MINUTES OF THE SENATE COMMITTEE ON FINANCE Sixty-eighth Session June 19, 1995 The Senate Committee on Finance was called to order by Chairman William J. Raggio, at 8:00 a.m., on Monday, June 19, 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 Steve J. Abba, Program Analyst H. Pepper Sturm, Chief Principal Research Analyst Pamela Jochim, Committee Secretary OTHERS PRESENT: Margaret Springgate, Legal Counsel, Governor's Office John P. Comeaux, Director, Department of Administration Peter G. Morros, Director, State Department of Conservation and Natural Resources William A. Molini, Administrator, Division of Wildlife, State Department of Conservation and Natural Resources Paula Treat, Lobbyist, Nevada Judges Association Elizabeth Breshears, Chief, Bureau of Alcohol and Drug Abuse, Rehabilitation Division, Department of Employment, Training and Rehabilitation Sandra Hanneke, TB Coordinator, Bureau of Disease Control and Intervention, Health Division, Department of Human Resources James J. Jackson, State Public Defender, Office of State Public Defender, Department of Human Resources Peter L. Bandurraga, Ph.D., Director, Nevada Historical Society, Division of Museums and History, Department of Museums, Library and Arts P. Forrest Thorne, Deputy Executive Director, Department of Taxation Senator Raggio opened the hearing and referred the committee to Amendment Number 993 to Senate Bill (S.B.) 301. He noted the amendment makes a technical change to section 2 of the bill. SENATE BILL 301: Establishes for next biennium amount to be paid by state for group insurance for participating officers and employees. SENATOR O'DONNELL MOVED TO CONCUR WITH ASSEMBLY AMENDMENT NUMBER 993 TO S.B. 301. SENATOR MATHEWS SECONDED THE MOTION. THE MOTION CARRIED. (SENATORS RHOADS, RAWSON AND COFFIN WERE ABSENT FOR THE VOTE.) * * * * * The chairman asked the committee to review Amendment Number 1033 to Senate Bill (S.B.) 430 and explained the amendment changes the name of the Office of Internal Audits to the Office of Financial Management, Training and Controls. He said if the amendment meets with the committee's approval it will be submitted to the Senate for action. SENATE BILL 430: Revises provisions governing operating fund of department of administration. Senator Raggio opened the hearing on Assembly Bill (A.B) 229. ASSEMBLY BILL 229: Makes appropriation to office of governor for computer equipment. Margaret Springgate, Legal Counsel, Governor's Office, came forward and distributed a memorandum (Exhibit C) listing the computer equipment requested in A.B. 229. Ms. Springgate testified, in addition to the equipment request, the appropriation will fund a needs assessment for the Governor's Office which will be performed by the Department of Information Services (DIS). She said it is critical that a computer network be set up between the Las Vegas office and the Carson City office, however, upgrades to the present system are needed to accomplish this goal. Because of the enormous amount of mail received in the office, it is crucial that the communication tracking system be upgraded, remarked Ms. Springgate. Senator Jacobsen noted, in the past, the Governor indicated concern because there was no communication link between the Governor's Office and the Governor's Mansion and the senator asked if this problem is addressed in the bill. Ms. Springgate replied the Governor's Mansion now has a fax machine which has alleviated some of the problems experienced in the past. Senator O'Donnell indicated the Governor's equipment request is very reasonable. Senator Raggio closed the hearing on A.B. 229 and asked Ms. Springgate why she has requested such a stringent records confidentiality amendment to Senate Bill (S.B.) 405. SENATE BILL 405: Provides for establishment of family resource centers in certain neighborhoods to provide and administer social services and requires establishment of program for self-sufficiency of application for and recipients of aid to families with dependent children. Ms. Springgate said, at the committee's recommendation, she added a confidentiality clause to the bill. The language for the clause came from statutes and other provisions which pertain to this issue, commented Ms. Springgate. She agreed to "tone down the language" in the amendment. Senator Rawson indicated another amendment has been proposed to the bill which deals with parental consent and the open meeting law. He asked Ms. Springgate to review the amendment and let him know if it is acceptable to the administration. Senator Raggio closed the discussion on Senate Bill 405 and opened the hearing on Assembly Bill (A.B.) 231. ASSEMBLY BILL 231: Makes appropriation to division of state department of conservation and natural resources for construction of airplane hangar at Minden airport. Peter G. Morros, Director, State Department of Conservation and Natural Resources, testified the intent of A.B. 231 is to consolidate the Division of Wildlife's aircraft operations with those of the Division of Forestry at the Douglas County Airport. He said the "co-location" will permit cross-training of both agencies' pilots and during periods of