MINUTES OF THE JOINT MEETING OF SENATE COMMITTEE ON FINANCE AND ASSEMBLY COMMITTEE ON WAYS AND MEANS Sixty-eighth Session June 14, 1995 The joint meeting of the Senate Committee on Finance and the Assembly Committee on Ways and Means was called to order by Chairman William J. Raggio, at 9:15 a.m., on Wednesday, June 14, 1995, in Room 119 of the Legislative Building, Carson City, Nevada. Exhibit A is the Agenda. Exhibit B is the Attendance Roster. SENATE 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 ASSEMBLY COMMITTEE MEMBERS PRESENT: Mr. Morse Arberry, Jr., Chairman Mr. John W. Marvel, Chairman Mrs. Jan Evans, Vice Chairman Ms. Sandra Tiffany, Vice Chairman Mr. Dennis L. Allard Mrs. Maureen E. Brower Mrs. Vonne Chowning Mr. Jack D. Close Mr. Joseph E. Dini, Jr. Mr. Thomas A. Fettic Ms. Chris Giunchigliani Mr. Lynn Hettrick Mr. Bob Price Mr. Larry L. Spitler STAFF MEMBERS PRESENT: Dan Miles, Fiscal Analyst Mark Stevens, Fiscal Analyst Bob Guernsey, Principal Deputy Fiscal Analyst Gary Ghiggeri, Principal Deputy Fiscal Analyst Debbra J. King, Program Analyst Judy Jacobs, Committee Secretary Yhvona Martin, Personal Secretary OTHERS PRESENT: Lonnie L. Hammargren, Lieutenant Governor Senator Raggio referred members of the joint meeting to closing reports dated June 13, 1995 (Exhibit C. Original is on file in the Research Library.), and announced the items would be discussed in order. Mansion Maintenance - Page 5 Dan Miles, Fiscal Analyst, noted the Senate Committee on Finance recommended closure of the budget with the addition of $14,813 for replacement of china, crystal, a washer, a dryer and an ice maker as listed on Exhibit D. Senator Raggio noted Senator Jacobsen held a conference with the First Lady and determined those were considered the major items in need of replacement. MR. MARVEL MOVED TO CONCUR WITH THE SENATE COMMITTEE ON FINANCE. MS. GIUNCHIGLIANI SECONDED THE MOTION. THE MOTION CARRIED. (MR. PRICE AND MRS. CHOWNING WERE ABSENT FOR THE VOTE.) BUDGET CLOSED. * * * * * Lieutenant Governor - Page 19 Mr. Miles stated the Senate Committee on Finance added some of the items requested by the Lieutenant Governor, including half of the in-state travel request, the computer equipment and funding for the Department of Information Services (DIS) to install it, as well as funding for the Education Outreach Program. Mark Stevens, Fiscal Analyst, said the Assembly Committee on Ways and Means provided for the requested equipment that was in addition to the proposal in the Governor's budget. Senator Raggio noted the Senate felt the Education Outreach Program, which involves participation by university students, is worthwhile and should be authorized. Ms. Giunchigliani asserted the Education Outreach Program is not the responsibility of the Lieutenant Governor, and it should be initiated through the Division of Tourism. She declared it would be irresponsible to fund the program through the Office of the Lieutenant Governor. She proposed the Commission on Tourism should make any determination regarding the program. She offered support for the in-state travel item. Mr. Hettrick suggested the Assembly members match the Senate members. He stated he would support the travel, computer and DIS funding. MR. HETTRICK MOVED TO CONCUR WITH THE SENATE COMMITTEE ON FINANCE. MR. ALLARD SECONDED THE MOTION. Mr. Arberry asked if there was any discussion on the motion. Ms. Giunchigliani declared the travel budget is "feel-good" legislation and repeated her objection to the Educational Outreach Program. She suggested the funding should be placed directly into education budgets. She called the commitment to include the program "erratic and inconsistent." Lonnie L. Hammargren, Lieutenant Governor, explained the Commission on Economic Development affirmed the Educational Outreach Program should be part of the budget for the Office of the Lieutenant Governor. He stated the chancellor of the University and Community College System of Nevada (UCCSN) supported the proposal, as did the Governor. He declared the proposal received the approval of the Economic Development Authority of Western Nevada (EDAWN) and the Nevada Development Authority (NDA). Lieutenant Governor Hammargren stated: The point is to try to find one spot that any industry or any business in the whole state could call, one phone number, and they would get a referral within 2 days of a specific person in that particular job or industry that could devise an