MINUTES OF THE SENATE COMMITTEE ON FINANCE Sixty-eighth Session May 18, 1995 The Senate Committee on Finance was called to order by Chairman William J. Raggio, at 4:00 p.m., on Thursday, May 18, 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 COMMITTEE MEMBERS ABSENT: Senator Bernice Mathews (Excused) STAFF MEMBERS PRESENT: Dan Miles, Fiscal Analyst Bob Guernsey, Principal Deputy Fiscal Analyst Jeanne L. Botts, Program Analyst Debbra J. King, Program Analyst Larry L. Peri, Program Analyst Marion Entrekin, Committee Secretary OTHERS PRESENT: John P. Comeaux, Director, Department of Administration David R. Thomas, Chief, Risk Management Division, Department of Administration Senator Raggio asked for committee introduction of the following bill draft request (BDR). BILL DRAFT REQUEST 1-2008: Makes various changes to provisions governing collection of fines and assessments. SENATOR COFFIN MOVED FOR COMMITTEE INTRODUCTION OF BDR 1-2008. SENATOR JACOBSEN SECONDED THE MOTION. THE MOTION CARRIED. (SENATOR MATHEWS WAS ABSENT FOR THE VOTE.) * * * * * Senator Rawson said the state has not been able to fill the Science Advisor position for the Office of Science Engineering and Technology to be used in connection with the Governor's office due to restrictions the Legislature has imposed on the requirements for the position. He explained legislative action requires the individual be totally committed to the state, which prevents the pursuit of academic interests or consulting activities. Senator Rawson recommended the committee authorize a BDR or the placement of the recommended change in the form of a new bill. SENATOR RAWSON MOVED TO ACCEPT A MOTION TO CHANGE THE QUALIFICATIONS AND DUTIES OF THE SCIENCE ADVISOR POSITION, EITHER BY A BDR OR BY A NEW BILL. SENATOR COFFIN SECONDED THE MOTION. THE MOTION CARRIED. (SENATOR MATHEWS WAS ABSENT FOR THE VOTE.) * * * * * Dan Miles, Fiscal Analyst, Fiscal Analysis Division, Legislative Counsel Bureau, said after several meetings he has had with the budget director and assistant budget director regarding the mechanics involved in closing budgets, it was determined a decision involving three payroll related items must be made as soon as possible to enable the Budget Division to program the payroll segment into the state's computer program to rerun almost all the budgets. The three items, the personnel assessment, group insurance contributions, and retired group insurance assessments, all involve payroll calculations for employee fringe benefit rate adjustments. He referred the committee to Exhibit C, a memorandum dated May 18, 1995, from John P. Comeaux, Director, Department of Administration, containing recommendations for employee fringe benefit rate adjustments. Mr. Miles also distributed Exhibit D, a memorandum from the Fiscal Analysis Division to the chairman of the Senate Committee on Finance and the Assembly Committee on Ways and Means, dated May 16, 1995, regarding the personnel assessment issue. Mr. Miles highlighted the information contained in Exhibit D with the committee. Referencing page 2 of Exhibit D regarding the Fiscal Analysis Division's recommended reserve balance for the Department of Personnel, Senator Raggio asked if staff feels a reserve of approximately $750,000 - $775,000 is considered a reasonable, prudent reserve that federal authorities will support. He noted if left untouched, the Department of Personnel's reserve balance could increase to $1.7 million. Mr. Miles responded a 2-month or 60-day reserve is usually acceptable, and the recommended reserve of about $775,000 falls within that range. Senator Raggio asked if a large reserve of $1.7 million would cause a problem with the federal cost allocation, and Mr. Miles affirmed that it would. SENATOR RAWSON MOVED TO ACCEPT THE RECOMMENDATIONS OF STAFF TO REDUCE THE RESERVE BALANCE FOR THE DEPARTMENT OF PERSONNEL BY $282,241 IN FISCAL YEAR 1995 - 1996 AND BY $194,445 IN FISCAL YEAR 1996 - 1997 TO CHANGE THE PERSONNEL ASSESSMENT TO .87 PERCENT OF SALARIES FOR FISCAL YEAR 1995 - 1996, AND .86 PERCENT OF SALARIES IN FISCAL YEAR 1996 -1997. SENATOR O'DONNELL SECONDED THE MOTION. THE MOTION CARRIED. (SENATOR MATHEWS WAS ABSENT FOR THE VOTE.) * * * * * Regarding group insurance contributions, Mr. Miles distributed Exhibit E, a letter from Mr. Comeaux dated May 15, 1995, outlining the Budget Division's position on Senate Bill (S.B.) 301, the State of Nevada Employee Association's (SNEA) proposal of the amounts to be paid by the state for group insurance for employees and their dependents. SENATE BILL 301: Establishes for next biennium amount to be paid by state for group insurance for participating officers and employees. Mr. Comeaux said the Department of Administration opposes the passage of S.B. 301, specifically the provision that provides for a direct subsidy for employees who choose to cover their dependents under the group insurance plan. He stated the cost to the state for this coverage will amount to approximately $12.5 million in the next biennium, and the additional cost will only benefit one-third of the state's employees. He stated there may be additional costs to the state at a future date if additional employees choose to cover their dependents. He pointed out there is already an indirect subsidy for dependent coverage included in the current state contribution. Mr. Comeaux referred the committee to item 2 of Exhibit E that provides estimates by the actuaries for the Committee on Benefits regarding the cost for each state employee to provide the group insurance coverage as it currently exits, and the recommended state contribution. Senator Raggio clarified S.B. 301 will require an amendment to establish the state's contribution rate for active and retired employee group insurance. Since there is already a subsidy for dependent coverage included in the current state contribution, Senator Raggio suggested S.B. 301 should also be amended not to directly cover dependents. SENATOR JACOBSEN MOVED TO AMEND AND DO PASS S.B. 301 TO ESTABLISH THE STATE'S CONTRIBUTION