heavy wildland fire-fighting, enable pilots from the Division of Wildlife to provide back up coverage for Division of Forestry pilots. Presently, the Division of Wildlife's aircraft operations are centered in Reno in a leased hangar space which costs approximately $18,000 per year. Once the hangar is built, a long-term lease agreement with Douglas County will reduce the costs to $1,300 per year. In addition, the consolidation will save fuel costs because the two divisions will be able to purchase it in bulk quantity. He estimates $24,000 will be saved yearly on fuel costs. Currently, the Division of Wildlife employs three pilots and the Division of Forestry employs two. If air support operations are consolidated, then the pilot pool can be reduced to four employees which will mean a savings of $55,000 per year. Furthermore, savings in the amount of $10,000 will be achieved on replacement parts because the Division of Forestry can secure parts through military procurement channels. Mr. Morros related the only negative aspect of the consolidation is the initial cost of $250,000 for construction of the hangar, however, he estimates construction costs will be recovered in less than 5 years. Senator Raggio asked what will Douglas County charge for the hangar space. Mr. Morros replied the land rental charges total $1,300 per year and noted a long-term lease will be signed for the land. Senator Rawson expressed his concern regarding the accessibility and the facilities at the Douglas County Airport. Mr. Morros responded he discussed this move with the pilots and the travel time factor was acceptable to them. Senator Rawson commented he dislikes reducing the pilot pool and questioned if this action is necessary. Mr. Morros answered the consolidation is being proposed to save funds and increase efficiency. He related, "It would be nice to have a fifth pilot, but we can make it without the fifth pilot." Continuing, Senator Rawson inquired if the staff reduction will be handled by attrition or by a layoff. Mr. Morros responded he had planned on laying-off one of the Division of Wildlife's pilots and indicated the division's budget already reflects a salary savings for the position. Senator Rawson asked whether the agency will need to contract with private pilots if the fire season becomes too demanding. Mr. Morros explained, except in extreme circumstances, four qualified pilots should be capable of handling any fire emergencies which might develop. He indicated the Division of Forestry spent $35,000 last fire season for contract pilots because federal regulations only allow a pilot to fly for so many hours. All four pilots will be qualified to fly any of the aircraft owned by the department. Senator Rawson inquired if one or two pilots are utilized in the aircraft for fire suppression work. Generally, two pilots are used, however, regulations allow for the use of one pilot, remarked Mr. Morros. Senator Rawson commented, "That is my concern. If you are flying two, then you are down to two crews that you can put up at a time. You can start doubling up on that, but most corporations don't allow that because of the safety concerns." Senator Jacobsen stated the proposed hangar site is located approximately one mile away from the Douglas County Airport. He said the communication center for the Bureau of Land Management and the Division of Forestry has already been set up in a nearby building. He stressed the site is an ideal location to consolidate aircraft operations. In fact, he suggested the construction plan should include an area for a seed bank. Senator Raggio indicated the committee will consider Senator Jacobsen's suggestion. William A. Molini, Administrator, Division of Wildlife, State Department of Conservation and Natural Resources, expressed his support of the measure. Senator Raggio closed the hearing on A.B. 231 and opened the hearing on Assembly Bill (A.B.) 338. ASSEMBLY BILL 338: Removes certain restrictions governing disposition of certain fees imposed by justices' courts. P. Forrest Thorne, Deputy Executive Director, Department of Taxation, testified A.B. 338 modifies the state funding mechanism for the state demographer. Currently, the state demographer's contract is funded by a surcharge on cigarette tax administration fees and justice court fees. He explained the proposed legislation removes the limitation on the use of justice court fees to pay only the incremental costs incurred in the annual population estimates of townships. A.B. 338 allows the Department of Taxation to use the fees to cover all costs incurred by the state demographer in the determination of populations for townships, cities, and counties of the state. This legislation will eliminate the surcharge on the cigarette tax administration fee to fund the state demographer and will now be given to the local government entities. In addition, a refund provision provided in Nevada Revised Statutes 4.065 is unnecessary and will be deleted. Senator Jacobsen asked if this bill will affect collection efforts of the justices' courts. Mr. Thorne said the measure should not directly impact the courts' collection efforts. Senator