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 4:00 p.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: Senator Joseph M. Neal, Jr., Clark County Senatorial District No. 4 Senator Mike McGinness, Central Nevada Senatorial District Senator Jon C. Porter, Clark County Senatorial District No. 1 Senator Ernest E. Adler, Capital Senatorial District STAFF MEMBERS PRESENT: Dan Miles, Fiscal Analyst Bob Guernsey, Principal Deputy Fiscal Analyst Brian M. Burke, Program Analyst Jeanne L. Botts, Program Analyst Judy Jacobs, Committee Secretary OTHERS PRESENT: Donald J. Mello, Court Administrator and Director of the Administrative Office of the Courts, Office of Court Administrator Robert S. Hadfield, Lobbyist, Nevada Association of Counties Madelyn Shipman, Lobbyist, Washoe County District Attorney's Office John P. Comeaux, Director, Department of Administration Bruce Glover, Chief, Drivers' License Division, Department of Motor Vehicles and Public Safety Elizabeth King, Assistant Chief, Drivers' License Division, Department of Motor Vehicles and Public Safety Raymond A. Hoferer, Chairman, Walker River Paiute Tribe of Nevada J. Scott Miller, Administrator, Division of Museums and History, Department of Museums, Library and Arts Janice Ayres, Executive Director, Retired Senior Volunteer Program John P. Copoulos, Comstock Historic District Commission, Office of Historic Preservation, Department of Museums, Library and Arts Ronald M. James, Administrator, Office of Historic Preservation, Department of Museums, Library and Arts R. Michael Turnipseed, State Engineer, Division of Water Resources, State Department of Conservation and Natural Resources Holly Van Valkenburgh, Consulting Librarian, Library Development, Department of Museums, Library and Arts Michael Pescetta, Executive Director, Nevada Appellate and Postconviction Project, Inc. Ronald V. Lange, Deputy Administrator, Health Division, Department of Human Resources Robert Heffner, Director, Regional Emergency Medical Services Authority Ivan R. Ashleman, II, Chairman, Board of Museums and History, Department of Museums, Library and Arts Roy W. Trenoweth, State Forester Firewarden, Division of Forestry, State Department of Conservation and Natural Resources Senator Raggio indicated the first order of business after the recess from the morning meeting would be consideration of Senate Bill (S.B.) 495. SENATE BILL 495: Makes various changes to provisions governing collection of fines and assessments. He noted some local governments expressed concern that the provision to change some violations from state law to the authority of local ordinances will have an adverse impact on local courts. He asked if that is addressed by Amendment No. 955 to S.B. 495 (Exhibit C. Original is on file in the Research Library). Donald J. Mello, Court Administrator and Director of the Administrative Office of the Courts (AOC), Office of Court Administrator, responded the negative effect will remain in the bill in sections 31 and 31.5. Senator Raggio asked if there has been a determination what financial effect that will have on local courts. Mr. Mello expressed the understanding it may be substantial. Robert S. Hadfield, Lobbyist, Nevada Association of Counties, said a statewide estimate indicates the impact will amount to approximately $4.5 million. He said there are two parts to the bill which will have an impact on the counties. He called attention to proposed amendments in Exhibit C. Madelyn Shipman, Lobbyist, Washoe County District Attorney's Office, indicated section 30 will redefine what has previously been considered a forfeiture as a conviction, and therefore was deemed a fine. She said in Washoe County approximately 80 percent of tickets written by the Nevada Highway Patrol (NHP) are paid either at the office or by mail, and currently they are treated as forfeitures since they are not necessarily a conviction. She pointed out Washoe County receives 80 percent of $1.8 million annually from that source. Mr. Hadfield read the language at the top of the page in Amendment 955 on page 16 in section 2 which he asserted will delete standard practice that has been in usage for a long time. He voiced the understanding the Office of the Attorney General has offered an opinion that the counties have been acting in good faith, but the amendment will no longer allow the funds from those citations to be used to pay court costs. He stated: Our concern is that if there's a problem here in relationship to highway patrol and highway patrol functions in counties and charges, we, as counties, have the responsibility of providing the courts, and these funds are desperately needed to fund that whole system. Mr. Hadfield declared the counties will suffer economic hardship administering the system if those funds must be turned over to the state under that provision of the amendment. After reviewing the audit, he stated, the counties have voiced a desire to study the matter during the interim to see what can be done to make it work for both parties. He asserted the way the amendment is written it will essentially destroy the counties' financial ability to fund the court system. Senator Raggio inquired if that is the only part of the amendment with which the counties disagree. Mr. Hadfield responded most of the other amendments relate to phasing in of the funds now going to the counties over a 4-year period. He asserted the two issues are whether a forfeiture is a fine, and provisions of the paragraph he cited on page 16. Mr. Mello interjected the bill drafter was requested to make amendments to Nevada Revised Statutes (NRS) 178.518, which defines what is supposed to be done with bail forfeitures, but no amendments were made by the bill drafter to NRS 178.518 as originally proposed in Exhibit D (Original is on file in the Research Library.). Senator Raggio asked if the amendment is in the form requested. Mr. Mello replied that is one of the concerns both he and others have. Senator Raggio asked if a consensus could be reached on proposals by the next day for consideration. He asked how much damage would be done if the proposal regarding collections for state citations were deleted in its entirety. Mr. Mello responded there are other meritorious provisions to the bill. Senator Raggio requested the parties get together and attempt to return with proposals to meet