RATE FOR ACTIVE EMPLOYEE GROUP INSURANCE AT $236.69 PER MONTH FOR FISCAL YEAR 1996, AND $247.34 PER MONTH FOR FISCAL YEAR 1997, AND THE RETIRED GROUP INSURANCE BASE CONTRIBUTION RATE TO $135.35 PER MONTH FOR FISCAL YEAR 1996, AND $139.35 PER MONTH FOR FISCAL YEAR 1997, AND TO EXCLUDE THE COST OF THE ADDITIONAL DEPENDENT SUBSIDY. SENATOR RHOADS SECONDED THE MOTION. Senator Coffin said he receives many letters and telephone inquiries from retired state employees complaining about the scope of coverage for retired employees. He said many retired state employees compare the subsidy they receive to that provided to retired teachers. David R. Thomas, Chief, Risk Management Division, Department of Administration, said retired state employees are rated by age group, and the most common group is for individuals age 65 and over. When Medicare begins, the average cost to a single retiree who has Part B coverage to Medicare is $3 per month. The state contribution covers all other costs except the $3 paid by the retiree. Senator Rawson wished to indicate he is an employee of the University and Community College System of Nevada (UCCSN) and will vote on S.B. 301 since he is not affected by the provisions contained within the measure. Senator Coffin said although his wife is an employee of the UCCSN, he will vote on S.B. 301 since she will not benefit by the passage of the bill in any way. THE MOTION CARRIED. (SENATOR MATHEWS WAS ABSENT FOR THE VOTE.) * * * * * Mr. Miles said the final item contained in Exhibit C refers to the assessment against agencies to accumulate the funds to pay for the retired employees group insurance contribution. The assessment being recommended by the Budget Division is .0080 of salaries in Fiscal Year 1996 and .0086 of salaries in Fiscal Year 1997, which is a reduction of the rates contained in the Governor's original Executive Budget. SENATOR JACOBSEN MOVED TO ADJUST THE BUDGETS WITH RESPECT TO THE ASSESSMENT FOR RETIRED GROUP INSURANCE TO $133.35 PER MONTH FOR FISCAL YEAR 1996, AND $139.35 PER MONTH FOR FISCAL YEAR 1997, AND TO CHANGE THE STATEWIDE ASSESSMENT RATE FROM .0085 TO .0080 IN FISCAL YEAR 1996, AND FROM .0095 TO .0086 IN FISCAL YEAR 1997. SENATOR RHOADS SECONDED THE MOTION. THE MOTION CARRIED. (SENATOR MATHEWS WAS ABSENT FOR THE VOTE.) * * * * Mr. Miles stated when the Senate Committee on Finance and the Assembly Committee on Ways and Means closed the budgets for the Aging Services Division and the Taxicab Authority, the Senior Ride Program was transferred to the Aging Services Division. He said a statutory change is required to legally implement the budget action, which can be accomplished by a BDR to allow the Taxicab Authority to transfer the funds to the Aging Services Division. SENATOR COFFIN MOVED TO OBTAIN A BDR TO ACCOMMODATE THE TRANSFER OF FUNDS FOR THE SENIOR RIDE PROGRAM TO THE AGING SERVICES DIVISION. SENATOR O'DONNELL SECONDED THE MOTION. THE MOTION CARRIED. (SENATOR MATHEWS WAS ABSENT FOR THE VOTE.) * * * * * Senator Raggio turned the gavel over to Senator Rawson at 5:10 p.m. in order to attend, along with Senator O'Donnell, a meeting of the Senate Committee on Government Affairs. Natural Resources Administration - Page 1879 Jeanne L. Botts, Program Analyst, Fiscal Analysis Division, Legislative Counsel Bureau, stated the major changes recommended for this budget account in concurrence with the joint subcommittee on Public Safety/Natural Resources/Transportation can be found on page 2 of the budget closing action packet (Exhibit F) that she outlined with the committee. (Exhibit F. Original is on file in the Research Library.) She pointed out the changes include reclassification of two positions, and the addition of accounting positions the Governor had recommended for the Division of Forestry. SENATOR JACOBSEN MOVED TO CLOSE THE BUDGET IN ACCORDANCE WITH THE RECOMMENDATIONS OF THE JOINT SUBCOMMITTEE AS REFLECTED ON PAGE 2 OF EXHIBIT F. SENATOR COFFIN SECONDED THE MOTION. THE MOTION CARRIED. (SENATORS MATHEWS, O'DONNELL, AND RAGGIO WERE ABSENT FOR THE VOTE.) * * * * * Environmental Protection Administration - Page 1883 Ms. Botts highlighted the joint subcommittee's recommendations reflected on pages 3 and 4 of Exhibit F. SENATOR JACOBSEN MOVED TO CLOSE THE BUDGET IN ACCORDANCE WITH THE RECOMMENDATIONS OF STAFF AND THE JOINT SUBCOMMITTEE AS REFERENCED ON PAGES 3 AND 4 OF EXHIBIT F. SENATOR COFFIN SECONDED THE MOTION. THE MOTION CARRIED. (SENATORS MATHEWS, O'DONNELL, AND RAGGIO WERE ABSENT FOR THE VOTE.) * * * * * Air Quality - Page 1889 Ms. Botts stated substantial program changes will occur during the current biennium as a result of the federal Clean Air Act Amendments of 1990 (CAAA). She said the CAAA requires air quality permit fees to be kept in a separate account and used only for the air quality program. Ms. Botts reviewed the adjustments to this account, as recommended by the joint subcommittee, exhibited on pages 5 and 6 of Exhibit F. SENATOR JACOBSEN MOVED TO CLOSE THE BUDGET IN ACCORDANCE WITH STAFF AND JOINT SUBCOMMITTEE RECOMMENDATIONS SHOWN ON PAGES 5 AND 6 OF EXHIBIT F. SENATOR COFFIN SECONDED THE MOTION. THE MOTION CARRIED. (SENATORS MATHEWS, O'DONNELL, AND RAGGIO WERE ABSENT FOR THE VOTE.) * * * * * Waste Management and Federal Facilities - Page 1899 Ms. Botts said the Governor recommended that three employees classified as Computer Information Specialists be transferred to the Department of Information Services (DIS), but the joint subcommittee recommended the positions should remain with the Division of Environmental Protection (DEP). She stated after the joint subcommittee heard discussion regarding the duties of the employees, they voted to close the budget without the proposed transfers. Ms. Botts stated after closure of the budget by the joint subcommittee, she was informed the three positions were reclassified to Management Analysts, and the joint subcommittee recommended the three positions remain in the DEP. Ms. Botts continued discussion regarding the recommended adjustments to the budget from pages 