Raggio noted the staff has advised him this funding change is consistent with the way the budget for the Department of Taxation was closed. Senator Rhoads questioned how much additional funding will this legislation generate. Mr. Thorne replied the justice court fees are currently generating approximately $65,000 per fiscal year, however, there will be no additional funds because the fee level is not being increased. Paula Treat, Lobbyist, Nevada Judges Association, commented the Nevada Judges Association has not had a chance to review the bill and asked if the bill could be held for 24 hours until she has an opportunity to notify association members. John P. Comeaux, Director, Department of Administration, testified the bill allows the use of the proceeds from the $1 fee to be used to fund all demographic studies. The present law indicates the proceeds can only be utilized for costs incurred by the state demographer in determining populations estimates for townships. He said this measure removes this restriction and allows the proceeds to be used to fund all state demographic population estimate costs. Ms. Treat remarked if the bill is a redistribution of funds, then the association has no objection to the legislation. Mr. Comeaux stated, "That is what it is." Senator Raggio closed the hearing on A.B. 338 and opened the hearing on Assembly Bill (A.B.) 240. ASSEMBLY BILL 240: Makes appropriation to bureau of alcohol and drug abuse in rehabilitation division of the department of employment, training and rehabilitation for equipment. Elizabeth Breshears, Chief, Bureau of Alcohol and Drug Abuse (BADA), Rehabilitation Division, Department of Human Resources, testified A.B. 240 provides a $275,000 general fund appropriation to pay for retrofitting of residential facilities with ultraviolet lighting and filter systems for BADA accredited treatment centers in response to tuberculosis issues. The request is designed to ensure all the BADA accredited facilities meet U.S. Occupational Safety and Health Administration (OSHA) requirements for control of communicable diseases. She related individuals in drug treatment are among the highest risk population for contracting and becoming infectious with tuberculosis. Senator Raggio asked if the appropriation will be utilized only for state funded programs. Ms. Breshears responded the equipment will be furnished to state funded nonprofit treatment centers. The chairman inquired if Ms. Breshears has a list of centers which have been proposed to receive the equipment. Ms. Breshears noted a brochure (Exhibit D) listing Nevada's network of nonprofit alcohol and drug treatment services has been distributed to the committee and explained the bureau has accredited 42 facilities, but only the high risk facilities will receive the equipment. She stressed staff members at these facilities are at a greater risk of contracting a drug resistant strain of tuberculosis which can be fatal. Senator Raggio questioned if clients are screened for tuberculosis before entering a treatment program. Ms. Breshears related clients are screened upon admission, but unfortunately, the centers cannot always wait for the results of the test before admitting an individual. Senator Coffin inquired if the equipment request includes face masks. Ms. Breshears indicated the appropriation will cover the costs of purchasing 18-24 hepi-filters which will be utilized by approximately 100 employees. In addition, she pointed out it costs $17,000 to convert a room into an isolation area. Senator Coffin wondered if it was more cost efficient to spend the funds to prevent the disease as opposed to trying to purify the air in a center. Senator Rawson related tuberculosis bacteria can live for over 20 years, but once the bacteria is exposed to ultraviolet light its harmful effects are significantly diminished. Sandy Hanneke, TB Coordinator, Bureau of Disease Control and Intervention, Health Division, Department of Human Resources, stated tuberculosis can remain alive in the air for hours, but once the bacteria reaches a surface or is exposed to sunlight it dies. Senator Jacobsen asked if the filter units are connected to the air conditioning system or if the units are free standing. Ms. Hanneke replied each treatment facility is set up differently, so the centers will need to be evaluated separately. She explained some filter systems can be moved from room to room and others are connected to the ventilation system. Senator Jacobsen inquired whether the filters become biohazardous material once they are used. Ms. Hanneke responded the filters must be disposed of in a "biohazard way." Ms. Breshears noted employee training is an important component in deterring the spread of the disease. She pointed out training funds have not been included in the bureau's budget because a separate grant funds training for treatment center employees. Senator Raggio asked Ms. Breshears to report back to the Interim Finance Committee (IFC) on how the funds are being utilized. Ms. Breshears answered, "We would be happy to do that." Senator Raggio closed the hearing on A.B. 240 and opened the hearing on Assembly