some of the concerns of the audit. Mr. Mello replied the best avenue may be to delete sections 31 and 31.5 of the bill and the proposed amendment. He said the remainder of the bill deals with improving the collection process. He noted section 30 may need deletion also. Senator Raggio reiterated the problems occur in section 31.5 in the amendment, and sections 30 and 31 in the bill. Ms. Shipman stated, "Section 30 is the one that changes the law to made it clear that a payment of a ticket results in a fine and a conviction, as opposed to a forfeiture in lieu of an appearance." Senator Raggio asked if those are the only three sections of concern. Mr. Mello confirmed his query. Senator Raggio inquired if there will be any disagreement if those three sections are deleted. Mr. Hadfield agreed that will resolve his concerns. Brian M. Burke, Program Analyst, interjected he only had a brief opportunity to review the matter. Senator Raggio stated section 3 will be deleted and new sections, 3, 3.1, 3.2 and 3.3 will be added. Mr. Mello said: Those new sections pertain to collection and sentencing and to clarify the obligation of the defendant to make his payments with regards to fines and assessments in order to complete his sentence, be it the sentence suspended or a periodic payment setup. It will also clarify that when a person gets out of prison that they're obligated to then pay their fines and assessments. ... Also ... with the sections pertaining to the Department of Motor Vehicles [and Public Safety, (DMV&PS)] ... placed into effect, those are 14 through 29, we would segue that over and create a system, with the permission of the university system, to track delinquent fines and assessments among the students ... and withhold their transcripts and their grades until they pay their fines and assessments. Senator Coffin asked what basis was used to arrive at a fee of $30 to defray collection costs for the university. Mr. Mello acknowledged he used an arbitrary figure since he has not had an opportunity to ascertain the actual cost of performing the service, but he felt $30 would be reasonable. He stated there is also a fee for DMV&PS to reprogram its computers. Senator Coffin responded, "The only problem I have with that ... that particular division, in one of the major campuses, has a very poor record of accounting for its money, and in fact has been called on the carpet by the Board of Regents, the one which manages the police department." He declared he could not offer support for that provision until the legislative auditors have completed their review. Mr. Mello pointed out it will take a 3-way agreement with the university, the Administrative Office of the Courts and DMV&PS to effectuate the provision, which should provide checks and balances. He declared the courts would not put the provision into effect until they have proven their actual cost to administer the program. He noted the program is discretionary. Mr. Mello explained the proposed amendments will change the administrative assessment fee in section 4 to a flat fee of $25 rather than a sliding scale. He declared the court takes no position upon the proposal as long is does not affect revenues. Senator Raggio recalled a representation that the fee change will be revenue-neutral. Mr. Mello added there will be a $25 assessment on individuals who perform community service. Mr. Mello said $2 will be allocated to juvenile courts, a raise from $1.50, and $4 will be allocated to justice and municipal courts, a raise from $2.50. He explained the revenue-neutral portion will allocate $9 to the state executive branch and $10 to the state judicial branch. In response to a question by Senator Raggio, John P. Comeaux, Director, Department of Administration, responded he was only vaguely aware of the change. Turning to page 7 of Exhibit C, Mr. Mello declared 21 percent will be allocated to the AOC not only for court administration, but also for payment of services provided by retired justices and district judges, an increase from 18.5 percent. Senator Raggio interjected the budget has already been closed on the basis of 18.5 percent, which may cause a problem. Mr. Mello explained: That does not result in more money for the AOC, it just combines funding authority for two of the functions administered by AOC, two of the budgets administered by AOC on the basis that, if ... there's a shortfall in revenue, rather than AOC come back and ask for supplemental [funds], it could decrease spending on the retired judges' side to make up the shortfall on the AOC side. Mr. Burke stated that portion is not consistent with the budget closings. He explained the AOC 21 percent total combines the retired judges and justices account with the administrative account for a total going into the two accounts that will actually be decreased by 1 percent. He noted the other 1 percent will go into the new division of planning and analysis. Senator Raggio pointed out the allocations cannot be changed by the Interim Finance Committee (IFC) if it is specifically written into the law. According to Mr. Mello, 56 percent of the revenue collected from the $25 assessment will be allocated to the Supreme Court rather than 60 percent due to predicted increases in revenues. He noted that will cause a shortfall of $15,000 on the Supreme Court, which he acknowledged the AOC will have to work with. Mr. Mello said representatives of DMV&PS agreed to the new section 6.5. He noted the latest audit indicates the court administrator should take a more active role in the automation of all courts in the state and in the criminal justice system. The amendment, he said, will make the court administrator a member of the Uniform Crime Reporting Committee administered by DMV&PS. Sections 7 and 8 will be deleted, according to Mr. Mello, since they would be in conflict with S.B. 392. SENATE BILL 392: Revises provisions governing employment of offenders, accounting of money of offenders and forfeiture of good-time credits. Mr. Mello stated section 10 will provide for audits in 1997, instead of in this fiscal year as originally written. The audits will be made of county clerks who serve as ex officio clerks of the District Court, he said. Mr. Mello indicated section 11 deals with county collection and disbursement of such funds. The original proposal, he explained, contained mandatory