MINUTES OF THE SENATE COMMITTEE ON FINANCE Sixty-eighth Session May 22, 1995 The Senate Committee on Finance was called to order by Chairman William J. Raggio, at 8:15 a.m., on Monday, May 22, 1995, in Room 223 of the Legislative Building, Carson City, Nevada. Exhibit A is the Agenda. Exhibit B is the Attendance Roster. COMMITTEE MEMBERS PRESENT: Senator William J. Raggio, Chairman Senator Raymond D. Rawson, Vice Chairman Senator Lawrence E. Jacobsen Senator Bob Coffin Senator William R. O'Donnell Senator Dean A. Rhoads Senator Bernice Mathews STAFF MEMBERS PRESENT: Dan Miles, Fiscal Analyst Bob Guernsey, Principal Deputy Fiscal Analyst Debbra J. King, Program Analyst Cristin Buchanan, Committee Secretary OTHERS PRESENT: V. James Eardley, Chairman, University of Nevada Board of Regents, University and Community College System of Nevada Tom Anderes, Vice Chancellor, Finance and Administration, University and Community College System of Nevada Richard S. Jarvis, Chancellor, University and Community College System of Nevada James T. Richardson, Lobbyist, Nevada Faculty Alliance Donald J. Mello, Court Administrator and Director, Office of Court Administrator, Supreme Court Mrs. Clark Guild, Widow of Supreme Court Justice Clark Guild Jackie Frady, Executive Director, National Automobile Museum Dorothy McAlinden, Interested Citizen Ted Bacon, Member, Board of Trustees, National Automobile Museum Ferenc Szony, President, Reno Hilton Harvey Whittemore, Secretary, Board of Trustees, National Automobile Museum Laura Lee Evans, Interested Citizen Rick Davis, President, Board of Directors, Hot August Nights Tom Potter, Interested Citizen Ivan Renny Ashleman, II, Representative, Museums, Arts and Library Foundation John P. Comeaux, Director, Department of Administration Senator Raggio noted that he has received the amendments on Senate Bill (S.B.) 2 and Senate Bill (S.B.) 76, in which the committee moved to amend and do pass on May 15, 1995, and distributed the amendments to the committee for their review. SENATE BILL 2: Revises provisions governing licensing of private investigators and related occupations. SENATE BILL 76: Authorizes temporary advance from state general fund for certain authorized expenses of state department of conservation and natural resources. Dan Miles, Fiscal Analyst, Fiscal Analysis Division, Legislative Counsel Bureau, reviewed the amendment for S.B. 76. Senator Raggio opened the hearing on Senate Bill (S.B.) 17. SENATE BILL 17: Creates committee to study funding of higher education. V. James Eardley, Chairman, University of Nevada Board of Regents, University and Community College System of Nevada, reviewed the background for S.B. 17, as outlined in Exhibit C. Tom Anderes, Vice Chancellor, Finance and Administration, University and Community College System of Nevada, read from Exhibit C, commenting on the purpose and process of S.B. 17. Richard S. Jarvis, Chancellor, University and Community College System of Nevada reviewed the Issues for Review contained in Exhibit C. He indicated, "Since the last study was done, we have become a major research university. We are now delivering in the order of $100 million of federally funded activity to this state..." Senator Raggio requested a summary of the research programs currently being conducted. Senator Mathews queried the correctness of the fiscal note. Senator Raggio explained the figures in the fiscal note reflects the costs for the legislative members of the study committee. He commented: There will undoubtedly be costs to the others who would participate...We may need to revisit the fiscal note...because there are members of the budget office...I would opine, initially, that I doubt we would approve a committee with the makeup as it is right now in this bill. Senator Jacobsen vocalized his concerns over having members on the study committee who will not have voting privileges. With respect to the secretary position proposed to be assigned by the chairman of the Legislative Commission, Senator Jacobsen believes a secretary from the higher education community will serve the study commission better than a secretary from the Legislative Counsel Bureau. Senator Coffin questioned whether the study committee should focus on additional aspects of higher education, in addition to the funding mechanisms, due to the tremendous growth in the field. Mr. Eardley responded under the current organization of the university and community college system, the structure is sound as it stands. Senator Coffin clarified he is asking if the system is in need of statutory assistance to set up and obtain a sound structure. Mr. Eardley reflected that a change in the responsibilities of the chancellor from a coordinating position to an authority position brought about significant changes which have been inherent in the current success of the system. James T. Richardson, Lobbyist, Nevada Faculty Alliance, testified in support of S.B. 17. He stated: The value of the study is that it gets the university officials and the legislators on the same page in terms of understanding the needs of higher education in this rapidly growing system...The interim study had...meetings...where people spent...time talking about comparative methods of funding higher education. Then when we came back to the Legislature, after that study was submitted to the Legislature...the Governor had not chosen to implement that study's recommendations, but in fact the legislative money committees did start the implementation and it was because they had come to understand the problems and the needs...It would not have happened...if we had not had those lengthy conversations... Mr. Richardson clarified the proposed members of the S.B. 17 study committee are similar to the committee makeup of the 1986 study, which Senator Raggio was a member. Closing the hearing on S.B. 17, Senator Raggio solicited testimony on Senate Bill (S.B.) 468. SENATE BILL 468: Provides for certain post-retirement increases in benefits of surviving spouses of supreme court justices and district court judges. Donald J. Mello, Court Administrator and Director, Administrative Office of the Courts, Supreme Court, testified in support of S.B. 468. Mrs. Clark Guild, Widow of Supreme Court Justice Clark Guild, informed the committee that if post-retirement increases are allowed, as