Bill (A.B.) 252. ASSEMBLY BILL 252: Makes appropriation to office of state public defender of department of human resources for computer hardware and software. James J. Jackson, State Public Defender, Office of State Public Defender, Department of Human Resources, stated A.B. 252 as amended, provides a one-time general fund appropriation of $9,546 for computer hardware and software. At this time, Mr. Jackson explained, the public defender's office is not computerized and A.B. 252 will allow the office to purchase five personal computers, five sets of software, and three printers at a total cost of $22,200. The General Fund will fund 43 percent of the costs and the counties' fund portion of $12,654 represents 57 percent of the total. Senator Raggio inquired if the counties have already agreed to pay their portion of costs. Mr. Jackson said he does not foresee any problems with the counties, but Chapter 260 of the Nevada Revised Statutes requires the office to provide the counties, by March 1 of a session year, a projection of what the county's portion will total for the next biennium. If the final costs exceed the projection by more than 10 percent, the counties have the option to withdraw. Senator Raggio pointed out if a county withdraws its support, then it is responsible for funding its own program. Senator Jacobsen remarked, "With all of the [computer] equipment being authorized this session, I wonder if someone isn't turning something in that we couldn't use." Senator O'Donnell agreed many agencies are upgrading their equipment, but presently there is no mechanism in place to evaluate agency computer requests. Senator Raggio asked what happens to an agency's computer equipment once it is replaced. Senator O'Donnell indicated the equipment is discarded or put in storage and stressed there is a definite need for a "state computer store, whereby, the old equipment can be turned in for new equipment and other agencies can purchase the old equipment." He noted an interim study has been proposed to evaluate this problem. Senator Raggio stated: I think a Letter of Intent suggesting that these agencies being given these appropriations be authorized and required to investigate that potential source. I would suggest something along those lines. Senator Jacobsen interjected he has proposed legislation which will require each agency to list all their surplus property. He mentioned a building at the Stewart Facility is full of equipment which is not being utilized. Senator Raggio closed the hearing on A.B. 252 and opened the hearing on Assembly Bill (A.B.) 629: ASSEMBLY BILL 629: Makes supplemental appropriation to department of museums, library and arts for operating expenses of Nevada historical society. Peter L. Bandurraga, Ph.D., Director, Nevada Historical Society, Division of Museums and History, Department of Museums, Library and Arts, testified A.B. 629 is a request for a $10,000 General Fund supplemental appropriation for operating expenses in FY 1995. Prior to the current biennium, the historical society had never charged admission fees, so the shortfall is due to an overestimation of admission fees. The chairman questioned what the historical society charged for admission fees. Mr. Bandurraga answered anyone 18 and older is charged $2.00. Senator Raggio asked if the public has indicated a resistance to paying the fee. Mr. Bandurraga replied affirmatively. He explained the historical society has been searching for a larger facility located closer to the University of Nevada, Reno, so more exhibitions and materials can be exhibited. Continuing with his questioning, Senator Raggio inquired about the amount of admission fees budgeted for the next biennium. Mr. Bandurraga responded the budget includes $15,000 per year for admission fee income. Senator Raggio closed the hearing on A.B. 629 and turned the committee's attention to the second reprint of Senate Bill (S.B.) 278. SENATE BILL 278: Makes appropriation for design of Phase II of Lovelock Correctional Center, provides for issuance of bonds and temporary advance for Phase I of Men's Prison No. 7 and requires department of prisons to contract for construction and operation of new facility for women. Mr. Miles explained the bill was sent to the Assembly with a $790,000 appropriation request. The Assembly amended the bill and added language regarding bonding for the advanced planning, design and site work for a new men's prison in southern Nevada. In addition, the amendment requires the prison director to contract for construction and operation of a new women's prison in southern Nevada. Referring to section 3 of the bill, the chairman said the language in this section is unclear. Mr. Miles explained the Joint Subcommittee on Public Safety in its closing action added $3.3 million in per diem costs for a women's prison in southern Nevada. Senator O'Donnell stated: I want to make sure for the record the prison is built and not put on a back burner and negotiated around and delayed like the last one was that we tried to contract out. We have an emergency situation and we need to get this prison online in 12 months. If we are going to put