MINUTES OF THE
SENATE Committee on Finance
Seventy-second Session
February 24, 2003
The Senate Committee on Financewas called to order by Chairman William J. Raggio, at 8:15 a.m., on Monday, February 24, 2003, in Room 2134 of the Legislative Building, Carson City, Nevada. Exhibit A is the Agenda. Exhibit B is the Attendance Roster. All exhibits are available and on file at the Research Library of the Legislative Counsel Bureau.
COMMITTEE MEMBERS PRESENT:
Senator William J. Raggio, Chairman
Senator Raymond D. Rawson, Vice Chairman
Senator Dean A. Rhoads
Senator Barbara K. Cegavske
Senator Sandra J. Tiffany
Senator Bob Coffin
Senator Bernice Mathews
GUEST LEGISLATORS PRESENT:
Senator Michael A. Schneider, Clark County Senatorial District No. 11
STAFF MEMBERS PRESENT:
Gary L. Ghiggeri, Senate Fiscal Analyst
Bob Guernsey, Principal Deputy Fiscal Analyst
Pamela Carter, Committee Secretary
OTHERS PRESENT:
Susan Fisher, Lobbyist, Barrick Gold Corporation
Mike L. Baughman, Lobbyist, Humboldt River Basin Water Authority, Lincoln County Regional Development Authority
Doug D. Busselman, Lobbyist, Nevada Farm Bureau
Joyce L. Woodhouse, Director, Partnership Program, Clark County School District
Craig Kadlub, Lobbyist, Clark County School District
Michael J. Willden, Director, Department of Human Resources
Carlos Brandenburg, Ph.D., Administrator, Division of Mental Health and Developmental Services, Department of Human Resources
Carol Aiello-Sala, Administrator, Aging Services Division, Department of Human Resources
BILL DRAFT REQUEST (BDR) 31-604: Clarifies provision governing advances to budget accounts supported by administrative assessments. (Later introduced as Senate Bill 198.)
In accordance with Senator Raggio’s request, Gary Ghiggeri, Senate Fiscal Analyst, Legislative Counsel Bureau, explained BDR 31-604. He stated BDR 31-604 would provide a one-twelfth advance on total receipts to agencies receiving administrative assessments instead of receiving multiple advances. Senator Raggio asked for a motion.
SENATOR COFFIN MOVED FOR INTRODUCTION OF BDR 31-604.
SENATOR TIFFANY SECONDED THE MOTION.
THE MOTION CARRIED. (SENATORS RAWSON AND MATHEWS WERE ABSENT FOR THE VOTE.)
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Mr. Ghiggeri referenced the “Executive Budget Amendments” handout (Exhibit C.) provided by Director Andrew Clinger from the Budget Division. He said the Budget Division suggests several budget amendments. He asked whether the committee would like copies of budget account amendments from the Executive Budget book.
Senator Raggio stated staff would provide copies to any committee member requesting a copy of a budget account amendment.
Senator Coffin asked whether the amendments were technical. Mr. Ghiggeri said a major adjustment was increased funds to the Distributive School Account (DSA) of approximately $10.1 million in fiscal year (FY) 2004 and $10.6 million in FY 2005. He added the Budget Division supplied a revised General Fund balance sheet included in the handout. He stated it recommends a reduction repaid to the rainy day fund from $50 million to $45 million this fiscal year.
Mr. Ghiggeri explained the estimated unrestricted General Fund balance would increase from $105.2 million to $110.2 million at the end of this fiscal year. He said on-going appropriations would be increased approximately $9.6 million in FY 2004 and approximately $10.5 million in FY 2005.
Senator Raggio stated prison medical care increased by $1.5 million over the biennium. He asked staff to analyze the budget amendments and report their findings back to the committee.
Senator Raggio asked Senator Rhoads whether Senate Bill (S.B.) 5 was his bill. Senator Rhoads replied yes, S.B. 5 is his bill. Senator Raggio opened discussion for S.B. 5 and asked for public testimony in support of S.B. 5.
SENATE BILL 5: Makes appropriation to Legislative Fund for use by Legislative Committee on Public Lands in awarding grants or expending money for certain projects relating to public lands. (BDR S-673)
Senator Rhoads explained S.B. 5 is similar to a bill passed in 1999. He said it will award $250,000 to the committee on public lands. He referenced the handout, “Criteria and Guidelines for the Use of Money Appropriated in Senate Bill 560 of the 1999 Legislative Session to Nevada’s Legislative Committee on Public Lands”(Exhibit D). He quoted the 1999 bill, stating funds can be used “to maximize opportunities for the transfer and acquisition of federal public lands within Nevada, study water management practices within the Humboldt River Basin, and any other purpose related to maximizing the utilization and enjoyment of public lands by Nevadans.”
