MINUTES OF THE ASSEMBLY COMMITTEE ON WAYS AND MEANS Sixty-eighth Session June 9, 1995 The Committee on Ways and Means was called to order at 2:07 p.m., on Friday, June 9, 1995, Chairman Morse Arberry, Jr. presiding in Room 352 of the Legislative Building, Carson City, Nevada. Exhibit A is the Agenda. Exhibit B is the Attendance Roster. COMMITTEE MEMBERS PRESENT: Mr. Morse Arberry, Jr., Chairman Mr. John W. Marvel, Chairman Mrs. Jan Evans, Vice Chairman Ms. Sandra Tiffany, Vice Chairman Mr. Dennis L. Allard Mrs. Maureen E. Brower Mrs. Vonne Chowning Mr. Jack D. Close Mr. Joseph E. Dini, Jr. Mr. Thomas A. Fettic Ms. Chris Giunchigliani Mr. Lynn Hettrick Mr. Bob Price Mr. Larry L. Spitler COMMITTEE MEMBERS ABSENT: None STAFF MEMBERS PRESENT: Mr. Mark Stevens, Fiscal Analyst Mr. Gary Ghiggeri, Deputy Fiscal Analyst ASSEMBLY BILL 570 Revises provisions regarding habitual criminals. Assemblywoman Genie Ohrenschall testified A.B. 570 is aimed at protecting senior citizens by requiring that anyone who commits fraud against a senior citizen or a mentally impaired person three times would be sentenced as a habitual criminal. On the third conviction, the criminal would serve a sentence of not less than 20 years. A.B. 570 has no fiscal note because frauds of this type normally are well organized, involving very few perpetrators and a large, targeted group of victims. Dean Heller, Secretary of State, spoke in support of A.B. 570 and the protection it would provide senior citizens. Janice Ayres, Executive Director of the Retired Senior Volunteer Program in the fifteen rural counties, spoke in support of A.B. 570 and the protection it would provide senior citizens. Mr. Spitler observed no fiscal note has been determined and questioned why A.B. 570 had been referred to Ways and Means. Ms. Giunchigliani requested clarification of "Is experiencing a serious emotional crisis in his life as a result of the fact that he or a member of his immediate family has a catastrophic illness." Ben Graham of the District Attorney's Office remarked that circumstance would have to be affirmatively proven in court. David Sarnowsky, Chief Criminal Deputy Attorney General for the State of Nevada, said the prosecutor would have to prove the defendant targeted a person or family member known to be in the state of mind described. He indicated this circumstance would probably be rare and that the more important provision in A.B. 570 is in the age enhancement. Mr. Graham explained an individual would have to be convicted of a primary offense and then there would be a potential second charge if the victim was targeted because he or she was experiencing an emotional crisis. Chairman Arberry asked whether the language in Section 2, subsection 3, item (d) was necessary. Mr. Graham responded the language was necessary because it provided a potential prosecution tool and a means of discouraging fraud against senior citizens. Mr. Fettic spoke in support of the language in Section 2, subsection 3, item (d) and noted many perpetrators of frauds track obituaries and target surviving spouses and family members. Phil Galeoto, Lieutenant, Reno Police Department, spoke in support of A.B. 570. He noted the elderly are the primary victims in major fraud investigations and many businesses target elderly investors, normally through fraudulent deeds of trust. He cited a case where an entire fraudulent business was built selling forged copies of one legitimate deed of trust belonging to an elderly man. Lieutenant Galeoto said A.B. 570 is extremely necessary, in part because fraud historically has not been recognized as a serious crime, yet it deprives many senior citizens of their life savings. ASSEMBLYMAN MARVEL MOVED DO PASS ON A.B. 570. ASSEMBLYWOMAN CHOWNING SECONDED THE MOTION. THE MOTION CARRIED. *************** ASSEMBLY BILL 95 Requires finding that juvenile was driving under influence of intoxicating liquor or controlled substance to be included in his driver's record for certain period. Assemblyman Bernie Anderson, Assembly District 31, explained A.B. 95 is one portion of several pieces of legislation resulting from an interim study regarding recidivism in the prison system, specifically dealing with juveniles who were found to be driving under the influence of intoxicating liquor. Mr. Anderson pointed out that a juvenile found to be under the influence of intoxicating liquor has committed two infractions: driving under the influence and being a minor in possession of a controlled substance. Vice-Chairman Evans requested comment regarding page 2, lines 24-26, "A record of any finding that a child who is less than 18 years of age has violated the provisions of NRS 484.379 or NRS 484.3795 must be included in the driver's record of that child for 7 years after the date of the offense". Mr. Anderson explained the purpose of these lines is because the earlier juvenile