MINUTES OF THE SENATE COMMITTEE ON FINANCE Sixty-eighth Session May 1, 1995 The Senate Committee on Finance was called to order by Chairman William J. Raggio, at 8:00 a.m., on Monday, May 1, 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 GUEST LEGISLATORS PRESENT: Assemblywoman Saundra (Sandi) Krenzer STAFF MEMBERS PRESENT: Dan Miles, Fiscal Analyst Bob Guernsey, Principal Deputy Fiscal Analyst Jeanne L. Botts, Program Analyst Marion Entrekin, Committee Secretary OTHERS PRESENT: Dean Heller, Secretary of State, Office of the Secretary of State Mary L. Peterson, Superintendent of Public Instruction, State Department of Education Thomas Kline, Ph.D., Consultant, Planning, Research and Evaluation, State Department of Education David Smith, Ph.D.,Consultant, Planning, Research and Evaluation, State Department of Education Henry Etchemendy, Executive Director, Nevada Association of School Boards Daniel Leck, Carson City School Board Guy Shipler, Vice Chairman, Commission on Judicial Discipline Leonard I. Gang, Esq., General Counsel, Commission on Judicial Discipline Alan J. Lefebvre, Attorney, Lefebvre and Barron, Chartered Mark Krmpotic, Management Analyst III, Administrative Services Division, Department of Motor Vehicles and Public Safety John Orr, Assistant Director, Department of Employment, Training and Rehabilitation John P. Comeaux, Director, Department of Administration Senator Raggio requested introduction of the following bill draft request (BDR). BILL DRAFT REQUEST 18-785: Makes various changes in accounting practices regarding certain public money. SENATOR MATHEWS MOVED TO INTRODUCE BDR 18-785. SENATOR RHOADS SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. * * * * * Secretary of State - Page 77 Dean Heller, Secretary of State, Office of the Secretary of State, distributed Exhibit C, Supplemental Budget Request, 1995 - 1997, Budget Account 1051, and Exhibit D, Customer Survey, from the Office of the Secretary of State. Mr. Heller stated the information provided in Exhibit C will enlighten the committee regarding the direction the Office of the Secretary of State will take in the next 2 years, and the survey sent to approximately 1,000 trust customers will help to provide information regarding the office's commercial-recordings division. The survey will also enable him to determine the concerns of the individuals that conduct business with the Office of the Secretary of State. Mr. Heller stated the responses the office has received to date from the customer survey indicates there are two areas of concern; one relates to telephone service, and the other to turnaround time. Mr. Heller has been able to ascertain that only about two-thirds of the individuals that telephone the Securities Division of the Office of the Secretary of State receive an answer, and the remaining one-third either get a busy signal or hang up because they have been placed on hold for an inordinate amount of time. Referencing Item 3 of Exhibit C, Mr. Heller requested four half-time positions to work early morning or late evening hours in order to extend the business hours of the office. During the extended hours, the positions will be utilized to process paperwork and enhance telephone capability. Mr. Heller pointed out the state now provides 24 hour turnaround time for customer service. If the request for four half-time positions is granted, turnaround time will be increased to same-day service to perform special services involving corporation activity and expedited filings. Senator Raggio asked what it would take to enable the secretary of state's office to provide 2 hour turnaround time, as is currently offered in other states. Mr. Heller said information would have to be acquired in order to provide a proper response, but he doubts there is enough space in the office to provide 2 hour service since additional positions would be required. Senator Raggio inquired if the addition of the four half-time positions will permit the Office of the Secretary of State to provide same-day service for other functions such as the issuance of Certificates of Good Standing. Mr. Heller responded in the affirmative. He said same-day service will also be provided to issue copies and certificates. Senator Raggio asked why four positions are needed. Mr. Heller reiterated the four positions will be half-time employees to be utilized during extended business hours. A fee of $100 will be imposed for providing same-day service, Mr. Heller said. Although potential revenue from the charge has not been computed, he anticipates the fee will more than cover the cost of the four half-time positions. Rather than filling four half-time positions, Senator Coffin wondered if seasonal help would solve the problems the office is encountering. Mr. Heller replied an analysis was conducted, and it was determined although there are high and low work load periods, the office is always impacted on a quarterly basis in the months of April, June, and October. Another high point is at the end of December when individuals are attempting to form corporations before the beginning of the year for tax purposes. Therefore, Mr. Heller believes the high points occur all through the year and seasonal help would not solve the work load problems. Mr. Heller returned his attention to items 1 and 2 of Exhibit C which he explained in detail. He also discussed item 4 in which it is mentioned the time has come for the Secretary of State to issue a new volume of the Political History of Nevada. He noted the last issue was printed in 1990 and issued in 1991, and many changes have taken place since that time. Mr. Heller said the cost for the publication will be approximately $30,000. Senator Raggio asked Mr. Heller how he arrived at the $30,000 cost, and Mr. Heller replied the State Printing and Micrographics Division provided the estimate. Senator Coffin suggested the secretary of state's office obtain a bid from the University of Nevada Press as this source usually provides printing services for a lower cost. Mr. Heller agreed to do so. Senator Raggio asked Mr. Heller to further explain the $400,000 request reflected in item 1 of Exhibit C for Business Process Reengineering (BPR). Mr. Heller said after a meeting with the Department of Information Services it was determined BPR is the process the Office of the Secretary of State should use to arrive at improved methods for accomplishing its mission of customer satisfaction. Senator O'Donnell pointed out a number of requests have come through the committee for BPR, and if all the requests are granted, it will be costly to the state. He suggested each agency request should be carefully considered to determine if funding will be available to accommodate the BPR. Mr. Heller remarked the funding for the BPR will come out of the secretary of state's special services account. Senator O'Donnell stressed the funding for the BPR is not what is at issue, but rather the funding for all of the computer applications that will occur as a result of the BPR. Mr. Heller admitted the results of the BPR request will be expensive since it will involve electronic filing and imaging. He maintained the funding for the entire process will come out of a special revenue fund in the Office of the Secretary of State, and will not involve revenue from the General Fund. Senator Raggio asked Senator O'Donnell to further investigate the requests made by the secretary of state's office as