7 and 8 of Exhibit F. SENATOR JACOBSEN MOVED TO CLOSE THE BUDGET IN ACCORDANCE WITH THE RECOMMENDATIONS OF STAFF AND THE JOINT SUBCOMMITTEE REFLECTED ON PAGES 7 AND 8 OF EXHIBIT F. SENATOR COFFIN SECONDED THE MOTION. THE MOTION CARRIED. (SENATORS MATHEWS, O'DONNELL, AND RAGGIO WERE ABSENT FOR THE VOTE.) * * * * * Water and Mining - Page 1905 Ms. Botts referred the committee to page 9 of Exhibit F , and pointed out the major change regards two new positions that have been added to the Bureau of Water Pollution Control. SENATOR JACOBSEN MOVED TO CLOSE THE BUDGET IN ACCORDANCE WITH THE RECOMMENDATIONS OF THE JOINT SUBCOMMITTEE REFLECTED ON PAGE 9 OF EXHIBIT F. SENATOR COFFIN SECONDED THE MOTION. THE MOTION CARRIED. (SENATORS MATHEWS, O'DONNELL, AND RAGGIO WERE ABSENT FOR THE VOTE.) * * * * * Division of Conservation Districts - Page 1913 Page 10 of Exhibit F was referenced by Ms. Botts while she outlined the major adjustments to the budget account. She remarked the agency's clerical employee, who took a voluntary 40 percent furlough during Fiscal Year 1992 - 1993, is recommended by the joint subcommittee to be upgraded from a Management Assistant I to a Management Assistant II and increased to full-time. Ms. Botts said the Governor does not support the joint subcommittee's recommendation. SENATOR JACOBSEN MOVED TO CLOSE THE BUDGET IN ACCORDANCE WITH THE RECOMMENDATIONS OF THE JOINT SUBCOMMITTEE AND STAFF REFLECTED ON PAGE 10 OF EXHIBIT F. SENATOR COFFIN SECONDED THE MOTION. THE MOTION CARRIED. (SENATORS MATHEWS, O'DONNELL, AND RAGGIO WERE ABSENT FOR THE VOTE.) * * * * * Division of State Lands - Page 1919 Ms. Botts covered the provisions of the recommended adjustments to the budget account shown on pages 11 and 12 of Exhibit F. She pointed out to alleviate cash- flow problems and streamline accounting, technical adjustments are recommended to replace fees collected by the division with General Fund appropriations. Fees collected by the division will be deposited directly to the state General Fund, and a bill draft is required to deposit revenues from the Division of State Lands (other than school lands) to the General Fund. Suggested language for the BDR Is shown on page 34 of Exhibit F, Ms. Botts said. Senator Jacobsen pointed out there may be a future shortage in the state's General Fund due to the refusal of some individuals to pay increased fees for applications and permits required by the Division of State Lands. He said a bill proposed by Assemblyman Lynn Hettrick will be introduced to eliminate all fees charged, and this may alleviate a lot of the discontent that has arisen with some commercial enterprises as well as private individuals over the fees charged for applications and permits. Senator Jacobsen indicated this budget may have to be reopened due to other pending legislation that may influence this budget account. SENATOR JACOBSEN MOVED TO CLOSE THE BUDGET IN ACCORDANCE WITH THE RECOMMENDATIONS OF THE JOINT SUBCOMMITTEE AND STAFF AS REFERENCED IN EXHIBIT F, AND TO PREPARE A BDR TO DEPOSIT REVENUES FROM THE DIVISION OF STATE LANDS TO THE GENERAL FUND. SENATOR COFFIN SECONDED THE MOTION. THE MOTION CARRIED. (SENATORS MATHEWS, O'DONNELL, AND RAGGIO WERE ABSENT FOR THE VOTE.) * * * * * Carey Act - State Lands - Page 1925 Ms. Botts recommended the budget be closed as recommended by the Governor. She said in accordance with the request of the administrator for the Division of State Lands, the account will not be abolished in case there is activity in the future. Ms. Botts said decision unit E-450 incorporated expenses of the Carey Act Program into the budget of the Division of State Lands, and provides $2,896 of General Fund revenue to support that activity. SENATOR JACOBSEN MOVED TO CLOSE THE BUDGET IN ACCORDANCE WITH THE RECOMMENDATIONS OF STAFF AND THE JOINT SUBCOMMITTEE REFLECTED ON PAGE 13 OF EXHIBIT F. SENATOR COFFIN SECONDED THE MOTION. THE MOTION CARRIED. (SENATORS MATHEWS, O'DONNELL AND RAGGIO WERE ABSENT FOR THE VOTE.) * * * * * Division of Water Resources - Page 1955 Ms. Botts provided testimony concerning the remarks and technical adjustments reflected on pages 14 - 17 of Exhibit F. She called the committee's attention to page 16, labeled "Plan A", to add seven new positions requested by the division in its original budget submittal, and stated this is the plan the joint subcommittee recommends be used. Plan B, reflected on page 17 of Exhibit F, will add 20 new positions requested by the division in its revised budget submittal to the joint subcommittee on March 21, 1995. Ms. Botts stated this plan is not recommended by the joint subcommittee. Decision units to add 7 (Plan A) or 20 (Plan B) positions and related costs is reflected in Exhibit F, Ms. Botts said. Ms. Botts said the joint subcommittee asked the Legal Division to review the requirements for publication of legal notices in order to reduce the costs, and still comply with the legal requirements for proper notice regarding water right applications. The joint subcommittee recommends a bill be introduced reducing the number of times a notice must be published from five times (over a 4 consecutive-week period) to three times (once a week for 3 consecutive weeks). SENATOR JACOBSEN MOVED TO CLOSE THE BUDGET IN ACCORDANCE WITH THE RECOMMENDATIONS OF STAFF AND THE JOINT SUBCOMMITTEE AS SHOWN ON PAGES 14-17 OF EXHIBIT F, AND TO PREPARE A BDR TO REDUCE LEGAL PUBLICATION NOTICE TO ONCE A WEEK FOR 3 CONSECUTIVE WEEKS. SENATOR COFFIN SECONDED THE MOTION. THE MOTION CARRIED. (SENATORS MATHEWS, O'DONNELL, AND RAGGIO WERE ABSENT FOR THE VOTE.) * * * * * Wildlife - Boating Program - Page 1969 Ms. Botts highlighted the major technical adjustments recommended for the budget account from page 19 of Exhibit F. SENATOR JACOBSEN MOVED TO CLOSE THE BUDGET IN ACCORDANCE WITH STAFF AND JOINT SUBCOMMITTEE RECOMMENDATIONS SHOWN ON PAGE 19 OF EXHIBIT F. SENATOR COFFIN SECONDED THE MOTION. THE MOTION CARRIED. (SENATORS MATHEWS, O'DONNELL, AND RAGGIO WERE ABSENT FOR THE VOTE.) * * * * * Wildlife - Trout Management - Page 