provisions that such departments exist, but it would have imposed a hardship on some counties. It was decided it would be best to give DMV&PS the responsibility of handling those funds, but the discretion whether to establish collection departments will still be left to the counties to determine. Senator Raggio interjected the counties will be given the option of contracting out the collection and disbursement of such funds. Mr. Mello said sections 14 through 29 relate to DMV&PS and the collection of fines and assessments by the registration division when persons come in to renew vehicle registrations. He indicated the license division will have the same authority. He acknowledged there are technical problems with the language relating to the licensing division which will be addressed by representatives of DMV&PS. Senator Raggio pointed out the amendment includes conflict language regarding bills from both the Senate and Assembly, which will lead to several changes. Bruce Glover, Chief, Drivers' License Division, Department of Motor Vehicles and Public Safety, voiced concern with some technical provisions, terminology and omissions in S.B. 495. He cited the necessity of a driver's license number to identify people as one example of an omission. Elizabeth King, Assistant Chief, Drivers' License Division, Department of Motor Vehicles and Public Safety, stated she has not had an opportunity to review the amendment. She declared she was concerned that the original bill clearly stipulates that only traffic offenses were to be considered for drivers' license purposes. She said language in section 25 in the original bill indicates drivers' licenses may be revoked under conditions which do not agree with how other matters are handled by the department. She explained it refers to a conviction when there would be no conviction, as such. Ms. King suggested, "I believe what we would want to do is use the language we currently have in NRS 483.465 which allows us to suspend the license for failure to appear." She opined that meets the intent of what the bill is attempting to accomplish. Ms. King pointed out the references to NRS 483.900 and subsequent numbers in section 27 regarding commercial drivers' license statutes. She declared: It does not seem appropriate to reference only that set of statutes, and those are clearly delineated by construction in chapter 483. I believe the intent there is simply to work - it's the language Mr. Mello was using in terms of an agreement, in order to enter into an agreement with the court, and it just doesn't seem appropriate right there. Senator Raggio proposed the parties meet with Mr. Burke to resolve the problems and report back the next day. Senator Coffin reiterated his reservations about the necessity for section 3.3. Senator Raggio opened the hearing on S.B. 181. SENATE BILL 181: Makes appropriation to Life Line Pregnancy Assistance and Vocational Training Center. Senator Joseph M. Neal, Jr., Clark County Senatorial District No. 4, declared the Life Line Pregnancy Assistance and Vocational Training Center gives many individuals a "step up on life." He distributed copies of letters in support of the program (Exhibits E and F. Originals on file in the Research Library.) and a chart (Exhibit G) delineating the services provided by the center in 1994. Senator Neal noted the center provides a service somewhat different from the average training program. He said he and Senator Rawson have visited the program and tried to raise funds to keep it going. He stated the program was started in Philadelphia and is being copied throughout the country, and the Governor has patterned his probationary services along the same lines. Senator Neal acknowledged the center has been operating with private funding for some time, but due to an increased work load it has become necessary to seek state funding. He explained the center attempts to train and place unwed young mothers into skilled jobs. He said housing is provided and they are supervised for a period of time before they are sent out on their own, although the center is always available thereafter in case they need assistance with child care or child treatment. Senator Neal opined the program is very good, and funding for the Las Vegas center is highly supported, as evidenced by the letters. He singled out the Economic Opportunity Board of Las Vegas as one of the organizations that refers individuals to the center and offers strong support for S.B. 181. He expressed hope the Legislature will grant support to the program. Senator Raggio agreed to consider the letters, which he noted include support from Congresswoman Barbara Vucanovich, Mayor Jan Laverty Jones, We Can, Inc., Senator Richard Bryan, Congressman John Ensign and others. He voiced the understanding the program has applied for some Title XX funding under the Adolescent Family Life Demonstration Project. In the absence of further testimony on S.B. 181, Senator Raggio closed the hearing, and he opened the hearing on S.B. 444. SENATE BILL 444: Makes contingent appropriations to Mineral County School District for portion of costs of construction of school to replace Schurz School. Senator Mike McGinness, Central Nevada Senatorial District, explained a partnership to rebuild the school was envisioned between the state, Mineral County, the Walker River Paiute Tribe of Nevada and the United States Congress. He stated the only entity which has appropriated funds to the project so far is the tribe, which has access to $600,000. Raymond A. Hoferer, Chairman, Walker River Paiute Tribe of Nevada, confirmed the tribe does have some funds available. He provided the committee with a cover letter (Exhibit H) and packet in support of S.B. 444 (Exhibit I. Original is on file in the Research Library.). Senator Raggio noted the attached letter, dated June 25, indicates the tribe has committed $300,000 and expects to expend all available resources in the education construction fund. He noted the expenditure is expected to reach $700,000 with the inclusion of interest payments. Mr. Hoferer confirmed the statement. He called attention to a federal registry notice in Exhibit I which mandates the tribe commit that amount to school construction. Senator Raggio noted a request has also been made by Lincoln County for the Alamo School. He stated if a commitment is made by the