MINUTES OF ASSEMBLY COMMITTEE ON WAYS AND MEANS Sixty-eighth Session June 8, 1995 The meeting of the Committee on Ways and Means was called to order at 7:30 a.m., on Thursday, June 8, 1995, Chairman Morse Arberry presiding in Room 352 of the Legislative Building, Carson City, Nevada. Exhibit A is the Agenda. Exhibit B is the Attendance Roster. ASSEMBLY 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 GUEST LEGISLATORS PRESENT: None STAFF MEMBERS PRESENT: Mark Stevens, Assembly Fiscal Analyst Larry Peri, Program Analyst Gary Ghiggeri, Deputy Fiscal Analyst Brian Burke, Program Analyst OTHERS PRESENT: See attendance roster SENATE BILL 209 - Makes appropriation to division of economic development of commission on economic development for replacement of telephone system. Ms. Karen Baggett, Deputy Director of the Commission on Economic Development, testified on behalf of S.B. 209 and distributed a prepared statement (Exhibit C). She stated the purpose of the bill was to replace an antiquated phone system at their office. She noted the commission has only one console for twenty phones; one additional phone can put two calls on hold while locating personnel. During the 1993 legislative session funds were appropriated to renovate the old State Library building for occupation by Nevada Magazine. The original plan was for Nevada Magazine, Tourism and the commission to share the building. Due to asbestos removal and seismic retrofit requirements prior to the relocation, additional monies have been requested during the 1995 legislative session to renovate all portions of the building for the three groups. The Department of Information Systems analyzed and evaluated the commission's telephone system and proposed a new system that would be totally transferrable from the building they presently occupy to the old State Library. Cost of the new system is $30,000. Since the commission has a 54% share of the phones, their cost would be $16,200 and tourism would pay the $13,800 from room tax. All three agencies will be able to use the system at the library or independently if only one agency moves to the building. Ms. Baggett estimated Nevada Magazine would move in around July 1996. There was no opposing testimony to S.B. 209. SENATE BILL 211 - Makes appropriation to mental hygiene and mental retardation division of department of human resources for certain equipment and refurbishment of facilities. Ms. Jean Laird, Deputy Administrator for the Division of Mental Health and Mental Retardation introduced Mr. Dave Miller, Coordinator for Management Information Systems. Ms. Laird testified on behalf of S.B. 211 which provides for various equipment and one-time purchases and for the expansion of the division's Ames Computer System. For the Southern Nevada Adult Mental Health Services the request provides for six computers, one replacement van, one ice machine for the inpatient hospital, carpeting for Building No. 1 and a filing system for medical records. For the Nevada Mental Health Institute, the request provides for synchronized switching gear for the generators, nine computers, specialized software, carpeting and linoleum. For the administration budget the request provides for expansion of the Ames computer system to the north and rural areas (it is currently up and running in southern Nevada). For Rural Clinics the request provides for four computers and various equipment for the clinics. The request for Lake's Crossing includes a weapons and metal detector, three portable radios including a recharger and one computer. For Southern Nevada Mental Retardation: 5 computers and a networking system. Northern Nevada Mental Retardation: three replacement vehicles and ten computers. During the joint budget committee hearings, Ms. Laird indicated there were two additional items which the division was instructed to request for inclusion in the bill. Because of recent and projected increases in inpatient census at Southern Nevada Adult Mental Health Center, it is necessary to convert a building that is currently used as a group home to an inpatient facility. Some of the conversation can be accomplished by staff, however, the remaining work will have to be contracted out and is estimated to cost $49,500. The second addition is a vehicle for Lake's Crossing. A 19-year-old van will be replaced by a 7-passenger mini-van for transportation of forensic clients to court. The new van's cost is $15,837. The two additions will bring the bill's new total to $772,679. Ms. Laird noted there is a duplication between this one shot bill and one of the division's capital improvement projects for the institute which includes carpeting. If the CIP project was funded as recommended by the Public Works Board there would be a duplication of $25,813 for one building, $1,646 for another and $10,438 for a third building. The division was not sure all three would be included in the CIP as it had not yet been heard. There was no opposing testimony to S.B. 211. SENATE BILL 334 - Transfers duty to pay certain costs related to purchasing warehouse building in Reno, Nevada, from purchasing division to building and grounds division of department of administration. Mr. Mike Meizel, Administrator of Buildings and Grounds Division, testified during the biennium the management of the purchasing warehouse facility was shifted within the Department of Administration from Purchasing to Buildings and Grounds. The bill shifts the General Fund payback from Purchasing to Buildings and Grounds; from now on Buildings and Grounds will be responsible to pay the General Fund back for the original purchase of the facility, expansion of the facility some years afterwards and most recently, renovation of the facility. There was no opposing testimony on the bill. MR. DINI MOVED DO PASS ON S.B. 334. MRS. EVANS SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. JUDICIAL DISCIPLINE - PAGE 153 Chairman Arberry directed the committee's attention to budget account 