Senator Rhoads explained when $250,000 was appropriated in 1999 he appointed a subcommittee to manage projects listed in another handout, “Senate Bill 560 Grants for Public Lands and Natural Resources Projects” (Exhibit E).
Senator Raggio asked whether there were specific grants utilized. Senator Rhoads replied no, there were not. He explained the committee on public lands set grants criteria, opened applications, and received over $1 million in grant funding. Senator Raggio stated the committee would like to see a current listing of public lands projects.
Susan Fisher, Lobbyist, Barrick Gold Corporation, stated her support of S.B. 5. She said dollars appropriated in 1999 supported good and needed projects in Nevada. She emphasized rural areas of Nevada need public lands projects.
Mike L. Baughman, Lobbyist, Humboldt River Basin Water Authority, Lincoln County Regional Development Authority, spoke in favor of S.B 5. He explained the Humboldt River Basin Water Authority is a five-county water resources planning organization in northern Nevada. He stated S.B. 5 would support expansion of Nevada’s economic base. He added investment in Nevada would result in increased federal monies.
Mr. Baughman said Lincoln County received a $10,000 grant from the Legislative Committee on Public Lands. He stated $10,000 was leveraged into a $35,000 project receiving funds from the Bureau of Land Management (BLM) and other outside parties. He indicated the money was used to evaluate environmental issues associated with biomass industrial use in eastern Nevada. He noted a $196,000 grant was received from the U.S. Forest Service for environmental analysis. He added $40,000 was leveraged into a $125,000 grant from Barrick Gold, $51,000 from Newmont Gold, $15,000 from the Nevada Division of Water Resources, and $231,500 matched dollar-for-dollar by the United States Geological Survey (USGS) resulting in a $463,000 project. He stated the project was for work performed on the Humboldt River Basin cooperative study. He indicated the State should invest in Nevada projects to generate the tax base needed to support proposed tax increases.
Doug D. Busselman, Lobbyist, Nevada Farm Bureau, spoke in favor of S.B. 5 and the appropriation of funds to be used for public lands. He read from a statement, “Nevada Farm Bureau Testimony” (Exhibit F) explaining passage and implementation of S.B. 5 will support establishment of federal and state rangeland restoration funds offering matching fund grants to implement on-the-ground projects to restore or rehabilitate rangelands.
Senator Raggio asked for questions and closed the hearing on S.B. 5. He opened the hearing on Senate Bill (S.B.) 52.
SENATE BILL 52: Makes appropriation to Department of Education to provide grants to school districts to facilitate participation in supplemental science, mathematics, and technology programs for certain pupils and teachers. (BDR S-852)
Michael A. Schneider, Senator, Clark County Senatorial District No. 11, thanked the Senate Committee on Finance for allowing the Clark County school children to present their support of the JASON Project during a live broadcast of JASON on February 4, 2003. He stated the JASON Project mission is to “inspire in students a lifelong passion to pursue learning in science, math, and technology through exploration and discovery.”
Joyce L. Woodhouse, Director, Partnership Program, Clark County School District, spoke from prepared testimony (Exhibit G), voicing her support of S.B. 52. She explained the JASON Project began as a dream of Dr. Robert Ballard, the scientist and oceanographer who discovered sunken Royal Mail Steamer (RMS) Titanic in 1986. She said Dr. Ballard believed enabling students to perform fieldwork from the classroom was a powerful concept. She pointed out JASON was a multi-disciplinary program sparking the imagination of students and enhancing classroom experience. She added JASON travels the world, taking students and instructors on exciting educational adventures from dark oceans to rainforests and from icy polar regions to red-hot volcanoes.
Ms. Woodhouse noted the JASON Project handout (Exhibit H. Original is on file in the Research Library.) states many Nevada instructors outside of Clark County would like to utilize JASON in their classrooms. She recited a quote from Dr. Ballard, “By taking advantage of cutting edge communications technology and bringing science to life, the JASON Project is helping to revolutionize the way science is taught. That is good news not only for our students, but for our country.”
Craig Kadlub, Lobbyist, Public Affairs, Clark County School District, spoke from a prepared statement (Exhibit I) supporting S.B. 52. He stated JASON has been a valuable and enjoyable component of the Clark County academic program for several years. He said JASON has personalized the process of scientific inquiry for many students. He noted the JASON curriculum is aligned with state and national educational standards in science, math, technology, geography, and language arts.