provided for retired employees under the public employees' retirement system, widows will be receiving a base of $2,800 per month instead of the flat $2,000 base. Senator Raggio inquired as to the number of years Mrs. Guild's husband served as a judge. Mrs. Guild responded 30 years. Senator Jacobsen avowed: I had the privilege and pleasure...to be acquainted with the honorable judge...He was a master, everybody respected him...If he had anything he wanted introduced, I usually handled it for him. Nobody more honorable than him, and certainly the whole family has upheld his honor and his dignity. Mrs. Guild thanked Senator Jacobsen for his remarks and extended her appreciation to the committee for their consideration of the bill. On behalf of the committee, Senator Raggio expressed his gratitude to Mrs. Guild for appearing in support of S.B. 468 and closed the hearing. The meeting was recessed at 8:40 a.m. and was reconvened at 8:50 a.m. in Room 119. Senator Raggio solicited testimony in support of Senate Bill (S.B.) 449. SENATE BILL 449: Makes appropriation to City of Reno for costs relating to construction of National Automobile Museum. Jackie Frady, Executive Director, National Automobile Museum, read from prepared testimony (Exhibit D) in support of S.B. 449. Senator Raggio questioned the status of the efforts to obtain the other two-thirds of the funding for the museum. Ms. Frady revealed that approximately one-half of the one-third donation from the private sector has been collected, and the one- third donation from the City of Reno is forthcoming. She continued her testimony, discussing the myths and facts about the museum. Senator Raggio inquired how many committee members have visited the auto museum, and Senators Jacobsen, Rhoads and Rawson raised their hands. He next inquired as to the hours the museum is in operation. Ms. Frady articulated the museum is open every day of the year, except Thanksgiving and Christmas, from 9:30 a.m. to 5:30 p.m. Ms. Frady submitted that arrangements can be made to accommodate the senators' schedules should they want to tour the museum. She proceeded to play an education video (Exhibit E. Original is on file with the Research Library.) entitled "Education presentation, May 15, 1995, National Auto Museum," produced by the Reno-Sparks Convention & Visitors Authority and the Washoe County School District. Senator Rawson inquired whether the cars, not donated to the museum from Bill Harrah's private collection, have been sold. Ms. Frady confirmed that a series of auctions from 1984 to 1986 had been conducted in which the remaining cars were sold. Senator Rawson queried whether the cars auctioned were purchased by museums or private collectors. Ms. Frady revealed all the cars were purchased by private individuals for private collections. Senator Rawson asked whether the museum should be a state-owned museum versus a city-owned museum. He commented, "I do not know what I am stepping into here. I do not know how emotional an issue that is, and I would just like to have a feel of that from someone." Senator Raggio confirmed the validity of Senator Rawson's question, and explained: Reno...and the residents there have to be complimented. This is a situation where they have not asked the state to take over a museum and run it on a continual basis...but I think Reno is requesting...that they get some state help to relieve the museum of the debt and are willing to have the operation continue as it is, under the foundation, without asking for continuing help from the state. Dorothy McAlinden, Interested Citizen, testified in support of S.B. 449, stating the importance of preserving the museum, and indicated she is an adopt-a-car participant. She read a letter (Exhibit F) that she had mailed to the members of the committee. Senator Raggio requested an explanation of the adopt-a-car program. Ms. McAlinden clarified under the adopt-a-car program, volunteers take care of a particular car in the museum. Ms. Frady interjected the adopt-a-car program has approximately 225 members, and every car in the museum has been adopted. Ted Bacon, Member, Board of Trustees, National Automobile Museum, testified in support of S.B. 449: The mission...at the museum...is to keep this wonderful treasure in Reno...to keep it intact and to keep it open, so that everyone may see it...In a few more years, this museum will be showing automobiles of the nineteenth, twentieth and twenty-first century...This is a viable entity, it is a treasure, it is part of our heritage.... Senator Raggio questioned whether Mr. Bacon has a private collection of vintage automobiles, and Mr. Bacon responded in the affirmative. Senator Raggio inquired as to the outcome of the automobiles in the museum should the committee elect not to process the bill. Mr. Bacon surmised the automobiles will likely be auctioned. Ferenc Szony, President, Reno Hilton, interjected that tourism is not the only attraction in the state of Nevada. He stated the National Automobile Museum in Reno is "an internationally known commodity." Harvey Whittemore, Secretary, Board of Trustees, National Automobile Museum, commented on the importance of maintaining the museum. He stated, "I had the opportunity...to visit the Tower of London. I was absolutely amazed that someone had the foresight to maintain and collect the weapons of war...that took place with respect to that period of time in England." He conceded the value of the collection of automobiles is sufficient to pay off bonds. If the museum fails he remarked that negotiations have been held to have the Nevada Historical Society rent space in the museum in order to create" an integrated museum that will talk about Nevada History as well as the history of the auto." Senator Raggio inquired as to the level of commitment to the museum from the business community in Reno. Mr. Whittemore said: The gaming industry has supported this institution...significantly over the years. Since 1991, the room tax, which was originally imposed by this body, at which time this collection was deemed to be a national treasure, those funds have in fact been used to support it. As...indicated...the $3.2 million coming from redevelopment dollars are, in effect, tourist dollars. They are paid out of the room tax...so what we tried to do is to come up with a plan