There was none. ASSEMBLY BILL 241 Makes appropriation to commission on post secondary education for computer hardware and software. David Perlman, Administrator for the Commission on Postsecondary Education, spoke in support of A.B. 241. Mr. Perlman explained the support agency for the Commission consisted of the Administrator, two Education Specialists and one Program Assistant. The agency processes applications, performs background investigations, handles complaints, collects fees and tracks statistical information. The workload has increased while the size of the staff has decreased. Staff members use PC's to perform a variety of tasks including preparation of correspondence and documents for the Commission. A database system tracks the collection of approximately $100,000 in fees and fines each year as well as maintaining pertinent information regarding licensed schools. The system is used to track renewal dates and generate resulting notification letters, produce a catalogue of schools for use by the public and other state and federal agencies, and track background investigations. The Program Assistant has developed a spreadsheet program which tracks the budget on a daily basis and computes a monthly billing to the Federal Department of Veteran's Affairs which accounts for approximately 30 percent of the agency's budget. An audit of the agency for the period January 1995 through April 1995 by the Legislative Counsel Bureau resulted in no findings. Mr. Perlman explained the computers the agency presently uses are personally owned and maintained by agency employees who have been using their own computers since 1990 when the agency moved from Carson City to Las Vegas. The request contained in A.B. 241 was processed through the Department of Information Services and if approved would be used to purchase four computers and associated software. It is also planned to network those computers and to link one via modem to the State Controller's Office system to track expenditures. Ms. Giunchigliani asked whether the Commission is physically housed in the State Department of Education. Mr. Perlman responded the agency reports through the State Department of Education but is not physically located within that Department so there is no access to any of its computers. Mr. Hettrick asked whether the computer purchases would include three year warranties and maintenance agreements. Mr. Perlman responded the computers come with a standard warranty through DIS; however, the agency has personnel who can perform computer repairs. Chairman Arberry called for public testimony. There was none. ASSEMBLY BILL 254 Makes appropriation to aging services division of department of human resources for equipment. Bonnie Pillaro, Deputy Administrator for the Division of Aging Services, testified A.B. 254 requests funding to replace a conference recorder, an overhead projector and two computers. The Division requests replacement of a conference recording system at a cost of $3,500. The system is used to record public meetings including the Commission on Aging meetings. The current system was purchased ten years ago and performs inconsistently and there is a lack of clarity in recordings which makes them difficult to transcribe. The replacement system can record multiple speakers and would be compatible with the transcribers used by clerical staff. The present overhead projector, purchased in 1977, is broken. The projector is used for presentations and training sessions for service providers, care givers and staff. The replacement overhead projected is budgeted at $700. New computers are requested to replace computers purchased in 1986 and 1987. By 1996, these computers will be over eight years old. The Division will use the computers extensively to access the NAPIS database mandated by the Federal Administration on Aging. The cost is $2,435 per computer. Ms. Tiffany noted the DIS budget had requested a programmer for the Division of Aging Services, however that request was denied. She asked how that would impact the Division. Ms. Pillaro indicated the Division of Aging Services has received approval for a microcomputer specialist beginning in 1997. Staff members currently perform some maintenance and additional maintenance is performed through a contract with DIS. Chairman Arberry called for public testimony. There was none. ASSEMBLY BILL 487 Requires chief of purchasing division of department of administration to establish supplemental food program. Tom Tatro, Administrator of the State Purchasing Division, introduced Cherie Louvat, Executive Director of the Food Bank of Northern Nevada. Mr. Tatro said A.B. 487 would establish a state food assistance program. Mr. Tatro testified should the Legislature approve passage of A.B. 487 and the Governor sign the bill into law, the Purchasing Division is ready, through the food distribution program, to put the new program together quickly and administer it efficiently and effectively at little cost. There are three prime factors that would expedite the requirements of A.B. 487. The infrastructure is in place; an advisory council is in place; and food is currently being provided to the same feeding programs that would be served by A.B. 487. The Purchasing Division has trucks, drivers and warehouse space available to accommodate another program similar to the seven federally funded programs currently in operation. The administrative