1973 Ms. Botts said the budget account is a separate, interest-bearing account that receives revenue from the sale of $5 trout stamps to anglers who fish for trout. Each year $100,000 is transferred to the division's main operating account to partially cover the cost of operating the state's hatcheries. The other expenditure made from the account each year is a transfer to the state treasurer to repay the bonds sold to construct the Mason Valley Fish Hatchery. Bond debt payments are budgeted at $367,175 in Fiscal Year 1995 - 1996, and $369,570 in Fiscal Year 1996 - 1997. Ms. Botts said the joint subcommittee recommends closing the budget as recommended by the Governor. SENATOR JACOBSEN MOVED TO CLOSE THE BUDGET AS RECOMMENDED BY THE GOVERNOR IN ACCORDANCE WITH THE CONCURRENCE OF THE JOINT SUBCOMMITTEE. SENATOR COFFIN SECONDED THE MOTION. THE MOTION CARRIED. (SENATORS MATHEWS, O'DONNELL, AND RAGGIO WERE ABSENT FOR THE VOTE.) * * * * * Wildlife Habitat Mitigation - Page 1975 Ms. Botts highlighted the information contained on page 21 of Exhibit F. She stated the joint subcommittee endorses closing the budget as recommended by the Governor. SENATOR JACOBSEN MOVED TO CLOSE THE BUDGET AS RECOMMENDED BY THE GOVERNOR IN ACCORDANCE WITH THE CONCURRENCE OF THE JOINT SUBCOMMITTEE. SENATOR COFFIN SECONDED THE MOTION. THE MOTION CARRIED. (SENATORS MATHEWS, O'DONNELL, AND RAGGIO WERE ABSENT FOR THE VOTE.) * * * * * Wildlife Heritage Trust Fund - Page 1977 Ms. Botts said Senate Bill (S.B.) 230 limits expenditures to an amount no greater than the interest earned in the previous year. The Wildlife Commission must review and approve expenditures from the Heritage Trust Fund, but there is no provision in S.B. 230 requiring approval by the Interim Finance Committee (IFC) for expenditures from the trust fund. Transfers from the trust fund's Reserve to an expenditure category would be subject to the existing requirements for IFC approval. Ms. Botts suggested the committee may wish to close the budget as recommended by the Governor, contingent upon passage of S.B. 230. SENATE BILL 230: Establishes wildlife heritage trust account in state general fund. SENATOR JACOBSEN MOVED TO CLOSE THE BUDGET AS RECOMMENDED BY THE GOVERNOR, CONTINGENT UPON PASSAGE OF S.B. 230, IN ACCORDANCE WITH THE CONCURRENCE OF THE JOINT SUBCOMMITTEE. SENATOR COFFIN SECONDED THE MOTION. Senator Rawson asked how much will be required to be collected from increased license fees to cover the anticipated $450,000 shortfall caused by salary increases recommended by the Governor. Ms. Botts replied receipts of $242,643 from currently authorized big-game auction tags will no longer be deposited into the division's operating budget. The division's main operating budget, not contained in Exhibit F, is still under review due to additional revenue that may be considered from increased license fees. THE MOTION CARRIED. (SENATORS MATHEWS, O'DONNELL, AND RAGGIO WERE ABSENT FOR THE VOTE.) * * * * * Nevada Natural Heritage - Page 1987 Ms. Botts remarked in order to retain two of the program's five positions, the Governor recommended, and the joint subcommittee concurred, a General Fund appropriation should be used to replace Question 5 revenue that is no longer available amounting to $36,191 in Fiscal Year 1995 - 1996, and $85,343 in Fiscal Year 1996 - 1997. Ms. Botts pointed out a BDR has been submitted that will establish the Nevada Natural Heritage Program as a division in the State Department of Conservation and Natural Resources, but the joint subcommittee did not want to create a separate division. Ms. Botts suggested language for a BDR (pages 33 and 34 of Exhibit F) that will state the program is within the State Department of Conservation and Natural Resources. SENATOR JACOBSEN MOVED TO CLOSE THE BUDGET IN ACCORDANCE WITH THE RECOMMENDATIONS OF STAFF AND THE JOINT SUBCOMMITTEE SHOWN ON PAGE 23 OF EXHIBIT F, AND TO PREPARE A BDR PLACING THE NEVADA NATURAL HERITAGE PROGRAM UNDER THE STATE DEPARTMENT OF CONSERVATION AND NATURAL RESOURCES. SENATOR COFFIN SECONDED THE MOTION. THE MOTION CARRIED. (SENATORS MATHEWS, O'DONNELL, AND RAGGIO WERE ABSENT FOR THE VOTE.) * * * * * State Environmental Commission - Page 1999 Ms. Botts turned the committee's attention to pages 25 and 26 of Exhibit F, and reviewed the major adjustments recommended by the joint subcommittee. SENATOR JACOBSEN MOVED TO CLOSE THE BUDGET IN ACCORDANCE WITH THE RECOMMENDATIONS OF STAFF AND THE JOINT SUBCOMMITTEE SHOWN ON PAGES 25 AND 26 OF EXHIBIT F. SENATOR COFFIN SECONDED THE MOTION. THE MOTION CARRIED. (SENATORS MATHEWS, O'DONNELL, AND RAGGIO WERE ABSENT FOR THE VOTE.) * * * * * Mining Cooperative Fund - Page 2003 Ms. Botts said other than a small adjustment for the statewide cost allocation plan, the joint subcommittee did not recommend changes within this budget. However, existing law requires that funds to carry out agreements between the Nevada Bureau of Mines and Geology and the United States (U.S.) Geological Survey regarding topographic and geologic mapping of Nevada shall be provided by direct legislative appropriation from the General Fund. Ms. Botts referred the committee to page 27 of Exhibit F and indicated Nevada Revised Statutes (NRS) 514.060 should be amended since funding for the budget account is no longer provided by a General Fund appropriation. The language for the suggested amendment is also reflected on page 27 of Exhibit F, Ms. Botts said. SENATOR JACOBSEN MOVED TO CLOSE THE BUDGET AS RECOMMENDED BY THE GOVERNOR IN ACCORDANCE WITH THE CONCURRENCE OF THE JOINT SUBCOMMITTEE, AND TO PREPARE AN AMENDMENT TO NEVADA REVISED STATUTES (NRS) 514.060 AS INDICATED ON PAGE 27 OF EXHIBIT F. SENATOR COFFIN SECONDED THE MOTION. THE MOTION CARRIED. (SENATORS MATHEWS, O'DONNELL, AND RAGGIO WERE ABSENT FOR THE VOTE.) * * * * * Tahoe Regional Planning Agency - Page 2005 Ms. Botts called the committee's attention to pages 28 and 29 of Exhibit F, and referenced the major technical adjustments recommended to the budget account for the Tahoe Regional Planning Agency (TRPA). She stated there was repeated discussion by the joint subcommittee concerning whether or not funding for the "Partnership Approach" should be continued to work with interested parties on problems such as air and water quality, restoration of stream environment zones, forest health, and recreation issues. The IFC authorized the program in November, 1994, with the expectation California would match Nevada's contribution of $60,000 a year. However, California is not contributing a match for the Partnership Approach in Fiscal Year 1995 - 1996. Ms. Botts said the joint subcommittee recommended continued funding for the program, and there are efforts underway at the present time to set up a meeting between Nevada and California legislators to discuss a continued commitment to the program. Another issue discussed by the joint subcommittee concerns salary for employees of the TRPA, Ms. Botts said. She explained traditionally, the TRPA employees are offered the same raise provided to Nevada state employees, providing California matches the raise. The joint subcommittee voted to provide Nevada's share of a salary increase for TRPA's employees for the same percentage granted to Nevada's classified employees, regardless of whether California matches the raise. She pointed out the Governor did not recommend a raise for employees of the TRPA. Senator Jacobsen opined there should be a meeting held with California representatives concerning the issues involved with the TRPA. Senator Rawson agreed a meeting should be arranged. SENATOR JACOBSEN MOVED TO CLOSE THE BUDGET IN ACCORDANCE WITH THE RECOMMENDATIONS OF STAFF AND THE JOINT SUBCOMMITTEE AS REFLECTED ON PAGES 28 AND 29 OF EXHIBIT F. Senator Coffin asked if discussion regarding the pay issue for TRPA employees had brought out the fact Nevada has regularly provided their share of the pay raise to the bistate employees for several biennia, while California has not. He asked if California will always lag behind in this area. Ms. Botts said typically for several biennia, Nevada has provided the pay raise contingent upon California providing a match. The Tahoe Regional Compact Agreement requires that the agency request funding in a two-thirds, one-third split, but it does not bind the legislature in either state to fund on that basis, and neither state is bound by the actions of the other state, Ms. Botts said. She remarked the joint subcommittee wants to talk to California representatives regarding the pay issue rather than have members of the TRPA directly approach the California legislature. Senator Rawson commented perhaps the joint subcommittee can demonstrate to the State of California that it is important the employees of the TRPA be maintained at comparable levels. Senator Jacobsen suggested this may be an area that can be addressed by the oversight committee. SENATOR COFFIN SECONDED THE MOTION. THE MOTION CARRIED. (SENATORS MATHEWS, O'DONNELL, AND RAGGIO WERE ABSENT FOR THE VOTE.) * * * * * Nevada Tahoe Regional Planning Agency - Page 2009 Ms. Botts said under the Tahoe Regional Planning Compact, the Nevada Tahoe Regional Planning Agency (NTRPA) regulates all structures housing gaming in the Lake Tahoe basin. The agency is headed by a governing body consisting of the seven Nevada members of the Governing Board of the TRPA. Ms. Botts stated the joint subcommittee recommends closing the budget as recommended by the Governor. SENATOR JACOBSEN MOVED TO CLOSE THE BUDGET AS RECOMMENDED BY THE GOVERNOR IN ACCORDANCE WITH THE CONCURRENCE OF THE JOINT SUBCOMMITTEE. SENATOR COFFIN SECONDED THE MOTION. THE MOTION CARRIED. (SENATORS MATHEWS, O'DONNELL, AND RAGGIO WERE ABSENT FOR THE VOTE.) * * * * * State Climatologist - Page 2013 Ms. Botts reported the Governor recommended abolishing the separate budget account of the state climatologist, and establishing a new category within the Director's Office of the State Department of Conservation and Natural Resources from which a contract for services of the state climatologist might be paid. She said the contract will be similar to the contract the Department of Taxation has with the University of Nevada, Reno, for services of the state demographer. Ms. Botts said a BDR will be needed to change the appointing authority from the Governor to the State Department of Conservation and Natural Resources, and suggested language for the BDR is shown on page 31 of Exhibit F. SENATOR JACOBSEN MOVED TO CLOSE THE BUDGET IN ACCORDANCE WITH THE RECOMMENDATIONS OF STAFF AND THE JOINT SUBCOMMITTEE REFLECTED ON PAGE 31 OF EXHIBIT F, AND TO PREPARE A BDR TO CHANGE THE APPOINTING AUTHORITY FOR THE STATE CLIMATOLOGIST TO THE STATE DEPARTMENT OF CONSERVATION AND NATURAL RESOURCES. SENATOR COFFIN SECONDED THE MOTION. THE MOTION CARRIED. (SENATORS MATHEWS, O'DONNELL, AND RAGGIO WERE ABSENT FOR THE VOTE.) * * * * * Heil Wild Horse Bequest - Page 2017 Ms. Botts concluded coverage of Exhibit F by covering the provisions of the recommended adjustments to the budget account shown on page 32. She said to allow the executive director time to develop fund-raising projects, the Wild Horse Commission requested an additional position, supported by the state's General Fund, to review land use plans. Rather than appropriating General Fund revenue to the trust fund, the Governor is recommending a new, state-funded Habitat Biologist for the budget of the Division of Wildlife to be shared with the Wild Horse Commission. Ms. Botts pointed out the joint subcommittee is in favor of the additional position to be added to this budget. Ms. Botts stated the technical adjustments reflected on page 32 of Exhibit F incorporate the latest cost allocation information for the Statewide Cost Allocation Plan. Senator Rhoads stated he has received numerous complaints that the executive director does not obtain approval from the Wild Horse Commission regarding proposed roundups. He stated because the correct procedures are often not followed, many roundup activities are delayed at a cost to the federal government of thousands of dollars. He