that involved the business community, with respect to one-third, the private...community, with respect to one-third, and then the state, with respect to one-third...They have stepped up to the plate and it is time for us, from a state perspective, to step up to the plate. Senator Coffin questioned whether any of the vehicles in the museum have a direct relation to the history of Nevada. Mr. Whittemore recognized that Senator Randolph Townsend's race car is on display at the museum. He pointed out, "The real key here is...the development of the history of the automobile took place throughout the world...It is much bigger than just Nevada." Mr. Whittemore offered to provide a specific list of ties that some automobiles in the museum have to the history of the state. Mr. Szony stressed the museum contains automobiles which reflect historical significance from the beginning of automobile travel through the present, outlining the history of the "motor car." Senator Coffin set forth that generally the state invests funds in museums which reconstruct or preserve those things that are associated with the history of the state. Mr. Whittemore recognized the importance of the collection reflecting on Nevada's history; however, he submitted, "The simple fact is that the relationships, with respect to a James Dean automobile, with respect to movies, the types of things that take place in this state, are incredibly tied to the growth and development of this community and this state." Laura Lee Evans, Interested Citizen, commented: As you enter the exhibit area of the National Automobile Museum, you begin a time line...traced along the walls. The hands on tutorial of squeezing a bulb horn...is fun and instructional. The liberty to try on clothes of past eras, also on display along the time line, gives the temporary wearer a sense of the past...Throughout the museum, children and adults are touching and feeling the heritage that makes this century what it is...Children of this state, and those who visit from all around the world, will know more about the past and why it has value beyond price. Rick Davis, President, Board of Directors, Hot August Nights, testified in support of S.B. 449. He supported the importance of preserving history as a means of remembering the past. He advised the committee he owns vintage automobiles, which he hopes to donate to the museum upon his demise, for the public to view. Tom Potter, Interested Citizen, pointed out the significance the development of the automobile had on enabling the country to convert the automobile manufacturing plants into plants which produced wartime machinery and weapons. He declared: When the world went to war in the late 1930's, this country...would not have had the industrial base to...convert...to the wartime effort, which produced the machinery, which our freedom today is a result...That we are considering the possibility of losing this museum, we lose sight of one of the very strong factors in the freedom that we enjoy today. Senator Raggio announced he will invite the Assembly Committee on Ways and Means to tour the museum with the Senate Committee on Finance. Senator Jacobsen recalled: In 1988, this legislature hosted an annual conference in Reno...We had 7,400 legislators in attendance...from all over this country...and the territories...We used the museum as one of our selling points...it was one of the joys and anyplace that any of us travel today, people still mention that....We have something to sell, and certainly we should perfect it in every manner we can. Senator Raggio noted the attendance of former Assemblyman Bob Russ. He stated the bill will be taken under consideration. Exhibit G contains copies of letters received by the committee in support of S.B. 449. Opening the hearing on Senate Bill (S.B.) 457, Senator Raggio requested Mr. Ashleman to review the purpose of the bill. SENATE BILL 457: Creates trust fund for support of division of museums and history of department of museums, library and arts. Ivan Renny Ashleman, II, Representative, Museums, Arts and Library Foundation, testified the bill will enable the foundation to raise additional funds to support the Division of Museums and History. He declared, "With this matching fund, we will be able to raise substantial additional funds for the match...The request itself is for money to be placed...in a trust fund in the state treasury, subject to recall if there should be any need by the state for the funds." There being no questions from the committee, Senator Raggio closed the hearing on S.B. 457, and opened the hearing on Senate Bill (S.B.) 266. SENATE BILL 266: Creates position of auditor of federal mandates in legislative counsel bureau. Senator Rhoads commented that after holding meetings with the Research and Fiscal Analysis Divisions, the position recommended in the bill should be classified as an analyst and be placed either under the Research Division or the Fiscal Analysis Division, of the Legislative Counsel Bureau. He reviewed the proposed duties of the position and indicated the position "would serve as a warning to either attempt to fend off the mandate back in Congress, or at least provide direction that the state must prepare for adequate funding to reach these mandates." Senator Raggio inquired whether the fiscal note will need to be changed if the position is changed from an auditor to an analyst. Senator Rhoads surmised the fiscal note will remain the same. Senator Jacobsen asked whether the position can track all available grants, in addition to the duties outlined in the bill. He commented, "I think it is going to be desirable for Nevada to have somebody that tracks those grants, if we are going to be successful." Senator O'Donnell stated for the record: Since my tenure here in this legislative body, I have noticed federal mandates that come down from Washington, D.C., that are fully funded. As time goes on, those mandates are slowly eroded in terms of funding. Sometimes we will get 80 percent of the funding one year, then we will get 60 percent of the funding, and then of course, you have the individuals coming up, begging us to keep the program because it works so well, and the federal dollars are going away. Senator O'Donnell questioned whether the position can reevaluate federal mandates which were once fully