Legislature, it will have to be an appropriation in the form of a loan with a repayment schedule. He calculated if $200,000 is added to the federal funds available, repayment over a 20-year period with a minimum interest rate of 3.5 percent will amount to $13,988 per year, including principal and interest. Senator Raggio noted that will comport with the Lincoln County school problem and both will have an equivalent status and will meet the concerns the Legislature has regarding setting precedents for direct grants. He surmised the Legislature could proceed along those lines if it is acceptable to the school district. He pointed out the school district will have to adopt a resolution to replace the existing building and the loan will have to be conditioned upon the additional funds identified as being available. Senator Raggio asked what federal funding may be available. Mr. Hoferer replied the tribe may receive some Title XII funding, since United States Senator Harry Reid has proposed an amendment which will make Mineral County eligible for Title XII funding. He said the tribe has concern as to what purpose the county may play in the project. Senator Raggio interjected the state will effectively be making a loan to the Mineral County School District. Mr. Hoferer wondered if that will relieve the district from making a monetary contribution as proposed in the bill, because the bill proposes $300,000 in contributions from the state, the county and the tribe. Senator Raggio did not find the provision in the bill, only a provision with a contingency that sufficient funds be obtained from any source to construct the school. Jeanne L. Botts, Program Analyst, commented the bill will provide an appropriation to the school district, and according to the amended version (Exhibit J), the school district will be required to repay the appropriation over a 20-year period. The repayment will be the district's contribution, she said. She noted the appropriation is contingent upon the board adopting a resolution to build the school. Senator Raggio explained the proposed amendment will not change the language of section 2, but it will add a requirement that a resolution be obtained from a majority of the board of trustees of the Mineral County school district to construct a school to replace the Schurz school. It will not change the requirement for the district to obtain funding from any other source to complete the school, he said. He asked how much the total cost will be. Mr. Hoferer responded the estimate is between $1.2 and $1.5 million for a "bare bones" building. He stated if the tribe contributes $650,000, which it does not yet have, and the state contributes $200,000, there is still insufficient funding to construct the building. He pointed out the construction will alleviate the county's obligation to maintain the school and to provide an equal opportunity for education for those children who reside on the reservation. He proposed the state, county and tribe all contribute. Senator Raggio reiterated precedent will not allow the state to make a direct contribution, but it can make a loan to the school district at reasonable terms in the amount suggested. He noted the best the committee can do at this point is make a commitment if it is acceptable to the Mineral County School District and the tribe. Senator McGinness agreed Mineral County will still have an obligation, and he acknowledged the state is offering a loan at a very attractive rate. Senator Coffin opined there is no incentive for Mineral County to accept the state offer, since it has failed to become involved for many years. He noted there have been two bond issues which failed and asked when those were proposed. Senator McGinness replied the last Legislature authorized Mineral County to increase the sales tax by .25 percent and also to add privilege taxes, which would have provided additional funding to assist Schurz. He stated the ballot measure lost, so he concluded recent opportunities for funding without a bond issue have been denied by county voters. Senator Coffin asked if it is likely support will be received from Mineral County if any funds are appropriated by the state. Senator McGinness replied, "Considering the economic condition of Mineral County, it's probably unlikely." Mr. Hoferer interjected: We're not adversarial to the state's involvement.... We've been trying to get a cooperative relationship between the entities of federal, state, county and ourselves, and I believe that each one of us has a commitment to the education of the children on the reservation. Mineral County certainly does, by the authority that was given them by NRS and the jurisdiction that they have in order to maintain the school. We don't want to get into that battle. What we'd like to do is get an equal appropriation on behalf of all the entities.... Senator Coffin opined the school is not safe and he asserted Mineral County is derelict in its duty to maintain safe facilities for its students. He guessed there may be other schools in the district with similar problems. He suggested the legislation passed in 1993 allowing a vote of the people to correct the situation may have been a mistake and it may be necessary to pass legislation to force the county to make proper repairs along with the appropriation of a loan. Senator McGinness responded, "As much as I would like to see a new school at Schurz, I would be uncomfortable mandating upon another governmental entity that they spend money." He agreed the county has an obligation to make the school safe. Senator Raggio suggested contact should be made with the Mineral County school district, which he asked Senator McGinness to undertake. Senator Raggio asserted the problem needs rapid resolution and he agreed to discuss the matter with the county. Mr. Hoferer stated: I'd like to add for the record that we did contact Mineral County and they failed to respond. They haven't responded in any meetings in cooperation with the tribe at all in any of these respects. We've tried to cooperate with them in different instances, and they never have come forward, in fact, to cooperate with us at all. Senator Raggio closed the discussion of S.B. 444 and asked Senator Porter to come forward to explain a bill draft request (BDR). Senator Jon C. Porter, Clark County Senatorial District No. 1, advised the committee