reflected in Exhibit C. Due to time constraints of the Superintendent of Public Instruction, Senator Raggio opened discussion of Senate Bill (S.B.) 386. SENATE BILL 386: Makes various changes concerning program of accountability of public schools statewide achievement and proficiency testing of pupils. Senator Raggio remarked during the 1993 session of the Legislature, an amendment to Nevada Revised Statutes (NRS) 385.347 was added that provided for a system of school by school accountability in the state. Senator Raggio complimented the various school districts who have performed under the requirement. He also commended the news media for their account of the results of the accountability reports that have been submitted to the state. Senator Raggio said he has had the opportunity to review most of the reports from the school districts, and observed distinct uniformity has been accomplished in the state making it easy to compare achievement results, as required by existing law, on a school by school basis. According to Senator Raggio, the main purpose of S.B. 386 is to remove the moratorium (sunset) that was placed on the bill, and to make other substantive changes. He advised the committee section 3 removes the sunset clause, and section 1, page 2, adds mandatory items to be reported by the school districts. The language on page 1, he pointed out, already contains certain items that are required to be reported. Referring to section 1 (2) (b) of S.B. 386, Senator Raggio noted a correction will be made to remove the bracketed language referring to age as it pertains to a comparison of pupil achievement for each school in the district, and the district as a whole, at each grade level for the current school year with that of previous school years. He noted the State Department of Education has introduced Assembly Bill (A.B.) 197 suggesting the removal of the wording "at each age and grade level" and substituting "at grades 4, 8, and 11." Senator Raggio said this is a recommendation the committee should consider. ASSEMBLY BILL 197: Makes various changes to provisions governing program for accountability of school districts. In the course of today's discussion dealing with an appropriation, Senator Raggio said he will attempt to deal with the concerns that are reflected in other existing bills. He indicated Senate Bill (S.B. 27) contains additional mandated requirements that should be addressed. He also stated provisions contained in Assembly Bill (A.B.) 124, and Assembly Bill (A.B.) 196 will be reviewed since they can be accommodated in S.B. 386. SENATE BILL 27: Requires school districts to report certain additional information to residents of district and to state board of education. ASSEMBLY BILL 124: Revises provisions governing program for accountability of school districts. ASSEMBLY BILL 196: Revises date for school districts to report certain information to residents of district. Senator Raggio pointed out other items that are mandated in S.B. 386 as suggested by most of the school districts includes truancy, incidents involving weapons or violence, and the transiency rate of pupils. He also said section 2 (4) of S.B. 386 includes the requirement the reading and mathematics examinations prescribed for grades 4 and 8 must be selected from examinations created by private entities administered to a national reference group, and must allow for a comparison of the achievement and proficiency of pupils in grades 4 and 8 in Nevada to that of a national reference group of pupils in the same grade levels. He stated this requirement is distinguished from Criterion-Referenced Testing which does not afford the state an opportunity for comparison. He indicated Criterion-Referenced Testing is being used at the present time. According to Senator Raggio, section 4 of S.B. 386 was inserted by the bill drafters to conform with Senate Bill (S.B.) 59 that pertains to disclosure provisions. SENATE BILL 59: Revises provisions governing disclosure of questions and answers contained in achievement and proficiency examinations. Senator Raggio asked Jeanne L. Botts, Program Analyst, Fiscal Analysis Division, Legislative Counsel Bureau, to explain section 5 of S.B. 386 that provides for an increased appropriation over and above that requested by the State Department of Education. Ms. Botts stated S.B. 386 not only deals with school by school accountability reports, but will also provide the funding necessary to improve proficiency testing. She stated the reason school by school accountability and proficiency testing are linked by S.B. 386 is accountability reports are useless if not based upon a dependable testing program. Ms. Botts remarked the Governor's Executive Budget recommended a onetime appropriation of $479,000 as provided by Senate Bill (S.B.) 203 for the Reading and Math Proficiency Examination Program at grades 4 and 8. SENATE BILL 203: Makes appropriation to department of education for Reading and Math Proficiency Examination Program at Grades 4 and 8. Ms. Botts distributed Exhibit E which she explained includes a breakout of the $670,030 cost associated with the replacement of the Comprehensive Testing of Basic Skills Test four (CTBS/4) which is a standardized nationally Norm-Referenced Achievement Test for reading and math. She qualified the writing portion of the Proficiency-Examination Program is an actual performance assessment where students write and are graded by teachers. Although the Governor has recommend a General Fund appropriation of $479,000, she pointed out the $670,030 requested by the department will provide sufficient funds to purchase new examinations for grades 4 and 8, classroom guides for the teachers to assist with instruction, test administrator guides, answer sheets, and provisions for scoring. S.B. 386 will also provide for the program to be centrally scored by a single vendor, Ms. Botts said, as well as $21,000 for a study to equate CTBS/4 scores with those of the new tests so that the scores can be compared over time. These provisions are not included in S.B. 203, Ms. Botts stated. Ms. Botts clarified if S.B. 386 is approved, the State Department of Education will be purchasing the new test in the first school year of the biennium, but will not administer it until the second school year of the biennium. Therefore, during the first year of the biennium the school districts will still be using CTBS/4 examinations. Since it did not make much sense to convert to a single contractor to do the scoring for the last year of CTBS/4, Ms. Botts said Clark and Washoe counties will score their own examinations for the last time. As indicated in Exhibit E, the $670,000 appropriation requested by the State Department of Education will reimburse Clark and Washoe counties for scoring their own CTBS/4 examinations at the rate of $1 per student. Senator Raggio asked when the new tests are in place for Fiscal Year 1996 - 1997, will they all be scored by a single vendor. Ms. Botts replied in the affirmative and opined the department intends to administer all tests at the same time as well. Senator Raggio said it would be advisable to add elements to S.B. 386 to provide for a uniform testing date, and phasing in the provision for scoring tests by a single vendor. Senator Coffin believed Norm-Referenced Tests are based on an average of students of like age based upon their knowledge, adjusted by subjective criteria such as gender, race, and