funded, and whether the position will track mandates passed which are not 100 percent funded. Senator Rhoads inferred those will be duties of the position, and surmised the requested duties by Senator Jacobsen can also be attained, stating, "I would like to talk with research and fiscal to see how we could work everything in and possibly come back with an amendment." Senator O'Donnell addressed another concern: I have seen in the past...the federal government has come out with a...grant in some form, whereby the reason to hire this individual was because they are going to help business people deal with interacting with the government...then the IFC [Interim Finance Committee] will...allow the agency to hire that individual...1 month or 2 months later, we see that they [the agency] have reapplied to change...their job description...no longer are they helping business people, but they are doing something else that is federally funded. I would want...to make sure that when...we authorize the hiring of somebody under a federal mandate, that person's job description remains the same.... Closing the hearing on S.B. 266, Senator Raggio recessed the meeting at 10:00 a.m. The committee reconvened at 10:05 a.m. in room 223, to close budgets. Director's Office - DMV - Page 1679 Debbra J. King, Program Analyst, Fiscal Analysis Division, Legislative Counsel Bureau, reviewed pages 1 and 2 of Exhibit H, outlining the recommendations made by the Joint Subcommittee on Public Safety, Transportation and Natural Resources. Senator Raggio inquired whether the administration agrees with the recommendations made by the joint subcommittee. John P. Comeaux, Director, Department of Administration, answered in the affirmative. Senator Raggio inquired as to the four budget accounts which will be affected by the implementation of the five-point plan for improving customer service. Ms. King indicated the Director's Office, the Administrative Services Account, the Registration Division and the Drivers' License Division budgets will all be affected. Senator O'Donnell requested Ms. King to explain the source of funding for the implementation of the five-point plan. Ms. King provided an explanation of the source of funding, as outlined on the top of page 3 of Exhibit H. SENATOR O'DONNELL MOVED TO CLOSE THE BUDGET IN ACCORDANCE WITH THE RECOMMENDATIONS OF THE JOINT SUBCOMMITTEE, AS OUTLINED ON PAGES 1 THROUGH 3 OF EXHIBIT H AND PAGES 1 AND 2 OF EXHIBIT I. SENATOR MATHEWS SECONDED THE MOTION. Senator Raggio asked what is the total impact to the General Fund, for the entire Department of Motor Vehicles and Public Safety (DMV&PS) budget, if the five point plan is implemented. Ms. King observed the impact to the General Fund will be a decrease of $39,000 in fiscal year (FY) 1996 and an increase of $212,000 in FY 1997. Senator Raggio concluded the plan is revenue neutral. THE MOTION CARRIED. (SENATOR COFFIN WAS ABSENT FOR THE VOTE.) ***** Senator Raggio questioned whether the bill draft request (BDR) to authorize the department to retain the commission collected on the Motor Vehicle Privilege Tax has been processed. Senator O'Donnell replied, "Not that I know of." Senator Raggio inquired whether the Assembly bill drafters are preparing the BDR. Ms. King indicated she does not believe the Assembly is processing the BDR either. Senator Raggio requested Ms. King to track whether a BDR is being drafted and if an existing bill may be amended, rather than drafting a new bill. DMV Hearings - Page 1687 Ms. King revealed the only changes made to the budget are technical corrections, as outlined on page 3 of Exhibit I. SENATOR O'DONNELL MOVED TO CLOSE THE BUDGET IN ACCORDANCE WITH THE RECOMMENDATIONS OF THE JOINT SUBCOMMITTEE, AS OUTLINED ON PAGE 3 OF EXHIBIT I. SENATOR MATHEWS SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. ***** Motor Vehicle Administration - Page 1691 Ms. King pointed out that technical corrections, outlined on pages 4 and 5 of Exhibit I, have been made in accordance with recommendations by the joint subcommittee. SENATOR O'DONNELL MOVED TO CLOSE THE BUDGET IN ACCORDANCE WITH THE RECOMMENDATIONS OF THE JOINT SUBCOMMITTEE, AS OUTLINED ON PAGE 3 OF EXHIBIT H AND PAGES 4 AND 5 OF EXHIBIT I. SENATOR JACOBSEN SECONDED THE MOTION. THE MOTION CARRIED. (SENATOR MATHEWS WAS ABSENT FOR THE VOTE.) ***** Records Search - Page 1697 Ms. King reviewed page 6 of Exhibit I, and stated the recommendation of the subcommittee is to close the budget as recommended by the Governor, with minor technical adjustments. SENATOR O'DONNELL MOVED TO CLOSE THE BUDGET IN ACCORDANCE WITH THE RECOMMENDATIONS OF THE JOINT SUBCOMMITTEE, AS OUTLINED ON PAGE 6 OF EXHIBIT I. SENATOR JACOBSEN SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. ***** Drivers License - Page 1701 Ms. King reviewed page 4 of Exhibit I and pages 7 and 8 of Exhibit H, commenting on the technical adjustments made in accordance with the recommendations of the joint subcommittee. Senator Raggio queried whether the five-point plan includes a driver's license renewal-by-mail service. Ms. King affirmed that the renewal-by-mail service was briefly discussed by the joint subcommittee, and that it will be included in the five-point plan. Senator Raggio requested an explanation of the renewal-by-mail program. Ms. King reviewed: If you meet their criteria, being between the ages of 25 and 70, and...have a clean record, they [DMV&PS] will send you...a mailer...which explains the criteria and says that you can now renew by mail...It will cost $22. You send the check...they check your driver's license, if your check is good and your driving record is clean, they will send you a sticker to put on the back of your driver's license. You would be able to renew once by mail, and then you would...have to go in the next time. SENATOR O'DONNELL MOVED TO CLOSE THE BUDGET IN ACCORDANCE WITH THE RECOMMENDATIONS OF THE JOINT SUBCOMMITTEE, AS OUTLINED ON PAGE 4 OF EXHIBIT H AND PAGES 7 AND 8 OF EXHIBIT I. SENATOR MATHEWS SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. ***** Commercial Drivers' License - Page 1707 Ms. King pointed out that technical adjustments have been made to the budget, as contained on page 9 of Exhibit I, and that the budget will be merged into the Drivers' License budget account, as indicated on page 4 of Exhibit