educational program for them, whether it was Quick-Start, whether it was JOIN [Job Opportunities in Nevada], whether it was a community college, whether it was the university system. Any of these programs, a one-person office and liaison position. Lieutenant Governor Hammargren declared commissioners on economic development reaffirmed the proposal on the previous day. He explained it was not included in the budget because of proposals to combine the commissions. Mr. Arberry made a request to hold the motion to concur with the Senate with the approval of Mr. Hettrick and Mr. Allard. Senator Raggio agreed to do so. Workers' Compensation Fraud - Page 37 Mr. Miles explained the Senate Committee on Finance recommended closing the budget by delaying the hiring of all new positions until October 1, by adding back in the reference books requested by the attorney general, and by inclusion of cellular phones for investigators. Mr. Stevens noted the Assembly Committee on Ways and Means added only four of nine positions requested, and it provided for an additional five vehicles that had been recommended for deletion from A.B. 246. ASSEMBLY BILL 246: Makes appropriation to motor pool division of department of administration for purchase of additional vehicles. Mr. Stevens said the committee endorsed hiring the new positions as of July 1. Senator Raggio suggested the Senate concur with the Assembly on their actions and the Assembly concur with the Senate to delay hiring new positions until October 1. SENATOR RHOADS MOVED TO CONCUR WITH THE ASSEMBLY TO HIRE ONLY FOUR NEW POSITIONS AND TO PROVIDE FOR FIVE NEW VEHICLES. SENATOR RAWSON SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. * * * * * MS. GIUNCHIGLIANI MOVED TO CONCUR WITH THE SENATE TO DELAY HIRING UNTIL OCTOBER 1. MR. MARVEL SECONDED THE MOTION. THE MOTION CARRIED. (MRS. CHOWNING WAS ABSENT FOR THE VOTE.) BUDGET CLOSED. * * * * * Office - State Treasurer - Page 91 Senator Raggio noted the only major difference between the two committees is the elimination of vacancy savings by the Assembly, which the Senate retained. He recalled there is a minor difference for dues and registrations. He suggested the Senate eliminate half of the vacancy savings, while retaining the increase in the dues and registrations, since the state treasurer serves in a capacity which requires his attendance at various meetings. SENATOR RAWSON MOVED TO RESTORE HALF THE AMOUNT OF VACANCY SAVINGS AS INDICATED. SENATOR JACOBSEN SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. * * * * * MR. MARVEL MOVED TO CONCUR WITH THE SENATE COMMITTEE ON FINANCE. MR. ALLARD SECONDED THE MOTION. Mr. Spitler commented vacancy savings tend to work well with a large staff, but vacancy savings can be detrimental with a very small staff. He noted there are only 15 people in the Office of the State Treasurer, and the vacancy savings will affect two people. He declared the committee is being shortsighted to hold smaller offices to such savings. In response, Senator Raggio noted, although he has no disagreement with that point of view, the difficulty lies in the attempt to establish uniformity among the constitutional officers, and the Budget Division took the position that they should be consistent. Therefore, he said, some vacancy savings were retained in each of those offices. THE MOTION CARRIED. (MS. GIUNCHIGLIANI VOTED NO. MRS. CHOWNING WAS ABSENT FOR THE VOTE.) BUDGET CLOSED. * * * * * Legislative Counsel Bureau - Page 157 Mr. Miles stated the differences between Senate and Assembly closing actions are in enhancements 125 and 175. He explained E- 125 will add a legislative budget office, and E-175 adds a federal mandates analyst in the Research Division of the Legislative Counsel Bureau (LCB). Senator Raggio announced the Senate processed the bill to create a legislative budget office earlier in the day. He suggested the Assembly hold a discussion on the bill soon in order to close the budget. Mr. Arberry proposed holding the budget based upon the cited concerns. Senator Raggio agreed to do so. School of Medical Sciences - Page 305 Mr. Miles remarked the Senate Committee on Finance recommended the addition of a residency program at the rate of $1 million in the first year of the biennium, and $2 million in the second year, for the medical school. Senator Raggio noted the Assembly Committee on Ways and Means failed to add such funding. He called for comments. Mr. Marvel reported as a result of