opined it is "almost unethical" for the state to place revenue into a fund that is not supported by the General Fund. Ms. Botts clarified that is why the revenue is proposed to be deposited into the Division of Wildlife's budget account. Senator Rhoads asked about the statutes governing the receipt of gifts and donations. Ms. Botts responded IFC approval must be obtained before a gift (or cash donation) valued at $10,000 or more can be accepted by the state. SENATOR JACOBSEN MOVED TO CLOSE THE BUDGET IN ACCORDANCE WITH THE RECOMMENDATIONS OF STAFF AND THE JOINT SUBCOMMITTEE AS SHOWN ON PAGE 32 OF EXHIBIT F. SENATOR COFFIN SECONDED THE MOTION. THE MOTION CARRIED. (SENATORS MATHEWS, O'DONNELL, AND RAGGIO WERE ABSENT FOR THE VOTE.) * * * * * High Level Nuclear Waste - Page 1893 Other than some technical adjustments in revenue shown on page 1 of the budget closing action sheet (Exhibit G), the big issue involved who should have appointing authority over the executive director, Ms. Botts said. She stated Assembly Bill (A.B.) 130 changes the executive director to the administrator of the Agency for Nuclear Projects, and transfers the authority for appointing the executive director from the Governor to the director of the State Department of Conservation and Natural Resources. ASSEMBLY BILL 130: Revises provisions governing agency for nuclear projects and state department of conservation and natural resources. Ms. Botts stated the joint subcommittee recommended the budget should be closed as recommended by the Governor. She further stated the Governor prefers moving the agency back under the supervision of the Governor's Office rather than with the State Department of Conservation and Natural Resources, and the joint subcommittee has recommended a BDR be requested to that effect. SENATOR COFFIN MOVED TO CLOSE THE BUDGET IN ACCORDANCE WITH THE RECOMMENDATIONS OF THE JOINT SUBCOMMITTEE REFLECTED ON PAGES 1 - 3 OF EXHIBIT G, AND A BDR BE REQUESTED TO PLACE THE AGENCY FOR NUCLEAR PROJECTS UNDER THE SUPERVISION OF THE GOVERNOR'S OFFICE. SENATOR JACOBSEN SECONDED THE MOTION. THE MOTION CARRIED. (SENATORS MATHEWS, O'DONNELL, AND RAGGIO WERE ABSENT FOR THE VOTE.) * * * * * Division of Forestry - Page 1927 Ms. Botts highlighted the recommended technical adjustments reflected on page 7 of Exhibit G. SENATOR JACOBSEN MOVED TO CLOSE THE BUDGET IN ACCORDANCE WITH THE RECOMMENDATIONS OF THE JOINT SUBCOMMITTEE REFLECTED ON PAGE 7 OF EXHIBIT G. SENATOR COFFIN SECONDED THE MOTION. THE MOTION CARRIED. (SENATORS MATHEWS, O'DONNELL, AND RAGGIO WERE ABSENT FOR THE VOTE.) * * * * * Natural Resources Administration - Page 1879 As indicated on page 8 of Exhibit G, Ms. Botts stressed to improve financial management of the Division of Forestry, the two existing accounting positions within the division are transferred to the Director's Office of the State Department of Conservation and Natural Resources. The department's Administrative Services Officer will provide overall supervision to the accounting section, which has been increased in light of the problems found in the recent audit of the division conducted by the Audit Division of the Legislative Counsel Bureau. In addition, Ms. Botts emphasized the position within the division that is responsible for screening, acquiring, and disposing of excess property is transferred to the Director's Office to improve tracking and accounting for the agency's inventory. SENATOR JACOBSEN MOVED TO CLOSE THE BUDGET IN ACCORDANCE WITH THE RECOMMENDATIONS OF THE JOINT SUBCOMMITTEE AND STAFF REFLECTED ON PAGE 8 OF EXHIBIT G. SENATOR COFFIN SECONDED THE MOTION. THE MOTION CARRIED. (SENATORS MATHEWS, O'DONNELL, AND RAGGIO WERE ABSENT FOR THE VOTE.) * * * * * Forestry Intergovernmental Agreements - Page 1935 Pages 9 and 10 of Exhibit G were referenced by Ms. Botts while she highlighted the major adjustments to the account. SENATOR JACOBSEN MOVED TO CLOSE THE BUDGET IN ACCORDANCE WITH THE RECOMMENDATIONS OF STAFF AND THE JOINT SUBCOMMITTEE AS REFLECTED ON PAGES 9 AND 10 OF EXHIBIT G. SENATOR COFFIN SECONDED THE MOTION THE MOTION CARRIED. (SENATORS MATHEWS, O'DONNELL, AND RAGGIO WERE ABSENT FOR THE VOTE.) * * * * * Forest Fire Suppression - Page 1939 Ms. Botts referred to Senate Bill (S.B.) 76 which renamed the budget account to the "Emergency Response" account since the agency's responses include all emergencies, not just fires. SENATE BILL 76: Authorizes temporary advance from state general fund for authorized expenses of department of conservation and natural resources. Ms. Botts highlighted the recommended changes to the budget account shown on pages 11 and 12 of Exhibit G. She indicated the joint subcommittee has requested the division to complete the list of the types of approved expenses before the 1995 fire season begins. Ms. Botts clarified several expenditures made from the suppression account were questioned, which prompted the joint subcommittee to request a list of the approved expenditures. The joint subcommittee also requested the division to establish procedures for processing billings for reimbursements and payment to vendors in a more timely manner. Senator Jacobsen indicated he has requested the State Forester Firewarden to provide in-depth information on the status of major maintenance projects and problems that are encountered in the quarterly report he must submit to the IFC. He stated the division agreed to comply with his request. SENATOR JACOBSEN MOVED TO CLOSE THE BUDGET IN ACCORDANCE WITH THE RECOMMENDATIONS OF STAFF AND THE JOINT SUBCOMMITTEE REFLECTED ON PAGES 11 AND 12 OF EXHIBIT G. SENATOR COFFIN SECONDED THE MOTION. THE MOTION CARRIED. (SENATORS MATHEWS, O'DONNELL, AND RAGGIO WERE ABSENT FOR THE VOTE.) * * * * * Forestry Nurseries - Page 1951 Ms. Botts said the recommended adjustments to this account are shown on page 13 of Exhibit G. She said eight positions are authorized in the current biennium, but the Governor has recommended abolishing one position that has never been filled, and two other positions that are currently vacant because