H. Senator Raggio requested clarification that this budget account will no longer exist once it is merged with the Drivers' License budget and Ms. King responded, "Correct." SENATOR O'DONNELL MOVED TO CLOSE THE BUDGET IN ACCORDANCE WITH THE RECOMMENDATIONS OF THE JOINT SUBCOMMITTEE, AS OUTLINED ON PAGE 4 OF EXHIBIT H AND PAGE 9 OF EXHIBIT I. SENATOR MATHEWS SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. ***** Registration - Page 1711 Ms. King reviewed the recommendations of the joint subcommittee on pages 4 and 5 of Exhibit H, and the adjustments to the budget on pages 10 and 11 of Exhibit I. Senator Raggio requested clarification the letter of intent, as recommended by the subcommittee, will require IFC approval before the department can hire additional staff in FY 1997. Ms. King responded in the affirmative. Senator Raggio asked, "Was it the subcommittee's intention, that if these positions were hired for the limited period of 2 years, that would address the titling backlog?" Ms. King replied the subcommittee indicated the department will not need the requested positions once the backlog is reduced, and suggested the department may appear next session to address any ongoing needs at that time. Senator O'Donnell interjected: I asked that question specifically, because I did not want to have the DMV hiring more positions than were necessary due to the fact that the backlog would, at some point, be diminished. I stated that I was concerned and asked...what was the attrition rate in that particular division. She [Donna Wadey-Howell, Acting Chief, Registration Division, Department of Motor Vehicles and Public Safety] stated it was about 60 percent per year. I was comfortable in that they could, as the backlog started to diminish...by attrition, get rid of some of those positions and she said that she would give me that commitment. Senator Raggio stated this information should be specially expressed in the letter of intent so that individuals hired for titling purposes will be aware they were hired for a limited period at the suggestion of the administration and the Legislature. Mr. Comeaux corroborated with Senator Raggio's statement. SENATOR O'DONNELL MOVED TO CLOSE THE BUDGET IN ACCORDANCE WITH THE RECOMMENDATIONS OF THE JOINT SUBCOMMITTEE, AS OUTLINED ON PAGES 4 AND 5 OF EXHIBIT H AND PAGES 10 AND 11 OF EXHIBIT I. SENATOR MATHEWS SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. ***** Salvage Wreckers/Body Shops - Page 1717 SENATOR O'DONNELL MOVED TO CLOSE THE BUDGET IN ACCORDANCE WITH THE RECOMMENDATIONS OF THE JOINT SUBCOMMITTEE, AS OUTLINED ON PAGE 12 OF EXHIBIT I. SENATOR MATHEWS SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. ***** Verification of Insurance - Page 1721 Ms. King reviewed pages 5 and 6 of Exhibit H, containing the recommendations of the joint subcommittee. She indicated Assembly Bill (A.B.) 628 has been introduced to carry out the recommended changes. ASSEMBLY BILL 628: Revises provisions relating to verification of insurance for motor vehicles. Senator Raggio inquired whether the joint subcommittee has taken a position to either keep or abolish the Office of the Advocate for Insurance Customers. Senator O'Donnell responded the joint subcommittee recommended funding for the position, provided that A.B. 628 is passed. He clarified, "We had no real say...one way or another...We left that open...We authorized the funding out of the insurance verification program, but we did not fund it." Senator Raggio asked whether funding for the position should remain in the budget if A.B. 628 does not pass. Ms. King replied the funding currently appropriated for that position will revert to the Highway Fund if the insurance advocate position is eliminated. Senator Coffin questioned whether the administration changed its policy decision regarding the Office of the Advocate for Insurance Customers. Mr. Comeaux indicated the administration originally recommended eliminating the insurance advocate office, but later decided to retain the office and transfer it to the Consumer Affairs Division from the Division of Insurance in the Department of Business and Industry to be funded from a General Fund appropriation. SENATOR O'DONNELL MOVED TO CLOSE THE BUDGET IN ACCORDANCE WITH THE RECOMMENDATIONS OF THE JOINT SUBCOMMITTEE, AS OUTLINED ON PAGES 5 AND 6 OF EXHIBIT H AND PAGE 13 OF EXHIBIT I, INCLUDING THE TRANSFER OF THE INSURANCE ADVOCATE POSITION SUBJECT TO THE PASSAGE OF A.B. 628. SENATOR MATHEWS SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. ***** Senator O'Donnell remarked the insurance verification program, with the changes that have been developed and implemented over the past 2 years, has been successful, resulting in 1,700 revoked registrations. He stated the success of the program is "why the $500,000 budget reserve is adequate." Motor Vehicle Pollution Control - Page 1725 Ms. King reviewed the technical corrections contained on pages 14 and 15 of Exhibit I, and the recommendations of the subcommittee, as indicated on page 6 of Exhibit H. Senator Raggio stated the recommendation of the joint subcommittee to have the agency approach the IFC should be in the form of a letter of intent. SENATOR O'DONNELL MOVED TO CLOSE THE BUDGET IN ACCORDANCE WITH THE RECOMMENDATIONS OF THE JOINT SUBCOMMITTEE, AS OUTLINED ON PAGE 6 OF EXHIBIT H AND PAGES 14 AND 15 OF EXHIBIT I, INCLUDING A LETTER OF INTENT. SENATOR MATHEWS SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. ***** Motor Carrier - Page 1731 Ms. King reviewed the adjustments to the budget and the joint subcommittee recommendations on page 6 of Exhibit H and page 16 of Exhibit I. SENATOR O'DONNELL MOVED TO CLOSE THE BUDGET IN ACCORDANCE WITH THE RECOMMENDATIONS OF THE JOINT SUBCOMMITTEE, AS OUTLINED ON PAGE 6 OF EXHIBIT H AND PAGE 16 OF EXHIBIT I. SENATOR MATHEWS SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. ***** Commissioner for Veterans Affairs - Page 1737 Ms. King remarked the budget contains one technical adjustment, as indicated on page 17 of Exhibit I. SENATOR O'DONNELL MOVED TO CLOSE THE BUDGET IN ACCORDANCE WITH THE RECOMMENDATIONS OF THE JOINT SUBCOMMITTEE, AS OUTLINED ON PAGE 17 EXHIBIT I. SENATOR MATHEWS SECONDED THE MOTION. Senator Rawson commented the Senate Committee on Human Resources and Facilities is considering bills which address