MINUTES OF THE SENATE COMMITTEE ON FINANCE Sixty-eighth Session February 20, 1995 The Senate Committee on Finance was called to order by Chairman William J. Raggio, at 8:05 a.m., on Monday, February 20, 1995, in Room 223 of the Legislative Building, Carson City, Nevada. Exhibit A is the Agenda. Exhibit B is the Attendance Roster. COMMITTEE MEMBERS PRESENT: Senator William J. Raggio, Chairman Senator Raymond D. Rawson, Vice Chairman Senator Lawrence E. Jacobsen Senator Bob Coffin Senator William R. O'Donnell Senator Dean A. Rhoads Senator Bernice Mathews STAFF MEMBERS PRESENT: Dan Miles, Fiscal Analyst Bob Guernsey, Principal Deputy Fiscal Analyst Ronald Steele, Program Analyst Dee Crawford, Committee Secretary Cristin Buchanan, Committee Secretary OTHERS PRESENT: Janet Johnson, Deputy Budget Administrator, Budget Division, Department of Administration Major General Drennan A. Clark, The Adjutant General of Nevada, Office of the Military Mary L. Peterson, Superintendent of Public Instruction, State Department of Education Gloria Dopf, Director, Special Education, State Department of Education John Sarb, Administrator, Division of Child and Family Services, Department of Human Resources Thomas (Spike) Wilson, Chairman, Commission on Ethics F.T. (Frank) MacDonald, Labor Commissioner, Office of Labor Commissioner, Department of Business and Industry Rose McKinney-James, Director, Department of Business and Industry Russell A. Fields, Administrator, Division of Minerals, Department of Business and Industry Senator Raggio opened the hearing on Senate Bill 146. SENATE BILL (S.B.) 146: Makes appropriation to state board of examiners to restore balance of certain accounts. Janet Johnson, Deputy Budget Administrator, Budget Division, Department of Administration, testified S.B. 146 would add $1,104,000 to the stale claims account, which is in deficit, to bring the reserve account to approximately $1 million, and it would add $51,162 to the emergency fund to restore the account to approximately $400,000. She said the measure would also add $551,510 to restore the statutory contingency fund to approximately $1.2 million. Ms. Johnson stated the emergency fund currently stands at $341,140, the stale claims account currently is negative in the amount of $18,270, and the statutory contingency account currently stands at $568,867. In response to a query by Senator Raggio, Mr. Miles indicated the figures for the account could be found on page A-23 of the Executive Budget. Senator Rawson asked for an explanation of the $13,000 designated for military expenditures in the emergency fund. Major General Drennan A. Clark, The Adjutant General of Nevada, Office of the Military, responded he could not give a specific reply. Ms. Johnson agreed to provide the information. In the absence of further testimony, Senator Raggio closed the hearing on S.B. 146, and opened testimony on S.B. 147. SENATE BILL 147: Makes supplemental appropriation to office of the military for additional utility expenses. Referring to notification he had received (Exhibit C) on the matter, General Clark stated S.B. 147 would provide $80,677 to fund an underbudgeted utility account. He declared another $101,988 in federal funds would be requested from the Interim Finance Committee (IFC) because the Nevada National Guard is in arrears approximately $182,000 for Fiscal Year (FY) 1995. He explained the need for additional funds had arisen because several new facilities have opened since the last budget was submitted, including a flight simulator, seven new RF-4 aircraft at the air guard base in Reno, and new computers and air conditioning in armories throughout the state for a new automation system. He gave the senators copies of a memorandum (Exhibit D) outlining the requests. Senator Rawson indicated he had recently heard the RF-4 airplane was going to be phased down. General Clark responded his latest information indicates the RF-4 airplanes would not be funded by the United States Air Force, thus necessitating parking them in storage by September 1995. He explained the Air National Guard in Reno would have a new mission which he surmised would be another flying mission. Senator Rhoads asked why the bill addressed Fiscal Years 1995, 1996 and 1997. General Clark answered, "We're showing what we project as the shortfall from previous anticipated costs for 1996 and 1997, and those figures have been rolled into the budget which will be heard .... later on." Seeking to clarify the bill, Senator Raggio indicated the funds being sought would cover utility costs for all facilities. General Clark added that 75 percent of the costs would be paid by the federal government and 25 percent by the state. Senator Coffin asked what would become of the airplanes parked in storage. General Clark replied 25 RF-4 airplanes with the least amount