this thing through public works like we did last time, then we are going to be in real trouble. Senator Raggio commented one of the actions taken by the joint subcommittee when it closed the budget was to place $8 million into the contingency fund to house prisoners out-of-state if necessary. Secondly, he said the joint subcommittee recommended that a new prison be built in southern Nevada, but the language in the bill does not reflect these recommendations. The chairman remarked the bill refers to a Men's Prison No. 7 and asked for an explanation regarding this reference. Mr. Miles explained this proposal was in the Governor's budget to begin the design and planning for a 2,000 bed men's prison in southern Nevada. Senator Raggio questioned if this prison would be privatized. Mr. Miles replied, no, the proposed men's prison in southern Nevada will be state-owned, however, the proposed women's prison will be privatized. Senator Raggio asked where the funding for prison privatization is shown. Mr. Miles responded, "That is within the budgets closed by the Senate Committee on Finance and the Assembly Committee on Ways and Means." The chairman said, "I am confused by the way this language references the 1991 statute which did authorize the contracting out of prisons....We need to have Jan Needham [Legislative Counsel] explain why this language is used." Mr. Miles interjected the amendment refers to the 1991 legislation because it is still in effect and has a complete prescription on how privatization is accomplished. Senator Raggio stated the committee will not concur with the amendment until legislative counsel has explained the language in section 3 of S.B. 278. The chairman turned the committee's attention to the bills heard earlier in the meeting and indicated the committee will now take action on these measures. SENATOR MATHEWS MOVED TO DO PASS A.B. 229. SENATOR RAWSON SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. * * * * * SENATOR RAWSON MOVED TO DO PASS A.B. 231 WITH A LETTER OF INTENT REQUIRING THE DESIGN OF THE FACILITY TO ALLOW FOR ADDITIONAL SPACE FOR A SEED BANK. SENATOR O'DONNELL SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. * * * * * SENATOR COFFIN MOVED TO DO PASS A.B. 338. SENATOR MATHEWS SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. * * * * * SENATOR RAWSON MOVED TO DO PASS A.B. 240. SENATOR MATHEWS SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. * * * * * SENATOR MATHEWS MOVED TO DO PASS A.B. 252. SENATOR O'DONNELL SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. * * * * * SENATOR COFFIN MOVED TO DO PASS A.B. 629. SENATOR RAWSON SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. * * * * * ASSEMBLY BILL 88: Makes appropriations to certain judicial districts for programs of treatment for abuse of alcohol or drugs. SENATOR O'DONNELL MOVED TO DO PASS A.B. 88. SENATOR JACOBSEN SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. * * * * * ASSEMBLY BILL 220: Makes appropriation to budget division of department of administration for development of requirements for integrated financial system. Mr. Miles explained the appropriation will fund system design requirements for an integrated financial system which will eventually become a "full blown" accounting system. SENATOR O'DONNELL MOVED TO DO PASS A.B. 220. SENATOR COFFIN SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. * * * * * ASSEMBLY BILL 316: Increases maximum amount of annual fee which may be imposed on each lot in mobile home park. Senator Raggio related this measure increases the annual fee from $3 to $5 to the mobile park owner for each lot within that park. Senator Coffin asked if the fee can be passed on to park tenants. Senator Mathews responded the fee is charged to the park owner, however, there is nothing in the bill prohibiting a park owner from passing the charge on to a tenant. The chairman pointed out, even if the fee is passed on to the tenant, the increase would only total $2 per year. SENATOR RAWSON MOVED TO DO PASS A.B. 316. SENATOR RHOADS SECONDED THE MOTION. THE MOTION CARRIED. (SENATOR MATHEWS VOTED NO.) * * * * * SENATE BILL 78: Makes appropriation to department of education for training of school administrators. SENATOR RAWSON MOVED TO DO PASS S.B. 78. SENATOR O'DONNELL SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. * * * * * Senator Raggio noted the committee has been provided with a copy of Amendment Number 943 (Exhibit E) to Senate Bill (S.B.) 428 and asked the staff to review the amendment. SENATE BILL 428: Requires establishment of program for self-sufficiency of applicants and recipients of aid to families with dependent children. H. Pepper Sturm, Chief Principal Research Analyst, Research Division, Legislative Counsel Bureau, came forward and highlighted the revisions as outlined in Exhibit E. He indicated section 3 revises the name of the act to the Nevada Self-Reliance Act of 1995. Section 5 clarifies that "Benefits" means aid to families with dependent children as opposed to other welfare program benefits. Section 10 exempts certain people from participating in the self-sufficiency plan. He indicated section 12 has been revised and the term "monthly benefit" has been deleted and changed to "cash benefit" to clarify the section is referring to Aid to Families with Dependent Children (AFDC) cash benefits. Line 30 on page 3 of the bill denotes that a program participant is not subject to the provisions of the "2-years and out" while receiving an exemption from the jobs program, however, the "2-years and out" provision begins as soon as the participant is eligible, explained Mr. Sturm. Referring to section 18, he stated the amendment deletes "shall increase the cash" and adds "may increase the" to clarify it is subject to whatever funds might be available for this particular aspect of the program. Section 19 was revised to clarify the section is referring to earned income and dental and vision coverage was also deleted in section 20. Mr. Sturm noted the next series of amendments concern sections of the bill which requires that welfare recipients' children are enrolled in school. Section 23 was amended to apply to kindergarten through 6th grade and requires proof of enrollment and school attendance be provided at time of certification or recertification. He explained section 25 originally required all welfare recipients to make some type of effort toward receiving a high school diploma or General Education Diploma. The amendment clarifies this requirement applies to recipients who are 18 years of age or younger. Although, the division may require a participant who is 19 years of age or older to comply with the requirement. Continuing, he explained section 26 has been amended to limit the parenting programs to recipients who are less than 21 years of age and deletes the requirement that classes must be approved by the State Board of Education. Steve J. Abba, Program Analyst, Fiscal Division, Legislative Counsel Bureau, came forward to discuss amendments to section 27 of S.B. 428. He explained this section provides for the phase-in of recipients to receive job training and similar skill training through the Welfare Division. Currently, Welfare Division requirements exempt AFDC caretakers with children under the age of three from the Job Opportunities and Basic Skills (JOBS) training program. The joint subcommittee on Human Resources/K-12 originally changed the requirement to caretakers with children under 6 months of age, but due to costs and logistical problems with training such large numbers of individuals at one time, the committee approved a phase-in schedule for AFDC caretakers. Referring the committee to section 30 of the bill, Mr. Sturm pointed out this section was amended to allow contractual arrangements for child care services for persons participating in the program. Previously, section 31 required the division to refer all outstanding claims to private entities for collection, however, the amendment deletes the term "shall" and adds the permissive term "may." In section 38, he indicated the term "withdrawal" was deleted and the term "adjust" was inserted because of concern the IFC might withdraw state funding from the program depending upon the federal government's actions in the next several months. Mr. Sturm explained pages 5-9 of Exhibit E contains the transitional language for participation in the JOBS program. He turned the committee's attention to section 49 of the amendment and noted the section specifies the program and its services will be carried out to the extent of sufficient legislative appropriations. Senator Coffin asked if the agency has reviewed the amendment because section 49, as it is now amended, indicates that if the program's costs are underestimated, then the program will not have sufficient funds to continue. In addition, he questioned if it has been determined what services will be deleted if funding is not sufficient. Mr. Abba replied the agency has reviewed the amendment and the fiscal note to the amendment. He said a revised fiscal note dated June 13, 1995 has been provided to the committee for review. He explained the costs of the fiscal note were reestimated and it was determined the provisions established in the bill will cause the division to experience a greater amount of savings. The fiscal note, he remarked was based upon a number of assumptions which can change during the next biennium. Proceeding, Mr. Abba pointed out section 52(1) provides a $1,546,670 General Fund appropriation to carry out the provisions of sections 3 through 38 of the bill. Subsection 2 of section 52 provides the authorization level of $525,970 which is the estimated federal match costs that could be accessed to implement the program. He related the estimated savings of the program by FY 2001 is $29 million and approximately $7.3 million of the total savings reflect state funds. Senator Raggio stated Amendment Number 943 to S.B. 428 is in compliance with the committee's actions so it will be submitted to the Senate floor. There being no further business before the committee, Senator Raggio adjourned the meeting at 10:00 a.m. RESPECTFULLY SUBMITTED: Pamela Jochim, Committee Secretary APPROVED BY: Senator William J. Raggio, Chairman DATE: Senate Committee on Finance June 19, 1995 Page