Senator Raggio asked how JASON has been funded. Ms. Woodhouse replied a U.S. Department of Energy grant funded the first 2 years of the project. She added fundraising and technology monies from the Legislature have funded the program since 1995. Senator Raggio asked how many students were involved in the project. Ms. Woodhouse replied approximately 20,000 students were involved. Senator Raggio stated S.B. 52 would provide between $85,000 and $87,000 per year statewide. He asked how much of this amount would help the school district in Clark County. Ms. Woodhouse replied the budget is $92,500. She stated the license fee to use JASON is $50,000. Senator Raggio asked whether the license fee is for one school district. Ms. Woodhouse replied yes, each school district pays a fee based on school size. Senator Raggio asked how many school districts could participate with limited funds. Ms. Woodhouse replied any school district could participate. Senator Raggio asked whether fundraising would continue. Ms. Woodhouse replied if State funds were available, Clark County School District would not have to continue fundraising.
Senator Cegavske asked whether a lab fee could be assessed the students to support JASON. She asked whether Clark County School District conducts status reports on the JASON Project. Ms. Woodhouse replied in order to bring JASON to the Clark County School District 11 years ago it was agreed no fees would be assessed students, faculty, or schools. Senator Cegavske asked for a breakdown of administrative costs for the project. Ms. Woodhouse replied administrative costs are absorbed through the Partnership Program office. She stated the Partnership Program manages approximately 600 partnerships for the district, and JASON is one of them. She said two types of reporting documents are prepared for the JASON Project, the site survey and the school district recommendations for future use of JASON.
Senator Cegavske asked whether Senator Schneider would consider a “sunset” on S.B. 52. Senator Schneider replied no, he would not consider sun-setting S.B. 52. He stated if a commitment is made to the JASON Project, the project continues to grow. He added JASON is education and education needs to grow.
Senator Raggio asked the reason for limiting the number of participating students in JASON. He referred to S.B. 52, page 3, section 2. Ms. Woodhouse replied Terry Smith from the JASON Foundation wrote section 2. She said she would ask Mr. Smith to provide that information. Senator Schneider stated Mr. Smith’s numbers are estimates. He added Mr. Smith will document the estimates and provide his formula to the committee.
Senator Raggio asked for further testimony on S.B. 52. He closed the hearing on S.B. 52 and opened the hearing on Senate Bill (S.B.) 42.
SENATE BILL 42: Enacts provisions pertaining to problem gambling.
(BDR 41-73)
Senator Raggio asked Senator Rawson whether he was having a similar bill drafted. Senator Rawson stated the bill draft should be out this week.
Michael J. Willden, Director, Department of Human Resources, spoke from prepared testimony (Exhibit J) in favor of S.B. 42. He provided copies of two studies on problem gambling (Exhibit K and Exhibit L). He stated Nevada has the highest incidence of probable pathological gambling in any of the 11 states conducting studies on problem gambling.
Senator Raggio asked how problem gamblers are defined. Mr. Willden replied a survey tool is used to question participants on gambling habits. He stated results indicate whether a person is a current problem gambler or probable pathological gambler.
Mr. Willden said the adolescent report found there is a lower incidence of problem gambling among adolescents. He indicated a number of recommendations were made in the studies to address problem gambling. He explained the recommendations address working with insurance companies to obtain coverage for treatment, refining public education and prevention services, supporting industry policies and programs to minimize gambling difficulties, expanding training opportunities for education on problem gambling, establishing a State certification program for counseling, providing additional funding for problem gambling, and monitoring on-going gambling prevalence. He said the Department of Human Resources (DHR) does not provide, sponsor, or fund any treatment services for problem gambling. He stated the Division of Mental Health and Developmental Services (DMHDS) and the Bureau of Alcohol and Drug Abuse (BADA) do not fund treatment or screening programs for problem gambling.
Senator Raggio stated according to one study, adolescent gambling can be traced to alcohol and drug abuse. Mr. Willden replied yes, that is true. Noting that gambling is illegal for persons under age 21, Senator Raggio asked what type of adolescent gambling occurs. Mr. Willden replied non-casino card games and sports betting are the most frequent types of gambling involving adolescents. He said the age a problematic adolescent gambler begins gambling is 11.5 years, and probable problematic gamblers begin gambling at 12.5 years.
Mr. Willden explained current information on, and training programs for, problem gambling in Nevada are provided through the Nevada Council on Problem Gambling (NCPG). He said NCPG receives funding from the gaming industry and donations to provide information and training on problem gambling.
Senator Raggio asked how well NCPG provides the public with information and training on problem gambling. Mr. Willden replied NCPG provides printed material on problem gambling to the public. He stated NCPG trains gaming industry staff to recognize problem gambling, and it operates an 800 line 24 hours per day, 7 days per week. He added NCPG is not a treatment organization, but it provides information and refers clients to counseling. He requested establishment of a half-time grants position to set regulation, monitor organizations receiving funds, and seek grants, gifts, and donations to fund the revolving account. He stated this request is outlined in the handout, “Executive Agency Fiscal Note” (Exhibit M).
Senator Raggio asked whether DHR had considered establishment of a program in the court system dealing with problem gambling. Mr. Willden replied no, DHR has not analyzed this issue. Senator Raggio asked about treatment for problem gambling as a mental disorder.
Carlos Brandenburg, Administrator, Division of Mental Health and Developmental Services (DMHDS), stated gambling is a treatable pathological mental disorder. Senator Raggio asked whether there are any programs within DMHDS to treat problem gambling. Dr. Brandenburg replied there are none.
Senator Coffin asked how problematic gambling is treated. Dr. Brandenburg replied a combination of medication and cognitive therapy is used. Senator Coffin asked whether anyone is measuring the success of therapy. Dr. Brandenburg replied DMHDS does not measure therapy outcomes.
Senator Cegavske stated she works for Westcare, the largest nonprofit drug and alcohol treatment center in the state. She noted problematic gambling is linked to drug and alcohol abuse. She asked why a non-voting member would be placed on the Nevada Council on Problem Gambling. Mr. Willden stated the wording of S.B. 42 is a carryover from last session when Senator James wrote and introduced the bill. Senator Cegavske reiterated she does not understand why a non-voting member would sit on the Nevada Council on Problem Gambling.
Senator Raggio confirmed S.B. 42 came from the judiciary committee.
Senator Cegavske asked whether BADA would fund the half-time grants position. Mr. Willden replied no, DHR would not use BADA funds for this position. He said the position would be contracted.
Senator Raggio stated the hearing on S.B. 42 would be continued and scheduled at a later time. He opened the hearing on Senate Bill (S.B.) 81.
SENATE BILL 81: Makes appropriation to Aging Services Division of Department of Human Resources for development of statistics to determine priorities for funding programs for senior citizens and for publication of results in brochure entitled Nevada Elder Count.
(BDR S-930)
Senator Rawson referred to the handout, “Nevada Kids Count Data” book (Exhibit N. Original is on file in the Research Library.). He stated the Elders Count Book is exactly like the kids count book and very useful in providing statistics. He explained the bill includes an appropriation each year for 2 years to get the book started. He noted eventually the book would not have to be published every year.
Carol Aiello-Sala, Administrator, Aging Services Division (DAS), Department of Human Resources, spoke in support of S.B. 81. She stated S.B. 81 allows an appropriation to DAS for determining priorities in funding senior programs and publication of the “Nevada Elder Count” brochure. She said S.B. 81 will provide a $75,000 appropriation in FY 2003-2004 and $75,000 in FY 2004-2005. She explained the strategic plan for seniors was completed in 2002. She noted S.B. 81 will provide funds for new and timely senior data collection and analysis. She said the strategic plan supports a public information campaign to increase public awareness on aging.
Senator Raggio asked how long the strategic plan for seniors has been in place. Ms. Sala replied it was completed in October 2002. Senator Raggio asked whether the plan will assist in development of senior statistics. Ms. Sala replied yes, consolidated statistics on seniors will be accomplished according to the strategic plan.
Senator Tiffany asked what amount was appropriated to DAS in A.B. No. 513 of the 71st Session. Ms. Sala replied the total amount to DHR was $800,000, and the strategic plan for seniors received $150,000 of that amount. Senator Tiffany asked how the $150,000 was spent. Ms. Sala replied four plans were outsourced to contracted consultants. Senator Tiffany stated $150,000 is a lot of money to pay for plans now out-dated. She asked if the next $150,000 would be spent the same way. Ms. Sala replied yes, it will. Senator Tiffany asked who would be setting policy on DAS statistics. Ms. Sala replied DAS will be setting policy.
Senator Rawson said money slated for the strategic plan has nothing to do with data collection. He stated during completion of the strategic plan in 2002, DAS discovered data was unavailable. He added DAS could set policy from data provided by the University and Community College System of Nevada (UCCSN).
Senator Raggio asked how the sum of $75,000 each year for 2 years was determined. Senator Rawson replied $75,000 will be the cost of the Nevada Kids Count Data book. He said data will be collected during the first year, and during the second year the senior count book will be published.
Senator Cegavske asked whether any data comes from the federal government. Ms. Sala replied both the American Public Human Services Agency (APHSA) and the National Association of State Units on Aging (NASUA) conduct surveys, but the data collected is on one issue.
Senator Raggio asked whether there was further testimony on S.B. 81. There being none, he closed the hearing on S.B. 81.
Senator Raggio adjourned the meeting at 9:34 a.m.
RESPECTFULLY SUBMITTED:
Pamela Carter,
Committee Secretary
APPROVED BY:
Senator William J. Raggio, Chairman
DATE: