MINUTES OF THE meeting
of the
ASSEMBLY Committee on Ways and Means
Seventy-Second Session
June 1, 2003
The Committee on Ways and Meanswas called to order at 10:00 a.m., on Sunday, June 1, 2003. Chairman Morse Arberry Jr. presided in Room 3137 of the Legislative Building, Carson City, Nevada. Exhibit A is the Agenda. Exhibit B is the Guest List. All exhibits are available and on file at the Research Library of the Legislative Counsel Bureau.
COMMITTEE MEMBERS PRESENT:
Mr. Morse Arberry Jr., Chairman
Ms. Chris Giunchigliani, Vice Chairwoman
Mr. Walter Andonov
Mr. Bob Beers
Mrs. Vonne Chowning
Mrs. Dawn Gibbons
Mr. David Goldwater
Mr. Josh Griffin
Mr. Lynn Hettrick
Ms. Sheila Leslie
Mr. John Marvel
Ms. Kathy McClain
Mr. David Parks
Mr. Richard Perkins
STAFF MEMBERS PRESENT:
Mark Stevens, Assembly Fiscal Analyst
Steve Abba, Principal Deputy Fiscal Analyst
Linda Smith, Committee Secretary
Lila Clark, Committee Secretary
Chairman Arberry adjourned the May 31, 2003, meeting of the Assembly Committee on Ways and Means and opened the hearing on S.B. 188.
Senate Bill 188 (1st Reprint): Makes various changes concerning access to health care services for persons in this state. (BDR 40-743)
Dr. Robert E. Dickens, Director of Governmental Relations, University of Nevada, Reno (UNR), introduced Caroline Ford, M.P.H., Assistant Dean, University of Nevada School of Medicine (UNSOM). Ms. Ford said S.B. 188 would establish and codify some programs that had been operating in Nevada for a number of years. One of the programs was the Nevada State Office of Rural Health, established by the 1977 Legislature. Another program was the Area Health Education Center that had been in operation since 1986 and had received appropriations from the state since 1989. Ms. Ford said the UNSOM would like to get both of the programs on the record and authorized with appropriate language. In conclusion, Ms. Ford noted that S.B. 188 would also address issues related to health workforce development.
In response to a question posed by Assemblyman Marvel related to the fiscal impact, Dr. Dickens said the appropriations had been removed from S.B. 188. The bill was intended as an authorization and a codification of Nevada Revised Statutes (NRS)396.
Assemblywoman Giunchigliani asked about the possibility of the UNSOM returning to the 2005 Legislature to request funding that had been removed from S.B. 188. Dr. Dickens said he did not believe so, because the statutory authorization would make it much easier for the UNSOM to obtain private foundation grants and federal funds for the programs and it would not be necessary to request funding through the Legislature. Ms. Giunchigliani said she understood passage of S.B. 188 would codify the policy.
Robin Keith, President, Nevada Rural Hospital Partners, said she had served during the interim as the chairman of the Governor’s Rural Health Care Task Force for the development of a rural strategic plan and she was vice chairman of the newly formed High Sierra Area Health Education Center. Ms. Keith voiced support for S.B. 188.
Chairman Arberry closed the hearing on S.B. 188 and referred to S.B. 243.
Senate Bill 243 (1st Reprint): Makes appropriations from State General Fund to Fund to Stabilize the Operation of State Government. (BDR S-1234)
Mark Stevens, Assembly Fiscal Analyst, Fiscal Analysis Division, Legislative Counsel Bureau, said the original version of S.B. 243 included $50 million recommended by the Governor to replenish the Rainy Day Fund in FY2005. However, based on the way the budget was being constructed, the $50 million had been reduced to $30 million. Passage of S.B. 243 would require a General Fund appropriation of $30 million to replenish the Rainy Day Fund in FY2005. Mr. Stevens said language was included in S.B. 243 that would trigger an additional $20 million if sufficient funding were available in the second year of the biennium.
Assemblyman Beers asked if the budget included funding for the Rainy Day Fund. Mr. Stevens said $50 million was included in The Executive Budget. However, the Assembly Committee on Ways and Means status sheets included $30 million in the second year of the biennium to replenish the Rainy Day Fund.
Chairman Arberry closed the hearing on S.B. 243 and referred to S.B. 498.
Senate Bill 498 (1st Reprint): Provides for transfer and use of certain money received from leading investment firms pursuant to certain settlement agreements. (BDR 7-1358)
Mr. Stevens said the Senate Committee on Finance recently processed S.B. 498. He said the Secretary of State would receive approximately $4 million from a settlement with various national brokerage firms. Subsection 1 of Section 1 of S.B. 498 would transfer the $4 million to the Interim Finance Committee’s (IFC) Contingency Fund. Upon request of the State Public Works Board, the IFC could utilize the $4 million to finance the State Emergency Operations Center, a building recommended by the Governor to receive construction funding. An application for a federal grant, which required state matching dollars, had been submitted. Mr. Stevens said the $4 million would be available to fund the Center if additional federal funds were received. In response to a question asked by Ms. Giunchigliani related to the settlement, Mr. Stevens said the $4 million was new money that was not considered in the budget.
Chairman Arberry closed the hearing on S.B. 498 and referred to S.B. 503.
Senate Bill 503: Revises provisions governing homeschooled children and millennium scholarships. (BDR 34-1369)
Assemblyman Lynn Hettrick, District No. 39, said S.B. 503 was before the Committee because of concerns about the fiscal note originally included in the first bill, A.B. 311. Mr. Hettrick said the fiscal note had been removed from S.B. 503. The bill: 1) clarified the provisions allowing homeschooled children to participate in interscholastic activities, and 2) contained the provisions revising the minimum qualifications to obtain a Millennium Scholarship. Mr. Hettrick explained the increase in the minimum qualifications was necessary because the tobacco money was slowly being depleted.
Ms. Giunchigliani said she had allowed the Treasurer to place the Millennium Scholarship language into A.B. 179 and she asked if the language included in S.B. 503 was from A.B. 179. Mr. Hettrick said he did not know the answer.
Brian K. Krolicki, State Treasurer, said he was present to address the Millennium Scholarship portion of S.B. 503. He addressed Ms. Giunchigliani’s question and said he did not know the status of A.B. 179. However, the Millennium Sholarship language was included in both A.B. 179 and S.B. 448. Mr. Krolicki said he felt the language “gave legs to the Millennium Scholarship.” The changes were identical and Mr. Krolicki said he would be happy to discuss the changes. He urged passage of S.B. 503. Ms. Giunchigliani said she did not care for the homeschooling language included in S.B. 503 but she would not object to the bill because the Millennium Scholarship issue was important.
Dr. Dotty Merrill, Senior Director, Public Policy, Accountability and Assessment, Washoe County School District, said she was representing the Washoe County School District (WCSD) and the Clark County School District (CCSD). Dr. Merrill said she would be addressing Sections 1 through 8 of S.B. 503. The WCSD and the CCSD had worked with Assemblyman Hettrick, parents of homeschooled children, the Nevada Interscholastic Athletic Association (NIAA), and other school districts to reach a compromise on the language included in S.B. 503. Dr. Merrill stated that the language included in the bill would have no fiscal impact upon Nevada’s school districts.
Assemblywoman Chowning asked for further explanation on the fiscal impact. She felt there would be a fiscal impact to the districts since staff had to be hired, uniforms had to be purchased, and school buses had to be provided. Dr. Merrill responded and said Jerry Hughes, Director, NIAA, had indicated there were ways to cover the additional needs. Mr. Hettrick said Section 3 of S.B. 503 stated any homeschooled children participating in interscholastic activities were subject to the same regulations and fees as pupils enrolled in public schools who participated in interscholastic activities. Mr. Hettrick explained that the school districts received revenue from parents of homeschooled children through property taxes and sales taxes. In addition, some school districts allowed the homeschooled children to come in on “count day” and be counted as enrolled; the choice was up to each school district. Mr. Hettrick reiterated that the school districts would not be affected fiscally in any way with the passage of S.B. 503.
Mrs. Chowning asked how many of the school districts allowed homeschooled children to be counted on count day. Dr. Merrill said the information the districts had provided indicated there were fewer than eight homeschooled students statewide that were participating in interscholastic activities. Homeschooled students receiving services as students with disabilities within a particular school district were counted on count day.
Assemblyman Goldwater voiced concerns with Sections 4 and 5 of S.B. 503, which prevented parents and various entities from challenging and claiming an activity was invalid because of participation of homeschooled children and also prevented involved entities from prescribing rules or regulations. Mr. Goldwater said he could envision a situation that would result in serious recruitment and “put some kids in some activities that the competition to get a kid classified as a homeschooler and on your team may very well start to occur.” Mr. Goldwater asked if there was a way to have the language be more permissive and perhaps state, “some challenge.”
Dr. Merrill explained that the NIAA had already adopted regulatory language regarding the participation of homeschooled students. The language included in Sections 4 and 5 established various features that were found for public school students in areas such as grade point. Dr. Merrill said the language on line 32 of S.B. 503 was intended to deal with challenges that might be raised. Mr. Hettrick said line 36 read, “claiming that an interscholastic activity or event is invalid.” The language included in the bill did not say that challenges could not be made for other reasons. Dr. Merrill said the challenge would be for grounds other than the participant being a homeschooled student. She indicated that Jerry Hughes, on behalf of the NIAA, had indicated his comfort with the language because of the existing regulations that the Association had for various challenges. Mr. Goldwater said he still had concerns with the language.
Mrs. Chowning said before she was comfortable with voting, she needed information from the state and school districts on how many school districts counted homeschooled students as enrolled on count day. Mrs. Chowning said she had continually heard that homeschooled students were not counted as enrolled on count day, resulting in additional costs for the districts. Dr. Merrill said the WCSD did not engage in the practice of counting homeschooled students as enrolled on count day. She said she had been told during discussions that some school districts did count the homeschooled students.
Jim Richardson, representing the Nevada Faculty Alliance (NFA) Chapters, spoke in favor of Section 9 of S.B. 503. He encouraged the Committee to support the changes, which had been reviewed by the Board of Regents.
Chairman Arberry closed the hearing on S.B. 503 and asked the Committee to consider introduction of the following bill draft request.
ASSEMBLYMAN PARKS MOVED FOR INTRODUCTION OF BDR S‑1371.
ASSEMBLYWOMAN LESLIE SECONDED THE MOTION.
THE MOTION CARRIED. (Mr. Goldwater, Mr. Griffin, and Mr. Perkins were not present for the vote.)
********
Assembly Bill 551: Requires certain local governments to pay periodic assessments for portion of costs of operating Commission on Ethics. (BDR 23-1368)
ASSEMBLYWOMAN GIUNCHIGLIANI MOVED TO DO PASS A.B. 551.
ASSEMBLYWOMAN LESLIE SECONDED THE MOTION.
THE MOTION CARRIED WITH MS. McCLAIN VOTING NO. (Mr. Griffin and Mr. Perkins were not present for the vote.)
********
Chairman Arberry recessed the meeting at 10:52 a.m.
Chairman Arberry reconvened the meeting at 2:25 p.m. and said the Committee would be discussing the state Distributive School Account (DSA).
Mr. Stevens directed the members to a spreadsheet (Exhibit C) that included the Governor’s recommendation and the Assembly Committee on Ways and Means closing options for the DSA, which were different than previously closed by the Committee. He provided a brief review of Exhibit C:
Full Day Kindergarten
The Governor recommended full-day kindergarten for approximately one‑third, or 30 percent, of the kindergarten classrooms. The cost was approximately $24 million over the 2003‑2005 biennium. The closing option before the Committee would eliminate the $24 million.
Class Size Reduction
The Governor’s recommendation included some flexibility for the class-size reduction (CSR) program. Currently the only flexibility provided was in grade three. Overall funding for the CSR would remain the same under the closing option.
Stipends/Bonuses for Teachers
The Governor recommended a $3,000 stipend for high-impact positions. The categories included teachers of mathematics, English as a Second Language, psychologists, and special education. In addition, a $2,000 stipend was recommended for teachers in at-risk schools. The funding for the two stipends was recommended for elimination but would be replaced with funding for a 1/5 retirement credit for teaching in a high-impact area or in an at‑risk school. A maximum 1/5 retirement credit could be earned each year.
Early Childhood Programs
The funding amount of $301,000 for each year of the biennium for the COW bus program was eliminated from the Other State Programs budget and was recommended to be included in the early childhood programs within the DSA.
Professional Development
S.B. 210 would combine the Nevada Early Literacy Intervention Program (NELIP) with the Regional Professional Development Centers (RPDCs). The Department of Education indicated combining the two programs would result in a savings of approximately $1.5 million in each year of the biennium. The Ways and Means closing option included those savings.
Remediation Funding
The Ways and Means option for remediation funding included the same dollar amounts recommended by the Governor, however, the funding provided for low performing schools was reduced and the amount provided for summer/intersession programs for at-risk students was increased in each year of the biennium.
Textbooks/Instructional Supplies
The Governor recommended $50 per pupil for textbooks and instructional supplies. The funding was to be “fenced off” and not subject to salary negotiations in the upcoming biennium.
Inflation for Health Insurance Rates
The Ways and Means option would provide $5.8 million to the Interim Finance Committee (IFC) for additional health insurance costs if needed. The 2001 Legislature provided $13 million to the IFC for school districts to apply for funds if health insurance costs exceeded the amounts budgeted in the DSA by the Legislature.
K-12 Salaries
The Chairmen of both money committees recommended that an additional 0.75 percent salary be provided to K-12 employees in FY2004. The 0.75 percent added to the 2 percent recommended by the Governor for FY2004 would result in a 2.75 percent increase in the first year of the biennium, and an additional 2 percent increase was recommended in the second year of the biennium. The 2 percent increase would not only apply to K-12 employees, but was recommended for all employee groups.
Mr. Stevens said if the Committee adopted the recommendations the overall impact would be approximately $1 million in additional funds over and above the Governor’s recommendation in FY2004 and approximately $28.7 million in FY2005.
Assemblyman Marvel asked if the salary increases would also apply to unclassified positions. Mr. Stevens said all employee groups would receive the increase, including unclassified. Mr. Marvel asked about the unclassified pay bill and Mr. Stevens said the amount included in the option was only the portion of K‑12 employees, which would be included in the DSA. The classified salaries and the unclassified salaries would all be included in one bill, and the amounts that would be included for unclassified salaries would be listed and would be the amounts effective July 1, 2003. The bill included a provision that allowed those amounts to be increased by 2 percent in the second year of the biennium.
Ms. Giunchigliani said she did not think unclassified positions should be entitled to the 2 percent and it was her understanding the 2 percent was only for classified employees. Mr. Stevens said LCB staff could develop the bill any way that the Committee would like. He said his understanding was that the 2 percent would extend to all employee groups. Ms. Giunchigliani noted that some unclassified positions had received large salary increases and she did not feel those positions should receive an additional 2 percent increase. Ms. Giunchigliani said, “We could clarify, the 2 percent goes to the teachers and support personnel and the classified employees and anyone else in the unclassified service that did not receive an increase. That saves us money.” Mr. Stevens reiterated that the Committee could do as it wished on the salary increases, but there needed to be some resolution on the DSA.
Assemblyman Hettrick asked for clarification on the class-size reduction program in relation to the Governor’s recommendation for the program.
Mr. Stevens said the Governor had recommended ratios of 16:1 in grades 1 and 2, 19:1 in grade 3, and continuation of the 23.5 kindergarten positions. The Governor had also recommended that flexibility be provided to the schools districts, but there had been some misunderstanding on the definition of flexibility. In the CSR closing option the money would remain the same as recommended by the Governor. There had been some discussion between the Senate and Assembly Chairmen on the definition of flexibility and if flexibility should be allowed for the CSR. Mr. Stevens thought the flexibility option that had been discussed, but might not go forward, would be to allow the districts to increase class sizes in grades 1, 2, and 3, and use the CSR funding to lower the pupil/teacher ratios in grades 4, 5, and 6. Mr. Hettrick said he had seen numbers that indicated flexibility would save an additional $20 million. Mr. Stevens said, in order to eliminate team teaching there needed to be sufficient numbers of classrooms. Elko had sufficient classrooms and had eliminated team teaching and increased class size ratios to 22:1 based on flexibility provided to that school district. However, in Nevada’s urban areas there were not sufficient classrooms to follow the Elko model.