veterans' affairs issues, and the budget may need to be revised at a later date. THE MOTION CARRIED UNANIMOUSLY. ***** Veterans Home - Page 1743 Ms. King reviewed the adjustments made to the budget according to the recommendations of the joint subcommittee, as displayed on page 18 of Exhibit I. Senator Raggio commented on the potential need to revisit the efficacy of the program based on the small numbers of license plates sold. SENATOR O'DONNELL MOVED TO CLOSE THE BUDGET IN ACCORDANCE WITH THE RECOMMENDATIONS OF THE JOINT SUBCOMMITTEE, AS OUTLINED ON PAGE 18 OF EXHIBIT I. SENATOR MATHEWS SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. ***** Director, Department of Public Safety - Page 1745 In accordance with the joint subcommittee's recommendation to keep the DMV&PS as one department, Ms. King said this budget account will be eliminated. Senator Raggio asked whether the DMV&PS will now contain two deputy director positions. Mr. Comeaux answered in the affirmative, stating the recommendation by the joint subcommittee increases the salary level of the two deputy directors to correspond with their operational duties. Senator Raggio questioned if the deputy director positions are unclassified, and Mr. Comeaux responded, "Yes." SENATOR O'DONNELL MOVED TO CLOSE THE BUDGET IN ACCORDANCE WITH THE RECOMMENDATIONS OF THE JOINT SUBCOMMITTEE, AS OUTLINED ON PAGE 19 OF EXHIBIT I. SENATOR MATHEWS SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. ***** Administrative Services, Public Safety - Page 1747 Ms. King indicated this budget account will be eliminated in accordance with the joint subcommittee's recommendation to keep DMV&PS as one department. SENATOR O'DONNELL MOVED TO CLOSE THE BUDGET IN ACCORDANCE WITH THE RECOMMENDATIONS OF THE JOINT SUBCOMMITTEE, AS OUTLINED ON PAGE 20 OF EXHIBIT I. SENATOR MATHEWS SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. ***** Automation - Page 1751 Ms. King reviewed the adjustments to the budget listed on page 21 of Exhibit I. SENATOR MATHEWS MOVED TO CLOSE THE BUDGET IN ACCORDANCE WITH THE RECOMMENDATIONS OF THE JOINT SUBCOMMITTEE, AS OUTLINED ON PAGE 21 OF EXHIBIT I. SENATOR O'DONNELL SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. ***** Hazardous Materials - Page 1773 Ms. King indicated the joint subcommittee recommended closing the budget in accordance with the Governor's recommendations, with the technical adjustments listed on page 22 of Exhibit I. Senator Raggio requested an explanation on the adjustment that reduces holiday overtime. Ms. King recalled, "In response to...action by the IFC, Colonel Corbin [G. Paul, Chief, Nevada Highway Patrol Division]...has indicated that he will no longer routinely staff commercial vehicle inspectors on...holiday weekends." SENATOR O'DONNELL MOVED TO CLOSE THE BUDGET IN ACCORDANCE WITH THE RECOMMENDATIONS OF THE JOINT SUBCOMMITTEE, AS OUTLINED ON PAGE 22 OF EXHIBIT I. SENATOR MATHEWS SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. ***** Criminal History Repository - Page 1777 Ms. King pointed out that due to an increase in the allocation of court assessments, the budget has been augmented to provide additional computer upgrades. She clarified the augmentation is subject to the receipt of the additional court assessments. Referring to pages 23 and 24 of Exhibit I, Ms. King commented on the technical adjustments to the budget, including the joint subcommittee's recommendation to merge the Fingerprint budget account into this budget account. Senator Raggio queried whether there was any indication made to the joint subcommittee there would be an increase in the allocation of court assessment revenue. Dan Miles, Fiscal Analyst, Fiscal Analysis Division, Legislative Counsel Bureau, reported that the court administrative staff met with members of the Fiscal Analysis Division and re-projected court administrative assessments, and there was a slight increase in the projections. SENATOR MATHEWS MOVED TO CLOSE THE BUDGET IN ACCORDANCE WITH THE RECOMMENDATIONS OF THE JOINT SUBCOMMITTEE, AS OUTLINED ON PAGES 23 AND 24 OF EXHIBIT I. SENATOR O'DONNELL SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. ***** Fingerprint - Page 1781 Ms. King indicated the subcommittee recommended various technical corrections, as listed on page 25 of Exhibit I, in addition to the recommendation to merge this budget account into the Criminal History Repository budget account. SENATOR O'DONNELL MOVED TO CLOSE THE BUDGET IN ACCORDANCE WITH THE RECOMMENDATIONS OF THE JOINT SUBCOMMITTEE, AS OUTLINED ON PAGE 25 OF EXHIBIT I. SENATOR MATHEWS SECONDED THE MOTION. Senator Rawson indicated the Senate Committee on Human Resources and Facilities processed a bill regarding fingerprints and stated he is unaware whether the budget account has been reconciled with that bill. Senator Raggio questioned whether Senator Rawson is requesting holding the budget. Senator Rawson responded in the negative and indicated he will check into whether the bill will affect the budget. THE MOTION CARRIED UNANIMOUSLY. ***** Investigation - Page 1785 Ms. King reviewed the adjustments to the budget, as listed on page 26 of Exhibit I. SENATOR MATHEWS MOVED TO CLOSE THE BUDGET IN ACCORDANCE WITH THE RECOMMENDATIONS OF THE JOINT SUBCOMMITTEE, AS OUTLINED ON PAGE 26 OF EXHIBIT I. SENATOR O'DONNELL SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. ***** Narcotics Control - Page 1791 Ms. King provided a brief review of the funding history of the budget and indicated the federal funding for FY 1997 will be significantly reduced. She recalled the Senate members of the joint subcommittee recommended replacing the lost federal funding with a General Fund appropriation in FY 1997. All other changes to the budget, as listed on page 27 of Exhibit I, are technical adjustments, she indicated. Senator Raggio inquired as to the recommendations of the Assembly members of the joint subcommittee. Ms. King revealed the Assembly members did not recommend a General Fund appropriation, but decided to budget the projected grant revenue and reduce the activity level of the program. Senator Raggio questioned whether page 27 of Exhibit I reflects the recommendations made by the Senate members of the joint subcommittee, and Ms. King answered in the affirmative. SENATOR O'DONNELL MOVED TO CLOSE THE BUDGET IN ACCORDANCE WITH THE