101-1497, Judicial Discipline. Mr. Stevens informed the committee, based on a Supreme Court ruling, that the Attorney General's Office can no longer be counsel for the Judicial Discipline Commission. The commission approached the Interim Finance Committee (IFC) before the 1995 session for additional positions. The positions in the budget are different from the positions presented at IFC. Also at IFC the motion was to approve the new positions, however, no restriction was placed on the amount of money to be paid for counsel (of the commission's choosing). The commission's budget proposes $106,667 per year for contract counsel. There is $45,000 in each of the biennium for investigative services and $50,000 for contract legal staff for probable cause hearings. Non-state owned building rent increases from the FY 1994 actual of $1,200 to $12,006 per year. The requested funding would provide 870 square feet of office space at $1.15 per square foot for the two positions. Mr. Dini questioned the salary for the commission's counsel. Mr. Stevens said the salary was $106,667 per year with $17,409 in FY 1996 and $17,782 in FY 1997 for fringe benefits. He indicated that counsel was a contract position and there had been discussion on whether it should be placed in the unclassified pay bill whereby the Legislature would set the salary. The other alternative was leaving it a contract position and allowing the commission to set the salary. Mr. Ghiggeri pointed out it showed up as a state employee position in the M-600 budget category. Mr. Stevens responded it was currently a contract position and there was a Senate bill that would retain the position as a contract employee; there has been discussion on whether the position should be included in the unclassified pay bill to allow the Legislature to set the salary. MR. DINI MOVED TO CLOSE THE BUDGET ACCORDING TO THE GOVERNOR'S RECOMMENDATION. MR. MARVEL SECONDED THE MOTION. THE MOTION PASSED UNANIMOUSLY. RECORDS MANAGEMENT - MICROGRAPHICS - PAGE 510 Chairman Arberry directed the committee's attention to budget account 741-1332, Records Management - Micrographics. Mr. Stevens reported the committee had previously recommended a separate budget account be established for this particular operation within the Museums, Library and Arts Department. This is the old budget account within the Printing Division and the Governor's Recommendation zeros this budget account out and establishes it in another department. MR. MARVEL MOVED TO CLOSE THE BUDGET ACCORDING TO THE GOVERNOR'S RECOMMENDATION. MRS. EVANS SECONDED THE MOTION. THE MOTION PASSED UNANIMOUSLY. STATE UNEMPLOYMENT COMPENSATION - PAGE 663 Mr. Stevens explained budget account 101-1339, State Unemployment Compensation's only change was to increase the balance forward by $150,000 in FY 96 and $150,000 in FY 97. MS. GIUNCHIGLIANI MOVED TO CLOSE THE BUDGET ACCORDING TO STAFF RECOMMENDATION. MR. ALLARD SECONDED THE MOTION. THE MOTION PASSED UNANIMOUSLY. DRUG COMMISSION - PAGE 1461 In respect to the Drug Commission budget account, Mr. Stevens stated the subcommittee did not prepare closing recommendations for the Drug Commission budget account. He asked Mr. Burke to explain the various scenarios discussed by the committee. Scenario one replaces the lost Byrne grant funding with Substance Abuse Prevention and Treatment transfer funding from the Bureau of Alcoholism and Drug Rehabilitation. The scenario would redirect program funding in the BADA budget to the Drug Commission and would keep the Drug Coordinator with the Drug Commission. Scenario number two replaces the lost Byrne grant funding with state general fund appropriation. This scenario also keeps the Drug Coordinator with the Drug Commission. Scenario number three transfers the Drug Coordinator position to the Parole and Probation Division to assist with the Lifeskills program. This scenario does not require the replacement of lost Byrne Grant funding and in fact results in a reduction in the transfer from BADA. If it is the desire of the Committee, the revenue could be redirected to BADA program expenditures. Mr. Burke indicated if scenario number three was chosen, it would be necessary to modify NRS 458 to eliminate the provisions regarding the Drug Coordinator position. A fourth alternative mentioned by the subcommittee would replace transfer revenue with General Fund appropriation. The General Fund impact of this alternative would range from $35,000 to $100,000. MS. GIUNCHIGLIANI MOVED TO APPROVE SCENARIO NUMBER THREE, REQUEST A BDR AND SUBMIT A LETTER OF INTENT IN TIME FOR THE NEXT SESSION WHICH WILL INCLUDE PERFORMANCE INDICATORS. MR. MARVEL SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. Mr. Allard asked what the responsibilities of the clerical position were. Mr. Burke said the clerical position would provide administrative support for the commission. Mr. Allard noted, according to testimony, the Drug Commission was not doing a good job and with the removal of the coordinator, he questioned the necessity for such a commission. MR. ALLARD MOVED TO AMEND THE MOTION BY SUNSETTING THE COMMISSION BY THE NEXT LEGISLATIVE SESSION. MS. GIUNCHIGLIANI SECONDED THE MOTION. Mrs. Chowning asked whether the Drug Coordinator and clerical support would be physically working in the same building. Mr. Burke replied the clerical position will remain in the Drug Commission budget and the Coordinator will be moving to Parole and Probation. Mr. Ghiggeri said he had received communication from the Budget Division indicating it was their recommendation to realign the Drug Coordinator over to the Division of Parole and Probation to work in the new program recommended in the Executive Budget which has been termed the Assessment and Lifeskills Project. The Budget Division indicated the position would supply the needed support for the successful operation of the program. The subcommittee on Public Safety voted to move the Substance Abuse Coordinator to the Division of Parole