of flying time since the last 600- hour maintenance would be flown to Tucson, Arizona, for storage, and there is a possibility others might be sold to foreign military entities. He estimated they might be worth $18 million each even though they are old. General Clark conjectured the $13,000 designated for military expenditures in S.B. 146 may have been used to cover expenses for guardsmen called up to fight fires in 1994. There being no further testimony, Senator Raggio closed the hearing on S.B. 147 and opened the hearing on the next agenda item. SENATE BILL 148: Makes supplemental appropriation to state board of parole commissioners for retroactive retirement contribution. Ms. Johnson reported S.B. 148 would provide $3,423 for payment of retroactive retirement system contributions for an employee who had served as a commissioner with the State Board of Parole Commissioners from July 1, 1981, through March 8, 1991. She explained the original understanding had been the employee would not have to contribute because she was over the age of 55. Subsequently, she said, it was discovered the section of the statutes exempting people over 55 from retirement contributions had been deleted in 1979 and thereafter the retirement system required the payments to be made. Senator Raggio asked what payments the state had made on behalf of the individual and how much the individual had paid. Ms. Johnson said: My understanding [is] the state is participating only in their share, approximately 50 percent. I believe there was some discussion some time ago about whether or not she was going to contribute. My understanding is that she is contributing and she is drawing it. She was not originally going to draw. Ms. Johnson admitted she could not be sure what the status was nor whether the woman had drawn retirement benefits. Senator Raggio requested more information. Ms. Johnson said $30,090 had been paid from the stale claims account, but there had not been sufficient reversions in FY 1987 and FY 1990 to pay the full amount due. She said $2,600 had been paid from stale claims in 1987 with $3,789 due, and $2,075 had been paid from stale claims in FY 1990 on a total due of $4,309, making a balance due by the state of $3,423, including interest. She did not know the rate of interest, nor did she know if the employee is currently drawing retirement funds. Senator Raggio asked Ms. Johnson to obtain the information and to find out if the employee had paid her appropriate share. Senator Raggio closed the hearing on S.B. 148 and opened the hearing on S. B. 149. SENATE BILL 149: Makes supplemental appropriation to department of education for expenses related to residential and educational needs of children. Mary L. Peterson, Superintendent of Public Instruction, State Department of Education, explained the program would provide funds for children with special needs who have to be placed out of the state. Ms. Peterson asked the committee to review a detailed summary (Exhibit E) on Chapter 395 of the Nevada Revised Statutes. She drew attention to Figure 1 in Exhibit E depicting the percentages of children identified as needing special education and the percentages of all children who fall under the program. She pointed out the percentages had remained relatively low in the last 14 years. Senator Rawson asked for a comparison with national figures. Ms. Peterson replied the national average of students requiring special education is 12 percent compared to Nevada's 10.44 percent. Ms. Peterson called attention to the summary on page 6 of Exhibit E giving an outline of procedures used for placement under NRS Chapter 395. In response to a question by Senator Rawson, Ms. Peterson opined the program is almost an unfunded mandate from the federal government because the federal funds provided are inadequate to cover the costs of special education. She stated she feels the situation is getting worse. Gloria Dopf, Director, Special Education, State Department of Education, spoke from prepared text (Exhibit F) indicating how the determination is made that children are eligible for the program and why the bill is necessary. When queried she asserted the figures are still correct in the attached memorandum dated December 30, 1994. She explained the figures in the first column were approved by the IFC in May 1994, the figures in the second column depict the supplemental sums being requested, and the final column depicts the total budget. Ms. Dopf noted the expenditures under category 10 would provide for children with disabilities other than autism, traumatic brain injuries or serious emotional disturbances, while category 11 would provide for youngsters managed by both the State Department of Education and the Department of Human Resources. Senator Raggio asked why the bill provides that the total sum should come