RECOMMENDATIONS OF THE SENATE MEMBERS OF THE JOINT SUBCOMMITTEE, AS OUTLINED ON PAGE 27 OF EXHIBIT I. SENATOR MATHEWS SECONDED THE MOTION. Senator Raggio requested justification of the General Fund appropriation to make up the difference in loss of federal grant revenue. Senator O'Donnell revealed the Senate members of the joint subcommittee feel it is important to maintain the program at the current activity level. He declared, "This is another one of those federal mandates, then they pull the plug on us, and we get left holding the bag. If we stop this, we have no funds to fund this activity." Senator Raggio asked whether the joint subcommittee discussed the possibility of the agency approaching IFC, should the federal grant funds be decreased in FY 1997. Ms. King confirmed that discussion was held by the Assembly members of the joint subcommittee. She pointed out, "This budget account currently does not have any General Fund appropriations, so they would not be able to come...to IFC, unless...the federal funding came in." Senator Raggio acknowledged that a motion is pending and recessed the meeting at 10:50 a.m. Calling the meeting back to order at 12:00 p.m., Senator Raggio expressed concern over allocating general funds to this budget account. Ms. King clarified the Executive Budget, as prepared, shows complete federal funding for the program. She reviewed that at present, federal funding of $3.184 million is available for FY 1996, of which $1 million will be balanced forward to FY 1997. In FY 1997, "This budget account can only truly expect to receive about...$273,000 [in federal funds]...the $698,000 [page 1793, line item Agency Transfers] is based upon the assumption the state will receive $2.9 million in federal narcotics control assistance," she testified. Senator Raggio queried whether a portion of the grant revenue is allocated to local task forces. Ms. King affirmed 62 percent of the federal funds are turned over to local agencies, and the remaining funds are used for administration in this budget account to fund the Narcotics Task Forces. Senator Raggio questioned the duties of the 18 positions funded in this budget. Ms. King asserted the positions "operate the consolidated narcotics control task forces in Ely, Fallon, and Winnemucca where they are working with local agencies for the narcotics control activities. In addition, there are three financial investigators to locate the assets of drug sellers." Senator Raggio suggested to hold action on this budget until he can obtain additional information regarding the impact to the General Fund. He assigned Senators Rhoads, O'Donnell and Mathews to review the budget. Forfeitures - Law Enforcement - Page 1795 Ms. King reviewed page 28 of Exhibit I, and pointed out the joint subcommittee recommended the agency not be provided with blanket budgetary authority to expend forfeiture funds until they approach the IFC with their plans. The adjustments reflected in Exhibit I place all of the potential revenue into a reserve category, with the exception of funds that will be passed through to the local agencies. Senator Raggio inquired regarding the difference between what the Executive Budget proposes and what the joint subcommittee has recommended. Ms. King explained the Executive Budget proposes the agency be allowed to expend $1.1 million of the $1.3 million budgeted, without obtaining IFC approval. She pointed out the recommendation by the joint subcommittee is to require the agency to approach the IFC with proposals on how to utilize the funds with the exception of providing the agency with budgetary authority of funds passed through to the local governments. Senator O'Donnell interjected the joint subcommittee has concerns regarding how the agency will utilize the funds, and those concerns are the basis of the recommendation to have the agency appear before the IFC. SENATOR O'DONNELL MOVED TO CLOSE THE BUDGET IN ACCORDANCE WITH THE RECOMMENDATIONS OF THE JOINT SUBCOMMITTEE, AS OUTLINED ON PAGE 28 OF EXHIBIT I. SENATOR MATHEWS SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. ***** Peace Officers' Standards and Training - Page 1797 Ms. King pointed out additional court assessment revenue is available, which will reduce the General Fund appropriation to this budget account. She reviewed the additional adjustments to the budget, as reflected on page 8 of Exhibit H and pages 29 and 30 of Exhibit I. SENATOR O'DONNELL MOVED TO CLOSE THE BUDGET IN ACCORDANCE WITH THE RECOMMENDATIONS OF THE JOINT SUBCOMMITTEE, AS OUTLINED ON PAGE 8 OF EXHIBIT H AND PAGES 29 AND 30 OF EXHIBIT I. SENATOR JACOBSEN SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. ***** Justice Assistance Act - Page 1801 Ms. King pointed out this budget account receives the funds which are transferred into the Narcotics Control budget account. She reviewed the recommended technical adjustments made by the joint subcommittee on page 31 of Exhibit I. Senator Raggio asked whether statistical data exists which will indicate the actual amount of federal funds the budget will receive. Ms. King replied the federal grant revenue of $3.184 million will be appropriated for state Fiscal Year 1996, and only $273,000 would be available in state Fiscal Year 1997 "unless Congress comes up with a new Federal Crime Bill." SENATOR O'DONNELL MOVED TO CLOSE THE BUDGET IN ACCORDANCE WITH THE RECOMMENDATIONS OF THE JOINT SUBCOMMITTEE, AS OUTLINED ON PAGE 31 OF EXHIBIT I. SENATOR JACOBSEN SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. ***** Traffic Safety - Page 1803 Ms. King indicated the joint subcommittee recommends the minor technical adjustments listed on page 32 of Exhibit I. SENATOR O'DONNELL MOVED TO CLOSE THE BUDGET IN ACCORDANCE WITH THE RECOMMENDATIONS OF THE JOINT SUBCOMMITTEE, AS OUTLINED ON PAGE 32 OF EXHIBIT I. SENATOR MATHEWS SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. ***** Highway Safety Plan and Administration - Page 1805 Reviewing pages 33 and 34 of Exhibit I, Ms. King commented on the recommended technical adjustments of the joint subcommittee. SENATOR O'DONNELL MOVED TO CLOSE THE BUDGET IN ACCORDANCE WITH THE RECOMMENDATIONS OF THE JOINT SUBCOMMITTEE, AS OUTLINED ON PAGES 33 AND 34 OF EXHIBIT I. SENATOR MATHEWS SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. ***** Bicycle Safety Program - Page 1809 