MINUTES OF THE SENATE COMMITTEE ON FINANCE Sixty-eighth Session June 26, 1995 The Senate Committee on Finance was called to order by Chairman William J. Raggio, at 9:00 a.m., on Monday, June 26, 1995, in Room 223 of the Legislative Building, Carson City, Nevada. Exhibit A is the Agenda. Exhibit B is the Attendance Roster. COMMITTEE MEMBERS PRESENT: Senator William J. Raggio, Chairman Senator Raymond D. Rawson, Vice Chairman Senator Lawrence E. Jacobsen Senator Bob Coffin Senator William R. O'Donnell Senator Dean A. Rhoads Senator Bernice Mathews GUEST LEGISLATORS PRESENT: Assemblyman David E. Goldwater, Assembly District No. 10 Assemblyman Robert (Bob) E. Price, Assembly District No. 17 STAFF MEMBERS PRESENT: Dan Miles, Fiscal Analyst Bob Guernsey, Deputy Fiscal Analyst Debbra J. King, Program Analyst Marion Entrekin, Committee Secretary OTHERS PRESENT: John P. Comeaux, Director, Department of Administration Carole A. Vilardo, Lobbyist, Nevada Taxpayers Association Patricia A. Huhtelin, Senior Service Programmer, Aging Services Division, Department of Human Resources Ronald Lange, Deputy Administrator, Health Division, Department of Human Resources Yvonne Sylva, Administrator, Health Division, Department of Human Resources Senator Raggio opened the hearing on Senate Bill (S.B.) 554 which was heard by the committee on June 21, 1995. In addition to a conflict notice pertaining to Senate Bill (S.B.) 66, he stated there is also a conflict with Assembly Bill (A.B.) 27, and both S.B. 554 and A.B. 27 will amend Nevada Revised Statutes (NRS) 43290. SENATE BILL 554: Repeals prospective expiration of provisions requiring solicitation of certain information concerning veterans when issuing or renewing driver's licenses. SENATE BILL 66: Revises provisions relating to issuance of license to operate certain motor vehicles. ASSEMBLY BILL 27: Revises provisions relating to proof of identity required for issuance of instruction permit, driver's license or identification card. Dan Miles, Fiscal Analyst, Fiscal Analysis Division, Legislative Counsel Bureau, said the proposed Amendment No. 1257 will delete section 2 of S.B. 554 pertaining to the appropriation amount and resolve the conflicts with S.B. 66 and A.B. 27. Senator Raggio said the committee has already voted to amend and do pass S.B. 554 on June 21, 1995, but asked for a motion to accept Amendment No. 1257. SENATOR O'DONNELL MOVED TO ACCEPT AMENDMENT NO. 1257 TO S.B. 554. SENATOR JACOBSEN SECONDED THE MOTION. THE MOTION CARRIED. (SENATOR RAWSON WAS ABSENT FOR THE VOTE.) * * * * * Senator Raggio announced there will be a meeting of the Senate Committee on Finance at 4:00 p.m. today to consider final decisions on the local projects appropriations and issues to be finalized in preparation for the introduction of the appropriation and authorization bills, unclassified salaries, and classified salaries. He stated an agenda will be posted regarding this meeting. Senator Raggio opened the meeting for discussion of Senate Bill (S.B.) 199. SENATE BILL 199: Makes appropriation to fund to stabilize operation of state government. John P. Comeaux, Director, Department of Administration, indicated S.B.199 will make a direct appropriation in the amount of $81,942,218 to the fund to stabilize the operation of state government known as the "Rainy Day" fund. He stated this amount was recommended by the Governor and is contained in the Executive Budget, and will bring the balance in the fund to $100 million. Under the law, funds can only be taken from the Rainy Day fund if revenues fall below 5 percent of projections, and the Governor and the Legislature agree an emergency exists. Mr. Comeaux opined the Rainy Day fund is critical and is intended to be used in financial emergencies. In good times, funds are put away to meet revenue shortfalls in future years, and bringing the Rainy Day fund level to $100 million should help meet future emergencies. Carole A. Vilardo, Lobbyist, Nevada Taxpayers Association, wished to pledge her support for the passage of S.B. 199 that she opined is an important fund, and should be brought to the $100 million level. Senator Raggio closed the hearing on S.B. 199 and opened the meeting for discussion of Assembly Bill (A.B.) 310. ASSEMBLY BILL 310: Makes appropriation to aging services division of department of human resources for production, publication and distribution of pamphlet of transportation services for aged and disabled persons. Assemblyman David E. Goldwater, Assembly District No. 10, testified in favor of the passage of A.B. 310 which will provide an appropriation of $7,000 from the General Fund to the Aging Services Division during the 1995 - 1997 biennium. He said the appropriation will be used to produce, publish, and distribute a pamphlet of public and private transportation services available for aged and disabled persons for each county in the state. Mr. Goldwater further stated the pamphlet will serve as a resource for the aged and disabled citizens of