income, which would result in a conclusion based on a curve, as opposed to testing for what the average student should know. He asked, "Does Criterion- Referenced Testing measure what a student ought to know versus what every other child knows?" Ms. Botts replied for the purposes for which the Legislature is looking at scores, particularly as they are incorporated in school by school accountability reports, there is some need to be able to compare Nevada students to those in other states, and to the nation as a whole. She said only a nationally Norm-Referenced Test will allow this to occur. Senator Coffin commented this would indicate only average intelligence is being examined, but average intelligence can drop. Ms. Botts said the tests being used for grades 4 and 8 are based on a national reference group, and there is an ability to compare how Nevada students perform versus those of other states. Senator Raggio said there is no provision contained in S.B. 386 that will preclude any school district from conducting Criterion-Referenced Testing in addition to Norm- Referenced Testing. He pointed out writing tests are based on Criterion-Referenced Testing, while reading and mathematics are based on Norm-Referenced Testing, which is the basic mandate of the original intent of legislation. Ms. Botts indicated Nevada has no other national comparison of how students compare other than that being done in grades 4 and 8 with the CTBS/4 examination. Some districts in Nevada do test all grade levels with the nationally Norm-Referenced Test, but the larger districts do not. Clark and Douglas counties have developed their own district-wide Criterion-Referenced Test, which is not comparable to other school districts in the state or the nation. For legislative purposes and other purposes as well, Senator Raggio remarked it would be of little value to have testing on a school by school basis if Norm-Referenced Testing is not available. He opined those individuals opposed to Norm-Referenced Testing are adverse to the purpose of S.B. 386, which is to provide to the Legislature, taxpayers, and the general public some capability for measuring the achievement of Nevada students with reference to other students throughout the country. Senator Rawson asked if consideration has been given for a uniform testing date to be used across the country. Ms. Botts said the National Assessment of Education Progress (NAEP) is administered for grades 4, 8, and 12. Senator Rawson asked if additional grades should be included for national testing to determine if Nevada is using maximum flexibility for comparison purposes, and if so, which grades should be included. Ms. Botts indicated an earlier version of S.B. 386 included grades 2 and 6, but the cost was prohibitive. She suggested grade 2 be considered if another grade is to be added. She commented test-score data is not available until students reach the grade 4 level. Ms. Botts said the department requested funding to replace the high school proficiency test, since it is old and has been used many times. The request was not recommended by the Governor. The estimate for updating the high school proficiency test, which is a Criterion-Referenced Test designed in Nevada, is $511,000 for the biennium including the cost of updating the test on a continual basis. Senator Rawson opined when the state ends up with test results that are not comparable, the expended costs are wasted. He remarked: We can back into class-size reduction by using fourth grade scores and comparing those (students) who started in our districts versus those (students) who started in other districts that moved into the state at the end of grade 2. There would not be large numbers, but we could back into some of that. There is no way to back into grade 11...that exit examination. Should not that, more than any, be Norm-Referenced Testing so we will know where we are. Would it be destructive if we had every junior in high school take a national examination. Mary L. Peterson, Superintendent of Public Instruction, State Department of Education, introduced Thomas Kline, Ph.D., Consultant, Planning, Research and Evaluation, State Department of Education, and David Smith, Ph.D., Consultant, Planning, Research and Evaluation, State Department of Education, and suggested many of the committee's questions regarding Norm-Referenced Testing should be addressed to Dr. Kline. Dr. Kline testified the major difference between using the Norm-Referenced versus Criterion-Referenced Test is the Norm-Referenced Test will provide results of a student's standing relative to some norm group. He said the language contained in S.B. 386 that requires a nationally norm-standardized test be used in grades 4 and 8 is acceptable to the department, and will provide results regarding how Nevada students compare to the referenced group used for "norming" the test. The information relative to school by school accountability will also be comparable between schools in Nevada school districts. He opined Norm-Referenced Testing should be a part of any comprehensive testing program in Nevada. Dr. Kline pointed out a weakness associated with Norm-Referenced Testing is it will not provide a clear description of the skills exhibited by the students that are taking the test. The Criterion-Referenced Test will provide a detailed description of the actual skills attained by the student. While conducting a review of new tests to be used as an exit examination at the high school level, Dr. Kline said the department felt the Criterion- Referenced Test is the appropriate test to be used. Both Norm-Referenced and Criterion-Referenced Tests can be built on the same testing framework, Dr. Kline stated, and the test at grades 4 and 8 can be used for diagnostic purposes for preparing students to take the Criterion-Referenced (grade 11) exit examination. Senator Rawson asked, "There are questions contained in a Norm-Referenced Test....Why cannot we pick out those questions that speak to certain criteria and get a criterion reference on it. Why cannot we do this for grade 11?" Dr. Kline responded the content of the two tests are similar, and testing companies sell Norm-Referenced Tests on the basis they also provide objective references that provide sub-scores on specific learning objectives covered in the tests. He further stated, "For an adequate Criterion-Referenced Test, a Norm-Referenced Test does not have sufficient questions in each area to adequately assess a student's skills in that area because the criterion reference feature is weak." Senator Rawson inquired, "Is there any reason why...when the student finishes the grade 11 examination, they cannot just turn to the next booklet and finish a section that gives criterion reference?" Dr. Kline answered it would be possible to administer both types of examinations at grade 11 or 12. Senator Coffin said he is worried about the exclusive use of the Norm-Referenced Test. He expressed, "There is an old cliche, the dumbing down of America, that will not be prevented by Norm-Referenced Testing." He stated Criterion-Referenced Tests are administered at the end of a student's education at which time the "ignorance level" of a student is determined. He opined Criterion-Referenced Testing should be done prior to grade 11 to help flag the ignorance level of students at an earlier age. Dr. Kline responded the department is attempting to encourage school districts to