Motorcycle Safety - Page 1813 Senator O'Donnell requested that these budgets be held pending further hearings in the Senate Committee on Transportation regarding education programs for bicycle and pedestrian safety. Senator Raggio indicated the aforementioned budgets will be held, and requested Senator O'Donnell meet with the Fiscal Analysis Division to discuss his proposal to transfer funds from the Motorcycle Safety reserve account into the Bicycle Safety Program. Fire Marshal - Page 1819 Ms. King reviewed the recommendations of the joint subcommittee, discussing the adjustments, to the budget, on page 38 of Exhibit I. Senator Raggio inquired who is the current State Fire Marshal. Ms. King replied Gene Williams is the Acting State Fire Marshal. Senator Raggio questioned whether Mr. Williams was present at the joint subcommittee meetings. Senator Jacobsen indicated he does not remember seeing Mr. Williams present at any of the meetings. SENATOR O'DONNELL MOVED TO CLOSE THE BUDGET IN ACCORDANCE WITH THE RECOMMENDATIONS OF THE JOINT SUBCOMMITTEE, AS OUTLINED ON PAGE 38 OF EXHIBIT I. SENATOR JACOBSEN SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. ***** Hazardous Material Training Center - Page 1825 Referring to page 39 of Exhibit I, Ms. King reviewed the recommended adjustments to the budget. SENATOR O'DONNELL MOVED TO CLOSE THE BUDGET IN ACCORDANCE WITH THE RECOMMENDATIONS OF THE JOINT SUBCOMMITTEE, AS OUTLINED ON PAGE 39 OF EXHIBIT I. SENATOR MATHEWS SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. ***** Emergency Response Commission - Page 1931 Ms. King reviewed the technical corrections to the budget on page 40 of Exhibit I. Senator Raggio questioned why there is a large decrease in balance forward revenue as a result of the implementation of the Uniform Hazardous Material (HazMat) Transport program. Ms. King explained the Uniform HazMat transport program requires a carrier to register only in the base state, of which a portion will be allocated to Nevada. Prior to the implementation of the program the state received the entire fee, Ms. King said. Senator Raggio asked whether the program will have sufficient funding to operate given the reduction in balance forward revenue. Ms. King responded in the affirmative. SENATOR MATHEWS MOVED TO CLOSE THE BUDGET IN ACCORDANCE WITH THE RECOMMENDATIONS OF THE JOINT SUBCOMMITTEE, AS OUTLINED ON PAGE 40 OF EXHIBIT I. SENATOR O'DONNELL SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. ***** Emergency Management - Page 1837 Referring to page 10 of Exhibit H and pages 41 and 42 of Exhibit I, Ms. King reviewed the technical adjustments recommended by the joint subcommittee. She reported that the joint subcommittee elected not to support the allocation of the Chief of Emergency Management's salary to the various budget accounts supervised until a better allocation method could be developed. She said the joint subcommittee also recommended the conversion of a full-time SARA (Superfund Amendment and Reauthorization Act of 1986) Title III position, which is totally funded from the General Fund, to a half- time position, and the addition of a half-time Earthquake Preparedness position. This will result in one position that will receive 25 percent federal funding and the remaining 75 percent from the state's General Fund in lieu of the previous 100 percent funding from the General Fund. Ms. King indicated the joint subcommittee agreed with Governor's recommendation to move administrative staff of the Office of Narcotics Control into this budget account to consolidate grant management activities. Senator Raggio inquired whether holding the Narcotics Control budget will affect what the committee can do on this budget account inasmuch as the Narcotics Control Administrative staff are proposed to be transferred into this budget. Ms. King replied, "No. The staff that is recommended to be moved into this account are the administrative staff who just authorize the grants." Senator Raggio asked , What are the results of the joint subcommittee's actions not to fund the salary of the chief?" Ms. King responded the decision of the joint subcommittee does not affect the budget. She reflected there is sufficient General Fund revenue to fund the chief's non-grant activities. SENATOR O'DONNELL MOVED TO CLOSE THE BUDGET IN ACCORDANCE WITH THE RECOMMENDATIONS OF THE JOINT SUBCOMMITTEE, AS OUTLINED ON PAGE 10 OF EXHIBIT H AND PAGES 41 AND 42 OF EXHIBIT I. SENATOR MATHEWS SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. ***** Emergency Management Assistance Program - Page 1843 Ms. King remarked the recommendation of the joint subcommittee is to close the budget in accordance with the Governor's recommendations. SENATOR MATHEWS MOVED TO CLOSE THE BUDGET IN ACCORDANCE WITH THE RECOMMENDATIONS OF THE JOINT SUBCOMMITTEE, AS OUTLINED ON PAGE 43 OF EXHIBIT I. SENATOR JACOBSEN SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. ***** Emergency Management - Federal Grants - Page 1845 Ms. King reviewed the technical adjustments to the budget and the joint subcommittee recommendations, as outlined on pages 44 and 45 of Exhibit I. She called the committee's attention to the comments she made regarding the aforementioned Emergency Management budget, page 1837. SENATOR O'DONNELL MOVED TO CLOSE THE BUDGET IN ACCORDANCE WITH THE RECOMMENDATIONS OF THE JOINT SUBCOMMITTEE, AS OUTLINED ON PAGES 44 AND 45 OF EXHIBIT I. SENATOR MATHEWS SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. ***** Ms. King distributed Exhibit J to the committee for information purposes. Senator Raggio advised the committee the amendment on Senate Bill (S.B.) 301 has been received and he asked whether the committee has any questions on the amendment. SENATE BILL 301: Establishes for next biennium amount to be paid by state for group insurance for participating officers and employees. Senator Raggio stated, "The record should indicate the committee has agreed upon Amendment Number 594 to S.B. 301, consistent with our action, and the bill is recommended for amend and do pass." There being no further business to conduct, the meeting was adjourned at 12:25 p.m. RESPECTFULLY SUBMITTED: Marion Entrekin for Cristin Buchanan, Committee Secretary APPROVED BY: Senator William J. Raggio, Chairman DATE: Senate Committee on Finance May 22, 1995 Page