the state, and will provide general information on the availability of transportation services, geographical operating areas, operating schedules, telephone numbers, addresses for service providers, and contact sources. Senator Raggio asked how many pamphlets will be printed each year, and how the pamphlets will be distributed. Patricia A. Huhtelin, Senior Service Programmer, Aging Services Division, Department of Human Resources, responded it is estimated 5,000 pamphlets will be printed and mailed annually. She said $2,000 has been allocated for envelopes and postage. It is the division's anticipation the contractor will facilitate the distribution of the pamphlets. Senator Raggio closed the hearing on A.B. 310 in order to hear testimony regarding Assembly Concurrent Resolution (A.C.R.) 28. ASSEMBLY CONCURRENT RESOLUTION 28: Grants administrative leave to legislative employees in recognition of their service to 68th session of Nevada Legislature. Senator Raggio indicated this is a measure historically passed by the Legislature to recognize the diligent and conscientious work performed by the legislative employees during the long days of session. Mr. Miles said A.C.R. 28 will grant 5 days of administrative leave to all temporary and permanent staff employed by the Legislature and Legislative Counsel Bureau on the last day of the 1995 Legislative session. Assemblyman Robert (Bob) E. Price, Assembly District No. 17, testified in support of the passage of A.C.R. 28 that he describes as the Legislators way of displaying appreciation to the temporary and permanent staff of the Legislative Counsel Bureau for their work during the session. Senator Rhoads asked the cost of the measure. Mr. Price responded the cost has already been built into the budget of the Legislative Counsel Bureau, and equates to 5 days salary or 5 days administrative leave. Senator Raggio closed the hearing on A.C.R. 28 and called the committee's attention to Senate Bill (S.B.) 406 regarding the reorganization of the Department of Motor Vehicles and Public Safety (DMV&PS). SENATE BILL 406: Revises provisions governing organization of department of motor vehicles and public safety. Senator O'Donnell remarked disagreement arose at meetings held by the Joint Subcommittee on Public Safety/Natural Resources/Transportation between members of the Assembly and Senate concerning whether or not hearing officers for DMV&PS should be unclassified personnel. He stated there was also disagreement regarding several other issues as well, and Amendment No. 1035 was prepared in an attempt to resolve some of these issues. Senator Raggio indicated there are conflict notices with Senate Bill (S.B.) 334, Senate Bill (S.B.) 426, Assembly Bill (A.B.) 57, and Assembly Bill (A.B.) 164 that are accommodated in Amendment No. 1035 to S.B. 406. SENATE BILL 334: Transfers duty to pay certain costs related to purchasing warehouse building in Reno, Nevada, from purchasing division to buildings and grounds division of department of administration. SENATE BILL 426: Creates fire service standards and training committee. ASSEMBLY BILL 57: Broadens application of provisions governing eligibility for workers' compensation for diseases of heart or lungs. ASSEMBLY BILL 164: Revises provisions governing jurisdiction and authority of certain units of specialized law enforcement established by political subsivision. Debbra J. King, Program Analyst, Fiscal Analysis Division, Legislative Counsel Bureau, highlighted the information contained in Exhibit C, Amendment No.1035 to S.B. 406. She pointed out all references contained in S.B. 406 regarding the transfer of the Capitol Police to the jurisdiction of the DMV&PS has been eliminated by Amendment No. 1035 since the transfer will be accomplished by the passage of another measure that is before the Legislature at this time. Ms. King referred the committee to page 2 of Exhibit C deleting the reference to the Capitol Police from S.B. 406. Senator Jacobsen asked who will be responsible for training of the Capitol Police. Ms. King replied the training will be under the jurisdiction of the DMV&PS. Senator Jacobsen asked if the transfer to the DMV&PS will eliminate the Peace Officers Standards and Training (POST) program. Ms. King replied it would not. She clarified the POST program will be under the jurisdiction of the Training Division of the DMV&PS. Ms. King said the amendment to section 22 of S.B. 406 proposes a new Division of Records and Identification, and will retain the Training Division for POST program training within the DMV&PS. She clarified training for fire services will be eliminated within the Training Division of the DMV&PS. SENATOR O'DONNELL MOVED TO AMEND AND DO PASS S.B. 406 WITH AMENDMENT NO. 1035. SENATOR JACOBSEN SECONDED THE MOTION. Senator Jacobsen asked if the passage of S.B.406 will affect the capability of the Nevada Highway Patrol Division to access information from the DMV&PS. Ms. King replied, "Under the original bill provided by the DMV&PS, what was previously known as the criminal history repository...now becomes a part of the new Records and Identification Section instead of the highway patrol." Senator O'Donnell said the recommended changes regarding the Records and Indentification Section was at the request of the director of DMV&PS, and not the joint subcommittee. Senator Coffin asked if a fiscal impact will be imposed due to Amendment No. 1035. Senator O'Donnell responded there is no fiscal impact because the budget has already been closed. THE MOTION CARRIED UNANIMOUSLY. * * * * * Senator Raggio turned the gavel over to Senator Rawson at 9:50 a.m. Senator Rawson opened the meeting for discussion of Senate Bill (S.B.) 471. SENATE BILL 471: Revises provisions governing eligibility for coverage for long-term care under state plan for assistance to medically indigent. Senator Rawson asked that suggested language for S.B.471 (Exhibit D) be distributed to the committee. He stated the Medicaid long- term care program, an optional service under Title XIX of the Social Security Act, is currently jointly financed by the state and counties up to the maximum percent of the Supplemental Security Income (SSI) benefit rate federally allowed. The state's and county's financial commitment to pay for costs associated with the program are delineated in provisions of an interlocal agreement between the Department of Human Resources and all 17 Nevada counties that provides both the state and the counties the opportunity to access federal match dollars to fund approximately 50 percent of the Medicaid program's long-term care costs. Senator Rawson remarked the counties' participation is more commonly referred to as the county match program and is dependent on all 17 counties financially participating. Prior to implementing the county match program, the counties' portion of long-term care costs was solely funded by county indigent care funds. Senator Rawson said S.B.471 will establish a mechanism for Fiscal Years 1995 and 1996 only to allow counties who are unable to meet their county match financial obligations to access a limited pool of reserved and unobligated provider tax revenues to be used as a match. A more long-term arrangement will be studied, he said, during the upcoming biennium, which will allow time to determine if recommended Medicaid budget modifications will assist financially strapped counties. SENATOR JACOBSEN MOVED TO AMEND AND DO PASS S.B. 471 WITH THE SUGGESTED LANGUAGE REFLECTED IN EXHIBIT D. SENATOR O'DONNELL SECONDED THE MOTION. THE MOTION CARRIED. (SENATOR RAGGIO WAS ABSENT FOR THE VOTE.) * * * * * Senator Rawson turned the committee's attention 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. Senator Rawson distributed Exhibit E, sugge sted Amend ment No. 1 to S.B. 405, that he revie wed with the commi ttee. Mr. Miles pointed out when the budget for the State Department of Education was closed, the category containing funding for family resource centers was removed pending the outcome of S.B. 405. He stated funding of $565,000 in each fiscal year in the coming biennium must now be amended into S.B. 405 to allow the Department of Human Resources to establish a number of family resource centers throughout the state in high risk neighborhoods. He stated this will provide convenient access to social services for residents of those neighborhoods. SENATOR MATHEWS MOVED TO AMEND AND DO PASS S.B. 405 WITH THE SUGGESTED LANGUAGE REFLECTED IN EXHIBIT E. SENATOR COFFIN SECONDED THE MOTION. THE MOTION CARRIED. (SENATOR RAGGIO WAS ABSENT FOR THE VOTE.) * * * * * Senator Rawson opened the hearing for discussion of Senate Bill (S.B.) 430 that was heard in this committee on June 20, 1995. SENATE BILL 430: Revises provisions governing regulation of emergency medical services in certain counties. Ronald Lange, Deputy Administrator, Health Division, Department of Human Resources, stated in 1989 both Washoe and Clark counties wanted the Emergency Medical Services (EMS) program removed from state control. At that time, both counties had the necessary staff to perform the functions of the program that had formerly been administered by the state. If S.B. 430 is passed, the regulatory oversight responsibility for EMS in Washoe County only will be removed and placed under the jurisdiction of the state's Health Division. He distributed Exhibit F that provides information concerning the fiscal impact of the transfer to the state. Mr. Lange said in order for the division to assume regulatory oversight responsibility in Washoe County while maintaining the existing quality of EMS in rural areas, additional staff and operating resources will be needed. He remarked: We [the Health Division] are asking for two FTE [Full- Time Equivalency] and one clerical [position] if we are required to absorb this program. Unless we solve the problem that exists, there is no reason for transferring the program back to the state. An alternative may be to meet with representatives of Washoe County...and try to determine what the problem is. If we cannot resolve it, come back to this committee the next biennium. My concern is Washoe County wanted to get away from the state, and now they want to come back....We have certain rules and regulations and they need to know what they are going to be getting into. We are willing to take the program on, but we do need the staff. Senator Rawson asked if the amounts reflected in Exhibit F of $197,421 for Fiscal Year 1996, and $160,060 for Fiscal Year 1997 will provide sufficient funding to acquire the EMS program back from Washoe County. Mr. Lange responded in the affirmative. Senator Mathews indicated her displeasure with the arguments that have prevailed between officials of Washoe County and the state regarding the responsibility for EMS services. She said, "The bottom line is it is a health issue that must be taken care of." She suggested an additional amendment to S.B. 430 to provide for an additional Emergency Medical Technician II and a Management Assistant II that will amount to salaries totalling $56,592 in the first year of the biennium, and $59,624 in the second year of the biennium. She stated if a supervisory position is not filled, additional funding will be required for travel expenses for two individuals, and this will amount to $2,926 in the first year of the biennium and $3,100 for the second year of the biennium. In reviewing the suggested operating expenses reflected in Exhibit F, Senator Mathews noted a duplication of costs for telephone services. She also opined the amount reflected for rental space is too high. She stated Washoe County has space that can be used by the state at no cost. Yvonne Sylva, Administrator, Health Division, Department of Human Resources, remarked since the EMS program was transferred to Washoe County, the EMS program at the state level lost an additional 1.5 full-time positions. She is uncertain the division can meet Washoe County's needs with one professional and one clerical position as suggested by Senator Mathews. She stated: It is no secret we are hardware and software poor within the division, and there is no way we can do the additional work with the hardware requested to be left in [the fiscal note]. If it is the committee's desire that we go with the reduced fiscal note with one professional and one clerical staff, I would want to be on record noting we would like to come back before the Interim Finance Committee to share our progress with you, whether it be good or poor. Senator Coffin stated there was a hearing on this issue before the Senate Committee on Human Resources and Facilities, and he is aware of the problems that exist within Washoe County with the EMS program. He remarked: I want to make sure we do not have a similar problem as we did with immunizations. Is it a case where we just have to knock some heads in Washoe County to get them to be a little more understanding on immunizations...or is this issue deeper than that? Ms. Sylva replied she is uncertain what the reason is. Senator Coffin stated this should be explored before action is taken on S.B. 430. He inquired: Assuming you have reduced your fiscal note down to a reasonable level, do we have a way of mitigating that in some fashion? I have inquired on this subject and found that Washoe County does support that budget in their local government, with some of our state funds in our aid to counties. Can we just reduce our aid to Washoe County and then take it back in? Would that help to pay the bill? Mr. Lange responded it would offset the additional appropriation that will be required, but it would require reopening the Aid to Counties budget, reducing the amount, and reclosing the budget. He stated Washoe County's budget for this program is $178,000 each year of which $18,212 is provided by the state as a pass through from the Aid to Counties budget. Senator Coffin asked if other state funds are being used to support Washoe County's budget. Mr. Lange stated he could not answer this question without examining Washoe County's books. Senator Jacobsen remarked the EMS program administered by the state has proven to be a lifeline for the rural counties. He stated he would not like to have this service jeoparized by the passage of S.B. 430 since it may place an additional work load on the Health Division. Senator Rawson closed the the hearing on S.B. 430 and returned the gavel to Senator Raggio. Senator Raggio asked for a motion on A.B. 310. SENATOR JACOBSEN MOVED TO DO PASS A.B. 310. SENATOR RAWSON SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. * * * * * Senator Raggio asked for a motion on A.C.R. 28. SENATOR COFFIN MOVED TO ADOPT A.C.R. 28. SENATOR JACOBSEN SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. * * * * * Senator Raggio adjourned the meeting at 10:10 a.m. RESPECTFULLY SUBMITTED: Marion Entrekin, Committee Secretary APPROVED BY: Senator William J. Raggio, Chairman DATE: Senate Committee on Finance June 26, 1995 Page