offenders receive treatment for drug or alcohol problems, the more successful that treatment is. The 7 year provision would provide for two separate treatment programs but not more than that. Ms. Giunchigliani expressed concern that A.B. 95 would penalize young people by maintaining a conviction on their driver's record for seven years after the driver's license has been revoked or suspended. Mr. Anderson explained the seven year period is to track how many times the individual has been through a treatment program. Ms. Giunchigliani asked what portion of A.B. 95 provided for treatment. Mr. Anderson replied provision for treatment was contained in a different bill, a portion of the legislation resulting from A.C.R. 71. Ms. Giunchigliani asked whether maintaining an incident on the driver's record for seven years would impact the ability to purchase insurance. Mr. Anderson said the ability to purchase insurance could be impacted in some cases. Ms. Giunchigliani requested information be provided regarding all of the interrelated bills. Vice-Chairman Evans agreed all of the related bills should be taken up together. Mr. Spitler asked whether similar programs in other states have been shown to be effective. Mr. Anderson said the program has been supported by Mothers Against Drunk Driving and other groups had found the program to be a successful deterrent in other states. He noted he would provide a list of which other states experienced success with the program. Mr. Spitler expressed concern that young drivers would continue to drive even with a suspended driver's license. Mr. Allard confirmed that generally records of juvenile felony convictions are sealed when the juvenile reaches age 18. He asked whether currently drunk driving or controlled substance convictions were sealed at age 18. Mr. Anderson responded negatively. Mr. Allard then observed that a 17 year old, if A.B. 95 were to pass, was convicted of drunk driving, that conviction would remain on his record for seven years; however, currently the record would be sealed at age 18. Mr. Allard expressed support for sealing a juvenile's record and allowing them a "new start". Mr. Anderson reported the A.C.R. 71 study committee found that many adult alcohol and drug offenders had a long history that predated 18 years of age and may have benefited greatly from treatment programs at a young age. It was felt that a seven year window of time would allow significant treatment. Bruce Glover, Department of Motor Vehicles, explained the fiscal note was attached because of potential additional personnel necessary to perform record keeping associated with juvenile convictions. He observed if all the related bills were considered together, one of the two requested positions associated with A.B. 95 and the other related bills could be deleted. Mr. Stevens remarked the 22 percent cap in the second year of the biennium was very close and any highway fund appropriation would need to be carefully considered to avoid exceeding the 22 percent cap. Vice-Chairman Evans called for public testimony. Laurel Stadler of Mothers Against Drunk Driving spoke in support of A.B. 95 which is specifically targeted at juveniles convicted of DUI offenses. The offense would remain on the juvenile's driving record for seven years, as is done with adult DUI offenses. Ms. Stadler reported A.B. 95 would keep the conviction on the juvenile's record but it would not become apparent unless there was a subsequent offense. If the juvenile did reoffend, the second DUI would be properly treated as a second offense. Vice-Chairman Evans called for further public testimony. There was none. BUDGET CLOSINGS Mr. Spitler presented the report of the Subcommittee on Public Safety on the Department of Prisons, attached as Exhibit C. The recommended closure, as presented by the subcommittee, results in an increase of general fund support of approximately $1.5 million in fiscal year 1996 and an increase of approximately $3 million in fiscal year 1997. The increase in general fund support, as recommended by the subcommittee, is attributable to the revised inmate population projection presented by the Department of Administration on Friday, March 24, 1995. The revised inmate population projection results in an average inmate population of 7,411 in fiscal year 1996 and 7,798 in fiscal year 1997; this represents an increase (over the projection originally included in The Executive Budget) in the average inmate population of 420 inmates in fiscal year 1996 and 457 inmates in fiscal year 1997. Included in the revised inmate population projections are reductions for the "Assessment and Life Skills Program" (an average of 61 inmates in fiscal year 1996 and an average of 179 inmates in fiscal year 1997) and for the expanded residential confinement program to include non-violent first and second time offenders (an average reduction