nursery revenues are insufficient to support eight employees. SENATOR JACOBSEN MOVED TO CLOSE THE BUDGET IN ACCORDANCE WITH THE RECOMMENDATIONS OF STAFF AND THE JOINT SUBCOMMITTEE REFLECTED ON PAGE 13 OF EXHIBIT G. SENATOR COFFIN SECONDED THE MOTION. THE MOTION CARRIED. (SENATORS MATHEWS, O'DONNELL, AND RAGGIO WERE ABSENT FOR THE VOTE.) * * * * * State Parks - Page 1979 Ms. Botts provided an indepth explanation of the recommended changes to the budget account shown on pages 15 - 17 of Exhibit G. Senators O'Donnell and Raggio rejoined the hearing at 6:40 p.m. at which time the gavel was returned to Senator Raggio. Senator Coffin indicated he and Senator Rawson recently toured the Old Las Vegas Morman Fort State Historic Park in southern Nevada to review the progress being made toward restoration and an archaeological project in the park area. He referred the committee to Exhibit H, an April 17, 1995, memorandum from the park's supervisor, regarding the request for a seasonal employee for a 9-month period for the fort. As mentioned in the memorandum, the difference in this park and other state parks is that when it is open to the public there must be an employee on the site at all times due to the archaeological studies that are presently being conducted at the park, and the necessity to monitor items that are kept within the fort. This means the park supervisor cannot leave the park to attend to errands, research, or training, Senator Coffin said, and he would like the committee to entertain the suggestion that funding be approved for the purpose of hiring a seasonal employee. Senator Raggio requested a motion to provide the revenue to hire a seasonal employee for the morman fort. SENATOR COFFIN MOVED TO ALLOCATE THE REVENUE TO HIRE A PARK AIDE I FOR A 9-MONTH PERIOD AT THE OLD LAS VEGAS MORMAN FORT STATE HISTORIC PARK FOR BOTH YEARS OF THE BIENNIUM. SENATOR RAWSON SECONDED THE MOTION. THE MOTION CARRIED. (SENATOR MATHEWS WAS ABSENT FOR THE VOTE.) * * * * * Senator Raggio asked if the joint subcommittee supports the recommendation by the Division of State Parks to enhance funding for the park system by eliminating free admission to the parks for senior citizens. Ms. Botts said the joint subcommittee has not reached a decision regarding the age at which to curtail charging admission. No fees are currently charged to those individuals age 60 and over, but the law may be changed to raise the age to 65 to conform with the Division of Wildlife. Ms. Botts stated there is no adjustment needed within the budget to accommodate a change in the fee collection from age 60 to 65, and in closing the budget the law will remain unchanged. The statute will have to be amended in order to extend the admission fee charge to age 65, Ms. Botts said. Senator Raggio inquired if the joint subcommittee reached an agreement regarding the acquisition of a boat landing at Washoe Lake. Ms. Botts explained there is a proposal for Washoe County to relinquish the county's park facility at Washoe Lake to the state. If this occurs, and the Division of State Parks were to be able to add a staff person and seasonal help, the park area could be monitored. She distributed Exhibit I, a budget submitted by the Division of State Parks referencing the Washoe Lake boat landing and the costs associated with the addition of seasonal help. She stated the budget indicates funding for the facility can be generated through the collection of fees. Senator Raggio asked why a residence trailer must be acquired at a cost of $35,000 to be situated in the state park area of Washoe Lake. Ms. Botts responded the Division of State Parks feels strongly that someone be located on the premises to guard against vandalism and to properly care for the state park area and boat ramp facility. She said the individual could also monitor the area known as Little Washoe Lake. Senator Jacobsen opined a discussion should be held between the Division of State Parks and the Washoe County Parks and Recreation Department to discuss the issue. Ms. Botts concurred a meeting should be held to acquire an agreement regarding the division of responsibility between Washoe County and the state, and to resolve some of the committee's questions. Ms. Botts said Pam Wilcox, Acting Administrator of the Division of Conservation Districts, has indicated legislation is not needed as long as there is a budget line item that specifies the state will acquire the land. Senator Raggio feels it will be easier to include the land acquisition in the budget, and if a transfer of land is later required, it can be accomplished as a separate issue. He agrees a meeting should be scheduled with the Washoe County Parks and Recreation Department. Senator Raggio stated a bill was recently processed in the Senate Committee on Government Affairs that authorizes the amount of user fees for water, sewer, and electricity for each state park to be collected, placed into a fund, and used at the park where the fees originated. Since there is no limit on what is charged for a fee, he has requested information regarding the amount of fees proposed to be charged at the state parks. Senator Raggio suggested he would like to close the State Parks budget today, but he would like a report to be furnished to the committee from the Division of State Parks and the Washoe County Parks and Recreation Department regarding the agreement reached regarding the division of responsibility at the Washoe Lake State Park, particularly in reference to in-kind services provided by the Washoe County Parks and Recreation Department. He also requested the Division of State Parks to appear before the Senate Committee on Finance regarding the amount of the proposed fees for the boat ramp facility at the Washoe Lake State Park. SENATOR JACOBSEN MOVED TO CLOSE THE BUDGET IN ACCORDANCE WITH STAFF AND JOINT SUBCOMMITTEE RECOMMENDATIONS REFLECTED ON PAGES 15 - 17 OF EXHIBIT G, AND TO INCLUDE INFORMATION PERTAINING TO THE ACQUISITION OF THE WASHOE LAKE BOAT LANDING FACILITY. SENATOR O'DONNELL SECONDED THE MOTION. THE