from the state General Fund when a portion would actually come from federal funding. Ms. Peterson responded, "I believe it just raises the appropriation ... work program level, and the breakdown is as you see in the memo." She admitted it is not the intention of the department to obtain all the funding from the General Fund. Senator Raggio recalled there had been some question during the interim as to what was required. He asked for specific information showing that the figures portrayed in the December 30, 1994, memo in Exhibit F are correct. Ms. Dopf offered to provide a printout showing the obligations for each youngster with confirmation of the amounts being requested. Senator Rhoads asked for the percentage of federal and state involvement since 1990. Ms. Dopf told him although the state paid all expenses until 1990, subsequenty the budget has been constructed to share expenses for children in categories 10 and 11 on an equal basis with the federal government. Senator Jacobsen asked if it would be more economical to provide a facility within the state rather than send children out of state. Ms. Dopf responded that disabilities are unique for each child and services could not be combined under one program. John Sarb, Administrator, Division of Child and Family Services, Department of Human Resources, interjected there is a capital improvement request being made to build a facility in southern Nevada for the severely emotionally disturbed. Once that is built, he said, it may be possible to return many of the children to the state. He indicated there are presently 12 children who are severely emotionally disturbed who have been placed out of the state. There being no further testimony on S.B. 149, Senator Raggio closed the hearing and moved on to S. B. 150. SENATE BILL 150: Makes supplemental appropriation to commission on ethics for certain expenses. Thomas (Spike) Wilson, Chairman, Commission on Ethics, testified S.B. 150 would provide funding for six meetings to be held between the present time and the end of the biennium. He explained the funds would be used for travel expenses and staff and commission member salaries. He provided the committee with a breakdown of projected expenses (Exhibit G). Mr. Wilson commented the number of opinion requests has increased substantially each year. He stated there is a backlog of cases before the commission. In the absence of further testimony, Senator Raggio closed the hearing on S.B. 150 and opened the hearing on budgets under the Department of Business and Industry. Office of Labor Commissioner - Page 807 F.T. (Frank) MacDonald, Labor Commissioner, Office of Labor Commissioner, Department of Business and Industry, declared the mission of the office is to protect Nevada workers in the enforcement of state labor statutes. Senator Mathews disclosed she would abstain from voting on the budget due to previous business matters she brought before the commission. Mr. MacDonald stated the office conducts investigations, arbitration and prosecution regarding wage compensation and working conditions to ensure the rate of compensation on public works projects is fair and equitable. He explained an annual wage survey is conducted to establish rates. Mr. MacDonald added other purposes of the office are to promote employment opportunities in industry through the regulation of apprenticeship programs throughout the state, and to protect employers and consumers through the licensing, regulating and monitoring of private employment agencies. Calling attention to an error on page 807 of the Executive Budget, Mr. MacDonald said the second measurement indicator should indicate it takes 10 days to process a wage claim, not 1,368 days as printed. He said the projected figure for wage claims settled for 1995 should read 2,748 instead of 3,276. He asserted all other figures are correct. Mr. MacDonald described the personnel working in the office and said the Caseload changes depicted under M-200 on Executive Budget page 808 would add four people to the staff. He indicated those positions would include two investigators, one auditor and one clerical to be assigned to the Las Vegas office whose primary duties will be to monitor and enforce prevailing wages. He stated the agency presently has just one auditor for the entire state. Mr. MacDonald said the agency presently monitors 733 public works projects in Clark County, 299 in Washoe County and 391 in rural areas for a total statewide of 1,423 projects. He explained the agency monitors and maintains files on 1,489 prime contractors involved in the projects and on another 4,014 subcontractors involved. Mr. MacDonald pointed out the state has grown by 60 percent since 1983, from 904,700 to 1,444,68. He declared the number of complaints the agency has received jumped by 80 percent during the same