discussions with the dean of the School of Medicine, he came to the conclusion the addition is not compelling in this biennium. Senator Rawson voiced concerns regarding "bailing out" on the proposal, but added the dean has essentially given up southern programs on the matter. Senator Rawson explained an Area Health Education Center (AHEC) has been funded in the northern part of the state for 6 years, but the southern AHEC will be lost without the funding under discussion. He stated that will include, immediately, the loss of the geriatric education center, and the psychiatric residency program will be delayed by 2 years or longer. Senator Rawson noted other issues handled from the education fee, such as library services, speech pathology, speech therapy, pediatric physical therapy, the visually impaired and other programs, will not be funded or developed. He declared he is "somewhat miffed" that those items, which have been developed over a period of time, have been bargained away. Mr. Arberry responded the Assembly is "miffed about how it comes at the end of the session and that there hasn't been any testimony based on exactly what he just stated." Mr. Arberry declared the committee deserves the opportunity to hear testimony and to be able to make a decision as to whether the funds are justified. He noted although Mr. Marvel may have just received information the funding is not necessary, the entire committee needs pertinent information in order to justify the expenditure of $3 million. Senator Raggio asked how much funding will be required for the geriatric center and the southern AHEC. Senator Rawson replied the Geriatric Education Center has been operating on a $300,000 grant, which will expire. He said the renewal does not come about for another 6 months or 1 year, and it is supposed to be renewed at $750,000. He noted in the interim the program will require $120,000 to keep the center open. He declared,"If it's closed, it'll stay closed." Mr. Marvel stated the information was not even discussed over the weekend. He echoed Mr. Arberry's opinion, and noted that the joint committees closed the budget without the inclusion of the programs cited because there was no discussion of the items. Mr. Arberry suggested the problem might be resolved by a new bill in which full hearings can be held. Senator Rawson interjected he has worked for three sessions on AHEC, which started in northern Nevada in Elko, and which reaches out to small areas as well as providing training for health care professionals. He explained it came about from a federal grant, and the state was aware it would have to pick up the cost one day. He said the grant funded the northern AHEC one session, the second session the state picked up funding for the northern AHEC, and the third session the southern AHEC was granted. He pointed out the AHEC federal funding is gone, although enough reserve remains to carry the program through the fall. Senator Rawson reiterated, "If the AHEC is not funded, there should be no misunderstanding in anybody's mind, it will disappear." He voiced concern that the dean is willing to give up on the programs after he met with leadership and was notified the programs probably would not be funded. The senator acknowledged the dean may feel he can get along without those programs, even though 6,000 health professionals went through the AHEC during the last biennium. Senator Rawson asserted it is not good policy to drop the AHEC programs and any disputes over the handling of the matter should be put aside. He noted the Geriatric Education Center has been building a program over 5 or 6 years which has finally extended to southern Nevada. Without the program, he said, those involved will be dismissed. Senator Rawson stated the psychiatric residency program was in the planning stages and it can be delayed. The speech pathology program is already in place in northern Nevada, he declared, and should be extended to southern Nevada, but it, too can be delayed. He surmised the dean has determined what basic funding is necessary to keep his existing residents. Senator Mathews told the committee she served on the first AHEC committee and she feels the program is invaluable for nursing students. She supported Senator Rawson's views. Mr. Arberry interjected the problem has nothing to do with personalities, it is a policy problem. He declared the Assembly Committee on Ways and Means cannot fairly make a decision on such a large