staff is in place to handle the additional work that would be created by the passage of A.B. 487. And, there are computer capabilities to plan, organize and incorporate purchased food into the already recognized and accountable food distribution program. The food distribution program has an established advisory council consisting of individuals who operate existing feeding programs throughout the state. The council can guide the program and help select and identify foods that will provide optimum value of price and nutrition. The future of existing federally funded programs will be decided by Congress. The Emergency Food Assistance Program (TEFAP) will no longer receive funding. Its recipients, such as soup kitchens, senior nutrition sites, food pantry programs and other emergency feeding programs must find alternatives after the loss of this food source. Mr. Tatro distributed a sheet entitled "EFAP Federal Assistance" (Exhibit G) which indicates the value of food distributed through the TEFAP program over the last four years. Chairman Arberry asked why the Purchasing Division wanted to undertake this program. Mr. Tatro said A.B. 487 was not an agency bill although the program could be handled without additional administrative costs as the Division currently distributes ten million pounds of food per year. Cherie Louvat, Executive Director of the Food Bank of Northern Nevada, read from prepared testimony, attached as Exhibit H. Mr. Dini expressed his support of A.B. 487, noting in Yerington several hundred individuals benefit from food distributions. Ms. Louvat said the food products currently distributed by the Purchasing Division come through the Food Bank and then to agencies; the program proposed in A.B. 487 would be handled in the same manner. Ms. Giunchigliani asked why some of the agencies listed in Exhibit G no longer received assistance. Mr. Tatro said individual programs made the decision to no longer distribute federal commodity foods because the amount of food available for distribution did not make the program worthwhile. Ms. Louvat said some communities receive USDA commodities for distribution; other communities have emergency food pantries and commodities are funneled through those programs. At this time, commodities are at such a low level that many communities have stopped distribution. Chairman Arberry expressed concern that four years ago the Purchasing Division had requested additional warehouse space and now there is sufficient space to store additional food. Mr. Tatro explained the Division now has ample warehouse space; however, the additional food to be handled through the new program would be 4 or 5 percent of the total food distribution accomplished by the Division. Loss of federal food programs has also contributed to the availability of warehouse space. Mr. Tatro explained the Purchasing Division encompasses three separate operations, including purchasing functions, the Federal Surplus Property Program which is acquisition of federal property and distribution to local governments, state agencies and nonprofit organizations throughout the state, and the Food Distribution Program, the School Lunch Program and Senior Nutrition Program. Chairman Arberry confirmed the additional work would not hamper other activities of the Division. Chairman Arberry inquired what the requested funding will be used for. Mr. Tatro answered the funding will purchase food for distribution to replace a portion of the loss of federal food programs. Chairman Arberry asked whether the request for funding would be ongoing. Mr. Tatro said this request is for a one-shot appropriation but it is likely there would be a request for funding every Legislative session. Mr. Dini asked how much food $100,000 would purchase. Ms. Louvat responded food normally averages 50 cents per pound, however the state's purchasing power would most likely enable food to be purchased for less; $100,000 could purchase 300,000 pounds of food for distribution. Chairman Arberry called for additional public testimony. There was none. BUDGET CLOSINGS Ms. Tiffany presented the report of the Joint Subcommittee on General Government on the Department of Information Services: ASSEMBLY COMMITTEE ON WAYS AND MEANS SUBCOMMITTEE ON GENERAL GOVERNMENT DEPARTMENT OF INFORMATION SERVICES The joint subcommittee reviewing the General Government budgets has completed its review of the Department of Information Service's six budgets and have concurred in the closing actions recommended. The following highlights the more significant budget closing actions recommended by the joint subcommittee. DIS DIRECTOR'S OFFICE The subcommittee concurs with The Executive Budget's recommendation in modules E-902, E-904, E-905 and E-908 to consolidate all DIS clerical positions within the Director's Office. The clerical transfers result in no net cost increase to the department and provide the agency with flexibility in distributing the clerical workload. The subcommittee also concurs with the Governor's recommendation in module E- 905 to transfer an Information Systems Specialist position from the Systems and Programming Division to the Director's Office. This position will assist in contract administration and procurement review. The agency's procurement review workload has more than doubled in the last year. The Governor's budget did not provide sufficient assessment revenue in each of the DIS