develop their own Criterion-Referenced Tests that will not be a part of the state's Proficiency Examination Program. He reiterated that Clark, Douglas, and Washoe counties already have systems of Criterion-Referenced Testing in place, and it would not be difficult to accomplish the same system within a coalition of the smaller districts if Criterion-Referenced Testing were seen as an important part of a statewide testing program. Senator Coffin asked if there is existing national criterion testing for lower grades. Dr. Kline replied the NAEP is a Criterion-Referenced Test that is available and used nationally by 40 states and jurisdictions. Ms. Peterson expressed support of the passage of S.B. 386. She continued her testimony by reading from prepared text (Exhibit F) Senator Raggio requested the committee give careful consideration to the revisions recommended in S.B. 386 as outlined in Exhibit F. Senator Raggio noted the reference to graduation rates is recommended to be deleted from S.B. 386, and schools should report annual dropout rates in grades 9 - 12. He asked if there is any reason why both graduation and dropout rates should not be included. Ms. Peterson responded due to rapid growth and the influx of students to the state, graduation rates are a meaningless figure because graduation rates compare the number of students who start their freshman year to the number who graduate 4 years later. Senator Raggio responded there is a graduation rate, and if the dropout rate is factored in with the transient rate, some useful information will be provided. Ms. Peterson indicated the department does recommend the reporting of dropout and transiency rates, but the graduation rates in Nevada can sometimes exceed 100 percent, and would not provide reliable statistical data. Senator Raggio believes the public and the Legislature should know the graduation rate, along with other associated factors. Dr. Smith testified he was instrumental in arguing against using graduation rates in the State of Nevada. He explained the influx of students to the state does create a distortion of the numbers used to determine graduation rates. The United States (U.S.) Department of Education and the National Center on Education report the number of students who have graduated as opposed to graduation rates, Dr. Smith said. He pointed out dropout rates are used nationally in all 50 states. Senator Raggio asked what years are reflected in the dropout rates. Dr. Smith stated statistics are collected individually for grades 7 - 9, and overall for grades 9 - 12. Senator Rawson asked if the state can track students who move in and out of schools within the state. He expressed concern the state does not have statistics regarding dropout rates. Dr. Smith replied if the department had a statewide tracking system, it would be possible to track the movement of students within the state. He said Nevada's dropout rate is an annual dropout rate that is used by the U.S. Department of Education in all 50 states. He stated it would be possible to project an estimated dropout rate for grades 9 - 12. Ms. Peterson said the Statewide Management of Automated Record Transfer (SMART) would provide the type of tracking system necessary to obtain accurate statistics concerning dropout rates and other information, and would put in place a statewide student accounting system. Senator O'Donnell opined the transient statistics the department is interested in is homogeneous to the Sacramento, San Francisco, Reno, and Fallon areas as a region, or the Los Angeles, Las Vegas, and Phoenix areas as a region. He pointed out there would not be a large number of transients between Fallon and Las Vegas or Las Vegas and Elko. Consequently, he believes the SMART program will be of little value in Nevada. Senator O'Donnell conjectured student failure rates should be measured rather than dropout rates. He asked, "If a student receives failing grades throughout his or her junior year, will he or she be passed on to the senior year?" Dr. Smith replied, "I do not believe so." Dr. Smith said the department is attempting to establish programs within the schools to ensure that failure is not the responsibility of the student alone, but of the school as well at both secondary and elementary school levels. He opined those students who are performing poorly in the second and third grades will perform just as poorly in high school, and the department is attempting to address programs to look into this in an effort to reduce dropout rates for potential "at risk" students. Senator O'Donnell stated he would like to see, from the school district's perspective, a failure rate or some kind of indicator that will reflect the problems that have occurred in the second, third, or fourth grades that are now cumulating in the higher grades. He believes a dropout rate conjures up the idea it is the student's problem and not society's problem, and pointed out if a failure problem can be identified in the second, third, or fourth grade, remedial treatment can be started to solve the problem. Senator O'Donnell remarked, "When you move towards dropout rates and away from graduation rates, a clear message is given it is the student's fault and not our fault. I would like to see a clear indicator." Ms. Peterson concurred with Senator O'Donnell. She stated by the time students do drop out it is too late for intervention by the school district, and this is why the department's proposals place an emphasis on early grades and early childhood programs to take preventative measures before high school. Senator O'Donnell added the preventative measures the department proposes to use should be tracked to provide resulting data at a future date. Dr. Smith stated the department can initiate with the school districts the early Identification of at risk factors to provide statistics regarding the number of students who have certain needs, and the percentage of those students who did or did not finish school. Ms. Peterson called attention to the fact S.B. 27 requires reporting additional data, and the department believes reporting expenditures made for books, instructional supplies and computers for each school in the district may be useful information to include. Senator O'Donnell requested clarification. He asked if the amount of funds expended for books and supplies may have some connection to test scores. Ms. Peterson asserted she is referring to information in which the public would be interested. Senator O'Donnell questioned why the information would be of interest to the public unless it means some school districts have more funds to be used for the purchase of books and supplies than other school districts. Ms. Peterson interjected, "And some schools as well." She stated that is an issue and concern that was raised during discussion of S.B. 27. Senator O'Donnell reiterated by placing information in a report the public will be able to see there is a direct correlation between not having books and supplies, and test scores. Ms. Peterson said the public will also see what the differences are from school to school. Senator Raggio asked if there is uniformity between school districts. He commented one school may receive more from the school district in any given year because it did not receive as much in a previous year. Ms. Peterson said the reason for the request is there is a perception there are differences from school to school which would not