expenditure without a fair hearing. Senator Rawson stated he is not asking for restoration of the entire $3 million, he wants the two programs he cited at $120,000 and $150,000 respectively that would have been funded from the $3 million. Mr. Allard asked if $270,000 would be sufficient for the two programs. Senator Rawson confirmed the query. Mr. Spitler remarked the medical school traditionally underfunds programs from grants and then turns to the state for funding. He declared he is offended that they did not include something in their budget regarding the matter. He said, "This is absolutely appalling that this would come in at this moment when these committees had no opportunity to determine what the need was. I think it's bad management." Senator Rawson stated many programs often do not get to the president's level of decision-making, and the dean is frequently instructed not to bring anything new, after which it becomes incumbent upon the Legislature to provide funding. Senator Raggio suggested the budget be held in order to give the members of the Assembly time to review the matter. He proceeded to the budget for the Western Interstate Commission for Higher Education (WICHE). W.I.C.H.E. Loan Stipend - Page 385 Senator Raggio pointed out the differences between the committees revolve around the reduction in the number of law positions and the increase in physical therapy positions. Mr. Close said previously he had abstained from discussing or voting on the matter for fear of a conflict of interest because he is a physical therapist. He declared he must now point out that the physical therapy profession is in need of more individuals. He stated: Anticipating that our curriculum at UNLV [University of Nevada, Las Vegas] was going to come forth, the numbers for the WICHE program are reduced. But the program has not come to fruition due to the fact we have not been able to locate a director to run the program. And so therefore these slots were added back in as a need situation to supplant, during this biennium, the fact that we won't have a school. Mr. Close expressed hope that an active physcial therapy curriculum will be in place at the University of Nevada, Las Vegas by the next legislative session, and that young people in the state who want to be physical therapists will have the opportunity to take advantage of the program. Mr. Marvel suggested that the Senate concur with the Assembly regarding physical therapists, and that the Assembly concur with the Senate by adding more trial lawyers. SENATOR RAWSON MOVED TO RETAIN 12 LAW SLOTS, AND ADD TWO PHYSICAL THERAPY SLOTS FOR A TOTAL OF SIX. SENATOR JACOBSEN SECONDED THE MOTION. THE MOTION CARRIED. (SENATOR RHOADS WAS ABSENT FOR THE VOTE.) * * * * * MR. MARVEL MOVED FOR THE ASSEMBLY TO CONCUR WITH THE SENATE. MR. ALLARD SECONDED THE MOTION. THE MOTION CARRIED. (MR. CLOSE ABSTAINED. MR. SPITLER, MS. TIFFANY, MRS. EVANS, AND MS. GIUNCHIGLIANI VOTED NO. MRS. CHOWNING WAS ABSENT FOR THE VOTE.) BUDGET CLOSED. * * * * * Comstock Historic District Commission - Page 427 Senator Raggio noted the booklets to be funded are well done and can be sold. He suggested a reasonable resolution would be to transfer $6,000 from the Division of Tourism and authorize the commission to raise an additional $6,000 through sales of the booklets. SENATOR JACOBSEN MOVED TO ADJUST THE BUDGET AS DISCUSSED. SENATOR O'DONNELL SECONDED THE MOTION. THE MOTION CARRIED. (SENATOR RHOADS WAS ABSENT FOR THE VOTE.) * * * * * MR. HETTRICK MOVED TO CONCUR WITH THE SENATE. MR. CLOSE SECONDED THE MOTION. THE MOTION CARRIED. (MS. TIFFANY WAS ABSENT FOR THE VOTE.) BUDGET CLOSED. * * * * * Motor Pool Division - Page 519 According to Mr. Miles, the only difference between the two committees is in the way in which the Assembly Committee on Ways and Means augmented the budget through a bill for a onetime addition of vehicles to the motor pool. SENATOR RAWSON MOVED TO CONCUR WITH THE ASSEMBLY. SENATOR JACOBSEN SECONDED THE MOTION. THE MOTION CARRIED. (SENATOR RHOADS WAS ABSENT FOR THE VOTE.) BUDGET CLOSED. * * * * * Motor Pool Vehicle Purchase - Page 525 SENATOR RAWSON MOVED TO CONCUR WITH THE ASSEMBLY. SENATOR O'DONNELL SECONDED THE MOTION. THE MOTION CARRIED. (SENATOR RHOADS WAS ABSENT FOR THE VOTE.) BUDGET CLOSED. * * * * * Facility Management - Page 631 Senator Raggio pointed out the only difference in action taken by the two committees is in module E-911. Mr. Miles explained the Senate kept the