agency budgets to pay the anticipated Director's Office costs. The subcommittee recommends corrections to the DIS division budgets to appropriately fund the Director's Office. The SPIRIT document recommended centralization of PC software site licensing agreements and hardware maintenance contracts. These suggestions held promise for cost reductions however they were not included in the Governor's recommended budgets. The subcommittee recommends a letter of intent be written directing the department to study these proposals and make recommendations during the interim. RESEARCH AND PLANNING DIVISION The subcommittee recommends approval of two new Planning Analysts to provide consulting services to all state agencies. These positions will help to ensure the state avoids failures and costly mistakes caused by customer agencies embarking upon technology solutions without proper guidance. Services provided by the analysts will include project management, information systems studies, budgeting, advance planning document preparation for federal funding and Request for Proposals resolutions. Personnel expenses in fiscal year 1996 are adjusted to reflect a 10/1/95 start date rather than a 7/1/95 start date. The subcommittee supports merging the Research and Planning Division with the Systems and Programming Division to improve management of the agencies and enhance customer service. However, the subcommittee recommends maintaining separate budget accounts for cost tracking purposes. SYSTEMS AND PROGRAMMING DIVISION The subcommittee recommends approval of one of the four new programmer positions requested in decision unit M-200 of the Governor's recommended budget. The new programmer will assist in maintaining the Taxation Department's ACES system in addition to providing personal computer support for that agency. The subcommittee does not support the request for a new programmer to provide network support for the Department of Education. DIS testified that existing staff could manage the anticipated workload. The subcommittee additionally does not support the request for a new programmer to provide Geographic Information Systems (GIS) support to Water Resources. Management staff from Water Resources indicated the position was not necessary. The Governor's budget included a request for a new programmer to serve the Aging Division, however that request was withdrawn by the Budget Division. To support the Welfare Division's NOMADS project, the subcommittee supports the recommendation for 14 new positions in FY 1996, an additional 4 new positions in FY 1997 and the transfer of two Welfare Division NOMADS programmers to the Systems and Programming Division. The subcommittee recommends the Department of Information Services be directed to report quarterly to the Interim Finance Committee regarding the status of the new positions to determine whether the positions are filled and the ongoing need for the additional staff. The subcommittee concurs with the transfer of one Computer Systems Programmer from the Facility Management Division to the Systems and Programming Division for disk storage support as requested in decision unit E-906. The internal transfer of seven positions, including one Information Systems Specialist, two Computer Systems Programmers, two Computer Network Specialists and two Computer Network Technicians from the Systems and Programming Division to the Facility Management Division is also recommended by the subcommittee. These internal position transfers result in a more accurate distribution of costs to the department's customers. The subcommittee recommends denial of the request to transfer seven information systems staff from outside agencies to the Systems and Programming Division. The SPIRIT document recommended the consolidation of all information systems positions into data centers that serve their agencies. Agency cost tracking indicates the Systems and Programming Division is currently a 53% user of the Facility's services rather than a 39.9% user as reflected in the Governor's recommended budget. To appropriately budget for anticipated facility charges, the subcommittee recommends an augmentation to $1,082,802 in FY 1996 and $1,046,659 in FY 1997. The net total of the Governor recommended budgets for Systems and Programming Division customers is sufficient to absorb the additional Facility costs. Software costs associated with the mainframe upgrade request were significantly underestimated in The Executive Budget. The subcommittee supports an additional $589,420 in FY 1996 and $182,473 in FY 1997 to fund the Systems and Programming Division's share of the additional costs in excess of the Governor recommended amount. The subcommittee concurs with the Governor's recommendation to fund Master Services Agreements which will allow the department to contract with private companies for programming services. The subcommittee recommends a letter of intent be issued indicating that the category is to be used only for direct billable services. Only those agencies directly benefitting from a service should be charged through the Master Services Agreement category. The category should not be used for planning or other overhead charges which cannot be directly linked to a benefitting agency. FACILITY MANAGEMENT DIVISION The subcommittee supports the hardware and software upgrades to the state's mainframe computer recommended by the