be correlated to test scores. She remarked the purpose of the accountability report is to report what is going on to the public, parents, and community members. Ms. Peterson returned the committee's attention to Exhibit F and continued her testimony from written text. Henry Etchemendy, Executive Director, Nevada Association of School Boards, testified the association supports the passage of S.B. 386 including the amendments that were mentioned by Ms. Peterson (Exhibit F). He distributed copies of A.B. 124 to the committee, and remarked the deletion suggested in section 1, lines 20 and 21, will change the lines to read, "The total expenditure per pupil for each school in the district and the district as a whole." Daniel Leck, Carson City School Board, supports the passage of S.B. 386. He testified he is in favor of accountability reports as they have proven to be a useful tool in the Carson City School District. Although he believes S.B. 386 is an important bill, it does not address the remediation of identified problems. He remarked due to the lack of funds, nothing is being done to assist at risk students once they have been identified by the school district. Senator Raggio stated one of the requirements within existing law is the school district must describe any efforts made to correct deficiencies identified in accountability reports. He does not know how far the state and the State Department of Education should go to advise school districts how to deal with problems, because identified problems may be different in each school district. Senator Raggio remarked the Legislature can look into the amount of funding that should be available for areas outside of salary negotiations. Mr. Leck stated the Carson City School Board has recommended the funding now being used for class-size reduction in the third grade should be used for educational programs within the classroom. Senator Raggio closed the hearing on S.B. 386. Ms. Botts stated when testimony was heard on S.B. 203 to provide $479,000, as recommended by the Governor, for the Reading and Math Proficiency Examination Program at grades 4 and 8, an amendment was suggested by the committee. She stated the amendment has been returned for further committee consideration, and incorporates many of the items discussed today. She stated the amendment includes a $670,000 appropriation as well as language that specifically provides for test scoring by a single contractor. Senator Raggio stated the decision to amend S.B. 203 will be deferred until the committee has had the opportunity to consider all of the bills mentioned today. Senator Raggio opened the hearing for discussion of Senate Bill (S.B.) 369. SENATE BILL 369: Revises provisions governing commission on judicial discipline. Guy Shipler, Vice Chairman, Commission on Judicial Discipline, introduced Alan J. Lefebvre, Attorney, Lefebvre and Barron, Chartered, and Leonard I. Gang, General Counsel, Commission on Judicial Discipline. He asked Mr. Gang to explain the provisions of S.B. 369. Mr. Gang testified in recent decisions the Supreme Court ruled that both attorneys and investigators of the attorney general's office can no longer serve the commission, and S.B. 369 removes that language from the statutes. He stated section 5 of the bill specifies the commission may employ attorneys and investigators and other persons, and may do so within the amount of funds appropriated by the Legislature for that purpose. Mr. Gang stated the Supreme Court has also suggested the commission should sit as a Court of Judicial Discipline and it would be logical the commission be considered a part of the Judicial Branch. Therefore, Nevada Revised Statutes (NRS) 284.013 specifically includes the language which states the commission is not subject to the requirements of section 7 (a) of S.B. 369. Mr. Gang indicated section 3 of S.B. 369 provides absolute immunity for commission members, staff of the commission, investigators and attorneys employed by the commission or serving as independent contractors to the commission. He distributed a memorandum from the Commission on Judicial Discipline dated April 28, 1995 to the committee (Exhibit G) and continued his testimony by referencing this document. He pointed out Exhibit G quotes two sections of the American Bar Association's (ABA) proposed rules, and read the quotations to the committee. Mr. Gang prepared an amendment to section 8 of S.B. 369 (Exhibit H) which provides for the absolute immunity provisions of S.B. 369 to be retroactive to January 1, 1990. (Exhibit H was distributed to the committee.) He stated he was under the impression that persons who served for the commission were independent contractors to the commission, and would be covered under the provisions provided in section 3 of S.B. 369. However, he later learned that individuals who served the commission did so under the provisions contained in Nevada Revised Statutes (NRS) 1.450 and Nevada Revised Statutes (NRS) 1.460 and, therefore, did not serve as independent contractors. He explained the amendment (Exhibit H) provides for the addition of sub- section 4 to S.B. 369 which states any person who performs services pursuant to the provisions of Nevada Revised Statutes (NRS) 1.450 and Nevada Revised Statutes (NRS) 1.460 shall receive the same immunity. Senator Raggio asked why such broad immunity is required and if similar broad immunity has been granted to any other agency, individual, or branch of government in the State of Nevada. Mr. Gang replied, "In this sense, yes." He explained the absolute immunity is equivalent to judicial immunity that is applied to judges and to the judiciary, but the term is different. Judicial immunity applies to judges when they function as judges. The commission functions both as judges and an investigative commission, Mr. Gang clarified. He said judicial immunity is not defined in statute, is common law, and is defined in case law. This provision would be the equivalent of that, Mr. Gang said. Senator Raggio described an example of an investigator for the commission who, in the act of preparing a report, willfully provided false information. He asked why that investigator should be granted immunity. Mr. Gang stated under those circumstances, the investigator would not be granted immunity. Senator Raggio quoted a portion of S.B. 369 that indicates the investigator is absolutely immune from suit for all conduct at any time in the course of their official duty. He opined that is broad immunity, and if an investigator willfully submitted a report, but intentionally provided false information, he would be immune. Mr. Gang stated willful misconduct, for the purpose of injuring a person, would not be immune under statute. Senator Raggio questioned how Mr. Gang could arrive at this conclusion from what is reflected in the language contained in S.B. 369. Mr. Gang replied, "It is my belief that is the common interpretation, or the accepted interpretation, of immunity. Senator Raggio provided the hypothetical question, "Suppose that investigator is blatantly negligent in providing information. Should he be exempt for that?" Mr. Gang replied the investigator should not be exempt. Senator Raggio requested that the language of the bill be changed to include information that would better define gross negligence or wanton and willful misconduct. He asserted as an attorney it bothers him to grant absolute immunity from lawsuits. Senator