Nevada Department of Transportation communications positions in the department and did not transfer them to DIS. Senator Raggio opined retention of the positions in the agencies will cut costs. MR. MARVEL MOVED FOR THE ASSEMBLY TO CONCUR WITH THE SENATE. MR. HETTRICK SECONDED THE MOTION. THE MOTION CARRIED. (MR. SPITLER ABSTAINED. MRS. CHOWNING WAS ABSENT FOR THE VOTE.) BUDGET CLOSED. * * * * * Administration-Personnel Division - Page 653 Mr. Miles indicated there is no real difference in the way the budget was closed by the two committees. Senator Raggio recalled the Senate Committee on Finance has not yet made a determination on whether to authorize a business process reengineering (BPR) study. He suggested the two committees should meet and come to a mutual agreement regarding BPRs. After consulting with Mr. Miles and Mr. Stevens, Senator Raggio announced no motion is necessary on the budget as long as the understanding is clear that BPRs will be dealt with after the committees come to a mutual agreement. He noted BPRs can be added later, should the committees determine it is best to do so. He appointed Senator O'Donnell and Senator Coffin to work with representatives of the Assembly on the matter of BPRs. Mr. Arberry appointed Ms. Giunchigliani and Ms. Tiffany to work with the Senate members. P S C Regulatory Fund - page 681 Senator Raggio pointed out the only difference is approval of the request for a secretary position for the chairman of the Public Service Commission of Nevada (PSC). MR. MARVEL MOVED TO CONCUR WITH THE SENATE BY REINSTATEMENT OF THE SECRETARY POSITION. MR. HETTRICK SECONDED THE MOTION. Mr. Spitler interjected he would abstain from the vote on the PSC and Consumer Advocate budgets since he works in the telecommunications field. THE MOTION CARRIED. (MR. SPITLER ABSTAINED FROM THE VOTE. MRS. CHOWNING WAS ABSENT FOR THE VOTE.) BUDGET CLOSED. * * * * * Advocate for Insurance Customers - Page 731 Senator Raggio noted the Senate failed to fund the position except for the initial recommendation made by the Governor. He explained the new proposal will require a General Fund appropriation. MR. MARVEL MOVED TO CONCUR WITH THE SENATE. MR. ALLARD SECONDED THE MOTION. Ms. Giunchigliani voiced opposition. She asserted the committees are being shortsighted by not expanding the duties of the advocate to handle consumer issues, rather than just deal with rates and litigation. If the funding is strictly for insurance issues, she insisted, it should be under the aegis of the Department of Business and Industry. She said, "So I would ask that the Senate and the Assembly reconsider this motion, because I think it's irresponsible and very shortsighted." Mr. Arberry made a request to hold any vote on the matter, which was approved. Division of Industrial Relations - Page 737 Mr. Miles called attention to enhancement item 276. He stated the Senate Committee on Finance closed the budget consistent with S.B. 458, which will add seven new positions. SENATE BILL 458: Makes various changes to provisions relating to industrial insurance. He explained those positions will primarily be utilized to set up a regulatory scheme for group self-insurers and for the increases in the complaint process included in the bill. He described the seven positions and duties. Senator O'Donnell inquired if the appropriation will come from the General Fund. Mr. Miles replied it will not, it will come from employers. MR. HETTRICK MOVED TO CONCUR WITH THE SENATE. MR. MARVEL SECONDED THE MOTION. Mr. Hettrick noted the group self-insurance will require the Department of Industrial Relations (DIR) to add the positions. Ms. Giunchigliani stated, "So this is presuming passage of a bill that we've not heard and we've already taken action on another one to hold because we've not [concurred] on the legislation. I think it's kind of inconsistent. What was the seven new positions based on? Why would it go into DIR? Group self will be in the insurance." Mr. Hettrick responded DIR regulates the State Industrial Insurance System (SIIS) as well as all other insurance companies. He pointed out each one of the individual group self-insured companies well require regulation to make sure that they perform according to the rules and requirements of group self-insurance. Therefore additional personnel, such as the inspection teams, will be necessary, he asserted. Mr. Hettrick recalled testimony during Assembly Committee on Labor and Mangement hearings