of 141 inmates in fiscal year 1996 and an average reduction of 148 inmates in fiscal year 1997). The subcommittee has also recommended funding be provided to the Interim Finance Committee in the amount of $8 million for the 1995-97 biennium to enable the Department of Prisons to contract for housing inmates out-of-state and as a contingency to address other needs related to unplanned growth in the Department of Prisons and the Division of Parole and Probation. Available information indicates the cost for housing inmates out-of-state ranges from a low of approximately $45 per day to a high of approximately $60 per day; this translates into an estimated cost of $16,425 per year per inmate at $45 a day to $21,900 per year per inmate at $60 a day. Included in the closing documents, as recommended by the subcommittee, is the provision for the privatization of a 400-bed multi-custody female facility in southern Nevada. It is assumed the facility will be available for occupancy / use by the Department of Prisons in January 1997. To ensure this occurs, the subcommittee is recommending a sole-source contract for the design, construction and operation of the facility be negotiated by the Department of Prisons. This facility will provide for the housing of inmates currently housed at the Nevada Womens Correctional Center, the Jean Conservation Camp and the Southern Nevada Restitution Center. Additional female inmates are also planned for housing at the Silver Springs Conservation Camp, which by deed restriction can be utilized to house female inmates only. The privatization of the female facility "frees-up" approximately 432 beds that can be utilized to house male inmates (260, NWCC; 112, JCC; and 60 SNRC). Additionally, the subcommittee recommends Capital Improvement Project 95-G3, which was recommended by the Governor to provide a 60-bed housing unit at NWCC ($3,565,227), be expanded to provide for the construction of a 125-bed housing unit (one-half of a Lovelock proto-type) and for enhancing (additional fencing, towers, cat-walks, perimeter road, etc) the facility at NWCC to provide for the housing of male inmates. The estimated cost for the revised project is approximately $7.6 million; approximately $4 million more than the project as recommended in The Executive Budget. To address the increased cost, the subcommittee is recommending the $617,647 (95-G4), as recommended in The Executive Budget, for the expansion of the Boot Camp Program not be funded and the 150-bed non-NDF camp ($3,182,532) recommended by the Department of Administration on March 24, 1995, not be funded; approximately $3.8 million from these two projects would then be applied to the increased cost of project 95-G4. As was noted previously, the revisions to the Department of Prisons budget are "driven" primarily by the revised inmate population projections, as supplied on March 24, 1995. This results in additional costs of approximately $941,089 in fiscal year 1996 and $679,409 in fiscal year 1997 for what are termed "inmate- driven" costs. These costs are for personal hygiene supplies, security items, clothes, inmate labor, food, inmate transportation and "gate-release" money. This increase would be higher if it were not for A.B. 389 which provides authority for the Director of the Department of Prisons to charge inmates, or in cases where the inmate has insufficient funds, charge the offenders store fund for certain costs related to offender incarceration. Anticipated savings from this legislation is estimated at $96,324 in fiscal year 1996 and $115,820 in fiscal year 1997 for "gate-release" money and $561,742 in fiscal year 1996 and $661,198 in fiscal year 1997 for medical co-payment reimbursement. Additionally, the inmate driven costs for medical care was reduced by approximately $173,000 in fiscal year 1997 based upon the privatization of the female facility and the assumption medical care will be provided by the contractor. It is unknown at this time what level of care will be provided, however, the budgeted inmate driven amount was deducted from the recommended budget for the estimated number of females that will be housed in the facility. In addition to the recommended privatization of the female facility in southern Nevada, the subcommittee is recommending (via a letter of intent) the Department of Prisons pursue the privatization of medical services at the Ely State Prison. The Department has progressed through the RFP phase and has received a bid to provide services at the Ely State Prison. The final contract negotiations must be completed and the necessary alignment of expenditures in their medical budget must be processed. In lieu of detailing for the committee each adjustment by budget account for the Department, I will notate the significant items in the recommended closing that have not previously been mentioned. The closing sheets, as