he had been contacted by the City of Boulder City with a request for support (Exhibit K. Original is on file in the Research Library.) for the State Railroad Museum. He said it is a joint project between Boulder City, the City of Henderson, and Clark County. Senator Porter stated Boulder City has invested more than $30,000 for site development planning, and $750,000 has been awarded for the project for track extension. Union Pacific Railroad, he said, has donated tracks and rails worth $1 million to date for the project, and the three governmental entities have acquired $1.3 million worth of rolling stock which is on-site in Boulder City. He recalled the 1987 Legislature appropriated $900,000 for design engineering of the project. Senator Porter drew attention to Exhibit L, a map of the project which shows the existing track and the proposed track. He noted the track will extend near the Clark County Museum in Henderson. He reminded the committee the plan calls for a tourist train, including dinner rides, and it will be used as a movie set. He stated negotiations are under way with firms to operate the facility after the state issued a request for proposal (RFP). Funds have already been budgeted for maintenance by Henderson and Boulder City. He stated additional funds are being sought to complete some of the track work. Senator Rawson asked if the funds will be used primarily for track or for a maintenance facility. Senator Porter responded funds have already been appropriated for a maintenance facility and for design and engineering. The request, he said, is for funds to obtain and install additional track. He stated approximately $5 million is necessary to complete the project, while the request is being made for $2.5 million to complete some of the site work and prepare the grade for the actual track. J. Scott Miller, Administrator, Division of Museums and History, Department of Museums, Library and Arts, said several studies have been done, one a track construction engineering study by Morrison- Knudsen which estimated a cost of $5 million to extend the track for 5 miles from its existing termination point to the Clark County Museum in Henderson. He voiced the understanding the funds will be used towards that end. Although the Union Pacific donated approximately $1 million worth of materials, there are additional materials which are required, he said. Mr. Miller told the committee the cost is estimated at $2.5 million for the actual ground development due to the amount of earth work and drainage requirements. He indicated most of the right-of-way has been acquired, but the federal government is waiting to see if sufficient funding will be available to complete the project before granting all the right-of-way. He said the applications have been in place for some time with unofficial, but favorable, responses from both the Federal Bureau of Reclamation and the Bureau of Land Management (BLM). He acknowledged the matter has not been pursued beyond the filing stage while awaiting a measure of certainty that the project will go forward. He said the rights-of-way are available to the State of Nevada. Senator Raggio inquired who will actually own the railroad. Mr. Miller replied it will be owned by the State of Nevada. Senator Raggio asked where the appropriation will go. Mr. Miller responded it could go through the Division of Museums and History in budget account number 2941, or it could be done through the Department of Museums, Library and Arts. He indicated he would not support the proposal if the responsibility was not left to the state through a regular budget account. He explained in the past the funds raised through private sources were accepted by the various entities and then transferred into the state budget accounts so the state could oversee expenditures. He said the state has maintained accountability on all funds raised to date. He suggested that process continue. Senator Coffin wanted to know why the proposed route for the railroad will not be the historic route, and whether the historic right-of-way still exists. Mr. Miller responded the division explored the old route but found the crossing required at Railroad Pass would be extremely dangerous in terms of the number of closures that would be necessary each day. He stated the Department of Transportation and the Federal Railroad Administration have declared that crossing unusable in its current configuration, and they would require a split grade at that point, which would entail two miles of engineering to split the grade, at excessive costs. Senator Porter acknowledged the possibility the incomplete plans for the highway could be integrated with the old railroad right-of- way. However, he said, another problem involves the equipment and the grade, and much time and effort has gone into designing a more reasonable plan. Senator Porter added Railroad Pass property that was recently purchased by Circus Circus Properties, Old Vegas property owned by MARCOR, and other elements tie into the project, and they will provide access to the train. Because Boulder City is the gateway to Hoover Dam, which he called one of the major tourist attractions in the world, he suggested it is natural for those to tie together for economic development and tourism in that area of the state. Senator Rawson presented a BDR which will appropriate $235,000 collectively to Clark and Washoe Counties to provide supplies and equipment to respond to emergencies and disasters. BILL DRAFT REQUEST S-253: Makes various appropriations to Clark and Washoe Counties to respond to emergencies and disasters and for law enforcement. Senator Rawson noted the funding will go to emergency fire crews trained to rescue people and to respond anywhere in the world, primarily in the western United States. Among other items, it will include equipment necessary to identify victims of mass disaster and it will provide specialized forensic equipment to determine deoxyribonucleic acid (DNA) characteristics. Senator Raggio asked if this was the appropriation the committee approved during the last legislative session. Senator Rawson confirmed the statement, but indicated the appropriation has been reduced. Senator Raggio recalled both the Senate Committee on Finance and the Assembly Committee on Ways and Means approved the proposal during the last session, but it