in regard to the issue at which time it was pointed out funding will be required to cover the work load of the additional staff. Ms. Giunchigliani declared she was not arguing that point, but she indicated the Division of Insurance, which normally establishes the rules and regulations for group self-insurance, will be impacted. She asked who will set up the regulations and who will monitor those under group self-insurance and third-party insurance. Debbra J. King, Program Analyst, responded there are two modules relating to the issue, M-201, agreed to by both houses, and M-276, which includes changes under S.B. 458 regarding complaints from employees. She explained the latter will provide staffing for the agency to commence the three-way insurance and will provide additional legal assistance. Ms. Giunchigliani declared her main concern is in reference to S.B. 458, and not to the other pieces of legislation dealing with three- way insurance. She suggested those bills should be referenced in order to understand the full impact of whatever legislation is pending. She stated, "The vision of insurance will have no impact on this budget even though it's the one that actually sets up the regulation. You don't deal in insurance." Ms. Giunchigliani surmised, "When we deal with the insurance division, I think they're the ones who actually have the impact of the group insurance and the three-way, and ... DIR's impact will be on complaints, and I don't know that they need seven people just to deal with complaints." Mr. Hettrick acknowledged there are three bills involved, and it may not be correct to relate the matter entirely to S.B. 458. He recalled testimony that there will be significant impact in relation to the portion that will go to DIR. He noted provisions in S.B. 458 were moved out of the bill and were put into A.B. 498. ASSEMBLY BILL 498: Makes various changes related to industrial insurance. He noted A.B. 587 will address the same problems in relation to fraud and will involve complaints. ASSEMBLY BILL 587: Revises provisions regarding workers' compensation fraud. Mr. Hettrick agreed the obstacles should not be attributed entirely to S.B. 458. He added the requirement will be less than that requested by DIR, and the seven positions will be necessary. He said the bills involved are A.B. 552, A.B. 498, A.B. 587, and S.B. 458, all of which he expects to pass. ASSEMBLY BILL 552: Makes various changes to provisions governing industrial insurance. Mr. Arberry repeated the motion. Mr. Close declared he is uncomfortable with passage of the budget without knowing the exact figures and what will be required. He asked if it would be possible to delay the vote until a later time. Senator Raggio interjected the proposal will give authority to the division to utilize the positions as needed. Mr. Dini inquired if the other bills could be added into the description. Ms. Giunchigliani acknowledged the inclusion will satisfy her concerns, "as far as knowing at least what legislation and impact would be out there." She requested copies of information that was provided for the Assembly Committee on Labor and Management. Mr. Arberry called for the vote. THE MOTION CARRIED. (MS. GIUNCHIGLIANI, MS. TIFFANY, MR. SPITLER AND MR. CLOSE VOTED NO.) BUDGET CLOSED. * * * * * Nevada Attorney for Injured Workers - Page 907 Mr. Miles pointed out the Senate Committee on Finance closed E-276 in relation to S.B. 458, SIIS legislation. He noted some of the provisions of S.B. 458 will increase the work load of the industrial attorney to the point where additional staff will be required. He acknowledged the committee had some question as to what degree that will occur, so they increased staff in both the northern and southern offices by one attorney each, with a support secretary and sufficient funds in the reserve category for augmentations once the work load has been proven out. Mr. Hettrick agreed if S.B. 458 passes with lump sum awards there will be an impact and additional staff will be required. He called the proposed solution "reasonable." He conceded the Assembly Committee on Ways and Means has not made a determination regarding lump sums, and until such time as it is decided, the proposal to add one attorney and secretary in each end of the state, with a reserve for the balance, is reasonable. Senator Raggio suggested all the funding for additional staff could be placed into the reserve to be justified by caseload. Mr. Hettrick