MINUTES OF THE ASSEMBLY COMMITTEE ON WAYS AND MEANS Sixty-eighth Session June 2, 1995 The Committee on Ways and Means was called to order at 7:45 a.m., on Friday, June 2, 1995, Chairman Arberry 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 Ms. Mary Matheus, Program Analyst ASSEMBLY BILL 319 Provides for appointment of Public Defender in juvenile delinquency cases. Mr. Ben Graham, Nevada District Attorney's Association, stated there was no fiscal impact associated with A.B. 319. He explained the bill deals with the appointment of a public defender to represent juveniles, which is already provided in the statutes. A.B. 319 was drafted to encourage hearing masters to appoint public defenders or contract defense attorneys rather than hiring other attorneys. Ms. Giunchigliani asked if hearing masters were used in all localities. Mr. Graham responded affirmatively. MR. MARVEL MOVED DO PASS A.B. 319. MR. FETTIC SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. MR. ALLARD, MR. CLOSE, MR. HETTRICK, MS. TIFFANY, AND MR. PRICE WERE ABSENT FOR THE VOTE. * * * * * ASSEMBLY BILL 65 Requires investigation and reporting of criminal history of certain applicants for licensure or employment in positions related to education. Ms. Giunchigliani suggested amending A.B. 65 to require that the legislation apply to persons who have been convicted of a felony rather than to persons who have been arrested for or convicted of a felony and to require notification to school district superintendents on discovery rather than monthly. Ms. Carolyn Edwards, Legislative Representative, Clark County School District, testified A.B. 65 had been unanimously approved by the Committee on Education. She explained A.B. 65 represented an attempt to identify teachers who were involved in criminal activity subsequent to their initial hire and fingerprinting. She acknowledged Ms. Giunchigliani's concern about protecting employee rights. She applauded the teachers' union for cooperating with the school district on this measure. Ms. Edwards stated the original fiscal note had been reduced from $250,000 to $50,000. She explained the school district was willing to work with Ms. Giunchigliani regarding her concerns about the arrest and conviction issue. She noted the reason the legislation was drafted to include arrests as well as convictions was that in some instances arrests occurred, but for various reasons the person arrested was able to continue working in the classroom. She acknowledged Ms. Giunchigliani's concern about removing a person from the classroom who was arrested but subsequently vindicated. She stated the school district was willing to leave the ultimate decision on this issue to the Legislature in order that this measure be passed. She added the school district was also willing to revise the effective date associated with the purchase of necessary equipment. Ms. Edwards noted the teachers' union had also worked closely with the school district on matters of student safety. Mr. Fettic noted the bill required the investigation of a person's criminal history. It did not require that person's dismissal. He questioned why the teachers would object to an investigation of the criminal history of a person arrested for child molestation. Ms. Edwards stated that was the issue which A.B. 319 attempted to address. The school districts need to have every available resource to prevent child abuse. Mr. Fettic stated an investigation could reveal the person was innocent. Ms. Edwards said that was the point Ms. Giunchigliani was making. Mr. Fettic reiterated the statute did not require that the person be dismissed. He pointed out the person could have been arrested several times but never convicted for various reasons. He said he saw no problem with an investigation and allowing the school administrator to make a judgment based on that investigation. Mr. Dennis Debacco, Program Manager, Records and Identification Services, Highway Patrol Division, explained the fiscal impact was originally projected to be $115,000 approximately. As a result of the consolidation of certain budget accounts and equipment upgrades recommended in the criminal history records repository budget account, the fiscal note was revised to approximately $50,000. The $50,000 represented a hard cost for the system employed to search fingerprints associated with A.B. 319 as well as other licensed employees. He noted the criminal records repository program was currently processing fingerprints from all school districts as well as the Department of Education (i.e., 8,000 fingerprint cards per year). Currently those fingerprint images were not registered to the automated fingerprint identification system, which would be necessary in order to provide the continuing background investigation required by A.B. 319. The cost of registering the 8,000 fingerprint cards to the system would cost $50,000 per year on an ongoing basis. Mr. Marvel expressed concern about audit recommendations relative to the criminal history repository. He questioned