provided to the committee, detail specific recommendations by budget account and I will answer any questions the committee may have. -> A letter of intent should be sent to the Department of Prisons concerning the Literacy Program, as recommended and approved. The subcommittee requests the Department report annually to IFC and to the next legislative session regarding the success of the program; specific performance measures should be implemented to determine the benefits that result from operation of the program. (An education consultant and four academic teachers to establish a program to address illiteracy of inmates is funded in the offenders' store fund.) -> Expenditures for the upgrade of the inmate satellite system from the offenders' store fund should be limited to ensure sufficient funding is available to fund anticipated costs from A.B. 389; i.e., certain costs related to offender incarceration. -> A letter of intent should be sent to the Department of Prisons requesting the Department routinely account for patient load as maintained by all psychiatrists and psychologists. This information should be available for review on request. Additionally, all costs associated with the Mental Health Consent Agreement included in module M-610 are recommended with the proviso the funding be placed in a separate category and not be expended until a proper analysis of the staffing need is completed. A similar recommendation is made for all new forensic techs. Attempts to obtain clarifying information concerning the duties of the forensic techs and correctional officers have been unsuccessful. -> The Administrative Services Officer and all fiscal staff assigned to the Medical Division should report to the Chief of Fiscal Services. It has been difficult to obtain information concerning medical care costs, staffing and patient statistics. -> All information services operated by the Department of Prisons should be consolidated and supervised by staff in the Director's Office to ensure accountability and consistency. -> A letter of intent should be sent to the Department of Prisons instructing the Department to report to IFC and the 1997 Legislature concerning the activities / performance of the Substance Abuse Coordinator as funded in module E-425 in the Medical budget. Performance indicators should be established and monitored. -> Additional funding (over the original Governor recommendation) is provided in the Lovelock Correctional Center budget in fiscal year 1996 in the amount of approximately $1.7 million due to the earlier than planned occupancy of that facility. Similarly, funding in fiscal year 1997 is reduced by approximately $874,000 since it is not anticipated that Phase II will be available for occupancy during the 1995-97 biennium. -> Additional funding is provided in the Northern Nevada Correctional Center budget in fiscal year 1997 in the amount of approximately $304,000. This funding will facilitate hiring 24 Correctional Officers and one Correctional Case Work Specialist to staff the facility during the period September 1996 through December 1996 when it is expected an additional 144 beds will be required to house inmates (Stickney Agreement). -> Additional funding is provided in the Nevada Womens Correctional Center (NWCC) budget in fiscal year 1997 in the amount of approximately $534,000. This funding will facilitate the transfer of 22 of the 24 Correctional Officers as previously referenced at Northern Nevada Correctional Center, hire 5 Correctional Lieutenants and a Correctional Sergeant to provide required custody staff as identified by the Department of Prisons based upon the conversion of NWCC to a male facility in January 1997. -> The recommended 36-bed expansion of the Boot Camp Program at the Indian Springs Conservation Camp was not approved by the subcommittee. -> Additional funding is provided in the Jean Conservation Camp budget in fiscal year 1997 in the amount of approximately $50,500. This funding will provide for two additional Correctional Officers identified by the Department of Prisons based upon the conversion of this camp to a male camp. Additionally, the recommended conversion of this camp to a DUI / Substance Abuse Treatment Camp was not approved by the subcommittee. Mr. Spitler expressed his appreciation to Mr. Ghiggeri and other staff members who worked on the Department of Prisons budgets. Mr. Dini asked why no increases were approved for the Boot Camp Programs and why the DUI/Substance Abuse Program at the Jean Conservation Camp was not approved. Mr. Ghiggeri explained The Executive Budget recommended the DUI/Substance Abuse Program be transferred to the Jean Conservation Camp and be expanded from 36 beds. The subcommittee chose to continue the operation of the Jean Conservation Camp as a conservation camp and to house female inmates at that facility through January of 