concurred with that proposal. Ms. Giunchigliani declared the office has been understaffed, and she asserted the funding should not be tied to a lump sum issue. She noted the caseload is already in place. Mr. Hettrick indicated the proposal will not be restrictive. The Nevada Attorney for Injured Workers will be required to present a case, he said, and the reserve will be fair because they can justify the need to use the reserve funding. MR. HETTRICK MOVED TO PLACE THE ENTIRE FUNDING FOR ENHANCEMENT 276 INTO THE RESERVE. MR. CLOSE SECONDED THE MOTION. THE MOTION CARRIED. (MR. SPITLER AND MS. GIUNCHIGLIANI VOTED NO. MR. PRICE AND MRS. BROWER WERE ABSENT FOR THE VOTE.) * * * * * SENATOR JACOBSEN MOVED TO CONCUR WITH THE ASSEMBLY ACTION ON ENHANCEMENT 276. SENATOR RAWSON SECONDED THE MOTION. THE MOTION CARRIED. (SENATORS MATHEWS, O'DONNELL AND RHOADS WERE ABSENT FOR THE VOTE.) BUDGET CLOSED. * * * * * Economic Development - Page 955 Senator Raggio called attention to Enhancement 325 in which the Senate added two program specialist positions. Mr. Marvel noted he had discussed the issue with Karen Baggett, the Deputy Director of the Division of Economic Development, the previous evening. He reported one new position is critical, but she feels the division could get along without all five positions requested. MR. MARVEL MOVED TO ADD ONE POSITION TO THE BUDGET ALONG WITH REQUIRED OPERATING EXPENSES. MRS. EVANS SECONDED THE MOTION. Mr. Arberry asked where the new position will be located. Mr. Marvel responded it will be where the need is greatest. THE MOTION CARRIED. (MR. PRICE WAS ABSENT FOR THE VOTE.) * * * * * SENATOR COFFIN MOVED TO CONCUR WITH THE ASSEMBLY. SENATOR JACOBSEN SECONDED THE MOTION. THE MOTION CARRIED. (SENATOR RAWSON VOTED NO. SENATOR MATHEWS WAS ABSENT FOR THE VOTE.) BUDGET CLOSED. * * * * * Division of Tourism - Page 961 Mr. Miles stated there are currently two differences in the budget account. He called attention to the transfer to the Comstock Historic District in the base. He said, "That has been resolved by your action over on the Comstock Historic District where it would've reduced this transfer to $6,000." Mr. Miles noted another difference in enhancement 350, contingency- emergency funding of $300,000 requested by the agency, which the Senate Committee on Finance moved to the reserve account. It will require the division to process the work program document in order to access that funding, he said. Senator Raggio noted the Senate felt the division should come in with a work program to justify utilization of the funding. MR. DINI MOVED TO CONCUR WITH THE SENATE REGARDING THE RESERVE AND ADJUST THE COMSTOCK HISTORIC DISTRICT FUNDING ACCORDINGLY. MR. FETTIC SECONDED THE MOTION. THE MOTION CARRIED. (MR. CLOSE AND MR. PRICE WERE ABSENT FOR THE VOTE.) * * * * * SENATOR COFFIN MOVED TO CONCUR WITH THE ASSEMBLY. SENATOR O'DONNELL SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. BUDGET CLOSED. * * * * * Purchase of Social Services - Page 997 Mr. Miles related both committees have tried to augment the budget for all available Title XX funds, and the Senate Committee on Finance reserved $50,000 each year of the increase in funding for salary adjustments for positions totally supported by Title XX in the Department of Human Resources. He indicated the balance of those funds has been added to the non-state agency category. According to Mr. Stevens, the Assembly included all additional Title XX funds in the non-state agency contract area, and made a bill draft request (BDR) to provide a onetime appropriation for $253,000 from the state General Fund to augment the amount available to non-state agencies during this biennium. He explained that will increase the funds available for non-state agency contracts by $250,000 over and above the Governor's recommendation in each year of the biennium. Senator Raggio stated the position of the Senate is that, although the programs are worthwhile, the funding will set a precedent in a budget that is entirely funded through Title XX federal appropriations. He surmised the Senate may not wish to concur on the infusion of state General Fund appropriations. While Mr. Spitler agreed with Senator Raggio that funding will be different in this biennium, he declared testimony indicated Title XX funds that currently go to non-state agencies need to be reviewed. He suggested much of the delivery of service from private, nonprofit organizations is of high merit and should have additional support during this biennium in order to give social services an opportunity to readjust how funds are awarded. Senator Raggio pointed out there is a concern regarding an additional $250,000 onetime appropriation on matters that have traditionally been under Title XX funding. Mr. Spitler disagreed that a precedent will be set. He noted $100,000 was approved for a community-based organization on the previous day. He stated, "While the funding mechanism may flow through this office, it's still going to private, nonprofit groups who are providing direct community services to citizens." Senator Raggio inquired which groups Mr. Spitler anticipated will benefit. Mr. Spitler responded there is a board that reviews applications, ranks them and awards funding accordingly. He said $500,000 is available in each year of the biennium. Senator Raggio decided to hold the Economic Development budget for the time being. He also held the budget for the Rural Clinics since there is still concern because of the closeness of two rural clinics and the absence of adequate coverage in other areas. Children's Health Services - Page 1113 Mr. Miles said the only difference in committee actions is the addition by the Assembly for the OB [obstetric] Access Project. Mr. Stevens explained that is a prenatal program proposed for a high risk area in Las Vegas which has few prenatal services. He said the appropriation will amount to $50,000 in each year of the biennium to provide and encourage early prenatal services. Senator Raggio remarked no discussions have taken place on the matter, so he held the budget until later. Highway Patrol - Page 1755 Highway Patrol Special - Page 1763 Mr. Miles noted the major difference between the committees is that the Assembly Committee on Ways and Means eliminated the special account and combined the two budgets. He said they also eliminated the vacancy savings, while the Senate Committee on Finance retained the original two budgets as separate entities. Senator Raggio asked Senator O'Donnell what he learned from his review of the budgets. Senator O'Donnell responded the Nevada Highway Patrol Division (NHP) has no objection to combining the two budget accounts. SENATOR O'DONNELL MOVED TO CONCUR WITH THE ASSEMBLY. SENATOR MATHEWS SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. BUDGET CLOSED. * * * * * Department of Transportation - Administration - Page 2021 MR. MARVEL MOVED TO CONCUR WITH THE SENATE. MR. ALLARD SECONDED THE MOTION. Mr. Miles noted the difference shown on page 27 of Exhibit C in E- 451 is incorrect, that the committees took the same action. He explained it shows only the change in the ratio between the Nevada Department of Transportation (NDOT) and the Department of Motor Vehicles and Public Safety (DMV&PS). The present ratio gives 65 percent of bicycle fees collected to NDOT and 35 percent to DMV&PS, but the ratio is being changed to 35 percent to NDOT and 65 percent to DMV&PS. He said the difference is depicted in E-911 on page 28 in which the Senate retained the communications positions in NDOT. He noted the two committees concurred in the action when closing the DIS budget. Ms. Giunchigliani attempted clarification, noting the closing on the Bicycle Safety issue has not been closed identically by both committees. She inquired, "Is this only the shifting of the 65/35 portion... ?" Her query was affirmed by both Mr. Miles and Mr. Stevens. Mr. Stevens interjected the issue regarding Bicycle Safety on page 20 will be addressed separately. He explained there is no difference in the NDOT appropriations, they were simply depicted erroneously. He said the issue of concern to Ms. Giunchigliani is still open. THE MOTION CARRIED. (MS. TIFFANY VOTED NO. MR. CLOSE WAS ABSENT FOR THE VOTE.) BUDGET CLOSED. * * * * * The committee discussed timing for the next meeting and agreed to meet on Friday, June 16. Mr. Arberry opined there is a necessity to waive rule 92 for the purposes of posting notice in order to move faster. MR. MARVEL MOVED TO WAIVE RULE 92. MR. FETTIC SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. * * * * * Senator Raggio adjourned the meeting at 10:31 a.m. RESPECTFULLY SUBMITTED: Judy Jacobs, Committee Secretary APPROVED BY: Senator William J. Raggio, Chairman DATE: Assemblyman Morse Arberry, Jr., Chairman DATE: Assemblyman John W. Marvel, Chairman DATE: Senate Committee on Finance Assembly Committee on Ways and Means June 14, 1995 Page