Ms. Giunchigliani said no agreement had been reached between the Senate and Assembly on the CSR issue. She thought the goal of both houses was to eliminate team teaching. Ms. Giunchigliani said there was no desire to impinge on Elko’s model and the district should be allowed to move forward with flexibility for the CSR program.
Ms. Giunchigliani continued and said, “We did not want to risk, at least on the Democratic side in our closings, going to a flexible model which could not be implemented because they don’t have the space for it and, most importantly, would then increase the class sizes in the first, second, and third grades, which is exactly the opposite of the intent of the class-size reduction.”
Assemblyman Andonov asked if the option on stipends and bonuses for teachers would eliminate the stipends and instead provide a 1/5 retirement credit. Mr. Stevens answered affirmatively. Mr. Andonov then asked if the salary increase option was above and beyond the amount included in The Executive Budget. Mr. Stevens said a 2 percent salary increase was built into the DSA in the Governor’s budget and the closing option would provide an additional .75 percent in the first year of the biennium. The Governor’s budget did not include a salary increase in the second year of the biennium. The .75 was in the first year and the 2.75 would move to the second year of the biennium with an additional 2 percent effective July 2004.
In response to a question asked by Mr. Goldwater related to the Public Employees’ Retirement System (PERS), Mr. Stevens explained that the retirement contribution rate was determined every other year by the PERS’ actuary. Although the PERS conducted an actuarial study each year, the triggers were set for whether a retirement contribution increase would be needed when the Legislature met every other year. There was a certain threshold, and Mr. Stevens thought it was .50 percent. If the retirement rate was .50 percent lower or higher as actuarially determined based on the current rate, then a trigger would go off and an increase or decrease would need to take place. George Pyne, Director, PERS, had indicated 60 percent of the recommended increase in the retirement contribution was related to demographics, which was the changing mix of individuals within the PERS system, and about 40 percent related to investment return, resulting in the additional retirement contribution increase that would be recommended.
Mr. Goldwater said he still did not understand the flexibility for the CSR. Mr. Stevens noted that flexibility language for grade 3 had been provided for a number of years. Language was included in the CSR bill that would allow some funding to be utilized for certain reading programs if requested by a school district and approved by the State Board of Education. There had been a great deal of discussion about flexibility with the total CSR funding that would be approved by the 2003 Legislature, regardless of the amount, and that could mean a number of different things and was one of the items that “we have been trying to get our arms around” in order to draft language that reflected the intent of the money committees. Mr. Goldwater said he would like to see the language that would be included in the CSR bill. He thought if it was not possible to eliminate team teaching, flexibility could only mean student/teacher ratios would increase.
Mr. Hettrick asked if the amount reflected on the spreadsheet (Exhibit C) for CSR still differed from the Senate version. Mr. Stevens said the CSR funding amount was the same, but there continued to be ongoing discussions regarding CSR flexibility.
Chairman Arberry advised the members that Mr. Stevens was providing updated information on the status of the DSA, but the Committee could not close the DSA until there was a full committee.
Senate Bill 51 (1st Reprint): Extends date by which certain prerequisites must be satisfied for State Board of Finance to issue general obligation bonds to assist in construction of California Immigrant Trail Interpretive Center in Elko County. (BDR S-674)
ASSEMBLYMAN MARVEL MOVED TO DO PASS S.B. 51.
ASSEMBLYMAN HETTRICK SECONDED THE MOTION.
THE MOTION CARRIED. (Mrs. Chowning, Mr. Parks, and
Mr. Perkins were not present for the vote.)
********
Senate Bill 210 (1st Reprint): Revises provisions governing regional training programs for professional development of teachers and administrators. (BDR 34-636)
Mr. Stevens said S.B. 210 combined the Nevada Early Literacy Intervention Program with the Regional Professional Development Centers.
Ms. Giunchigliani proposed an amendment to Section 2, line 2, on page 3 of S.B. 210 to indicate the appointment of the representative should be made by the President of the Association rather than the Director of the Association.
ASSEMBLYWOMAN GIUNCHIGLIANI MOVED TO AMEND AND DO PASS S.B. 210.
ASSEMBLYWOMAN LESLIE SECONDED THE MOTION.
THE MOTION CARRIED. (Mrs. Chowning, Mr. Parks, and
Mr. Perkins were not present for the vote.)