period, from 1,416 to 2,643, while collections of unpaid wages made by the agency grew from $620,260 to $1,392,932, an increase of 125 percent. Senator Raggio inquired what steps had been taken to resolve the concerns regarding internal controls of unpaid wages collected by the agency that became evident during a 1994 audit by the Legislative Counsel Bureau (LCB). Mr. MacDonald responded unpaid wages are now deposited into a trust account coordinated with the Office of the State Treasurer that requires two signatures for payout. Senator Raggio asked if payroll reports are being utilized as proposed in the audit. Mr. MacDonald replied, "We presently still do not have the staffing to monitor effectively the payroll records." He declared approval of the request for four people in the Las Vegas office would allow the agency to monitor the reports. He explained the present Las Vegas staff is only able to handle monitoring projects in the City of Henderson and the Clark County School District. Senator Raggio noted the LCB auditor had made a survey of 11 states in which nine did not require payroll reports, and the auditor suggested deletion of the requirement for payroll reports. Senator Raggio asked if Mr. MacDonald feels the reports are necessary. Mr. MacDonald replied he does not agree with the auditor's recommendation. He declared, "My personal feeling is that the certified payroll ... attempts to keep the contractor honest." Senator Raggio requested comment on closure letters. Mr. MacDonald responded those are made as a courtesy to contractors to notify the labor commission that a project has been completed. Senator Raggio asked why it took an average of 7 months to complete the letters and if the process might result in a delay of payments to contractors. Mr. MacDonald replied, "We're not enforcing the notifications." He explained the agency is "pulling away from that." He implied it would not delay payments made to contractors. Senator Raggio asked if unnecessary procedures, which he characterized as writing closure letters, were being performed by one employee as pointed out in the audit report. Mr. MacDonald responded the comment was probably a reference to the certified payroll reports. He voiced hope the problems would be corrected through additional staffing. Senator Raggio pointed out that Mr. MacDonald had initially accepted the LCB audit recommendation to do away with project payroll reports. He inquired why Mr. MacDonald now feels it is necessary to augment the staff for the purpose of processing certified project payroll reports when nine out of 11 states do not feel the reports are necessary and why Mr. MacDonald had originally agreed with the auditor. Mr. MacDonald reiterated his stance the reports serve to keep contractors honest. He said: The report that came through I did accept.... I think it will create a problem more than satisfying a problem. It will take work away from us, which will save us and allow us to get onto other areas. But I think it will also hurt .... Mr. MacDonald acknowledged the reports are not being utilized at present. Senator Raggio suggested the budget request for additional staff needs further consideration. Senator Raggio pointed out a request for $21,000 for travel to support the four classified positions while the base budget would provide under $15,000 for travel to support the 15 existing positions. He observed the $21,000 to support four employees is a great deal more per employee. Mr. MacDonald replied: We are also underfunded on travel. As it stands right now the only traveling we can do is into the rurals and down to Las Vegas, and we have to limit that travel so that we can do investigations. This is not only just with prevailing rates, this is with private ... employment wage claims. Senator Raggio asked Mr. MacDonald to provide data to show how the travel requests were justified. Senator Raggio asked for an explanation of the request for a $105,461 one-shot appropriation. Mr. MacDonald responded it would furnish the office with desks costing $352 each, chairs at $205 each, telephones and briefcases for two investigators, an auditor and a clerical position. He added the request would include six desk calculators, pocket calculators, eight file cabinets and two tables. He said the portion attributable to the new staff would amount to $4,040 for furnishings and some of the new calculators. Senator Raggio asked Mr. MacDonald to prepare a detailed list of the requests. Rose McKinney-James, Director, Department of Business and Industry, offered to provide the requested information. She pointed out the additional staff would not only address prevailing wage activity, but also would enhance the staff in order for them to accomplish what she characterized as "important work." She stated: When you see the breakdown and the variety