Governor. Improvements will include a model upgrade, a mainframe laser printer, and additional Disk Access Storage Devices (DASD). Total purchase price for the equipment is $5.46 million. The model upgrade will increase the capability of the current machine by 2.7 times. The agency indicates the improvements will provide sufficient capacity to meet anticipated facility requirements for the next four to five years. It is the subcommittee's desire that the agency appear before the IFC at the first meeting in FY 1996 to report on the outcome of the purchases. If the actual purchase prices are lower than the budgeted amounts, the department is expected to process a work program to de-augment equipment and software expenditure authority. The subcommittee concurs with the funding recommended for equipment to enhance the State's data communications network. The purchase of $506,800 in communications equipment will expand the network and connect existing state facilities through the state's communication hubs. The subcommittee recommends approving only one of the two Computer Systems Programmer positions sought in this module to provide communications network support which includes data, voice and video conferencing. The agency indicated that two positions were requested to support peak workloads however ongoing workload justifies only one position. The subcommittee supports The Executive Budget's proposal to provide $75,000 in FY 1996 and $150,000 in FY 1997 to acquire an alternative data processing site (i.e. a Hot Site), to assist in disaster recovery. These costs relate only to the acquisition of the site and not to any charges that would accrue from the actual use of the site. The subcommittee supports the recommendation to consolidate Facility Management, Telecommunications and Communications into a single Systems Division. The proposed merger resulted from suggestions included in SPIRIT which recommends one statewide communications infrastructure supporting all communications mediums including data, voice, video, fax and mobile. The Governor's budget proposed the transfer of five Microcomputer Specialist positions from outside agencies to the Department of Information Services in module E-910. Subsequent to the preparation of The Executive Budget, the transfer request was reduced to four positions. The subcommittee supports the transfer of the remaining four Microcomputer Specialists positions. The transfers include one position from the Secretary of State, two from Waste Management and one from WIC Food Supplement. The subcommittee recommends a letter of intent directing the agency to report to the IFC every six months on the status of the transfers which include the results of agency surveys. Performance indicators should also be developed to measure the impact of the position transfers. The Committee should note that the Assembly Ways and Means subcommittee on Natural Resources does not support the transfer of the two Waste Management positions. The Executive Budget proposed to transfer nine Mobile Communications positions from the Department of Transportation and seven Mobile Communications positions from the Department of Motor Vehicles. The subcommittee concurs with the transfer of the Transportation positions but not with the transfer of the Motor Vehicles positions. The primary objective of the proposed consolidation is to enhance communications service levels by improving the efficiency and effectiveness of the collective service group. A secondary objective is to contain increasing costs caused by a lack of coordination and standards and the duplication of equipment and effort. Because The Executive Budget did not include information services expenditure authority to pay DIS for communications services, it will be necessary to add $614,303 in FY 1996 and $579,947 in FY 1997 to the Department of Transportation budget (201-4713). The subcommittee recommends incorporating general fund payback of $19,759 per year into the Facility Management Division budget. This will allow the state to annually recoup a portion of the state general fund which may be allocated for the computer facility security alarm and diesel generator. TELECOMMUNICATIONS DIVISION The Executive Budget recommended one new Communications Specialist position to improve processing of requests for telephone moves, adds and changes requested by customer agencies. The subcommittee recommends denial of this request. The agency was not able to provide definitive caseload statistics to support an increase in staffing. COMMUNICATIONS DIVISION The Governor recommended numerous enhancements to the Communications Division budget. To fund the enhancements, corresponding fee increases should have been included in the budgets of the state agency customers. The corresponding increases were not made and as a result, revenue was not sufficient to fund the proposed enhancements. The subcommittee supports a scaled-down version of the Governor's enhancement request supported by revenue growth through the addition of new users rather than fee increases to existing users. The subcommittee recommends funding for two replacement vehicles and battery banks as proposed in The Executive Budget. It is recommended that site refurbishment funding be reduced from $92,700 to $62,700 in each year of the biennium which will allow the agency to perform a limited rebuild at one mountain-top site per year. The