MOTION CARRIED. (SENATOR MATHEWS WAS ABSENT FOR THE VOTE.) * * * * * Senator Raggio turned the committee's attention back to budget page 1893, High Level Nuclear Waste, and asked if there was any specific action that was not recommended by the joint subcommittee. Ms. Botts responded the joint subcommittee recommended a BDR be introduced to place the Agency for Nuclear Projects back under the supervision of the Governor's Office. It was also recommended a Letter of Intent be issued to direct the agency to make necessary adjustments in the contracts and work situations of four "contract employees" to eliminate elements that may indicate an employer-employee relationship exists. Senator Raggio asked if these provisions are contained within Assembly Bill (A.B.) 130. ASSEMBLY BILL 130: Revises provisions governing agency for nuclear projects and state department of conservation and natural resources. Ms. Botts replied S.B. 130 does not address the aforementioned provisions. She said A.B. 130 would have transferred the authority for appointing the Executive Director for the Agency for Nuclear Projects from the Governor to the Director of the State Department of Conservation and Natural Resources. Ms. Botts said the Governor has recommended this change should not take place. Senator O'Donnell interjected the joint subcommittee reluctantly concurred with the Governor's request. Senator Raggio asked if the budget for the Legislative Oversight Committee is included in the High Level Nuclear Waste budget. Ms. Botts responded in the affirmative. She referred the committee to page 4 of Exhibit G that contains the budget information for the Oversight Committee under the title "Legislative Committee." Senator Raggio remarked: One collateral issue that has rankled the chairman for sometime is that the Legislative Committee, by statute, is comprised of four members from the Assembly and three from the Senate. That is inappropriate. It is not equality between the houses. I want to recommend there be an amendment to that statute that will require four members or three members from each house, as long as the number is equal. Until that is approved, I do not want to approve this budget. If we have taken action on the budget, I would ask that we rescind the action approving the budget, and obtain an appropriate BDR to change the makeup of that committee so it is equal between the houses. Ms. Botts asked if the BDR should also include placing the appointing authority back into the Governor's Office. Senator Raggio responded in the affirmative and stated he would accept a motion to that effect. SENATOR O'DONNELL MOVED TO RESCIND THE BUDGET CLOSING ACTION TAKEN ON BUDGET PAGE 1893 FOR HIGH LEVEL NUCLEAR WASTE, AND RECOMMENDED (FOR EQUALITY) A BDR BE INTRODUCED TO REQUIRE FOUR MEMBERS BE APPOINTED TO THE LEGISLATIVE OVERSIGHT COMMITTEE FROM EACH HOUSE, AND TO TRANSFER THE AUTHORITY FOR APPOINTING THE EXECUTIVE DIRECTOR OF THE AGENCY FOR NUCLEAR PROJECTS TO THE GOVERNOR'S OFFICE. SENATOR JACOBSEN SECONDED THE MOTION. Senator O'Donnell noted since the funding for the Legislative Oversight Committee comes out of the High Level Nuclear Waste budget, some adjustments will be required to account for the additional expenses of the fourth member. THE MOTION CARRIED. (SENATOR MATHEWS WAS ABSENT FOR THE VOTE.) * * * * * Senator Jacobsen remarked: I sit on the High Level Waste Committee and we are not compatible with Robert R. Loux [Executive Director, Agency for Nuclear Projects]. That frustrates everybody with whom we must meet, on a federal level on down. We never seem to accomplish anything. We are fighting each other. Even our own committee is fractured due to political and emotional issues. I think I am just wasting my time. I do not mind serving, but there does not seem to be an end of the road because we are all going in different directions. Somehow we have to reach an understanding with Bob Loux [the Executive Director, Agency for Nuclear Projects] and the Governor's Office to arrive at some valuable conclusions. Senator Raggio interjected the aforementioned BDR should include the stipulation that the chairmanship be alternated between the houses. Division of Water Planning - Page 1991 Ms. Botts reviewed the recommended adjustments to the budget account shown on pages 18 and 19 of Exhibit G, and pointed out a Letter of Intent should be issued to reimburse the Division of Water Planning's budget account for time and expenses of the grant and loan program previously charged to the account. SENATOR JACOBSEN MOVED TO CLOSE THE BUDGET IN ACCORDANCE WITH THE RECOMMENDATIONS OF STAFF AND THE JOINT SUBCOMMITTEE REFLECTED ON PAGES 18 AND 19 OF EXHIBIT G, AND TO INCLUDE A LETTER OF INTENT TO REIMBURSE THE DIVISION OF WATER PLANNING BUDGET FOR TIME AND EXPENSES INCURRED WITH THE GRANT AND LOAN PROGRAM. SENATOR COFFIN SECONDED THE MOTION. THE MOTION CARRIED. (SENATOR MATHEWS WAS ABSENT FOR THE VOTE.) * * * * * Water Planning Capital Improvements - Page 1997 Page 20 of Exhibit G was referenced by Ms. Botts while she provided information concerning the adjustments to the account. She indicated a Letter of Intent should be issued directing the Division of Water Planning to reimburse the division's budget account 4161, which is supported by General Fund appropriations, from the Water Planning Capital Improvements budget account 4155. SENATOR JACOBSEN MOVED TO CLOSE THE BUDGET IN ACCORDANCE WITH THE RECOMMENDATIONS OF STAFF AND THE JOINT SUBCOMMITTEE REFLECTED ON PAGE 20 OF EXHIBIT G, AND TO ISSUE A LETTER OF INTENT DIRECTING THE DIVISION OF WATER PLANNING TO REIMBURSE THE DIVISION'S ACCOUNT FROM THE WATER PLANNING CAPITAL IMPROVEMENTS BUDGET ACCOUNT FOR EXPENSES OF THE GRANT AND LOAN PROGRAM. SENATOR COFFIN SECONDED THE MOTION. THE MOTION CARRIED. (SENATOR MATHEWS WAS ABSENT FOR THE VOTE.) * * * * * Senator Raggio adjourned the meeting at 7:27 p.m. RESPECTFULLY SUBMITTED: Marion Entrekin, Committee Secretary APPROVED BY: Senator William J. Raggio, Chairman DATE: . Senate Committee on Finance May 18, 1995 Page