did not make it through the two houses. Because he had another commitment, Senator Raggio turned the gavel over to Senator Rawson. Senator Rawson invited Senator Adler to come forward to address S.B. 79. SENATE BILL 79: Makes appropriation to Retired Senior Volunteer Program to expand Home Companion Program. Senator Ernest E. Adler, Capital Senatorial District, stated the bill will provide $32,000 per year for each year of the biennium for the Retired Senior Volunteer Program (RSVP) to reimburse expenses for 100 home companions per year for seniors in the rural counties. He surmised the appropriation does not reflect the costs that would be incurred otherwise, since RSVP will replace other, more costly, programs, or it will provide for seniors who otherwise might have to go into convalescent care homes and incur great Medicaid expenses. Senator Rawson noted the matter was discussed during budget hearings. He asked if federal funding is still available. Senator Adler responded federal funding will still be available, but the request in the bill is for travel funds for volunteers. Janice Ayres, Executive Director, Retired Senior Volunteer Program, indicated federal funds only account for approximately 45 percent of the budget. Senator Rawson interjected RSVP provides personal companions who visit isolated seniors in the rural areas and he called it a "showpiece" for the state. Ms. Ayres pointed out the requested funds will not be used for administration, they will be used strictly to reimburse the costs incurred by the volunteers for travel or occasional meals. The maximum they are allowed to receive, she said, is $30 per month, even if their costs amount to $150 per month. Ms. Ayres pointed out traditional services are not available in the rural areas, and sometimes RSVP is the only link homebound people have with other people. She said the volunteers are trained to know what resources, however limited, are available to assist those people. She noted the program helps keep those people at home rather than needlessly having to be institutionalized. She concurred with Senator Rawson that institutionalization of indigents costs a great deal and poses a hardship on rural areas that are not affluent. She declared the capability of raising funds in rural areas is very difficult, but even so RSVP does raise nearly 55 percent of its budget. In response to a query by Senator Rawson, Ms. Ayres says the area she directs for RSVP covers over 100,000 square miles, and the volunteers drive thousands of miles annually for which they are not reimbursed. Senator Adler made a request for the committee to hear testimony on S.B. 253. SENATE BILL 253: Makes appropriation to Nevada historical society of division of museums and history department of museums, library and arts for purchase of Piper's Opera House. Senator Adler stated since the last hearing, the woman who owns Piper's Opera House has indicated she would sell the property to the state for a total of $450,000, $200,000 to be obtained from private funds and $250,000 from state funds. He espoused the importance of making the purchase of the historic location before it is lost to others. John P. Copoulos, Comstock Historic District Commission, Office of Historic Preservation, Department of Museums, Library and Arts, joined the senator. Ronald M. James, Administrator, Office of Historic Preservation, Department of Museums, Library and Arts, pointed out the Nevada Historical Commission is a state agency, while the Nevada Historical Society is not, and asserted funding should be appropriated to the department. The committee debated amending S.B. 253 not only to reduce the appropriation to $250,000, but also to direct the funding to the proper organization. Due to time constraints and the number of bills outstanding, Senator Rawson suggested one approach may be to make a selection regarding which projects to support and then amend them into one bill. He explained there are a number of amendments being proposed and many may be lost if they are considered individually. Senator Adler repeated the proposal for S.B. 253 is to reduce the appropriation to $250,000 and to allocate the funding to the Comstock Historic District Commission. The hearing on S.B. 253 was closed, and Senator Rawson opened the hearing on S.B. 77. SENATE BILL 77: Requires state engineer to establish program to map water rights. R. Michael Turnipseed, State Engineer, Division of Water Resources, State Department of Conservation and Natural Resources, distributed a computer-generated map (Exhibit M) giving an example of a Truckee River Decree claim. He stated S.B. 77 came about as a result of an interim committee study on water allocation and water management. He noted Senator Rhoads served on that committee. Mr. Turnipseed stated the $110,000 being requested in the bill has been matched by the Truckee-Carson Water Conservancy District, and there is a contingent partial match of $80,000 by the Carson Subconservancy District. He explained the funds will be used to digitize parcel maps which can be used to stretch or shrink Carson River or Truckee River decree claims. Mr. Turnipseed called attention to line 17 in the bill where he said an amendment is required to change the expiration date to June 30, 1997, in order to allow 2 years to accomplish the goal. In the absence of further testimony, Senator Rawson closed the hearing on S.B. 77 and opened the hearing on S.B. 194. He reiterated most of the bills on the agenda have already had one hearing, and he requested testimony be summarized. SENATE BILL 194: Directs state librarian to establish pilot project to provide grants of money to certain public libraries for purchase of books and library matters properly relating thereto. Holly Van Valkenburgh, Consulting Librarian, Library Development, Department of Museums, Library and Arts, explained the pilot program has been operating under a federal grant in 13 libraries in three rural counties, Esmeralda, Lincoln and Nye. She said S.B. 194 will appropriate $250,000 to the state librarian to provide funds solely for library materials to those rural libraries that apply for grants. Ms. Van Valkenburgh provided the committee with a written statement and charts depicting library rankings and library expenditures nationwide (Exhibits N, O and P). Even though he recognized that the sums to be distributed will be minimal, Senator Jacobsen voiced support for the bill. In the absence of further testimony, Senator Rawson closed the hearing on S.B. 194 opened the hearing on S.B. 274. SENATE BILL 274: Makes appropriation to Lincoln County school district for increased costs of construction of elementary school in Alamo. Senator Rawson said an amendment is necessary for the bill, similar to that regarding the Schurz school, which will require a repayment of the loan each July 1 in the amount of $17,486 for principal and interest to repay the $186,000 loan. He recalled Lincoln County has already agreed to those terms and conditions. Ms. Botts confirmed the senator's recollection regarding approval of the terms, but noted no formal action has been taken by the county. She pointed out Lincoln County has another outstanding short-term loan, and suggested the two be combined to make the annual payment more affordable for the district. She passed out copies of a proposed amendment, Exhibit Q, which will increase the principal of the loan to $250,000, will specify the funds be used for specific school items, and will set the terms for repayment. SENATE BILL 364: Modifies program to subsidize malpractice premiums for providers of prenatal care in areas of state that lack services for prenatal care. Senator Rawson pointed out the bill will modify insurance premiums primarily in rural areas, but also it will apply to any underserved area. He said in addition to insurance carried by providers, it will subsidize malpractice insurance premiums in the amount of $75,000 per year. SENATE BILL 398: Makes appropriation to Nevada Appellate and Postconviction Project, Inc. Michael Pescetta, Executive Director, Nevada Appellate and Postconviction Project, Inc., stated the requested funds will be appropriated to the death penalty resource center. He explained the project assists defense counsel in litigation of capital cases and it is hoped that will result in less costly and more efficient cases. The hearing on S.B. 398 was closed, and the hearing on S.B. 430 was opened. SENATE BILL 430: Revises provisions governing regulation of emergency medical services in certain counties. Senator Rawson noted the fiscal notes for the bill have been modified by the Senate Committee on Human Resources. Ronald V. Lange, Deputy Administrator, Health Division, Department of Human Resources, called attention to proposed amendments (Exhibit R) to S.B. 430 in which revised figures are included. He stated the requested appropriation from the state should be reduced to $200,421 in the first year of the biennium, and $163,060 the second year, as depicted on the fourth page of the exhibit. Senator Rawson noted the item is not included in the Executive Budget. He declared the concern is not so much regarding funding as it is the policy decision. He wondered if the issue should be referred to the IFC with authority for them to make the decision. Robert Heffner, Director of Operations, Regional Emergency Medical Services Authority (REMSA), commented: Just in a brief summary, in the benefits that we see for the entire state of Nevada, not just for us, is the gain from autonomy from the Washoe County District Board of Health, and we've been working very closely with them on this issue. And we have seen some sort of conflict with a franchiser and then a regulatory commission. And we feel ... with the paramedics and the EMTs [emergency medical technicians] in the area being state certified, would be of definite benefit to the entire state of Nevada, versus just a Washoe County certification. Senator Rawson asked if the provisions will have the effect of putting anyone out of business. Mr. Heffner replied, "Absolutely not." He explained problems arise when paramedics come in from out of state. He declared, "It is an absolute nightmare to gain certification for these people." He asserted: Nobody will lose their jobs. It will completely benefit us, both from our standpoint as well as the State of Nevada, and giving these people an opportunity to go and work throughout the state. And basically what we're looking for is certification for our people from the state, and then we have our own medical control director who oversees on-going continuing education and any problems that come up at the local level. And that's what's going on in other counties at this time. So we're actually getting support from the other entities involved. Mr. Heffner reiterated REMSA would like to maintain certification of employees in Washoe County, which would involve approximately 45 people per year. Senator Jacobsen voiced concern that may have an affect on the rural areas that survive on volunteer efforts. He stated the rural areas look to the health department for certification and inspection of equipment. Mr. Heffner responded, "From our standpoint ... we have made the rural communities a definite emphasis from our standpoint as far as giving them the opportunity to come to work in a professional organization." He noted he hired three people on the previous day from rural services. He said: From a certification standpoint versus an inspection standpoint, it's basically two different things. We're looking for state certification which is only going to benefit the rural people, because if they come into Washoe County with another certification, or if they want to leave Washoe County and go to another part of the state, they have a ticket, and that is their certification as a paramedic or advanced EMT. Senator Jacobsen recalled there was a time when all training was provided by REMSA, and he voiced appreciation. He pointed out the volunteers in rural areas work without pay. Mr. Heffner acknowledged the volunteers are absolutely necessary, and he declared REMSA attempts to provide training to volunteers whenever requested. Senator Jacobsen asked, "Can you really communicate with the State Board of Health?" Mr. Heffner replied, "We have communicated significantly with the State Board of Health." He suggested any time business is conducted with the state it opens the lines of communication, and he opined REMSA has been "over communicating" with the Washoe County health district. There being no further testimony, Senator Rawson closed the hearing on S.B. 430, and opened the hearing on S.B. 449. SENATE BILL 449: Makes appropriation to City of Reno for costs relating to construction of National Automobile Museum. Dan Miles, Fiscal Analyst, indicated the only problem with the proposal involves match requirements. Senator Rawson closed the hearing on the matter and opened the hearing on S.B. 457. SENATE BILL 457: Creates trust fund for support of division of museums and history of department of museums, library and arts. Ivan R. Ashleman, II, Chairman, Board of Museums and History, Department of Museums, Library and Arts, acknowledged the measure has been discussed on two previous occasions and indicated he had nothing new to add. The hearing on S.B. 457 was closed, and the hearing on S.B. 500 was opened. SENATE BILL 500: Directs department of transportation to construct or cause to be constructed sound barrier alongside certain portion of U.S. Highway No. 95 in Las Vegas. Senator O'Donnell recalled the issue was heard by the Senate Committee on Transportation. He explained the bill will appropriate $620,000 to construct a sound barrier. He repeated testimony that 66 decibels is the threshold when people become affected by noise, which is greater at the location cited. Senator O'Donnell acknowledged a problem arose when the highway department bought easements, and developers moved in and built apartment complexes while the highway was under construction, but before the noise from the freeway developed. After completion of the highway, when traffic became congested, he said, the noise level grew substantially. He stated the funding to be provided by S.B. 500 will alleviate the problem. Senator Rhoads asked if highway funds will be used for the project. Senator Rawson replied they normally cannot be used because it is retrofitting, but a special appropriation from the highway fund will be approved through the bill. He pointed out the highway was originally designed as an expressway, and then was converted to a freeway to accommodate the Summerlin development, but without the normal construction used along freeways. Senator Rawson closed the hearing on S.B. 500, and opened the hearing on S.B. 534. SENATE BILL 534: Makes appropriation to division of forestry of state department of conservation and natural resources for reseeding areas burned by fires. Roy W. Trenoweth, State Forester Firewarden, Division of Forestry, State Department of Conservation and Natural Resources, reported he reduced the funding request at Senator Raggio's request from $428,600 to $218,000. He stated the major portion of the funds will be used to purchase seeds, as set forth in a memorandum dated June 19, 1995 (Exhibit S). Mr. Trenoweth stated he has received verbal commitments from the Bureau of Land Management and the Toyabe-Humboldt National Forest supervisor to purchase seed under the program. Senator Jacobsen proposed a seed bank be incorporated into the Washoe Valley Nursery which already uses an inmate crew on a daily basis and who could be used to harvest seeds. He suggested an alternative site for a seed farm might be near the Minden Airport, where cold storage would be available, since it is likely seeding may be done by air in the not too distant future. He added it may be possible to purchase a surplus refrigerated van for use in seeding projects which would be helpful for projects in the eastern portion of the state. He noted he has contacted representatives of the BLM and the United States Forest Service (USFS) who have indicated they will cooperate. Senator Rhoads voiced support, but cautioned against giving the impression to the federal government that the state should furnish the seeds and do all the seeding for all the burned federal lands in the state. Senator Jacobsen responded the state has the capability to develop those services and then could bill the federal government for materials and services. Mr. Trenoweth interjected the federal government is willing to pay for the seed and services. Senator Rhoads proposed language to that effect be included in a letter of intent or in the bill. In the absence of further testimony, Senator Rawson closed the hearing on S.B. 534 and opened the hearing on S.B. 548. SENATE BILL 548: Makes appropriation to Douglas County for repairs or replacement of well and appurtenant equipment at China Spring Youth Camp. Senator Jacobsen reported nothing new has taken place since the last hearing on the matter except that it has been determined the present well cannot be repaired because the casing is broken and out of alignment. He stated a new well is being drilled, and the other two wells at the site do not produce potable water so they are used for cleaning or irrigation. He pointed out there was a mine nearby from which cyanide has leached into the area. Senator Jacobsen noted the person who donated the original 40 acres has agreed to allow the new well to be drilled on his adjacent property. He asserted the sum of $150,000 is appropriate since it will cost an estimated $15,000 just to drill the well, and $150,000 should provide sufficient funding as long as the water is potable and requires no treatment. If the water needs treatment, it will add another $100,000 to the cost. He proposed the subject be left open so that the administrator can go to the IFC to justify any further need. Senator Rawson proposed an amendment be added to the bill to direct Douglas County to the IFC for additional financing, if necessary. Senator Rawson pointed out a number of amendments have been proposed. Mr. Miles indicated action could be delayed until morning for most of those, thus giving staff time to organize proposals in readiness for the bill drafters. SENATOR O'DONNELL MOVED TO DIRECT STAFF TO COMMENCE DRAFTING AMENDMENTS PRIOR TO TAKING ACTION. SENATOR JACOBSEN SECONDED THE MOTION. THE MOTION CARRIED. (SENATOR RAGGIO WAS ABSENT FOR THE VOTE.) * * * * * Senator Jacobsen expressed hope the bill draft proposed by Senator Rawson to provide funding for equipment for emergency crews will include a provision that rural communities will have access to those services. Senator Rawson surmised the purpose is to build emergency management service for the entire area. There being no further business to come before the meeting, Senator Rawson adjourned the hearing at 6:50 p.m. RESPECTFULLY SUBMITTED: Judy Jacobs, Committee Secretary APPROVED BY: Senator William J. Raggio, Chairman DATE: Senate Committee on Finance June 26, 1995 Page