subcommittee recommends approving the mechanic and electrician positions requested in the budget however operating and equipment costs are decreased. The subcommittee recommends one new vehicle for the new positions rather than the two recommended in The Executive Budget. The Governor's budget also recommended $150,000 in each year of the biennium for a microwave system study. Because the sources of revenue were insufficient to fund this endeavor, the Budget Division proposed the use of highway fund monies. It was subsequently learned that the highway fund could legally provide only 62.5% of the required funding. The subcommittee recommends funding the study with an allocation from the highway fund amounting to $93,828 per year with the remaining $56,172 coming from the state general fund. The study will include an evaluation of the existing microwave system, existing mobile (radio) systems and the extent to which they can be included in the communications infrastructure. The study will address 800 MHz technology, other mobile communications alternatives, continuing viability of the microwave system, alternatives to the microwave system and recommendations for future direction. The subcommittee expects users of the system to be involved in the study including during the preparation of the RFP to obtain a private consultant. Further, the subcommittee expects a written report within one year with quarterly reports to the Interim Finance Committee. Ms. Tiffany expressed her appreciation to fiscal staff for their work on the DIS budgets. She also suggested a letter of appreciation be written to the Department for their SPIRIT planning document. ASSEMBLYMAN MARVEL MOVED TO ACCEPT THE REPORT ON THE DEPARTMENT OF INFORMATION SERVICES BY THE JOINT SUBCOMMITTEE ON GENERAL GOVERNMENT. ASSEMBLYMAN FETTIC SECONDED THE MOTION. Mark Stevens, Fiscal Analyst, pointed out a conflict between the subcommittee report on the Department of Information Services and the Department of Conservation. Two positions will be transferred from environmental protection in the Department of Information Services and the subcommittee on the Department of Conservation will recommend that transfer not take place. Brian Burke, Program Analyst, pointed out two areas where the Senate differed from the Assembly. The transfer of mobile communications positions was not recommended by the Senate. The Senate has held on the microwave study pending further consideration. Mr. Close asked whether the changes to the Department of Information Services budgets were budget neutral. Mr. Burke said additions to the budgets do not require an increase in General Fund to any of the customer agency budgets. Mr. Stevens explained the only addition to General Fund would be $56,172 for the microwave system study. Ms. Giunchigliani observed the Assembly members of the subcommittee supported hiring an independent outside consultant to provide advice regarding the microwave system. Ms. Tiffany explained the subcommittee was careful to adequately fund any public safety items. Chairman Arberry called for a vote. THE MOTION CARRIED UNANIMOUSLY. ASSEMBLYMEN DINI AND HETTRICK WERE NOT PRESENT AT THE TIME OF THE VOTE. BUDGETS CLOSED. **************** Chairman Arberry recessed the hearing at 9:50 a.m. The hearing reconvened at 12:30 p.m. Ms. Giunchigliani presented the report of the Joint Subcommittee on General Government on the Department of Employment, Training and Rehabilitation: ASSEMBLY COMMITTEE ON WAYS AND MEANS SUBCOMMITTEE ON GENERAL GOVERNMENT DEPARTMENT OF EMPLOYMENT, TRAINING AND REHABILITATION The joint subcommittee reviewing the General Government budgets has completed its review of the Department of Employment, Training and Rehabilitation Department's 26 budgets and have concurred in the closing actions recommended. The Executive Budget proposed to continue the reorganization begun during the 1993 Legislative session. Two new divisions were proposed - Administrative Services and Information Development and Processing. Expansion of administrative oversight from the Director's Office was also recommended. The reorganized department will provide administrative, financial, personnel and DP services to agencies that were previously unserved or under served. The subcommittee generally concurs with the Governor's reorganization plan. Several revisions to the plan are recommended by the subcommittee. DETR DIRECTOR'S OFFICE The Director's Office was created through IFC action March 24, 1994. The subcommittee concurs with the Governor's recommendation to expand the office from four to eleven positions through the transfer of existing staff from the Employment and Security Division and the Rehabilitation Division. The expansion will enhance agency oversight by the Director's Office. Technical adjustments are recommended to fully fund Attorney General Salary reimbursement costs equivalent to 2.25 full-time equivalent staff. ADMINISTRATIVE SERVICES DIVISION The subcommittee concurs with The Executive Budget's proposal to create an Administrative Services Division to provide financial management, personnel, training, office services and facility management for all DETR organizations. To provide the staff for the new division, 44.5 existing full-time equivalent positions will be transferred from various DETR agencies. The Governor's budget proposed to devote 28.5 FTEs to financial management, 6.0 FTEs to Personnel Services and 10.0 FTEs to Office Services. The subcommittee believes that the proposed staffing levels in this division are too high, however, because the new division is composed of transfer positions from the base budgets of existing organizations, it was difficult to single out positions for elimination. It is recommended that salary savings equivalent to six positions be incorporated into the Administrative Services budget. This will allow the agency to determine the positions most critical to its mission. The salary savings would be levied for a nine month period in FY 1996 and a full twelve months in FY 1997. The subcommittee further recommends that a letter of intent be issued directing the department to report quarterly on the status of the reorganization. Revenue for the new division will be generated through assessments to DETR agencies determined on the basis of FTE position counts. INFORMATION DEVELOPMENT AND PROCESSING DIVISION The subcommittee concurs with The Executive Budget's proposal to create an Information Development and Processing Division. The division would be comprised of four units: The State Occupational Information Coordinating Committee; Automated Data Processing; Information Systems Applications; and the Research and Analysis Bureau. To create the division, the department will transfer 61 existing permanent and converted intermittent positions from the Employment Security Division, three positions from the State Occupational Information Coordinating Committee (which represents the entire SOICC staff), two positions from Rehabilitation Administration and one position from the Claimant Employment Program. The department is currently undergoing a consolidation of its data center with the Department of Information Services' mainframe. The Strategic Plan for Information Resources and Information Technology (SPIRIT) indicated there would be substantial savings as a result of the consolidation including the elimination of four Systems Programmer positions and unspecified operations personnel. The agency indicates the four systems programmers have been redirected to LAN/WAN and PC support. The Governor's budget did not recommend staffing reductions. The subcommittee recommends building salary savings into the Information Development and Processing budget equivalent to the salary and fringe of the four systems programmer positions recommended for elimination in the SPIRIT document. This will allow the agency to determine the positions most critical to its mission. The subcommittee proposes that a letter of intent be written directing that the agency's budget submittal for the 1997-99 biennium reflect the elimination of four equivalent programmer positions. Additionally, the agency should be required to report to the Interim Finance Committee every six months on the status of the position reductions. OFFICE OF EQUAL RIGHTS The Committee may wish to consider the Equal Rights and Equal Employment Opportunity budgets jointly. The Executive Budget recommended no new positions for the Office of Equal Rights. The performance indicators provided in the budget revealed a steadily increasing backlog of unresolved equal rights complaints. At the urging of the Senate Finance and Assembly Ways and Means Committees, the Budget Division reevaluated its proposal. The subcommittee concurs with the revised plan which provides three new compliance investigators for the Equal Rights Office. According to agency estimates, the new positions should reduce the backlog of unresolved cases from 1,470 at the beginning of FY 1996 to 388 by the end of FY 1997. This proposal requires additional general fund appropriation amounting to $126,237 in FY 1996 and $133,134 in FY 1997. General fund appropriation reductions amounting to $65,366 in FY 1996 and $62,813 in FY 1997 are recommended in decision unit E-125. These reductions correct inaccurate caseload calculations used in The Executive Budget. The Equal Rights and Equal Employment Opportunity budgets have traditionally been separated. Equal Rights historically is funded entirely with State general fund while Equal Employment Opportunity has been funded entirely with federal reimbursement revenue related to complaint closures. The Governor's budget recommended a general fund loan of $240,981 in the Equal Employment Opportunity budget to solve cash flow problems associated with delays in federal reimbursement for closed cases. The subcommittee recommends merging the two budget accounts thereby eliminating the need for the general fund loan. Decision unit E-950 is added to both budgets closing sheets to enact the transfer. The subcommittee recommends the addition of reserve for reversion in the Equal Employment Opportunity budget amounting to $14,973 in FY 1996. This modification is necessary to encumber funding to pay back unpaid FY 1995 Statewide Cost Allocation. Additionally, a payback for the $59,500 approved by passage through Senate Bill 387 is recommended. The subcommittee recommends that the agency continue its quarterly reports to the Interim Finance Committee regarding the status of case closures and federal reimbursement. EMPLOYMENT SECURITY DIVISION The subcommittee concurs with the Governor's proposal to convert 61.4 intermittent positions to full-time permanent status. There is no cost increase in this biennium resulting from this change. The agency will retain a pool of 40 intermittent positions for seasonal fluctuations. The subcommittee also concurs with the transfer of six auditors from the Department of Taxation to the Employment Security Division in FY 1996 and the addition of a new auditor position in FY 1997. The subcommittee however does not support payments to the Department of Taxation to continue the Combined Audit Program. It is recommended the $12,595 per year intended for this purpose be removed from the budget. Subsequent to the submittal of The Executive Budget, the Budget Division proposed to create a prototype One-Stop Service Center in the Neil Road Neighborhood in Southeast Reno. The service delivery design incorporated in the center would be seamless, in that job seekers, employers and those seeking any service offered by the department would find that service available in the center. The Department anticipates establishing up to thirty-five One-Stop centers within the next five years. The Budget Division proposal sought 10 new positions and associated support costs for the One-Stop center. The subcommittee supports the One-Stop concept with 9 new positions including six Employment Specialists and three Program Assistants. The agency was instructed to appear before the Interim Finance Committee to provide a detailed report on the status of federal funding particularly in regard to the One-Stop concept. The closing sheets reflect several technical adjustments including cost allocation modifications and the elimination of non-holiday overtime pay. Additionally, the transfer of the Mail Services Supervisor position to the State Mailroom is delayed until FY 1997 pursuant to the request of the Budget Division. CLAIMANT EMPLOYMENT PROGRAM Balance forward revenue in the Claimant Employment Program is anticipated to exceed $2.7 million in each year of the biennium. The subcommittee encourages introduction of a Bill Draft request which allows the transfer of excess Claimant Employment Program assessment revenue to the Federal Unemployment Trust Fund for Nevada. The subcommittee concurs with the Governor's request for nine new positions requested in module E-400. The subcommittee recommends making four of the new positions available immediately. The agency would be required to appear before the Interim Finance Committee prior to hiring the remaining five positions to justify the ongoing need for increased staff. The subcommittee recommends that the Committee introduce a Bill Draft Request to modify statute (NRS 612.607) to allow the expenditure of Claimant Employment funds on non-program participants. This will allow the agency to direct the efforts of the four new positions to Lifeskills efforts. Start dates for the new positions are adjusted from 7/1/95 to 10/1/95. EMPLOYMENT SECURITY SPECIAL FUND The subcommittee recommends elimination of the funding requested in decision unit E-710 for Disk Access Storage Devices. The ESD consolidation with the Department of Information Services abolished the need for this equipment. The Executive Budget eliminates private counsel for the Employment Security Division and replaces it with Attorney General support centralized in the Employment, Training and Rehabilitation Office. Subsequent to the submittal of the Governor's budget, the agency requested that outside legal representation be retained and that the $100,143 annual cost be funded through the Employment Security Special Fund. The subcommittee recommends denial of the agency's proposal to retain outside counsel. GOVERNOR'S COMMITTEE ON EMPLOYMENT OF PEOPLE W/DISABILITIES Subsequent to the preparation of The Executive Budget, the Budget Division recommended that the Governor's Committee on Employment of People with Disabilities be transferred from the Department of Employment, Training and Rehabilitation to the Department of Business and Industry. The Budget Division indicated that because businesses have difficulty in understanding and complying with federal regulations, the Committee will be focused on assisting businesses in complying with the Americans with Disabilities Act. The Committee will meet with businesses, hold seminars on ADA as well as on general disability issues and continue to promote employment of persons with disabilities. The subcommittee concurs with the transfer of the Committee to Business and Industry. The subcommittee recommends retaining the Coordinator position (which was eliminated in The Executive Budget) and adding one new Management Assistant II to manage the Southern Nevada office while the professional staff person is meeting with business owners. Enhancement item E-126 includes costs for this position and for maintaining the Community Program Coordinator. The changes would result in the need for increased general fund appropriation amounting to $82,419 in FY 1996 and $75,786 in FY 1997. VOCATIONAL REHABILITATION The subcommittee recommends that a letter of intent be issued directing the agency to study the feasibility of merging the Vocational Rehabilitation budget with the Blind Services budgets. The study should include an examination of possibility of privatizing the business side of the agency's operations. Employment, Training and Rehabilitation management indicated it may be possible to provide the results of this study with the departmental reorganization report in December 1995. The subcommittee concurs with the addition of a Vocational Evaluator position and a Program Assistant position to expand the Welfare Division JOBS assessment project. The agency indicates the pilot JOBS assessment project in Reno produced a 50% improvement in placement results in the JOBS program. The subcommittee recommends approval of the replacement of the Division's Banyan Vines network with a NOVELL network. This will standardize the agency's system and provide in-house staff with the capability to maintain the system. BUREAU OF SERVICES TO THE BLIND Technical adjustments are made to accurately reflect the division's cost allocation payments. The subcommittee concurs with the recommendation in module M-515 to add a new Orientation and Mobility Instructor position to alleviate the current caseload backlog. BLIND BUSINESS ENTERPRISE PROGRAM Technical adjustments to the program's cost allocations are recommended. The subcommittee recommends restoring the amounts requested in module E-850 for new projects to the reserve category. Limited information has been provided regarding the proposed projects. The agency can approach the IFC for a revision to work program authority when the projects are better defined. SSA/VR On March 28, 1995, the Budget Division wrote the Senate Finance and Assembly Ways and Means Chairmen indicating that due to uncertain federal funding and to additional administrative requirements, the Department of Employment, Training and Rehabilitation will no longer administer the Drug Abuse Alcoholism Monitoring and Referral Program for the federal government. Adjustments are made to reflect the expiration of this program at the end of the 1995 federal fiscal year on September 30, 1995. The two positions associated with this program (Rehabilitation Program Specialist and Management Assistant) will be eliminated at the program's termination. The following budgets are recommended at Governor's recommend or only reflect technical adjustments: 1. State Occupational Information Coordinating Committee 2. State Job Training Office 3. Nevada Commission for National and Community Service 4. Rehabilitation Administration 5. Alcohol Tax Program 6. Disability Adjudication 7. Developmental Disabilities 8. Financial Assistance to the Physically Disabled 9. Traumatic Brain Injury Program 10. Hearing Devices Program 11. Community Based Services The subcommittee recommended to hold two budgets for further subcommittee consideration. The Bureau of Alcohol and Drug Abuse and the Drug Commission will be reported to full committee at a future date. GENERAL NOTES: The subcommittee recommends a Letter of Intent be issued which directs the Department of Employment, Training and Rehabilitation and the Welfare Division to study the possibility of merging the Welfare JOBS program with DETR. The agencies' study should include an examination of all state agencies that have anything to do with jobs, e.g., placement, training, classification, and qualifications. The subcommittee recommendations result in a general fund reduction of $189,118 in FY 96 and a general fund increase of $134,827 in FY 97. Ms. Giunchigliani expressed her appreciation to fiscal staff for their work on the DETR budgets. Mr. Spitler referred to the Employment Security Special Fund and asked whether attorneys would be dedicated 100 percent to ESD. Mr. Burke responded the Attorney General's Office will dedicate 2.25 FTE attorneys general to Employment Security. Mr. Spitler questioned whether those attorneys would be completely dedicated to Employment Security and added private counsel had been hired because ESD had been losing over $200,000 in bankruptcies alone because there was no specific individual responsible for that function. Mr. Spitler observed using private counsel is more cost effective for individual cases because even though there is an hourly charge, an attorney is available at any time. He noted he would not support the recommendation unless the attorneys are assigned exclusively to ESD. Ms. Giunchigliani indicated there had also been a difference of opinion among the Assembly members of the subcommittee on this issue and noted the Employment Security Special Fund budget could be held pending confirmation of the attorney assignments. Mrs. Evans expressed agreement with Mr. Spitler's comments and also requested the ESD Special Fund budget be held pending additional information. Ms. Tiffany referred to the One-Stop center and requested the agency be directed to report to IFC before planning of the center begins. Mr. Close referred to the Nevada Commission for National and Community Based Services budget and asked whether the Americorps Grant was guaranteed. Mr. Burke responded the Americorps Grant was still under consideration. Mr. Close verified that if grant funding is not realized, the program will be discontinued. ASSEMBLYMAN MARVEL MOVED TO ACCEPT THE REPORT ON THE DEPARTMENT OF EMPLOYMENT, TRAINING AND REHABILITATION OF THE SUBCOMMITTEE ON GENERAL GOVERNMENT WITH THE EXCEPTION OF THE EMPLOYMENT SECURITY SPECIAL FUND, BUDGET ACCOUNT 4771. ASSEMBLYWOMAN EVANS SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. ASSEMBLYMEN DINI, FETTIC, HETTRICK, ALLARD AND PRICE WERE NOT PRESENT AT THE TIME OF THE VOTE. BUDGETS CLOSED. ********************** With no further business to come before the committee, Chairman Arberry adjourned the hearing at 12:53 p.m. RESPECTFULLY SUBMITTED: Deborah Salaber, Committee Secretary Assembly Committee on Ways and Means May 17, 1995 Page