of activities that this office is required to conduct, you will find that there is adequate justification for the request as it's been submitted. I would also indicate to you that while the labor commissioner did indeed accept all the recommendations of the auditor, there is a bill draft ... to respond to that. Frankly, it's a little awkward because I have a labor commissioner who feels very strongly about his position, we have an audit that suggests that perhaps some of the things that they do are unnecessary, and I'm caught in the middle. Ms. McKinney-James urged the committee to review the information before making a decision to remove all the additional staff requested. Senator Jacobsen asked if the agency had discussed the results of the audit with the employees. Mr. MacDonald replied he had. In the absence of further testimony, Senator Raggio closed the hearing on budget account 101-3900 and opened discussion on budget account 101-4219. Minerals Division - Page 895 Russell A. Fields, Administrator, Division of Minerals, Department of Business and Industry, stressed the division mission to promote and encourage responsible development of Nevada's mineral resources through operation of regulatory programs for the drilling and production of oil, gas and geothermal energy, administration of the abandoned mines program, promoting public awareness and education in cooperation with the mining industry, and regulation of the state's Reclamation Bond Pool. Mr. Fields pointed out 14 full-time positions with offices in Las Vegas and Carson City are included in the base budget. He said the division works closely with the seven- member Commission on Mineral Resources. He declared the division proposes that all funding come from sources outside of the General Fund through assessments and fees as has been done since the agency was created. However, he added, the budget includes some federal grant funds. Mr. Fields indicated there are three vacancies included in the budget proposal with the understanding they will not be filled until such time as the work load justifies their inclusion and until funding is available to pay for them. Mr. Fields called attention to measurement indicators on page 895 of the Executive Budget. He said the first indicator deals with staff time for the preparation and maintenance of various registries for mining, oil, gas and geothermal production. He suggested those represent approximately 5 percent of staff time. Mr. Fields pointed out the division has an extensive education and public awareness program for which the staff makes approximately 120 presentations per year. He anticipated there would be approximately 50 drilling applications per year to be processed and inspected. He expected 600 new sites would have to be inspected per year under the Abandoned Mine Land (AML) program. Mr. Fields said, "Our AML program, we expect to rank and conduct the ownership on at least 600 sites per year in the next biennium and oversee the securing ... " Senator Raggio asked, "Are those additional sites or is that a cumulative total?" Mr. Fields replied: Those would be new sites, additional, as would the 450 sites that we anticipate overseeing the securing of each year. A portion of those our agency will secure, a portion of those will be secured by the industry or by individuals that have hazardous abandoned mine sites on their properties. Referring to a narrative in the Executive Budget, Senator Raggio inquired if abandoned mine support funding has been reduced. Mr. Fields replied most funding for the abandoned mine program is made through mining claim assessments which remain static. He explained, "What the narrative was trying to get at was the reduction in the expense line item for securing abandoned mines. The reason that showed a reduction is because we are no longer going to take staff salaries and allocate it to that line item." Mr. Fields called attention to the base budget on Executive Budget pages 895 and 896. He said the totals for FY 1996 at $727,023 and FY 1997 at $712,703 are very close to actual funds realized in FY 1994. He attributed the variation to funds carried forward from previous years as the division is allowed by law to maintain a reserve balance. Mr. Fields stated expenditures in the base budget reflects actual expenditures in FY 1994 with the exception of the salaries being moved out of the AML line item into category 1, personnel. He said the $4,200 travel item would provide for five meetings of the Commission on Mineral Resources although several current members do not put in claims for travel expenses. He averred the authority to reimburse them should be available. Mr. Fields elaborated on the maintenance budget on pages 896 and 897 of the Executive Budget. He noted the total for FY 1996 is $4,178 and the total for FY 1997 is $9,303. He said all the categories in enhancements for FY 1996 would increase by $205,729 over the base budget and for FY 1997 the increase would be $175,7158. He explained those consist of anticipated increases in oil revenue, geothermal fees and permitting activities under E-325. He proposed to expend those funds for education and lease of a copy machine for the Las Vegas office. In response to a query by Senator Raggio regarding oil and geothermal activity in the state, Mr. Fields stated there had been a tremendous decrease in oil production which fell by nearly one-half near the end of 1993, but which is making a comeback through new discoveries. He said there are 14 geothermal plants in the state at 12 locations with a generating capacity of 200 megawatts, representing no change over the past year. He opined the geothermal industry has leveled off. Senator Rawson said a commissioner from Lincoln County had reported there may be a large oil fields near Yucca Mountain. He asked if Mr. Fields has evidence to support that claim. Mr. Fields replied, "Yes, Senator, there is." He attributed the report to Alan Chamberlain, a commissioner who is currently completing a doctorate in geology at the Colorado School of Mines. Mr. Fields declared Mr. Chamberlain had participated in extensive mapping of the area and has surmised much of the work done by the United States Geological Survey (USGS) over the years has misinterpreted the geology in the area. Mr. Fields stated Mr. Chamberlain has found evidence of thrust faults indicating the potential for vast oil reserves in the Yucca Mountain area. Mr. Fields said another commissioner has asserted more exploration work should be done in the area through deep drilling. Mr. Fields submitted that could make a tremendous change in the oil future of the state if there are large oil reserves as hypothesized. He acknowledged development should be done by private industry, not by the government. Mr. Fields indicated E-425 on page 898 of the Executive Budget represents a small increase in funding for securing abandoned mines. He explained the fees are the consequence of approved federal plans of operations to do work on public lands. He reminded the committee in 1989 the Legislature provided a fee associated with the state's reclamation law to secure abandoned sites. Mr. Fields said each year the division provides every fourth-grade teacher in the state with a packet of information regarding the hazards of abandoned mines to be distributed to the students. He called it the "stay out and stay alive" program. He asserted the program has been very effective and has reached all children in the state at the fourth-grade level. Mr. Fields explained E-426 is a federal grant from the Bureau of Land Management (BLM) which includes a $151,000 enhancement to enable the agency to identify and secure abandoned mines on BLM lands. He stated the ALM federal funds would provide a field specialist in an unclassified position. He said if the grant was withdrawn and the agency is allowed to maintain the three vacancies in the regular budget, and funding is adequate, one of those positions could be filled by the state with the person working under the ALM grant. Mr. Fields said a vehicle is being requested under E-710 to replace an agency vehicle, not for the ALM program. Senator O'Donnell noted there were 591 mines identified under the performance indicators with a projection that nine more would be identified in FY 1995. He asked why the federal government would spend $111,000 to fund a position to locate nine more mines. Mr. Fields responded the measurement indicators had been put together before the agency was aware the federal grant would be available. He admitted the performance indicators had not been changed after the grant became a possibility. He stated, "I think those numbers could be increased by 25 percent which would bring the totals to 750 identified and 565 secured. If the federal grant brings the additional dollars and the person ... those should be changed." Senator O'Donnell asked if the agency agrees with the federal government that the extra position is necessary. Mr. Fields responded the BLM feels the position is necessary and it would be easiest to work through the Nevada Division of Minerals so the agency is trying to cooperate with the BLM. Mr. Fields acknowledged it is not difficult to identify the mines, but it is difficult to be sure they are secured. Mr. Fields explained decision unit E-450 derives funding from fees due to increases in oil production, transfers from the state's bond pool for administrative purposes, and mining industry grants. He said the mining industry grants are $10,000 in the first year of the biennium and $20,000 in the second year. He acknowledged the grants are not assured, but he explained the agency facilitates