Raggio asked if there are any lawsuits now pending that will be retroactively affected. Mr. Gang stated there are no lawsuits pending at this time. Alan J. Lefebvre, Attorney, Lefebvre and Barron, Chartered, remarked with respect to the retroactivity, in the cases involving (Washoe County District Judge) Jerry Carr Whitehead (Second Judicial District, Department 1, Reno, Nevada) the Supreme Court criticized the commission on the handling of other disciplinary cases. Many of the cases mentioned in the "Whitehead" cases go back many years, Mr. Lefebvre said, and is how it was determined the absolute immunity provision should be retroactive to January 1, 1990. With respect to the absolute immunity issue, Mr. Lefebvre agreed that willful misconduct ought to be included in the language of S.B. 369 as an exception, although he feels this interpretation is there by implication. Mr. Lefebvre stated the Supreme Court has equated the commission to the status of a district judge, and referred to the commission in a decision of February 28, 1995, as "commissioner judges." He clarified that is why the commission has requested broad immunity. Mr. Lefebvre stated the commission has become more active because of the "Whitehead" cases. If the commission is to be effective and have individuals to serve in the future, and employ individuals for specific cases as required by the Supreme Court, absolute immunity must be included. Mr. Lefebvre further stated: We do, as required by the court, have an obligation in separate cases that are actually going to go to the end of the proceeding to have separate counsel in each case or someone separate from Mr. Gang...and to go out to the bar and find a lawyer or investigator who would undertake this risk....I think will be very difficult. Senator Rawson asked if the passage of S.B. 369 will change the course of any of the "Whitehead" issues. Mr. Lefebvre opined S.B. 369 is an adjunct to what the Supreme Court has already stated. He said Nevada laws do not contain sufficient information regarding judicial discipline. The Supreme Court has reviewed numerous decisions discussing the commission's functions in an attempt to be instructional and clarify the commission's obligations, Mr. Lefebvre stated, and although the commission is comprised of two judges, three lay people, and two attorneys, the Supreme Court refers to the commission as a Court of Judicial Performance. Senator Rawson asked if there will be an ongoing process involving the "Whitehead" cases that will be influenced by the passage of S.B. 369. Mr. Lefebvre stated he did not believe so, but deferred the question to Mr. Gang. Mr. Gang replied the Supreme Court has not addressed these specific issues, and has not directly addressed the issue of immunity. He said there has been some indication by some members of the Supreme Court they have construed immunity to be very narrow, and it will apply only when the commission is acting strictly within its jurisdiction. Senator Rawson stated: There is a fight going on within the judiciary, and I do not want the Legislature brought into the fight to change the course of its outcome....That is the assurance I am looking for. Are we asking to make this change now so that issue can proceed to a conclusion it might not proceed to otherwise? If that is not the case, I think these things are very worthwhile. Mr. Gang responded there are no lawsuits pending against the commission or its members at this time. Mr. Lefebvre pointed out the commission is there to protect the judiciary and not to criticize and discipline individuals. If allegations are made against a judge they have to be investigated because rumor and innuendo does not have a place with respect to those individuals who choose to serve as judges, Mr. Lefebvre said. Regarding the immunity issue and the willful misconduct matter, Mr. Lefebvre remarked he is not in agreement with some of the "Whitehead" rules that now govern the commission because the rules are unclear. Mr. Lefebvre stated: When you are discussing conduct that is negligent to gross negligent to willful misconduct...or to lying, cheating, and falsifying documents, it becomes a fine line going up. We want to make certain if there is a willful misconduct exception it is very narrow. Mr. Lefebvre said if S.B. 369 does not pass, there will be a tremendous cost to the state to litigate the issue of whether there is immunity and to what extent. In the interest of time, Senator Raggio requested the commission to provide the committee with some language that will grant exemption from absolute immunity to deal with wanton and willful misconduct and gross negligence in the customary fashion included in other immunity statutes. He also requested staff to instruct the Senate bill drafter to provide the committee with appropriate language for this purpose. Senator Raggio closed the hearing on S.B. 369 and opened the hearing for discussion of Assembly Bill (A.B.) 71. ASSEMBLY BILL 71: Increases balance in motor vehicle revolving account. Mark Krmpotic, Management Analyst III, Administrative Services Division, Department of Motor Vehicles and Public Safety (DMV&PS) testified the passage of A.B. 71 will appropriate from the state Highway Fund the amount of $20,000 to increase the motor vehicle revolving account to $40,000. The funds will be used to establish a change fund in the main and branch offices of the DMV&PS located throughout the state. Mr. Krmpotic said this will enable the offices to provide change when customers pay cash for drivers' license, registration, motor carrier fees, photocopies, or booklets. Since the last increase in the revolving fund, the department has grown from 12 to 21 service locations, Mr. Krmpotic said. Senator Raggio asked what type of accountability measures have been established for the revolving account. Mr. Krmpotic replied the department balances and reconciles the revolving account on a daily basis. Senator Raggio closed the hearing on A.B. 71 and opened the hearing for discussion of Assembly Bill (A.B.) 426. ASSEMBLY BILL 426: Makes supplemental appropriation to the committee to hire the handicapped for personnel expenses in the Las Vegas office. John Orr, Assistant Director, Department of Employment, Training, and Rehabilitation, testified the passage of A.B. 426 will provide a supplemental appropriation in the amount of $3,150 to the Governor's Committee on Employment of People With Disabilities of the Department of Employment, Training, and Rehabilitation to provide sufficient funds for payment of salary costs in the Las Vegas office through June 30, 1995. The lack of gifts and donations in Fiscal Year 1994 - 1995 created a revenue shortfall which prompted the need for the supplemental appropriation request, Mr. Orr said. Assemblywoman Saundra (Sandi) Krenzer testified in support of the passage of A.B. 426. She stated the Governor's Committee on Employment of People with Disabilities is one of the most employer-responsive and customer-service agencies of state government. The purpose of the committee is to assist the handicapped and injured find employment to become self-sufficient taxpayers, Ms. Krenzer said. Senator Raggio closed the hearing on A.B. 426 and asked for a motion on A.B. 71. . SENATOR O'DONNELL MOVED TO DO PASS A.B. 71. SENATOR JACOBSEN SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. * * * * * SENATOR MATHEWS MOVED TO DO PASS A.B. 426. SENATOR RHOADS SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. * * * * * Senator Raggio asked for a motion on Assembly Bill (A.B.) 34 which was discussed in committee on April 25, 1995. ASSEMBLY BILL 3 4 : M a k e s a p p r o p r i a t i o n t o t h e b u d g e t d i v i s i o n o f t h e d e p a r t m e n t o f a d m i n i s t r a t i o n f o r r e i m b u r s e m e n t o f t h e l e g a l d i v i s i o n o f t h e l e g i s l a t i v e c o u n s e l b u r e a u f o r t h e e x p e n s e s i n v o l v e d i n p r e p a r i n g b i l l d r a f t s r e q u e s t e d b y a g e n c i e s o f t h e e x e c u t i v e b r a n c h ; a n d p r o v i d i n g o t h e r m a t t e r s p r o p e r l y r e l a t i n g t h e r e t o . SENATOR MATHEWS MOVED TO DO PASS A.B. 34. SENATOR COFFIN SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. * * * * * Mental Hygiene-Mental Retardation - Page 1013 Bob Guernsey, Principal Deputy Fiscal Analyst, Fiscal Analysis Division, Legislative Counsel Bureau, referred the committee to pages 2 and 3 of Exhibit I, Budget Closing Action, and reviewed the recommended technical adjustments with the committee. (Exhibit I. The original is on file in the Research Library.) He also called the committee's attention to page 4 of said exhibit that is a copy of a memorandum from Gordy Cronenberger, Personnel Officer, Mental Hygiene and Mental Retardation Division, concerning five positions that were inadvertently omitted from the Governor's Executive Budget. Mr. Guernsey stated it was the intent of the Executive Branch to include the five positions. SENATOR RAWSON MOVED TO RECOMMEND CLOSING THE BUDGET IN ACCORDANCE WITH STAFF PROPOSALS ON PAGES 1 AND 2 OF EXHIBIT I, AND ACCORDING TO THE RECOMMENDATION OF THE JOINT SUB-COMMITTEE ON HUMAN RESOURCES/K-12. SENATOR MATHEWS SECONDED THE MOTION. Senator Jacobsen referred to page 2, item 3, of Exhibit I regarding the proposed $12,000 salary increase and costs for the Medical Director to assume added statewide responsibility. He asked how the $12,000 salary increase will be processed. Mr. Guernsey said the inclusion of the proposed technical adjustment will provide the authorization to appropriate additional funding. The actual amount that will be decided will be determined by the Joint Subcommittee on Human Resources/K-12 after a review of unclassified and medical salaries. Senator Jacobsen indicated his opposition to a $12,000 salary increase for the individual currently filling the Medical Director position. Dan Miles, Fiscal Analyst, Fiscal Analysis Division, Legislative Counsel Bureau, stated the Legislature has to designate the maximum salaries for all of the medical personnel in the state because these salaries exceed 95 percent of the Governor's salary. Senator Rawson wished to note for the record that the current Medical Director is the best the Mental Hygiene and Mental Retardation Division has ever had. THE MOTION CARRIED UNANIMOUSLY. * * * * * Mental-Hygiene/Retardation-Regional Training - Page 1019 Mr. Guernsey referred the committee to page 5 of Exhibit I and stated the joint subcommittee on Human Resources/K-12 recommended the budget be closed as recommended by the Governor. SENATOR RAWSON MOVED TO CLOSE THE BUDGET AS RECOMMENDED BY THE GOVERNOR. SENATOR MATHEWS SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. * * * * * Southern Nevada Adult Mental Health Services - Page 1023 Mr. Guernsey remarked the joint subcommittee on Human Resources/K-12 provided some freedom and guidance to Carlos Brandenburg, Ph.D., Acting Administrator, Mental Hygiene and Mental Retardation Division, to reexamine the priorities of the division to see if they could more accurately reflect his philosophy and the philosophy of the staff. Upon discussing priorities with the staff, Dr. Brandenburg discovered that a number of elements contained within this budget were developed by the prior administrator and deputy administrator with no input from any of the clinical staff involved with the mission of the program. Both the department and the division looked at prior admission procedures in facilities located in the northern and southern part of the state, and it was their determination the patient census was kept artificially low, Mr. Guernsey said. He pointed out a number of patients that should have been admitted to facilities were not being admitted. Mr. Guernsey referred the committee to pages 7 and 8 of Exhibit I, and highlighted items 1 - 17 reflecting the proposed budget adjustments that will include an accurate reflection of an increase in the patient-census load from a budgeted amount of 54 patients in Fiscal Year 1995 - 1996 up to a level of 79. Mr. Guernsey called the committee's attention to a suggested letter of intent regarding additional revenue charges due to the increase in the number of clients to be served. He also stated a second letter of intent is recommended for the division to review mental health service demands in rural Clark County and other parts of the state such as Caliente, and present a plan to the 1997 Legislature to address high need areas. SENATOR RAWSON MOVED TO CLOSE THE BUDGET IN ACCORDANCE WITH THE RECOMMENDATIONS OF THE JOINT SUBCOMMITTEE ON HUMAN RESOURCES/K-12, AND IN ACCORDANCE WITH STAFF PROPOSALS ON PAGES 7 AND 8 OF EXHIBIT I. SENATOR MATHEWS SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. * * * * * Southern MH/MR Food Service - Page 1035 Mr. Guernsey stated the proposed adjustment will more accurately reflect the anticipated increase in the inpatient census in southern Nevada. SENATOR RAWSON MOVED TO CLOSE THE BUDGET IN ACCORDANCE WITH THE RECOMMENDATIONS OF THE JOINT SUBCOMMITTEE ON HUMAN RESOURCES/K-12, AND IN ACCORDANCE WITH STAFF RECOMMENDATIONS ON PAGE 15 OF EXHIBIT I. SENATOR O'DONNELL SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. * * * * * Senator Raggio asked if the joint subcommittee on Human Resources/K-12 closed the Nevada Mental Health Institute budget as reflected on page 1039 of the Governor's Executive Budget. Mr. Guernsey confirmed the budget has not yet been closed because the institute failed a survey conducted by the (federal) Health Care Financing Administration (HCFA) in four of eight areas including staffing and medical records. A written notice will be sent to the institute by HCFA within the next 30 days after which they will be given 90 days from the date of their exit interview (with HCFA ) to correct deficiencies or lose their certification. Mr. Guernsey stated not only will this be a loss to the institute and the mental health delivery system, it will also result in a loss within the department of approximately $2 million. The joint subcommittee directed Dr. Brandenburg to perform a thorough review of the institute's budget to confirm everything is within the budget that will be needed to correct the deficiencies. John P. Comeaux, Director, Department of Administration, advised the committee the Budget Division will assist Dr. Brandenburg and the institute to correct the deficiencies. Senator Raggio asked if the aforementioned action will require additional funding. Mr. Guernsey stated it will be difficult to make a determination at this time, although he believes additional funding and budget adjustments will be needed to assist the institute. Senator Raggio recessed the meeting at 10:55 a.m. and the meeting reconvened at 12:25 p.m. Facility for the Mental Offender - Page 1049 Mr. Guernsey commented on items 