how accurate the data was. The audit report indicated only 24 percent of felony convictions could be located on the system. Mr. Debacco said he was also concerned about news reports as well as the audit report. He asked the committee not to rush to judgment in regards to the audit report as it relates to the criminal history records repository. The data which was used to compile that report on the Administrative Office of the Courts is over two years old. The current ratio of disposition reporting rate to arrest rate is approximately 60 percent, which was not as high as the division would like, but was significantly greater than the 24 percent reported in the audit report. Mr. Debacco noted the system had been upgraded over the past two years. The audit reported a backlog of 25,000 records. Currently there was no backlog. He urged the committee to look at the numbers closely. Mr. Marvel questioned how cooperative the courts had been in supplying information to the repository. Mr. Debacco said historically there had been problems obtaining information from the courts. He noted the division was working with individual courts. There was no interface with the Administrative Office of the Courts; however, there had been significant accomplishments resulting from dealings with individual courts statewide. He cited, as an example, a pilot program with the Sparks Municipal Court, whereby the Sparks Municipal Court will report court dispositions directly to the division electronically. He pointed out very few courts in the state had computer capability which was compatible with the division's system. Mr. Marvel expressed concern that 32 of 42 courts reported the Administrative Office of the Courts had not assisted their court in developing an automated system which provides uniform statewide reporting. Mr. Debacco responded he could not speak to what the Administrative Office of the Courts had done. He stated the criminal history records repository was working individually with courts and had been for a number of years. Mr. Marvel asked if the division worked closely with the Administrative Office of the Courts. Mr. Debacco stated it did not. Mr. Marvel suggested that relationship should be improved. Mr. Debacco agreed with Mr. Marvel. Mr. Price asked if the division had problems dealing with the Administrative Office of the Courts. Mr. Debacco stated the division had engaged in dialogue with the Administrative Office of the Courts. He noted there was no computer system at the Administrative Office of the Courts which was compatible with the division's system. Therefore, it was less complicated to deal with the courts with compatible automation individually. Mr. Price asked if the 24 percent figure referred to Nevada cases or national cases. Mr. Debacco stated the 24 percent related to Nevada records of criminal history, i.e., only 24 percent of the records checked in the criminal history repository contained a final disposition. On a national level, 40 percent of FBI records contain a final court disposition. He noted if the court disposition was not available on the automated system, staff would manually research the outcome of the case prior to disseminating information or making licensing or employment decisions. Mr. Price asked if the same process that applied to teachers would apply to all school employees. Ms. Edwards answered everyone employed by the school districts had to be fingerprinted as part of the application process. Mrs. Brower asked if the division could provide the school districts information which they needed without delay. Mr. Debacco responded the information could be provided. The normal time to report information back to the contributor was approximately three to five working days. Ms. Giunchigliani asked if arrests for child abuse and molestation could be targeted. Mr. Debacco stated those arrests could be segregated. Mr. Ghiggeri suggested those arrests be identified by statutory authority. Ms. Edwards asked if arrests for sale of drugs could also be targeted. Ms. Giunchigliani stated those arrests could also be targeted. Mr. Debacco noted arrests were listed chronologically on rap sheets and it was difficult to segregate specific types of arrests. Ms. Giunchigliani suggested the targeted types of arrest could serve as triggers for further investigation. Mr. Fettic said it was important for the schools to be aware of arrests for child molestation and sale of drugs since it was difficult to get convictions in these cases. Lack of convictions did not mean the activity was not taking place, however. Mr. Marvel asked what the charge for background checks pursuant to the Brady bill were. Mr. Debacco replied the charge was $15, which was the same as for fingerprint checks. Mr. Marvel inquired whether the division had a reserve account which could offset the costs associated with A.B. 65. Mr. Debacco stated there was a reserve account in the repository program for fees charged for background checks and fingerprint processing. He pointed out that reserve was needed to upgrade the system in the future. Mr. Marvel asked Mr. Debacco to provide information about the reserve balance. Mr. Debacco agreed to do so. Mrs. Evans asked if the $50,000 fiscal note was an annual amount or for the entire biennium. Mr. Debacco stated the $50,000 would be an annual impact. Mrs. Evans suggested the committee review the possibility of charging an assessment to fund this program. Dr. Keith Rheault, Department of Education, expressed the department's support for A.B. 65. He noted it would require the department to change its fingerprint authorization form to allow for use other than simply reporting to the Superintendent of Public Instruction. Mrs. Evans asked how many school district employees would be affected by A.B. 65 statewide. Dr. Rheault said there were approximately 22,000 licensed employees. Mr. Dini noted all school employees would be fingerprinted. Dr. Rheault clarified the school districts would handle unlicensed employees. ASSEMBLY BILL 307 Makes various changes regarding state Department of Conservation and Natural Resources. Assemblyman Dave Humke, District 26, testified there was no fiscal impact associated with A.B. 307. Mr. Allard questioned whether passage of A.B. 307 would require two separate budget accounts. Mr. Humke said he did not believe the department would need additional budget accounts. Mr. Stevens said fiscal staff was concerned with the need to separate budget accounts, which would require substantial staff time to accomplish. He asked for clarification of the intent of the bill. Mr. Humke stated testimony had been heard in the Natural Resources Committee to the effect that the department already did a separate accounting, which was in accordance with the language of subsection 4 of section 7 of A.B. 307. Assemblyman John Carpenter, District 33, testified the fee revenue would continue to be accounted for separately. He noted the revenue could be used only for the management of wildlife, which was an important provision as far as sportsmen were concerned. In addition, A.B. 307 would slightly change the composition of the Wildlife Commission. A.B. 307 provides that a majority of the Wildlife Commission members be sportsmen. He explained the bill had wide support among Nevada sportsmen. Mr. Dini asked how much revenue was presently not spent on management of wildlife and how A.B. 307 would affect the overall budget. Mr. Willie Molini, Administrator, Division of Wildlife, stated a minor amount was presently directed to non-game expenditures, i.e., administrative services, personnel, and payroll. He estimated the amount represented .1 percent of the total sportsmen's fee revenue. Mr. Dini stated it would be difficult to segregate the wildlife management expenditures from the non-game expenditures. Mr. Molini stated he was glad the committee had raised the concern about subsection 4 of section 7. He noted he had testified before the Natural Resources Committee that this language was fairly innocuous since wildlife management was not defined in statute. He said as Administrator he believed it was necessary to have administrative services functions paid for with sportsmen's dollars in order to perform wildlife management. He stated if the intent of the language was to prohibit administrative services, the division would not be able to pay for those programs, which were a basic part of wildlife management. He said his understanding was this was not the intent of A.B. 307. Mr. Marvel asked if A.B. 307 would have a significant impact on the budget. Mr. Molini stated the money could be tracked separately. He suggested the issue of separating the accounts could be looked at in the future. Mr. Warren Hardy, representing Hunters Alert, testified it was the intent of the bill to include administrative services in the broad definition of wildlife management. The bill was intended to place into statute the program currently practiced by the Division of Wildlife. Mr. Carpenter noted there was concern on the part of sportsmen about the expenditure of fee revenue. Placing the present division practice in statute would serve to improve cooperation between sportsmen and the division. Mr. Hardy noted the issue of funds was peripheral. The substantive portion of the bill was the composition of the Wildlife Commission. Mr. Dini questioned whether every county had an advisory board. Mr. Carpenter responded most counties had active wildlife management advisory boards. Mr. Fettic commented there was a perception among sportsmen that the Division of Wildlife was not doing what sportsmen want. He expressed confidence in the Administrator and the job he was doing. Mr. Molini expressed opposition to the bill primarily due to the manner of selection of Commission members, i.e., requiring input from county game boards and restricting the Governor's flexibility. He stated the current composition had worked very well and there was no need for change. MR. ALLARD MOVED DO PASS A.B. 307. MR. FETTIC SECONDED THE MOTION. THE MOTION CARRIED. MRS. EVANS WAS OPPOSED. MS. GIUNCHIGLIANI, MR. HETTRICK, AND MR. PRICE WERE ABSENT FOR THE VOTE. * * * * * ASSEMBLY BILL 231 Makes appropriation to Division of Wildlife of State Department of Conservation and Natural Resources for construction of airplane hangar at Minden Airport. Mr. Stevens stated A.B. 231 would impact the Conservation Subcommittee report. It would provide $250,000 to construct an airplane hangar for the Division of Wildlife at the Minden Airport. The Conservation Subcommittee recommended deleting a pilot position from the division budget based on consolidating air operations at Minden. He stated the issue for the committee to consider was whether or not to consolidate air operations at Minden. He noted construction of the hangar could be accomplished through a one-time appropriation or through inclusion in the Capital Improvement Program as a Public Works project. The Public Works Board agreed with the $250,000 construction cost estimate and added $32,000 for plan check fees, architect/engineer design and supervision, and a construction contingency. He reiterated the budget closings recommended by the Conservation Subcommittee assumed construction of the hangar at Minden to consolidate the air operations of the Division of Wildlife and Division of Forestry. Mr. Marvel stated both divisions had indicated they preferred not to make this a Public Works Board project. Mrs. Brower asked if there would be a savings realized from the consolidation. Mr. Stevens said part of the savings would come from deleting the pilot position. It was anticipated savings over the next four to five years would be sufficient to pay for the project. Mr. Marvel noted there would also be savings in fuel expense resulting from the ability to make bulk purchases. Mr. Spitler noted the vote of the committee to close the budget did not reflect support or non-support for this measure. Mr. Stevens said he did not mean to suggest the subcommittee recommended passage of this bill. He reiterated adoption of the subcommittee report assumed construction of the hangar. ASSEMBLY BILL 628 Revises provisions relating to verification of insurance for motor vehicles. Mr. Stevens stated A.B. 628 would have to be amended to allow insurance verification funds to be used to fund the Auto Insurance Advocate position based on the subcommittee budget closings regarding the Department of Motor Vehicles. MR. MARVEL MOVED AMEND AND DO PASS A.B. 628 TO ALLOW INSURANCE VERIFICATION FUNDS TO BE USED TO FUND THE AUTO INSURANCE ADVOCATE POSITION. MR. ALLARD SECONDED THE MOTION. THE MOTION CARRIED. MRS. BROWER WAS OPPOSED. MS. GIUNCHIGLIANI, MR. HETTRICK, AND MR. PRICE WERE ABSENT FOR THE VOTE. * * * * * COMMISSION FOR WOMEN - PAGE 11 Mr. Stevens indicated there were no staff recommendations on this account. He noted legislation was presently pending in committee which would delete the sunset clause on this commission. If this budget was funded and the commission was to continue, the legislation would have to be processed. Mr. Stevens explained the Governor recommended funding of $50,000 in the first year of the biennium and $41,050 in the second year for administrative support. Ms. Tiffany stated she would be voting against providing General Fund revenue to this budget, but she would support removing the sunset clause. Chairman Arberry stated action on this budget would be held until all committee members were present. ATTORNEY GENERAL - PAGE 23 Mr. Stevens stated a number of technical adjustments have been made in this account. Cost allocation amounts were revised based on the cost allocation plan developed by the consultant. General Fund Title XIX revenues and expenses were adjusted to correct the transfer of Medicaid Fraud to a separate budget. The Capital Case Coordinator position was fully funded from court assessments. Hire of new positions (except an Attorney for the Department of Business and Industry and a half-time Senior Attorney for the Department of Employment, Training and Rehabilitation) was delayed until October 1, 1995. Duplicated fringe benefits for the half-time Senior Attorney position were deleted. Rent expense was charged to the Insurance Fraud and Private Investigators Licensing Board accounts. Finally, the agency transfer from the Telemarketing Fraud account was deleted pursuant to the budget closing of the Consumer Affairs account. Mr. Stevens also noted NRS 228.115 provided for transfer of funding for Deputy Attorneys General to the Attorney General's Office. Since that funding was not included in the Attorney General's budget as a cost allocation a number of agencies had expressed concern that the statute was no longer necessary. Mr. Marvel inquired whether Mr. Stevens' research paralleled that of the Senate Fiscal Analyst. Mr. Stevens stated the Senate Fiscal Analyst had done most of the work on the Attorney General budget. He noted the Attorney General's Office indicated it was not in favor of deleting the statute completely but was in favor of amending it to indicate that each agency is required to make payments related to its cost allocation. Mr. Stevens stated there were other issues which the committee should be aware of. He explained there were 18 new positions in this account. The Attorney General had provided a prioritized list of the positions. Mr. Stevens stated vacancy savings were budgeted between $110,000 and $115,000 for the coming biennium, amounts much lower than the $230,938 budgeted in the current year. He said vacancy savings could be increased because all of the Attorney General's positions were funded at the statutory maximum salary, although they were not all paid at the statutory maximum. Mr. Stevens noted decision unit E-175 increased funds for Westlaw Services by $75,000 in each year of the biennium. The agency spent $40,648 in Fiscal Year 1994, and that amount is included in the base budget. Mr. Stevens reported the Board of Nursing has requested an additional half-time Deputy Attorney General be assigned to them at a cost of $36,479 in the first year of the biennium and $36,885 in the second year. Ms. Tiffany inquired whether the 18 new positions were included in the various agency budgets. Mr. Stevens replied the new positions were included as Attorney General cost allocations in the Governor's recommended budget. Chairman Arberry inquired how the Senate had acted on this account. Mr. Stevens stated the Senate had not yet closed the Attorney General budget. The committee could make any adjustments it felt were appropriate. He explained changes in positions could be adjusted in the cost allocations. Mr. Hettrick pointed out the seventh and eighth positions on the prioritized list were half-time "gophers." He suggested any positions of lesser priority need not be funded. Chairman Arberry stated action on this budget would be held until a representative of the Attorney General's Office could appear before the committee. ASSEMBLY BILL 317 Makes various changes related to juvenile courts, sentencing, crimes and punishments. Ms. Kim Morgan, Assembly Bill Drafting Advisor, testified there was a gray area regarding separation of powers related to A.B. 317. She explained if the Sentencing Commission was to serve in other than an advisory capacity, voting members could not be selected from the different branches of state government. She stated the first version of A.B. 317 contained sentencing guidelines. Sentencing guidelines would be deemed as binding by the courts, and therefore, would be considered more than advisory. Pursuant to the first reprint of the bill, the Sentencing Commission would make recommendations to the Legislature to adopt sentencing guidelines. Under that scenario, the commission could be comprised of voting members from separate branches of state government. Mr. Marvel asked if the commission could advise both the Legislative and Executive branches of state government. Ms. Morgan replied the report of the commission could go to all branches of government, but any final policy decision would be limited to only one branch of state government. Mr. Allard asked if the first reprint was constitutional. Ms. Morgan stated as long as the commission members were only voting on recommendations it would be constitutional. Mr. Close asked if the original intent of the bill was for the commission to be advisory. Chairman Arberry said it was his understanding the commission was intended to be advisory. Mr. Close suggested the commission be identified as "advisory" in the bill for clarification. MR. MARVEL MOVED AMEND AND DO PASS A.B. 317 TO MAKE THE SENTENCING COMMISSION ADVISORY ONLY. MR. CLOSE SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. MS. GIUNCHIGLIANI AND MR. PRICE WERE ABSENT FOR THE VOTE. * * * * * JUDICIAL DISCIPLINE - PAGE 153 Mr. Marvel inquired what the salary of the in-house attorney would be in this budget. Mr. Stevens replied the budget proposed a salary of $106,667. There was some discussion about whether this should be a contract position or an unclassified position. The incumbent was under contract with the Judicial Discipline Commission, but the position could be included in the unclassified pay bill. Chairman Arberry noted funding for the position had been authorized by the Interim Finance Committee. He asked what the intent of the Interim Finance Committee had been. Mr. Stevens stated the Interim Finance Committee had made a motion not to limit the amount of money which could be provided to fund the position requested by the Judicial Discipline Commission. The commission was authorized to determine the amount of the salary. He said he did not know if there was any intent on the part of the Interim Finance Committee regarding whether the position should be a contract position or unclassified position. Mr. Close expressed concern about the high salary for this position. Mr. Spitler questioned whether the contract had already been negotiated. Mr. Stevens stated the incumbent had a contract with the Judicial Discipline Commission. He was unsure of the term of the contract. The provisions of the contract would have to be honored through its term. Mr. Dini noted this was a difficult position to fill because the attorney would not be able to appear before the Supreme Court after serving in this capacity. Ms. Tiffany stated she objected to using that logic to set a salary since a position salary should not be about the individual filling the position. She suggested there were many opportunities for attorneys to serve other than appearing before the Supreme Court. She pointed out there were new members on the committee and it would be appropriate to make a redetermination regarding this position. Chairman Arberry pointed out all of these concerns had surfaced in the Interim Finance Committee hearing and the salary had been approved unanimously. CLEAR CREEK YOUTH CENTER - PAGE 565 MARLETTE LAKE - PAGE 569 CARSON WATER TREATMENT PLANT - PAGE 573 Mr. Stevens stated these three budgets had inadvertently been left out of the General Government Subcommittee recommendation. He noted there were only technical adjustments to these budget accounts. MR. DINI MOVED TO CLOSE THE CLEAR CREEK YOUTH CENTER BUDGET IN ACCORDANCE WITH STAFF RECOMMENDATIONS. MR. HETTRICK SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. MS. GIUNCHIGLIANI AND MR. PRICE WERE ABSENT FOR THE MOTION. BUDGET CLOSED. * * * * * Mr. Stevens stated fiscal staff recommended adjustments to water sales. MR. MARVEL MOVED TO CLOSE THE MARLETTE LAKE BUDGET IN ACCORDANCE WITH STAFF RECOMMENDATIONS. MR. DINI SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. MS. GIUNCHIGLIANI AND MR. PRICE WERE ABSENT FOR THE VOTE. BUDGET CLOSED. * * * * * Mr. Stevens indicated there were no staff recommendations regarding the Carson Water Treatment Plant budget. MRS. EVANS MOVED TO CLOSE THE CARSON WATER TREATMENT PLANT BUDGET IN ACCORDANCE WITH STAFF RECOMMENDATIONS. MR. DINI SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. MS. GIUNCHIGLIANI AND MR. PRICE WERE ABSENT FOR THE VOTE. BUDGET CLOSED. * * * * * DEPARTMENT OF TAXATION - PAGE 597 Mr. Stevens stated there were a number of technical changes required in this budget. He explained the amount for fees for out-of-state audits was calculated incorrectly at 50 percent. Fiscal staff recommended increasing the amount to 85 percent, which is the amount actually charged. Funding for laptop computers was reduced to $5,100 per computer. Finally, start dates for new positions was recommended to be October 1, 1995. Mr. Stevens noted the committee had some options in closing this account. He pointed out in the recommended Employment Security Division budget closing, the combined tax audit team proposal was eliminated. If the committee wished to be consistent with that action, an adjustment would be required to this account. Mr. Marvel pointed out the audit reports indicated the combined audit teams had been ineffective. He suggested a General Fund supplement to this account in lieu of Employment Security Division funding was appropriate. Mr. Close asked if the Employment Security Division General Fund appropriation would be reduced accordingly. Mr. Stevens stated transfers from the Employment Security Division and the State Industrial Insurance System were included in this account which would have to be replaced with a General Fund appropriation. The Department of Taxation indicated it could generate an additional $292,000 in sales tax recoveries if staff was devoted to sales tax audits versus combined audits. Mr. Marvel stated historically each auditor has generated over $400,000 on sales tax audits. Those auditors generated no money over the past biennium since they were dedicating their time to combined audits. He stated the $27,000 General Fund appropriation represented a prudent investment. Mr. Allard stated he would like to continue with the combined audit concept. He stated as a businessman he would prefer to be audited once rather than have several audits. Mrs. Brower said she viewed the combined audit program as a failure. It was more important to have Taxation employees performing the functions which would create the most revenue for the state, i.e., sales tax audits. MR. HETTRICK MOVED TO CLOSE THE BUDGET IN ACCORDANCE WITH STAFF RECOMMENDATIONS, ELIMINATING THE COMBINED AUDIT PROGRAM AND PROVIDING A GENERAL FUND APPROPRIATION IN LIEU OF TRANSFERS FROM THE EMPLOYMENT SECURITY DIVISION AND THE STATE INDUSTRIAL INSURANCE SYSTEM. MR. CLOSE SECONDED THE MOTION. THE MOTION CARRIED. MR. ALLARD WAS OPPOSED. MS. GIUNCHIGLIANI AND MR. PRICE WERE ABSENT FOR THE VOTE. BUDGET CLOSED. * * * * * GAMING CONTROL BOARD - PAGE 669 Mr. Stevens stated fiscal staff had made a number of technical adjustments to the budget, all of which had been discussed with the Gaming Control Board staff. State-owned building rent was adjusted pursuant to recent information. Reimbursement for staff CPA license fees was eliminated. The funding transfer anticipated from the Investigation Fund was increased $150,000 per year based on information from the Gaming Control Board. Vacancy savings was also increased pursuant to information received from the agency. The hire date for a new Hearings Officer position was moved forward from July 1, 1996, to October 1, 1995. The hire date of other new positions was moved from July 1, 1995, to October 1, 1995. Mr. Stevens noted there were also policy issues associated with this account. The Gaming Control Board requested reclassification of some new positions. The agency also requested additional salary funding of $5,000 for 50 professional positions. Finally, the agency requested additional salary increases over and above the Governor's recommendation for unclassified positions equal to 2 percent in Fiscal Year 1996 and 1 percent in Fiscal Year 1997. Mr. Stevens noted legislation had been passed out of the Senate Finance Committee which would increase compensation to the Gaming Commission Chairman and members for a General Fund impact of $53,000. Mr. Marvel commented the proliferation of gaming had resulted in tremendous turnover in the Gaming Control Board staff as staff were being hired by other states. He suggested the changes recommended were necessary to maintain continuity in the Gaming Control Board. MR. HETTRICK MOVED TO CLOSE THE BUDGET IN ACCORDANCE WITH STAFF RECOMMENDATIONS, INCLUDING AUTHORIZING RECLASSIFICATION OF POSITIONS BUT HOLDING ACTION ON SALARY INCREASES. MR. CLOSE SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. MR. DINI ABSTAINED. MS. GIUNCHIGLIANI, MR. PRICE, AND MS. TIFFANY WERE ABSENT FOR THE VOTE. BUDGET CLOSED. * * * * * GAMING CONTROL INVESTIGATIVE FUND - PAGE 679 Mr. Stevens stated adjustment was required to this account to include $150,000 in investigation fees approved in the previous action. MR. MARVEL MOVED TO CLOSE THE BUDGET IN ACCORDANCE WITH STAFF RECOMMENDATIONS. MRS. BROWER SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. MR. DINI ABSTAINED. MS. GIUNCHIGLIANI, MR. PRICE, AND MS. TIFFANY WERE ABSENT FOR THE VOTE. BUDGET CLOSED. * * * * * PUBLIC SERVICE COMMISSION - REGULATORY FUND - PAGE 681 Mr. Stevens stated a number of technical adjustments were required in this account. He explained the original Governor's recommendation reduced the number of Commissioners from five to three. A revised recommendation from the Governor would retain the five Commissioners and associated costs. He noted there was some disagreement among the Commissioners regarding retention of one Management Assistant III position. The position was recommended by the Governor and the Chairman of the Public Service Commission but not endorsed by all commission members. Vice Chairman Evans questioned why the Governor revised his recommendation. Mr. Marvel stated it was necessary to retain the two Commissioners to deal with the expanding telecommunications industry as well as to deal with the difficulty of complying with the Open Meeting Law. He pointed out on a commission of three members, any two members would be precluded from meeting informally under the Open Meeting Law. He expressed support for the Governor's revised recommendation. MR. MARVEL MOVED TO CLOSE THE BUDGET IN ACCORDANCE WITH STAFF RECOMMENDATION, ELIMINATING THE MANAGEMENT ASSISTANT III POSITION. MR. FETTIC SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. MR. SPITLER ABSTAINED. MS. GIUNCHIGLIANI, MR. PRICE, AND MS. TIFFANY WERE ABSENT FOR THE VOTE. BUDGET CLOSED. * * * * * PUBLIC SERVICE COMMISSION - ADMINISTRATIVE FINES - PAGE 690 Mr. Stevens stated staff had no comment on this account. MR. HETTRICK MOVED TO CLOSE THE BUDGET AS RECOMMENDED BY THE GOVERNOR. MR. DINI SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. MR. SPITLER ABSTAINED. MS. GIUNCHIGLIANI, MR. PRICE, AND MS. TIFFANY WERE ABSENT FOR THE VOTE. BUDGET CLOSED. MOBILE HOME PARKS - PAGE 793 Mr. Stevens stated action on this budget account was held in subcommittee closings due to pending legislation which has now been approved by the Assembly and sent to the Senate. He explained increases in mobile home lot assessments authorized by that legislation were included in the Executive Budget. Mr. Hettrick noted the Commerce Committee had heard no opposition to this legislation. He anticipated the legislation would be approved by the Senate. MR. MARVEL MOVED TO CLOSE THE BUDGET AS RECOMMENDED BY THE GOVERNOR. MR. HETTRICK SECONDED THE MOTION. THE MOTION CARRIED. MR. SPITLER WAS OPPOSED. MS. GIUNCHIGLIANI, MR. PRICE, AND MS. TIFFANY WERE ABSENT FOR THE VOTE. BUDGET CLOSED. * * * * * ECONOMIC DEVELOPMENT - PAGE 955 Mr. Stevens noted legislation was pending in the Senate which recommended combining the Commission on Economic Development and the Commission on Tourism. He indicated staff recommended a number of technical adjustments to the budget. In the event the two commissions were combined those recommendations would remain the same with the exception of reinstating the Executive Director position in this account (eliminated pursuant to the Governor's recommendation). Mr. Marvel stated there was some uncertainty whether the legislation would pass, and if it did pass, the budget could be reopened. MR. MARVEL MOVED TO CLOSE THE BUDGET IN ACCORDANCE WITH STAFF RECOMMENDATIONS, REINSTATING THE EXECUTIVE DIRECTOR POSITION. MR. ALLARD SECONDED THE MOTION. THE MOTION CARRIED. MR. SPITLER WAS OPPOSED. MS. GIUNCHIGLIANI, MR. PRICE, AND MS. TIFFANY WERE ABSENT FOR THE VOTE. BUDGET CLOSED. * * * * * TOURISM - PAGE 961 Mr. Stevens stated consistent with the action just taken, assuming the pending legislation did not pass, technical adjustments would be required in this account. Those adjustments had been discussed with Commission on Tourism staff, and they expressed no objections to them. Adjustments were made to the balance forward and lodging tax revenue. He noted both the Senate and Assembly had taken action in the Historic Preservation budget to add $20,000 in room tax revenue. The Assembly had taken action in the Comstock Historic District budget to provide $12,000 for a Virginia City brochure. Mr. Stevens also noted the Governor recommended holding $300,000 in reserve as a Rural/Advertising Marketing Contingency. Fiscal staff recommended holding those funds in the reserve category until such time as an emergency situation called for a transfer of funds to the Rural/Advertising Marketing Contingency category. The agency had provided no detailed information which justified the need for funding the Rural/Advertising Marketing Contingency category at this time. If there was a need for funding, the agency could approach the Interim Finance Committee to request a transfer from the reserve category. Mr. Dini noted in the case of a major emergency, action would be delayed until the next meeting of the Interim Finance Committee. Mr. Close agreed that the Rural/Advertising Marketing Contingency category should not be funded if the agency has not substantiated the need to do so. Mr. Dini suggested not keeping the money in the reserve category and requiring the agency to report to the Interim Finance Committee regarding any expenditures from the Rural/Advertising Marketing Contingency category. MR. DINI MOVED TO CLOSE THE BUDGET IN ACCORDANCE WITH STAFF RECOMMENDATIONS, RETAINING $300,000 IN THE RURAL/ ADVERTISING MARKETING CONTINGENCY CATEGORY AND REQUIRING THE AGENCY TO REPORT EXPENDITURES FROM THAT CATEGORY TO THE INTERIM FINANCE COMMITTEE. MR. MARVEL SECONDED THE MOTION. THE MOTION CARRIED. MR. ALLARD WAS OPPOSED. MS. GIUNCHIGLIANI, MR. HETTRICK, MR. PRICE, AND MS. TIFFANY WERE ABSENT FOR THE VOTE. BUDGET CLOSED. * * * * * MOTION PICTURES - PAGE 969 Mr. Stevens reported fiscal staff recommended adjustments to state-owned and nonstate-owned building rent based on recent information and delaying hire of the new position to October 1, 1995. MR. DINI MOVED TO CLOSE THE BUDGET IN ACCORDANCE WITH STAFF RECOMMENDATIONS. MRS. BROWER SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. MS. GIUNCHIGLIANI, MR. HETTRICK, MR. PRICE, AND MS. TIFFANY WERE ABSENT FOR THE VOTE. BUDGET CLOSED. RURAL COMMUNITY DEVELOPMENT - PAGE 975 Mr. Stevens stated minor technical adjustments were required in this account related to nonstate-owned rent. MRS. CHOWNING MOVED TO CLOSE THE BUDGET IN ACCORDANCE WITH STAFF RECOMMENDATIONS. MR. DINI SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. MRS. EVANS, MS. GIUNCHIGLIANI, MR. HETTRICK, MR. PRICE, AND MS. TIFFANY WERE ABSENT FOR THE VOTE. BUDGET CLOSED. * * * * * PROCUREMENT OUTREACH PROGRAM - PAGE 979 Mr. Stevens said fiscal staff recommended technical adjustments to rent expense and to delay hire of a new position to October 1, 1995. Ms. Mary Matheus, Program Analyst, Fiscal Division, noted the Executive Budget recommended moving the Small Business Revitalization Program to the Department of Business and Industry. The Department of Business and Industry budget was closed accordingly. The program was formerly funded with petroleum rebate money. The recommendation was now to fund the program from the General Fund. Mrs. Chowning asked if this was the program which provided entrepreneurial support to help people starting a new small business. Mr. Stevens responded affirmatively. Ms. Matheus stated the program assisted with developing business plans and obtaining financing. Mrs. Chowning expressed support for this program. MRS. CHOWNING MOVED TO CLOSE THE BUDGET IN ACCORDANCE WITH STAFF RECOMMENDATIONS. MR. ALLARD SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. MS. GIUNCHIGLIANI, MR. HETTRICK, AND MR. PRICE WERE ABSENT FOR THE VOTE. BUDGET CLOSED. * * * * * NEVADA MAGAZINE - PAGE 983 Mr. Stevens stated technical adjustments were made in rent categories. MR. MARVEL MOVED TO CLOSE THE BUDGET IN ACCORDANCE WITH STAFF RECOMMENDATIONS. MRS. CHOWNING SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. MS. GIUNCHIGLIANI, MR. HETTRICK, AND MR. PRICE WERE ABSENT FOR THE VOTE. BUDGET CLOSED. * * * * * There being no further business, the meeting was adjourned at 10:40 a.m. RESPECTFULLY SUBMITTED: Dale Gray, Committee Secretary Assembly Committee on Ways and Means June 2, 1995 Page