technology transfer workshops in which the industry, regulators and allied agencies are involved and for which the industry provides funding if given the authority by the Legislature. He indicated the grants are given in exchange for the workshops. Senator Raggio noted the Reclamation Bond Pool Account is not included in the budget. He recalled in September 1994, the Interim Finance Committee approved a work program for the pool and he asked why there is no budget item for the account. Mr. Fields recalled the state created the Reclamation Bond Pool account in 1989 to assist those having difficulty obtaining their own bonds through commercial sureties in order to ensure that all people mining in the state would perform reclamation. He explained prospective members must meet certain criteria established by regulation and once approved must pay a deposit of 15 percent of their bonded liability and premiums of 5 percent per year. He said the deposits are returnable but the bond pool has built up funds to cover any forfeitures. He explained the only expenses needed by the pool from the General Fund are to cover administrative costs. He said those costs were what previously appeared as a line item in the 101-4219 budget at $2,000. Mr. Fields stated there is currently approximately $320,000 in the bond pool from five participants, and there are two applicants waiting to be approved for the pool. He said the total liability of the state is $1.1 million, but because all the mines would pay premiums for five years they provide collateral equal to or more than the bonding liability. As an example, he said the state has the first claim on some real property in Carson City in the event there is a forfeiture. He indicated in most cases there is sufficient collateral or sufficient cash flow from operations to guarantee the liabilities. He declared the division works closely with the Division of Insurance and with the Office of the Attorney General regarding the pool. Senator Rhoads asked whether the closure of the United States Bureau of Mines office in Reno would harm the state's mining industry and, if so, whether the Division of Minerals should take over. Mr. Fields replied he has made a request to keep the Reno research center open. He explained the research center had discovered the heap- leeching process which resulted in Nevada becoming the largest gold-producing state in the country and within the top five in the world. He declared: That alone justifies to me the continued existence of the [U.S.] Bureau of Mines, but they're doing an awful lot of other good work up there that I think will continue to benefit mining not only in this state, but in the nation. If Congress goes forward and cuts back the Bureau of Mines to the point where we don't have a Reno research center, I think this body should look very carefully at opportunities to recover some of those duties and funds to be used through state entities. The Mackay School of Mines could very well be the best place to do that work. Mr. Fields added some of the work could be done through the Division of Minerals, especially concerning abandoned mines, rehabilitation and reclamation. Senator Jacobsen told the committee he had been very impressed with the presentation conducted by the division at one of the workshops he attended last year. Ms. McKinney-James reported the administration has undertaken preliminary discussions to merge the Division of Minerals with the Nevada State Energy Office. She suggested the matter should be considered at the subcommittee level. She admitted she has not instituted extensive research with representatives of the industry. Senator Raggio suggested it would be important to discuss the merger with the industry. In the absence of further testimony, Senator Raggio closed the hearings. He announced the committee would hold S.B. 148 and S.B. 149 pending receipt of further information. He asked if the committee was ready to take action on the remaining bills on the agenda. He said he would entertain a motion on S.B. 146 subject to information being provided regarding the $13,000 emergency fund expenditure for the military. SENATOR RAWSON MOVED TO DO PASS S.B. 146 SUBJECT TO THE EXPLANATION OF THE EXPENDITURE. SENATOR O'DONNELL SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. * * * * * SENATOR MATHEWS MOVED TO DO PASS S.B. 147. SENATOR JACOBSEN SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. * * * * * SENATOR RAWSON MOVED TO DO PASS S.B. 150. SENATOR O'DONNELL SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. * * * * * There being no further business before the committee, Senator Raggio adjourned the meeting at 9:50 a.m. RESPECTFULLY SUBMITTED: Judy Jacobs, Committee Secretary APPROVED BY: Senator William J. Raggio, Chairman DATE: Senate Committee on Finance February 20, 1995 Page