1997. In January of 1997, the Jean Conservation Camp will be converted to a male conservation camp. The subcommittee chose to retain Jean as a conservation camp because of testimony indicating the camp provided significant services to the Boulder City Veteran's Cemetery and because of testimony indicating the camp generated revenue. Mr. Ghiggeri went on to explain the boot camp expansion was not recommended by the subcommittee, primarily because conversion of the women's facility to a male facility and conversion of the Jean camp and the Southern Nevada Restitution Center to male facilities freed up approximately 432 beds. Additionally, the cost of expanding the boot camp program by 36 beds was slightly more than $1 million for the 1995-97 biennium. The subcommittee did recommend continued funding for the 60 bed boot camp at the Indian Springs Conservation Camp as well as the 36 bed DUI/Substance Abuse Program. The subcommittee did provide for a Substance Abuse Counselor and another counselor position to provide counseling services to female inmates at the Silver Springs Camp and also provided funding for a statewide Substance Abuse Coordinator position for the Department of Prisons. Additionally, the subcommittee provided continuation of funding when BADA funds terminate to continue the contract service for the DUI Center at the Indian Springs Camp. Mrs. Chowning confirmed it would cost $1 million to expand the Boot Camp Program by 36 beds and questioned why that was not approved when the recidivism rate has been proven to be less with boot camps. She also asked how much the satellite system cost and requested further explanation regarding the program to address illiteracy. Mr. Spitler said the program to address illiteracy includes an educational consultant and four teachers who will work with the inmates. Mr. Spitler said the decision to not expand the boot camp was the result of not having enough beds and of logistics when converting facilities from female to male housing. Mr. Ghiggeri replied the satellite system would be funded by profits from the inmates' store fund. Testimony received by the subcommittee indicated that a portion of the satellite TV system would be for remote camps that would not otherwise have any TV reception. The subcommittee did recommend no money be spent on the satellite system until the Department of Prisons could insure there would be sufficient funds to offset the costs via A.B. 389. Mr. Close remarked that although the subcommittee did not support the boot camp, it did support the concept of the boot camp. However, there was a crisis regarding the number of available beds. If federal funds can be found to expand the boot camp, the Department of Prisons would come before the Interim Finance Committee for any necessary additional matching funds. Mr. Spitler also emphasized the subcommittee did endorse the boot camp concept. Vice-Chairman Evans requested explanation of the expanded residential confinement program. Mr. Fettic said the Residential Confinement Program affects those inmates who could be confined at home and involves electronic monitoring. Vice-Chairman Evans asked why the subcommittee had been unsuccessful at obtaining information regarding the classification of forensic techs and correctional officers. Mr. Spitler said fiscal staff had experienced a great deal of difficulty in obtaining information regarding exact job titles, duties and responsibilities. Mr. Ghiggeri said problems obtaining information regarding the medical area in the Department of Prisons over the past six to eight months would hopefully improve with the new director. Vice-Chairman Evans asked whether the Budget Office could help obtain that information. Janet Johnson, Budget Office, agreed there had been difficulties with the medical area of the Department of Prisons but the new Director was working to address problems associated with the medical division. Vice-Chairman Evans confirmed the Mental Health Director and Senior Psychiatrist have resigned. ASSEMBLYMAN MARVEL MOVED TO APPROVE THE REPORT ON THE DEPARTMENT OF PRISONS BY THE SUBCOMMITTEE ON PUBLIC SAFETY. ASSEMBLYMAN ARBERRY SECONDED THE MOTION. THE MOTION CARRIED. ASSEMBLYMEN PRICE AND HETTRICK AND ASSEMBLYWOMAN TIFFANY WERE NOT PRESENT AT THE TIME OF THE VOTE. *************** SENATE BILL 135 Makes appropriation to legislative fund for additional equipment and software for information systems for legislative counsel bureau. S.B. 135 was not heard. SENATE BILL 136 Makes appropriation to legislative fund for computer equipment and software to allow interaction with legislature through INTERNET. S.B. 136 was not heard. There being no further business to come before the committee, Vice-Chairman Evans adjourned the meeting at 3:31 p.m. RESPECTFULLY SUBMITTED: Deborah Salaber, Committee Secretary Assembly Committee on Ways and Means June 9, 1995 Page