1 - 6 as reflected on page 16 of Exhibit I, and pointed out the primary adjustment is the addition of three Forensic Specialist positions for the facility. Mr. Guernsey said item 6 requests a vehicle for the facility, and the need for the vehicle is explained in a memorandum shown on page 17 of Exhibit I. SENATOR RAWSON MOVED TO CLOSE THE BUDGET IN ACCORDANCE WITH THE RECOMMENDATIONS OF THE JOINT SUBCOMMITTEE ON HUMAN RESOURCES/K-12, AND IN ACCORDANCE WITH STAFF PROPOSALS ON PAGE 16 OF EXHIBIT I. SENATOR COFFIN SECONDED THE MOTION. THE MOTION CARRIED. (SENATORS O'DONNELL AND RHOADS WERE ABSENT FOR THE VOTE.) * * * * * Rural Clinics - Page 1055 Mr. Guernsey reviewed the recommended adjustments to the budget account as shown on page 19 of Exhibit I. He called attention to the remark shown on page 18 of Exhibit I and said the division's priority is to open up new rural clinics that have already been recommended in the Governor's Executive Budget in Lovelock, Battle Mountain, Fernley, and Silver Springs. The division requested that the opening of the offices in Lovelock and Battle Mountain be delayed, but due to the opening of a new prison in Lovelock, the joint subcommittee on Human Resources/K-12 felt it would not be prudent to delay the opening of the Lovelock clinic which is scheduled to open on October 1, 1995. Mr. Guernsey said there was considerable testimony before the joint subcommittee on Human Resources/K-12 in reference to the need for a rural clinic satellite location in the Silver Springs area. The joint subcommittee agreed with the division's request to open an office in Silver Springs in April, 1996. Senator Rawson recalled earlier discussion concerning the opening of a small clinic in Ely. Mr. Guernsey believes Ely is served on an itinerant basis 1 or 2 days a week, but will provide the committee with a report regarding service to that area. He said the division did not feel Ely or Caliente require clinics at this time, but a letter of intent was issued to the division to examine all the areas in rural Nevada to investigate whether clinics are needed. Senator Raggio stated he is concerned with the opening of separate clinics in Fernley and Silver Springs since there is only a 28 mile distance between the towns. He asked that the budget be held pending further review and consideration by the committee. Southern Nevada Mental Retardation Services - Page 1063 As indicated on page 20 of Exhibit I, Mr. Guernsey said technical adjustments are necessary in order to return 24 mentally retarded clients who are currently being served out-of-state, primarily in Utah. While reviewing the budget for the Division of Child and Family Services, it was determined there are 39 mentally retarded clients placed out-of-state due to the lack of bed space in Nevada. Of the 39 clients, 28 are children, Mr. Guernsey said. At the request of the joint subcommittee on Human Resources/K-12, the division has developed a plan in conjunction with the department and the Division of Child and Family Services to return six clients to the northern facility, and six clients to the southern facility, in August, 1995. Mr. Guernsey stated an additional six clients will be placed in each location in November, 1995. Mr. Guernsey further indicated the plan will bring existing state personnel that are currently located in group homes back into the Nevada facilities, and the state would then contract for the 24 beds currently staffed by state personnel. The relocation expense will appear in the Welfare Division's Medicaid (Title XIX) budget. Mr. Guernsey called the committee's attention to page 22 of Exhibit I which provides an analysis of the cost to return 24 out-of-state clients to the facilities located in the northern and southern areas of the state. Page 23 of Exhibit I projects the estimated cost of leaving the 24 clients out-of-state, Mr. Guernsey said, and pages 24 and 25 display the costs for Fiscal Year 1996 - 1997, and Fiscal Year 1997 - 1998. Senator Rawson indicated the consensus of the joint subcommittee is to return the clients to Nevada, but it currently appears it will cost the state additional revenue to do so. For this reason, Senator Rawson believes the division does not have the inducement to return the clients to Nevada. Senator Raggio asked if the state has the capability and the facilities to provide the level and quality of care the clients are currently receiving out-of-state. Senator Rawson does not think the state's personnel are sufficiently trained to work with the clients who are severely retarded. Mr. Guernsey said the state's staff are presently working in intermediate-care facilities, and it is felt private providers can furnish the personnel to care for the patients in a more efficient, less costly, manner. Mr. Guernsey said the division plans to convert a building currently occupied by staff of the Desert Developmental Center in Las Vegas to residential bed use. In the north, the division plans to occupy building HC at the Nevada Mental Health Institute, which is a 16-bed facility currently being used for day-treatment care. Senator Raggio stated it would not be appropriate to return the mentally retarded clients to the state and be unable to provide the facilities and required treatment. Mr. Guernsey stated Dave Luke, Ph.D., Associate Administrator, Northern Nevada Mental Retardation Services, feels the services that can be provided locally will be of better quality than that received in the out-of-state facilities. He opined until the patients are actually returned to the state, it will be difficult to make a determination regarding the level of care, which will be needed. SENATOR RAWSON MOVED TO CLOSE THE BUDGET IN ACCORDANCE WITH THE RECOMMENDATIONS BY THE JOINT SUBCOMMITTEE ON HUMAN RESOURCES/K-12. SENATOR RHOADS SECONDED THE MOTION. THE MOTION CARRIED. (SENATOR O'DONNELL WAS ABSENT FOR THE VOTE.) * * * * * Northern Nevada Mental Retardation Services - Page 1073 Mr. Guernsey referred the committee to page 26 of Exhibit I, and explained the adjustments within this budget parallel that of the previously described budget for the Southern Nevada Mental Retardation Services. SENATOR RAWSON MOVED TO CLOSE THE BUDGET IN ACCORDANCE WITH THE RECOMMENDATIONS BY THE JOINT SUBCOMMITTEE ON HUMAN RESOURCES/K-12. SENATOR MATHEWS SECONDED THE MOTION. THE MOTION CARRIED. (SENATOR O'DONNELL WAS ABSENT FOR THE VOTE.) * * * * * Rural Mental Retardation Services - Page 1083 Mr. Guernsey highlighted the technical adjustments reflected on page 27 of Exhibit I. SENATOR RAWSON MOVED TO CLOSE THE BUDGET IN ACCORDANCE WITH THE RECOMMENDATIONS OF THE JOINT SUBCOMMITTEE ON HUMAN RESOURCES/K-12. SENATOR RHOADS SECONDED THE MOTION. THE MOTION CARRIED. (SENATOR O'DONNELL WAS ABSENT FOR THE VOTE.) * * * * * Family Preservation - Page 1091 Mr. Guernsey indicated there are no adjustments to this account, but it is recommended to change the name of this account from Mental Retardation Home Care to Family Preservation. SENATOR RAWSON MOVED TO CLOSE THE BUDGET AS RECOMMENDED BY THE GOVERNOR, AND TO INCLUDE THE NAME CHANGE TO "FAMILY PRESERVATION." SENATOR MATHEWS SECONDED THE MOTION. THE MOTION CARRIED. (SENATOR O'DONNELL WAS ABSENT FOR THE VOTE.) * * * * * Senator Raggio adjourned the meeting at 12:50 p.m. RESPECTFULLY SUBMITTED: Marion Entrekin, Committee Secretary APPROVED BY: Senator William J. Raggio, Chairman DATE: Senate Committee on Finance May 1, 1995 Page