and Probation. The clerical position was intended to stay with the Drug Commission to provide clerical support for their meetings. Mr. Dini testified he could not vote for the amendment sunsetting the commission as there was inadequate testimony to support the motion. He asked if the drug problems within the state had been solved. Mr. Price felt commissions and boards provided citizens the avenue of being involved in state policy and operations and would resist any effort sunsetting the commission. Ms. Janet Johnson stated the committee was confusing the functions of the Drug Coordinator and Drug Commission. She explained the Drug Commission was in existence before the Drug Coordinator duties were created. The duties were created with federal funds that were made available and enhanced what the commission was doing. Ms. Johnson noted the clerical position would continue to provide support to the commission even though the coordinator is no longer there. Mr. Fettic said his understanding of the commission's role was to recommend priorities for using federal grant monies related to substance abuse. He said the commission's responsibilities included drug rehab and law enforcement and he could not support sunsetting it. Mr. Allard said he did not understand what the Drug Commission did. By recommending a sunset date of July 1997, Mr. Allard said the commission would be allowed to bring forth performance indicators to show the committee what they had accomplished. In response to Mr. Allard's question regarding the commission's funding, Mr. Burke said it would be a combination of general funds and BADA funds amounting to approximately $50,000 ($20,000 per year in state General Fund to support the commission). Ms. Giunchigliani testified she would support the sunset clause in that it would force the commission to justify their function and prove whether they are serving a purpose. She felt the commission had done a very good job establishing a policy on drugs. Mrs. Chowning said she would not support a sunset provision. She felt performance indicators were woefully lacking and suggested a letter of intent requesting a report for presentation at the next legislative session. THE MOTION FAILED. COMMITTEE MEMBERS CLOSE, GIUNCHIGLIANI, ALLARD, HETTRICK, SPITLER AND TIFFANY VOTED YES. BOARD OF AUDIOLOGY AND SPEECY PATHOLOGY - PAGE 2069 Chairman Arberry drew the committee's attention to budget account B003, Board of Audiology and Speech Pathology. Mr. Stevens said the committee needed to decide whether it wanted to remain with its previous closing of Governor Recommendation or adjust the budget to reflect an increased caseload pursuant to a memorandum dated March 22, 1995, from the State Board of Audiology and Speech Pathology. He noted the other option would be to allow the board to request the change at IFC. Mrs. Evans asked whether the board wanted to increase their license and fees. Mr. Stevens said this was correct; he was not sure whether this was volume related or rate increase. Mr. Hettrick did not feel this was an issue since they were self funded. Mrs. Evans agreed with Mr. Hettrick. MR. MARVEL MOVED TO REOPEN THE BUDGET. MR. HETTRICK SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. MR. HETTRICK MOVED TO RECLOSE THE BUDGET. MR. MARVEL SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. COMMISSION FOR WOMEN - PAGE 11 Mr. Arberry directed the committee's attention to budget account 101-1029, Commission for Women. MRS. CHOWNING MOVED TO CLOSE THE BUDGET ACCORDING TO GOVERNOR'S RECOMMENDATION. MS. GIUNCHIGLIANI SECONDED THE MOTION. Ms. Tiffany said she could not support the motion due to the General Fund involvement and lack of performance indicators or results. She also felt they were duplicating efforts by private sector organizations. Mr. Hettrick said he did not want to set a precedent by supporting commissions with General Fund money. Mrs. Evans asked whether the motion included the removal of the sunset. Chairman Arberry responded it was being handled as a separate issue. THE MOTION FAILED. COMMITTEE MEMBERS CHOWNING, GIUNCHIGLIANI, SPITLER, DINI, ARBERRY AND PRICE VOTED YES. MR. MARVEL MOVED TO CLOSE THE BUDGET WITHOUT FUNDING. MR. ALLARD SECONDED THE MOTION. THE MOTION FAILED. COMMITTEE MEMBERS BROWER, CLOSE, ALLARD, HETTRICK, FETTIC, MARVEL AND TIFFANY VOTED YES. Chairman Arberry suggested the commission be provided with funds from a one-shot appropriation. Ms. Tiffany said this was not solving the issue as the commission would most probably return to request funds from the General Fund at the next session. Chairman Arberry said he was trying to establish a medium ground. MRS. EVANS MOVED TO AMEND AND DO PASS A.B. 116 WITH A ONE SHOT APPROPRIATION OF $10,000. The motion died for lack of a second. MS. GIUNCHIGLIANI MOVED TO AMEND AND DO PASS A.B. 116 WITH A ONE SHOT APPROPRIATION OF $25,000. MRS. CHOWNING SECONDED THE MOTION. Mr. Spitler suggested the motion be amended to change the one- shot to $50,000 dispensed at $25,000 each year. MR. SPITLER MOVED TO AMEND AND DO PASS A.B. 116 WITH A ONE SHOT APPROPRIATION OF $50,000 TO BE DISPENSED IN $25,000 INCREMENTS EACH YEAR. MR. PRICE SECONDED THE MOTION. THE MOTION FAILED. COMMITTEE MEMBERS CHOWNING, GIUNCHIGLIANI, SPITLER, DINI, EVANS, PRICE AND ARBERRY VOTED YES. Chairman Arberry recommended the committee vote on Ms. Giunchigliani's previous motion that had been seconded by Mrs. Chowning. THE MOTION FAILED. COMMITTEE MEMBERS CHOWNING, GIUNCHIGLIANI, SPITLER, DINI, EVANS, PRICE AND ARBERRY VOTED YES. Chairman Arberry recommended the committee return to Mrs. Evans original motion adding $10,000 to A.B. 116 that had not been seconded. MR. PRICE SECONDED THE MOTION. THE MOTION FAILED. COMMITTEE MEMBERS BROWER, CLOSE, CHOWNING, GIUNCHIGLIANI, SPITLER, DINI, EVANS, PRICE AND ARBERRY VOTED YES. MR. HETTRICK MOVED TO CLOSE THE BUDGET WITHOUT FUNDING. MR. ALLARD SECONDED THE MOTION. THE MOTION CARRIED. COMMITTEE MEMBERS SPITLER, GIUNCHIGLIANI AND ARBERRY VOTED NO. PURCHASE OF SOCIAL SERVICES - PAGE 997 Mr. Stevens recommended discussing two budgets that had been closed in conflict, budget account 101-3150 Department of Human Resources and budget account 101-3237, Purchase of Social Services. Based on closing the Purchase of Social Services budget, it was the staff's understanding that all of the extra Title XX money should go to non-state agency contracts and since the committee closed the Department of Human Resources administration budget differently, clarification was needed. Mr. Stevens said he was presenting for the committee's approval closure of the Department of Human Resources Administration account according to Governor's Recommendation. In the Purchase of Social Services accounts there is an additional $131,743 transferred to non-state agencies in the first year and $115,202 in the second year to augment the non-state agency category in each year of the biennium. Mr. Stevens reported he had just received a bill draft for $253,055 that would augment the non- state agency categories to provide a total $250,000 per year in addition to what is recommended in the Governor's budget. Mrs. Evans found the $24,000 for travel and per diem to be excessive. Mr. Stevens stated, based on the closing sheet before the committee, the amount would be entirely eliminated. In regard to the adjustment to the transfer to non-state agencies, Mr. Spitler wanted it made clear this was not taking from another account but was from accounts where there were savings realized. Mr. Stevens replied there were additional Title XX revenues over and above the Governor's Recommendation that were found during the legislative session; this would be a straight augmentation. Mr. Spitler wanted it to be clear that the transfer to non-state agencies (the $131,743 and $115,202) was not taking from other accounts but was from accounts where there were savings realized. Mrs. Evans felt the two studies were being confused. Ms. Charlotte Crawford, Acting Director, Department of Human Resources reported approximately $15 million was being collected per year. Approximately $500,000 was being passed through to non-state direct community agencies, the rest went to various state agencies for social services. Ms. Evans indicated there were some concerns about the process the department used for making allocations to the community; there was also a great deal of concern regarding how the total block grant was used and what the outcomes were. In respect to Title XX the department's initial starting point was who was providing the services and where the funds were going. Mrs. Evans asked whether the $80,000 for the contract person was requested for one year or over the biennium. Ms. Crawford said it was $80,000 for each year of the biennium, $50,000 of which to contract with a person who could travel and organize focus groups and process the resulting information. Mr. Spitler said his proposal was for $80,000 over both years of the biennium and asked where the other $80,000 would come from. Ms. Crawford said her understanding was the department would take $80,000 out of the $250,000 each year of the biennium. Mr. Spitler asked where the department would have gotten the money if the committee had not added an additional $250,000 and if the department had enough money to find $80,000 from another source. Ms. Crawford stated she did not have another source in the Director's Office at this point. Mr. Spitler stated he did not want $80,000 in each year of the biennium to be applied to administration work. He wanted to see more money being delivered to non-state agencies; a minimum of 10 percent in the future as there would never be another General Fund contribution to the effort. It was his intention to give the department two years to look and find a way in which a minimum of 10 percent actually flows to community agencies delivering services in an alternative way to methods used by state government. Ms. Crawford's understanding was that the Legislature wanted the department to have target of 10 percent to go directly to the community in the biennium after the coming biennium. Ms. Crawford stated they were close to an agreement, however, the department needs to evaluate what services the state is currently delivering and funding. It is not a matter of pulling it out and replacing it with General Fund money. Ms. Crawford wished to examine the services and make decisions as to whether the services should be delivered and where they can best be delivered at the community level. Mr. Spitler said his concern with the motion dealing with the $250,000 each year of the biennium is the most the department can take to study the delivery of services is $80,000. To perform the kind of study the department wants to accomplish they would have to find an additional $80,000. Ms. Crawford concurred she did not have an alternative funding source. Mr. Spitler suggested the $250,000 each year of the biennium flow directly to the community services agencies. Ms. Crawford indicated Mr. Spitler's recommendation would make it difficult to meet the 10 percent target and would limit the department's ability to gather good thoughtful input on how to deal with block grants. Ms. Giunchigliani said she would not support more than $80,000 for a study. Chairman Arberry requested the committee consider the introduction of BDR 43-2118, governing the authority of driver education and safety officers and distribution of additional fee for driver's license. MR. ALLARD MOVED FOR A COMMITTEE INTRODUCTION OF BDR NO. 43-2118. MR. MARVEL SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. FORESTRY HONOR CAMPS - PAGE 1943 Mr. Fettic and Mr. Spitler testified on behalf of the Forestry Honor Camp Program. Mr. Fettic reported the Joint Subcommittee on Public Safety and Natural Resources and Transportation asked the Assembly Committee on Ways and Means to close the budget account for the Forestry Honor Camp Program. Changes recommended by the Joint Subcommittee incorporate both population changes recommended in closing the budgets of the Department of Prisons on June 6, 1995, and the revised population projections of the National Counsel for Crime and Delinquency which were contained in a revised budget submitted by the Governor on April 3, 1995. The revised budget also reflects cooperative efforts of the Department of Prisons and the Division of Forestry to improve inmate participation in the conservation program. To supervise the additional inmates the Governor's revised budget recommended adding back 14 crew members of the thirty-six the Governor had recommended abolished. Of the 117 positions currently authorized, 95 would continue leaving a net reduction of 22 positions. The original budget recommended only 81 be retained. In addition, the Joint Subcommittee adds one other position, the Camp Supervisor for the Jean Camp who was scheduled for layoff on January 1, 1996. Mr. Fettic indicated this will bring the total positions to 96. Mr. Fettic went on to report that a letter from the Department of Prisons dated June 7, 1995, stated the latest population projections do not warrant a change in the number of conservation crews available. The Jean Camp is recommended to stay open as a conservation camp. Both the Governor's original and revised budgets anticipated closure of the camp on January 1, 1996 for conversion to a DUI treatment center and the transfer of three crew supervisors from Jean to Indian Springs. The three crew supervisors would have managed three new crews to replace DUI offenders when the DUI program at Indian Springs ended. One mechanic from the Jean Camp was proposed for transfer to the Las Vegas regional office in July 1995 to be moved to the division's main operating account, number 4195. Instead, the Joint Subcommittee recommends the three crew members scheduled to be transferred to Indian Springs remain at Jean, the mechanic remain at Jean within the Honor Camp budget and be assigned a work crew and the Camp Supervisor be retained to continue the conservation program at Jean. The Assembly Subcommittee recommended the Assistant Conservation Camp Supervisors continue to take work crews out and that each crew consist of 12 inmates. The amount of revenue earned by completing such projects is increased from $276,973 in FY 95-96 and $253,946 in FY 96-97. The Jean Camp which the Governor recommended to close as a conservation camp is a leading money maker. The Conservation Camp Coordinator's position for E-800 is recommended to be transferred from the division's main operating account. The Camp Coordinator will develop policies and procedures to assure standardization and uniformity within camp operations, payroll and reporting. Revisions to the camp's workers' payroll results in a savings of $9,850 in FY 96 and $9,827 in FY 97. The Division of Forestry and the Department of Prisons agree to pay a lower rate to inmates who remain in camp as an incentive to encourage inmates to participate in outside work projects. Expansion of the boot camp at Indian Springs was not recommended by the Joint Subcommittee. Three new crew supervisors which were recommended for expansion of the boot camp have been deleted. No additional buses are recommended for the 14 additional crew supervisors who are to be retained under the revised budget. The Budget Division recommends 14 buses rated as "fair" will be retained for those employees. All others will have buses rated by the division as "good" or "excellent." A one shot appropriation, A.B. 232, recommended by the Governor includes 26 replacement crew vehicles. Three new vehicles for the expansion of the Indian Springs Boot Camp may be eliminated from the one- shot appropriation. General Fund appropriation increases $585,487 in FY 96 and $523,814 in FY 97 over amounts recommended in the Executive Budget. Mrs. Brower asked Mr. Fettic to explain the bootcamp situation. Mr. Fettic replied there was no appetite on the part of the subcommittee to expand the boot camp program. Mr. Close voiced his support for the expansion of the boot camp. He said he had spoken to Mr. Bayer after the subcommittee meeting and had asked him to provide more information on federal grant funding. Mr. Close was not aware the issue would be discussed so soon. He understood it did not affect the closure of the budget at the present time and hoped the boot camp expansion could take place with the help of federal grant monies. MR. MARVEL MOVED TO CLOSE THE FOREST HONOR CAMP PROGRAM BUDGET. MRS. EVANS SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. ASSEMBLY BILL 228 - Makes appropriations to governor's office for enhanced security system for governor's mansion and to director's office of state department of conservation and natural resources for costs to employ state climatologist. Mr. Stevens distributed detailed backup information on A.B. 228 (Exhibit D). The mansion security handout outlined the original and revised requests and recommended level. MR. ALLARD MOVED AMEND AND DO PASS ON A.B. 228 ACCORDING TO STAFF RECOMMENDATIONS. MS. GIUNCHIGLIANI SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. 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 (BDR S- 1546). Mr. Stevens distributed background information on A.B. 231 (Exhibit E). He explained the bill provides for $250,000 for the construction of a hangar for the Division of Wildlife at the Minden Airport. The Department of Conservation and Natural Resources would like to consolidate its air operations at the Minden Airport. Mr. Arberry requested information on the pilot position. Mr. Peter Morros, Director of the Department of Conservation and Natural Resources explained the pilot position was an existing one and was presently filled. Mr. Stevens noted the budget closing added vacancy savings into the Division of Wildlife's budget based on eliminating the pilot position. A layoff notice will not go out when the budget closes. The money for the position was not budgeted in their account; the division will have to make it up this amount in turnover or vacancy savings. Mr. Arberry asked whether the pilot would be needed sometime in the future. Mr. Morros said they did not anticipate it was going to occur. The department will have a pilot pool consisting of four persons; the two remaining wildlife pilots will be cross- trained in fire suppression work. Ms. Giunchigliani questioned the actual cost of construction of the hangar. Mr. Morros said he will make the $250,000 work, however, inmate labor will be utilized. He realized this was a sensitive issue for Mr. Price. Mr. Price felt it was despicable to use inmate labor to construct a hangar. He felt Nevada contractors and skilled tradesmen should be utilized for the construction of state buildings. Mr. Morros explained there will be savings with the reduction of the pilot position. There will be a $16,700 per year savings associated with the reduction of the lease costs for the existing location for the wildlife hangar which is under lease in Reno ($18,000 per year). Mr. Morros testified the department should be able to recover the full $250,000 in less than 5 years. He added the savings will continue on past the 5 years. Mr. Close asked whether there was an escape clause on the lease. Mr. Morros said the lease expires on July 1. The landlord has agreed to let the department remain on a month to month basis. Chairman Arberry asked whether the property for the new hangar will be leased. Mr. Morros said the land will be leased from Douglas County for approximately nine cents a square foot per year; $1,300 per year for the land. MR. MARVEL MOVED DO PASS ON A.B. 231. MR. HETTRICK SECONDED THE MOTION. THE MOTION CARRIED. MS. GIUNCHIGLIANI AND MR. SPITLER VOTED NO. MS. TIFFANY WAS NOT PRESENT FOR THE VOTE. Mr. Price asked whether the motion included the use of inmate labor. Mr. Morros stated the department would do everything possible to not use inmate labor as long as they could stay within the $250,000. ASSEMBLY BILL 219 - Makes appropriations to department of museums, library and arts for enhancement of computer system, improvement of various functions of state library and remodeling of basement in state library and transfers certain amounts between projects. (BDR S- 1498) Ms. Joan Kerschner, Director, Department of Museums, Library and Arts, distributed various handouts relating to her testimony (Exhibit F). Ms. Kerschner read from a letter written by Mr. Robert Lawton, Chief, Planning and Research Division, Department of Information Services which stated, "We are in total agreement that the quality of the document is excellent and conforms to your strategic plan developed in 1992. And, technically, the hardware and software requirements outlined closely represent the intent of the Strategic Plan for Information Resources and Information Technology developed by the Department of Information Services (DIS). Therefore, DIS accepts and supports your Automation Plan." Ms. Kerschner responded to questions asked at a previous meeting by Mr. Hettrick. In respect to the biennial line cost, the cost for modem pool lines are $1,200 each per year. The department is adding two lines. The chart submitted showed an additional $2,400 in the second year of the biennium budgeted from "other funds", hence the term biennial line costs. The amount of $2,400 for the one-shot was correct as listed. In respect to the data line to the Nevada State Museum, the cost for installation is $250 plus $1,200 for operational costs for a total of $1,450. The cost of the second year of operation should have been moved to column 2, "other funds." The amount can be reduced by $1,200 from $2,650 to $1,450. In respect to data lines from the annex to the Nevada State Museum the cost for installation is $250 x 3 lines or $750. Cost for the first year operation is $1,200 x 3 or $3,600. Total cost is $4,350. This amount can be reduced by $950 to $4,350 for two lines and one year operation. Ms. Kerschner said all the ongoing costs were the telephone lines. The ongoing cost total is $11,700 spread over 5 budget accounts and will all come from sources of money such as private funds or grants. In response to Mr. Hettrick's previous question regarding Pentium Microcomputer usage at the Railroad Museum, Ms. Kerschner stated they needed the equipment to support CAD programs. All three computers will not have to be Pentiums; the price difference between the Pentium and the 386 is only $300. Ms. Kerschner said she was recommending the department purchase two Pentiums and one 486 which slightly reduces the price. In response to Ms. Tiffany's previous question regarding ongoing support, Ms. Kerschner said the Department of Information Services has confirmed they will provide assistance when needed based on their available resources. A $20,000 federal grant (BA 2891 category 11) can be applied for DIS support if needed. Ms. Kerschner said she modified the list of equipment to reflect a new bottom line total based on the changes she outlined amounting to $872,838. Mr. Stevens asked for the committee's opinion regarding whether or not the basement storage CIP project ($316,000) should be handled by the Public Works Board or in-house. Ms. Kerschner believed the project would be completed more quickly if it was performed in-house by Buildings and Grounds. She said it all depended on the source of funding. Mr. Ghiggeri stated there was approximately $170,000 remaining from the construction of the new library. The Public Works Board has identified a potential need for $45,000 to $50,000 to finish the parking lot north of the Blasdel Building, leaving $120,000 that could be reverted to the General Fund or applied to whatever the library needed to finish in the building. Mr. Ghiggeri said his only concern was that they conform to whatever building codes and inspections are required. Ms. Kerschner added they desperately needed the parking lot which has been anticipated for over two years. Mr. Hettrick asked for an explanation of the warranty fees. Ms. Kerschner said the department planned to obtain the normal warrantees on all equipment at no fee except for equipment at the central site that needs on site service. She said a fee must be paid for additional service on equipment that can not be sent out; it needs to be up at all times as it services all outlying offices. MR. MARVEL MOVED TO AMEND AND DO PASS A.B. 219 SUBJECT TO STAFF ADJUSTING PUBLIC WORKS BOARD TRANSFER OF NON- OBLIGATED MONEY TO THE DEPARTMENT'S ACCOUNT. MR. ALLARD SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY Mr. Stevens asked if the amendments included the suggestions by Ms. Kerschner and whether there would be any other changes other than transferring available funds from the CIP project to pay for the remodeling of the basement. Mr. Ghiggeri mentioned the use of the $50,000 for the parking lot would require the Public Works Board to approach the Legislature for the transfer (from the library project to the parking lot project). Mrs. Evans requested Mr. Ghiggeri to collect more information regarding the time line for the completion of the parking lot. Mr. Fettic advised the committee State Lands was presently involved in condemnation procedures. Mrs. Evans felt State Lands needed to be advised regarding the urgency related to completion of the parking lot. ASSEMBLY BILL 629 - Makes supplemental appropriation to department of museums, library and arts for operating expenses of Nevada historical society. (BDR S-2068) Ms. Kerschner supplied the committee with a handout on S.B. 629 (Exhibit G). Mr. Peter Bandurraga, Director of the Nevada Historical Society explained due to overestimation and the California recession, front door admissions were lower than anticipated. The society is asking for a supplemental appropriation of $10,800 to make up the difference. MR. CLOSE MOVED DO PASS ON A.B. 629. MR. FETTIC SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. COMMITTEE MEMBERS TIFFANY, PRICE, BROWER AND SPITLER WERE ABSENT FOR THE VOTE. ASSEMBLY BILL 246 - Makes appropriation to motor pool division of the department of administration for purchase of additional vehicles. (BDR S- 1502) Mr. Stevens distributed a memorandum pertaining to A.B. 246 (Exhibit H). Mr. Larry Peri, Program Analyst with the LCB Fiscal Analysis Division explained the bill originally would have provided a one-time appropriation of $981,288 to the Motor Pool Division for the purchase of 84 vehicles. The Fiscal Analysis Division is proposing to reduce the number of vehicles to 73 and increasing the appropriation from $981,288 to $983,368. Mr. Hettrick questioned the suitability of pickups as motor pool vehicles. Mr. Tracy Raxter, Chief of Administrative Services, Department of Administration felt Mr. Hettrick's comments were well taken. After lengthy discussion with the director of the Motor Pool, Mr. Raxter reported there were enough agencies who have expressed the need for a pickup to justify the purchase of the ten vehicles. Mr. Raxter indicated there were federal and state regulations that require a certain percentage of additions to the fleet be alternative fuel vehicles; the percentages increase each year for the next 5 years. In order to be in compliance with the regulations during the next biennium, the state must purchase the 10 vehicles. Mr. Hettrick said due to the back of the pickup beds being utilized for alternative fuel gas tanks the state would be in possession of 10 vehicles with limited usage. MR. FETTIC MOVED AMEND AND DO PASS ON A.B. 246. MRS. CHOWNING SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. ASSEMBLY BILL 253 - Makes appropriation to welfare division of department of human resources for safety and security equipment, computer equipment and vehicles. (BDR S-1520) Mr. Steve Abba of the Fiscal Analysis Division indicated A.B. 253 represents the state's share of the cost for new and replacement as recommended in three different decision units in the Welfare Administration budget. The total cost for the new and replacement equipment as originally recommended is $567,702, however, based upon a review of the equipment and the new and replacement data processing equipment reduction in the amount of $31,608 is recommended which will reduce the appropriation in A.B. 253 to the amount of $246,646. The recommendation to reduce the appropriation is based on duplicated equipment that was recommended in the appropriation (already included in the NOMADS project). Mr. Abba testified decision unit E-425 provides for security equipment to enhance 4 district offices. The recommendation will save approximately $66,000. Decision unit E-710 has been adjusted to delete some of the duplicated equipment and provides for 6 replacement vehicles, 7 personal computers in FY 1996 and 6 personal computers in FY 1997. The replacement equipment also includes 90 software upgrades. Decision unit E-720 will provide for 6 new LANS within the division (local area networks located in the Belrose, Owens and Reno district offices implemented in FY 1996 and the Charleston, Henderson and Reno Mill offices implemented in FY 1997). MR. FETTIC MOVED AMEND AND DO PASS ON A.B. 253. MRS. CHOWNING SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. MS. TIFFANY WAS NOT PRESENT FOR THE VOTE. The committee recessed at 11:00 a.m. and reconvened at 3:46 p.m. the same day. Co-chairman Evans requested the committee consider the introduction of BDR 43-2117 and BDR S-2127. MR. SPITLER MOVED FOR A COMMITTEE INTRODUCTION OF BDR 43-2117. MR. CLOSE SECONDED THE MOTION. THE MOTION CARRIED. MR. ALLARD VOTED NO. COMMITTEE MEMBERS ARBERRY, MARVEL, TIFFANY, CHOWNING AND HETTRICK WERE NOT PRESENT FOR THE VOTE. MR. SPITLER MOVED FOR A COMMITTEE INTRODUCTION OF BDR S- 2127. MRS. BROWER SECONDED THE MOTION. THE MOTION CARRIED. MR. ALLARD VOTED NO. COMMITTEE MEMBERS ARBERRY, MARVEL, TIFFANY, CHOWNING AND HETTRICK WERE NOT PRESENT FOR THE VOTE. Co-chairman Evans directed the committee's attention to S.B. 213. SENATE BILL 213 - Makes appropriation to welfare division of department of human resources for replacement of room dividers and office equipment. (BDR S-1521) MR. SPITLER MOVED DO PASS ON S.B. 213. MR. FETTIC SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. COMMITTEE MEMBERS ARBERRY, MARVEL, TIFFANY, HETTRICK AND CHOWNING WERE NOT PRESENT 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. (BDR 34-743) Mr. Stevens reported the criminal history depository needs $50,000 in each year of the biennium. If granted, the $50,000 of each year would be deposited into a reserve category to set up a sinking fund for updating data processing equipment. If the fingerprint files are added to the depository's system it will fill it to capacity requiring them to replace the equipment sooner. If the $50,000 is not provided the depository will still be able to implement the provisions of the bill. Mr. Stevens said the additional costs could be funded from court assessments if it was the desire of the committee. Ms. Giunchigliani suggested on page 4, lines 5 and 12 (after "been arrested"), the necessary NRS statute numbers defining child abuse, molestation and drug trafficking be inserted; on page 4 strike on line 7 "(e) on or before the first day of each month." MS. GIUNCHIGLIANI MOVED AMEND AND DO PASS A.B. 65. MR. ALLARD SECONDED THE MOTION. THE MOTION PASSED UNANIMOUSLY. COMMITTEE MEMBERS TIFFANY, CHOWNING, HETTRICK AND SPITLER WERE NOT PRESENT FOR THE VOTE. ASSEMBLY BILL 194 - Requires periodic fundamental review of each state agency to determine whether there is justification for its existence, costs and programs. (BDR 17-168) ASSEMBLY BILL 209 - Provides for fundamental review of base budgets of state agencies by legislature. (BDR 17-457) Co-chairman Evans requested the committee examine simultaneously A.B. 194 and A.B. 209. She proposed amending A.B. 194 with the language of A.B. 209. MRS. BROWER MOVED TO SUBSTITUTE THE LANGUAGE OF A.B. 194 WITH THE LANGUAGE OF A.B. 209. MR. MARVEL SECONDED THE MOTION. Co-chairman Evans reminded the committee the key problem with A.B. 194 was that it put everything on a rather strict schedule for review. Mr. Stevens stated the language in A.B. 209 would provide the subcommittee that is formed more flexibility; different budgets can be grouped into different subcommittees depending on the level of review the committee feels is required. Mr. Stevens reported the Fiscal Division will be working as hard off session as they do in session if they have to review 100 budgets down to sunset provisions each interim period. MR. ALLARD MOVED AMEND AND DO PASS A.B. 194. Mr. Close noted the mission statements, goals and objectives were not included as a requirement in A.B. 209. He felt it would be another reinforcement to the agencies and asked they be included in the amendment. Co-chairman Evans agreed it could be included in the amendment. MR. MARVEL SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. COMMITTEE MEMBERS ARBERRY, TIFFANY, HETTRICK AND CHOWNING WERE NOT PRESENT FOR THE VOTE. Mr. Stevens advised the committee there were big picture issues on closing sheets that needed reconciliation. He distributed a memo on Business Process Reengineering Funded in the Governor's Budget (Exhibit I). Mr. Marvel suggested the various co- chairmen working in the BPR areas be given more time for thought and recommended action be taken the following day. The deadline for acting on the bill was set for Saturday. Mr. Stevens opened discussion regarding two microcomputer specialists who were once within the Division of Environmental Protection (DEP). The positions have been subsequently reclassified to another classification in the management analyst series. The Executive Budget recommended the positions be transferred from DEP to the Department of Information Services (DIS) because they are microcomputer specialists. Mr. Stevens stated presently the positions are in both DEP and DIS and the difference must be reconciled to be placed in one budget. Mr. Marvel recommended they remain in DEP where they are currently housed. Mr. Stevens asked whether the committee wanted to take into account the fiscal note on A.B. 317 which had a positive fiscal impact on the Department of Prisons and a lower fiscal note on the Division of Child and Family Services. The fiscal note indicated the Child and Family Services would realize a savings of $180,000 in each year of the biennium from the Governor's recommended level. Mr. Marvel recommended taking the money out; he felt there should be enough money in the contingency fund to take care of it. Co-chairman Evans felt the important decision should be made when more committee members were in attendance. Mr. Stevens presented information on the revised request for the juvenile boot camp totaling $156,047. The administration requested the following amounts be appropriated by the Legislature: $11,000 for out-of state travel for site visits to existing facilities and programs; $8,000 for meetings with judges, probation officers and correctional staff; $1,000 for operational costs; $5,000 for staff training and fees for outside consultants; $131,000 for A&E design of a facility, soil analysis and plan checks to be located at the Indian Springs site. Mr. Marvel suggested the vote be postponed to the following day due to the absence of certain committee members. Mr. Allard reported he had received supportive comments from constituents. Mr. Stevens pointed out possibilities the committee could consider included providing money for an analysis during the interim period; if the Governor felt it appropriate, he could include funding for construction of a facility in the next Executive Budget. The committee adjourned at 4:58 p.m. RESPECTFULLY SUBMITTED: Janine Sprout Committee Secretary Assembly Committee on Ways and Means June 8, 1995 Page