********
Senate Bill 446: Authorizes State Treasurer to appoint and employ two Senior Deputies in unclassified service of State. (BDR 18-301)
Mr. Stevens said S.B. 446 provided for two additional deputies in the Office of the State Treasurer, and the budget was closed by the money committees to include the two positions.
ASSEMBLYMAN MARVEL MOVED TO DO PASS S.B. 446.
ASSEMBLYWOMAN GIUNCHIGLIANI SECONDED THE MOTION.
THE MOTION CARRIED. (Mrs. Chowning, Mr. Parks, and
Mr. Perkins were not present for the vote.)
********
Senate Bill 447 (2nd Reprint): Makes various changes relating to governmental financial administration. (BDR 31-302)
Mr. Stevens said S.B. 447 had passed the Committee as amend and do pass, but he thought an additional amendment would be presented to the Committee.
Senate Bill 498 (1st Reprint): Provides for transfer and use of certain money received from leading investment firms pursuant to certain settlement agreements. (BDR 7-1358)
Mr. Stevens said S.B. 498 had been heard by the Committee earlier in the meeting. The bill addressed a settlement the Secretary of State would be receiving in the amount of approximately $4 million. Passage of the bill would allow the settlement money to be utilized potentially to match federal funds to support the construction of the State Emergency Operations Center.
ASSEMBLYMAN MARVEL MOVED TO DO PASS S.B. 498.
ASSEMBLYWOMAN GIUNCHIGLIANI SECONDED THE MOTION.
THE MOTION CARRIED. (Mr. Parks and Mr. Perkins were not present for the vote.)
********
Lorne Malkiewich, Director, Legislative Counsel Bureau, said he was present to discuss Section 19 of the General Authorizations Act bill (Senate Bill 504). The bill would transfer the operation of the State Printing Division from the Department of Administration to the Legislative Counsel Bureau effective July 1, 2003. During budget preparation there had been discussion of closing the Division. Mr. Malkiewich said the Legal Division of the Legislative Counsel Bureau had $800,000 in authorized expenditures the first year of the biennium from the sale of the Nevada Revised Statutes (NRS) and was quite concerned about the possibility of the closure. Although the decision had been made to continue the Division as a viable entity, the Bureau had become more and more concerned because of the responsibility of the LCB to print bills and NRS. The Supreme Court also had concerns because of the responsibility of the Division to print the Court’s reports. There was also concern that the State Printing Division could be closed without the agencies receiving sufficient warning to prepare for the closure.
Mr. Malkiewich indicated the Governor was in agreement with the recommendation for the LCB to take over responsibility for the Division July 1, 2003. With the takeover, state agencies would be relieved of the responsibility of having to utilize the State Printing Division and the Division would be relieved of the requirement to do all the printing for the state agencies. Mr. Malkiewich said a plan would be developed to ensure the Division would be viable, but operations would be scaled back. The Division would have responsibility for the LCB publications, the Supreme Court publications, and generating sufficient funding to maintain the operation of the Division.
Mr. Malkiewich said the benefit of placing the State Printing Division under the LCB was that 250 employees would be at the disposal of the Division. LCB staff could assist if there was a rush print order, such as the deadline for “first house passage.” In addition, the Division would have lower staffing levels as well as lower overhead costs. The LCB conducted two legislative audits during the last several years and the principal auditor was extremely familiar with the operations of the State Printing Division. Mr. Malkiewich felt the auditor and staff in the Fiscal Analysis Division, Legal Division, and General Services, could develop a viable plan to enable the Division to provide the services needed. In the future, if it was determined that perhaps the move was not viable there would at least be some control over the process. Mr. Malkiewich noted there were some administrative vacancies within the State Printing Division and he suggested perhaps LCB staff could assume some of the administrative duties and not fill the vacant positions.
Mr. Stevens referred members to the “back language” (Exhibit D) of the General Authorizations Act and briefly reviewed the sections that had changed significantly:
Mr. Stevens said he would be happy to discuss any portion of the General Authorizations Act and noted the Act was traditionally a Senate introduction.
Assemblyman Beers asked for an explanation of Section 19, subsection 3, of the Act, which forgave all debt of the State Printing Division. Mr. Stevens said often agencies that provided general services, such as the State Printing Division, State Purchasing, and State Motor Pool, received General Fund appropriations for major equipment purchases, building renovations, or construction of new buildings, and a General Fund payback was required for those appropriations. Mr. Beers said he presumed the repayments would no longer be an asset to the General Fund and asked if the repayments were currently booked as an asset. Mr. Stevens explained that a certain amount of money was budgeted each fiscal year for repayments. Mr. Stevens said the repayment amount for the State Printing Division was not a tremendous amount, but it was money that was budgeted as General Fund revenue. Mr. Stevens said he was not certain how the State Controller’s Office handled the repayment issue based on Generally Accepted Accounting Principles (GAAP), but the net transaction, at least from the Committee’s point of view, would be that the state would not be receiving those General Fund paybacks, which, had they continued, would be approximately ten years.
In response to a question posed by Mr. Marvel related to the Division’s inventory, Mr. Stevens said he thought the assets of the State Printing Division would be transferred to the control of the Legislative Counsel Bureau.
Assemblywoman McClain asked Mr. Stevens to provide additional information on Section 12 of the General Authorizations Act. She wondered if the funding received from the amount of tax on motor vehicle fuel used in watercraft for recreational purposes had historically been allocated equally between the Division of Wildlife and the Division of State Parks. Mr. Stevens answered in the affirmative.
Assemblywoman Chowning said the materials printed by the Division were very unique and there were few printing facilities available to do the type of printing required for the LCB and the Supreme Court. She understood the concern that the debt would not be repaid, but she also recognized the Division had been losing money. Mrs. Chowning said, “It is too bad that it has to go this way, but I think this is a way to keep a sinking ship from sinking any further.”
Mr. Andonov referred to Section 8 of the Act and asked if the language would restrict the UCCSN from increasing fees during the biennium. Mr. Stevens said the amounts listed on page 25 (Exhibit D) were the amounts that were anticipated based on the projected number of students for each year of the biennium and the student fees that were recommended by the Board of Regents, the Governor, and ultimately the money committees. If those amounts were exceeded, there was provision in the language to enable the UCCSN to utilize the excess amounts for the incremental instructional faculty necessary to instruct the additional students. If the UCCSN elected not to use the additional funding for the incremental instructional faculty they would have to go before the Interim Finance Committee and present their case. The IFC could approve or not approve the requests. In response to a question asked by Mr. Andonov on the fees, Mr. Stevens said setting fees was clearly a responsibility of the Board of Regents, but if the fees were increased and that increased the amounts over and above the thresholds included in the General Authorizations Act, and the additional funds were not used for incremental instructional faculty, then in order to utilize those additional funds, the IFC would be involved. Mr. Stevens noted that the provisions of the Act did not in any way restrict the UCCSN from raising fees.
Mr. Beers asked the difference between the language the Committee reviewed in the meeting of May 31, 2003, and the language being reviewed in the current meeting. Mr. Stevens said the back language reviewed in the prior meeting was for the General Appropriations Act. The back language currently under review was the General Authorizations Act, which was non-General Fund revenue. Mr. Stevens said anything that involved authorized revenue, non-state General Fund or Highway Fund, was included in the back of the General Authorizations Act. Mr. Stevens explained that student fee revenue was not a General Fund revenue, but was an authorized revenue.
Senate Bill 49: Creates Statewide Program for Suicide Prevention within Department of Human Resources. (BDR 40-288)
ASSEMBLYWOMAN LESLIE MOVED TO DO PASS S.B. 49.
ASSEMBLYMAN PARKS SECONDED THE MOTION.
THE MOTION PASSED UNANIMOUSLY.
********
Senate Bill 501: Requires Department of Motor Vehicles to charge and collect certain new fees relating to sale or lease of vehicle. (BDR 43-1360)
Mr. Stevens said S.B. 501, introduced by the Senate Finance Committee, related to how both money committees closed the budget for the Department of Motor Vehicles (DMV). The bill included an additional fee of $8.25 for processing the report of sale for each dealer or rebuilder and provided additional fee revenue to the DMV.
Mrs. Chowning said the Transportation Committee had received testimony from the dealers indicating support of S.B. 501.
ASSEMBLYWOMAN CHOWNING MOVED TO DO PASS S.B. 501.
ASSEMBLYMAN MARVEL SECONDED THE MOTION.
Mr. Hettrick asked how much revenue would be raised annually. Mr. Stevens said $2 million would be raised annually.
Ms. Giunchigliani said there was a policy issue included in S.B. 501 that she did not agree with related to “how much dealers should really be keeping and creating a yo-yo effect,” but there was not sufficient time to address the issue during the current session. She felt it was important to address the area during the 2005 Legislative Session.
THE MOTION CARRIED. (Mr. Griffin was not present for the vote.)
********
Senate Bill 503: Revises provisions governing homeschooled children and millennium scholarships. (BDR 34-1369)
ASSEMBLYMAN BEERS MOVED TO DO PASS S.B. 503.
ASSEMBLYMAN HETTRICK SECONDED THE MOTION.
Mr. Goldwater indicated he would be voting no based upon the provisions in Section 4 and Section 5 that he addressed earlier in the meeting. Mr. Goldwater said he thought the language included in both sections was onerous.
Mrs. Chowning indicated she also would be voting no because of the costs. She felt passage of S.B. 503 would result in another unfunded mandate for the school districts.
Mr. Hettrick reiterated that representatives from the school districts had testified earlier in the meeting that S.B. 503 would not be an unfunded mandate and there would be no fiscal impact on the school districts.
Ms. Giunchigliani indicated she did not care for the portion of S.B. 503 related to the homeschooling. She stated,
These individuals do not want to participate in public education but they still want the benefits that go with it other than having to commingle with kids that are on campuses, in my opinion. In addition to that they do not have to take the Proficiency Exam and it is another one of those discriminatory factors that are out there. As we debate this whole issue, what is good for one public school kid should be good for those kids that are chosen to be homeschooled but then also still want to use our public schools.
Ms. Giunchigliani said she had made a commitment to help move S.B. 503 forward and would vote yes if her vote was needed.
THE MOTION CARRIED WITH MRS. CHOWNING AND MR. GOLDWATER VOTING NO.
********
Senate Bill 447 (2nd Reprint): Makes various changes relating to governmental financial administration. (BDR 31-302)
Ms. Giunchigliani said S.B. 447 had been passed by the Committee but asked to rescind her original motion in order to consider revised language.
ASSEMBLYWOMAN GIUNCHIGLIANI MOVED TO RESCIND THE PREVIOUS ACTION OF AMEND AND DO PASS S.B. 447.
ASSEMBLYWOMAN LESLIE SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
Ms. Giunchigliani said the language of the amendment that was handed out to members would allow for construction of a school of medicine building in Las Vegas. By being able to consolidate leases the UCCSN could utilize amounts currently paid for rent to pay the principal and interest needed for a bond issue. Ms. Giunchigliani said it was important that protection be included in the bill. Ms. Giunchigliani recommended changing the word “shall” to “may” in both places in Section 1 of S.B. 447 and add just above the second paragraph “subject to subsection 1.” The UCCSN would then have the option to issue bonds utilizing current rent payments if it was determined that was in the best interest of the medical school.
ASSEMBLYWOMAN GIUNCHIGLIANI MOVED TO AMEND AND DO PASS INCLUDING THE LANGUAGE IN AMENDMENTS APPROVED EARLIER FOR S.B. 447.
ASSEMBLYMAN PARKS SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
********
Assembly Bill 482: Makes various changes concerning funding of child welfare services and institutional care of persons covered by State Plan for Medicaid. (BDR 38-687)
Ms. Giunchigliani noted A.B. 297, which was Assemblyman Sherer’s bill, had not been heard in the Senate.
ASSEMBLYWOMAN GIUNCHIGLIANI MOVED TO AMEND AND DO PASS A.B. 482 BY REMOVING THE CURRENT LANGUAGE AND INSERTING A.B. 297 LANGUAGE INTO A.B. 482.
ASSEMBLYWOMAN McCLAIN SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
********
Chairman Arberry recessed the meeting at 3:19 p.m.
RESPECTFULLY SUBMITTED:
Linda J. Smith
Committee Secretary
APPROVED BY:
Assemblyman Morse Arberry Jr., Chairman
DATE: