MINUTES OF THE
SENATE Committee on Finance
Seventy-second Session
May 15, 2003
The Senate Committee on Finance was called to order by Chairman William J. Raggio, at 8:39 a.m. on Thursday, May 15, 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:
Assemblywoman Christina R. Giunchigliani, Assembly District No. 9
STAFF MEMBERS PRESENT:
Gary L. Ghiggeri, Senate Fiscal Analyst
Bob Guernsey, Principal Deputy Fiscal Analyst
Mark Krmpotic, Senior Program Analyst
Julie Brand, Program Analyst
Jeffrey A. Ferguson, Program Analyst
Joyce Garrett, Program Analyst
Tracy Raxter, Program Analyst
Jim Rodriguez, Program Analyst
Michael Archer, Committee Secretary
OTHERS PRESENT:
John P. Comeaux, Director, Department of Administration
Bonnie L. Parnell
Dr. Jane A. Nichols, Chancellor, System Administration Office, University and Community College System of Nevada
Dr. Jill T. Derby, Board of Regents, University and Community College System of Nevada
Brett Whipple, Board of Regents, University and Community College System of Nevada
Laura M. Mijanovich, Lobbyist, American Civil Liberties Union of Nevada
Sydney H. Wickliffe, CPA, Director, Department of Business and Industry
John R. Orr, Deputy Commissioner, Division of Insurance, Department of Business and Industry
David McTeer, Information Systems Manager II, Budget Division, Department of Administration
Senator Raggio:
The committee has received some correspondence that I would like reflected in the record. One is a letter, (Exhibit C) dated May 13, from Jackie Crawford Director, Department of Corrections commending the closure of the budget. I also have a letter (Exhibit D), dated May 13, 2003, from Ginny Lewis, Director of the Nevada Department of Motor Vehicles (DMV) in response to Senator Tiffany’s question regarding their use of Internet transactions. We have another letter (Exhibit E) from Chuck W. Fulkerson, Executive Director, Office of Veteran’s Services, dated May 12, 2003, relating to the veterans special license plate funding in Senate Bill (S.B.) 324). There is also a letter (Exhibit F) from program analyst, Jeffrey A. Ferguson, of the Legislative Counsel Bureau’s Fiscal Division, dated May 9, 2003, containing a clarification of interagency transfer of funds from the Aging Older Americans Act budget account to the Senior Nevada Advocates on Guard (SNAG) program. There is another letter (Exhibit G) from the Office of the Attorney General (AG) responding to various questions raised by this committee during previous budget hearings.
Senate Bill 324: Makes various changes concerning Veterans’ Home Account and Gift Account for Veterans’ Home. (BDR 37-305)
We will now look at Assembly Bill (A.B.) 153.
ASSEMBLY BILL 153 (1st Reprint): Revises provisions regarding petty cash accounts of state agencies and Emergency Account in State General Fund. (BDR 31-509)
John P. Comeaux, Director, Department of Administration:
This bill proposes to make two changes to Nevada Revised Statutes (NRS) 353. The first change has to do with petty cash accounts included in A.B. 153, Section 1, which changes the existing limitation on the amount of a petty cash account that can be approved by the State Board of Examiners from $250 to a maximum of $500. Those funds are established out of an agency’s existing budget for various reasons, generally for making change for customers or purchasing minor supplies. These accounts are handled on an impress basis and are reimbursed as necessary. The second proposed change to NRS 353 is included in A.B. 153, Section 2, subsection 4. This will allow the State Board of Examiners, under circumstances that they consider appropriate, to authorize a clerk to determine whether an emergency exists, and to approve an expenditure from the emergency account. Currently, approval for all expenditures from this account must be obtained from the State Board of Examiners.
SENATOR RAWSON MOVED TO DO PASS A.B. 153.
SENATOR MATHEWS SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
*****
Senator Raggio:
We will now open the hearing on A.B. 353.
ASSEMBLY BILL 353 (1st Reprint): Makes various changes to provisions regarding University and Community College System of Nevada and Board of Regents of University of Nevada. (BDR 34-76)
Assemblywoman Christina R. Giunchigliani, Assembly District No. 9:
Assembly Bill 353 requires the University and Community College System of Nevada (UCCSN) Board of Regents to develop a form that provides informed consent concerning the release of directory information. The form should allow the student to opt-out of the release of directory information, and meets the requirement of the Family Educational Rights and Privacy Act of 1975 (FERPA). The form will provide an opportunity for the student to opt-out for commercial use, noncommercial use, or both. If the form is not returned, the institution will assume that the release of information is acceptable.
Senator Raggio:
Does this represent the present policy that has been adopted by the Board of Regents?
Assemblywoman Giunchigliani:
It is a tweaking of that current policy. The second component in A.B. 353, is found in Sections 4, 5, and 6. This is intended to act as a companion to the constitutional amendment that is moving in the Assembly under the designation Assembly Joint Resolution (A.J.R.) 11. This component reduces the size of the Board of Regents from 13 to 9 members, and requires them to stand for election again in November. The constitutional amendment is still 5 years away. If we were to reduce the size of the Board of Regents now, and each had a new 4-year term, it might give the regents an opportunity to publicly and perceptively be viewed as working more coherently and policy driven. This may even remove the need for the constitutional amendment.
Assembly Joint Resolution (A.J.R.) 11 Proposes to amend Nevada Constitution to provide for election of certain members and gubernatorial appointment of certain members of Board of Regents, and to specify number and terms of members. (BDR C-18)
Bonnie L. Parnell:
About a year ago there were two news articles (Exhibit H) concerning credit cards being sent to students from lists provided by educational institutions. Many parents and students were alarmed by this practice, and the potential it had for getting students into early credit card debt. We had originally hoped A.B. 353 would have allowed the student to opt-in, rather than opt-out. But in its current form they still have a chance to indicate when they do not want their personal information being given out for commercial purposes. I am happy with this legislation and urge your support.
Senator Tiffany:
Can the Board of Regents make exemptions to this policy of providing information for commercial purposes, even if a person has opted-out?
Ms. Parnell:
Yes, the bill allows for exemptions to be made at the discretion of the institution.
Senator Raggio:
Is that current policy, or is that accommodated in the bill?
Dr. Jane A. Nichols, Chancellor, System Administration Office, University and Community College System of Nevada:
This is a State policy that rests upon a federal policy. The definition of directory information and the student’s right to privacy is defined in federal law, which is referenced in the bill. The rules we must follow on how a student can opt‑out must also follow federal rules. If there is federal requirement, such as for military or homeland security purposes, we could give out student names. If there is not a federal requirement, and the student has opted-out, we could not give out any information.
Senator Raggio:
What comment do you have on the language in the bill, and what differences are there between the bill and the established privacy policy?
Dr. Nichols:
We are comfortable with A.B. 353 as it is now written. Every semester a student has up to 6 weeks to opt-out. They are advised of this numerous times while registering for classes. Federal policy dictates that once a student opts‑out, they are out forever, unless they opt back in. The difference in this bill is that it gives the students an opportunity to opt-out of everything, or just opt‑out for commercial purposes. We have a definition of commercial purposes worked out by our legal staff and we will put that into our policies. I think it will meet the needs desired here.
Senator Raggio:
Should the term “commercial purposes” be defined in this bill?
Dr. Nichols:
We will provide that definition to you.
Senator Coffin:
I have concerns that these options are not clearly described on your Web site. What are your thoughts on that?
Dr. Nichols:
We are currently working on our Web pages and will make every effort to be sure the students are aware of the options before they are able to exit the on‑line registration process.
Senator Coffin:
I am not implying that the campuses are being deceptive, but things like this give the appearance of deception.
Dr. Nichols:
These Web sites are currently produced by the individual campuses. On page 5 of your green-colored handout, UCCSN Privacy Policies for Students and Employees (Exhibit I), you will find this will now take on a system-wide format.
Senator Cegavske:
How much does the UCCSN make from selling these lists and names?
Dr. Nichols:
We do not sell lists or names. There was a contract that did occur at the Community College of Southern Nevada. In response to that the Board of Regents passed a policy prohibiting names from being sold. This is tricky, although it is not meant to be deceptive, but the institutions do have the ability to work with the credit card company, but still keep the names of students and employees private. In these cases the credit card company never sees the names, but a mailing through an intermediary can be made to alumni or other appropriate groups. The only way the credit card company would see the names is if the student, or alumni, responded directly to them.
Senator Cegavske:
Does UCCSN receive any money for names, or from any information on any student?
Dr. Nichols:
It is my understanding that once the contract with the Community College of Southern Nevada is completed, any money received from a partnership with a credit card company will be received as a percentage of the charges on the card that goes to the university. It is a usual and customary practice. As an example, at the University of Nevada, Las Vegas (UNLV) all that money goes into scholarship funds. But, if a student or employee opts-out for commercial purposes, they would never receive a solicitation to have a UNLV credit card.
Senator Cegavske:
I still do not feel I have gotten an answer. Does the UCCSN receive money for giving out information on our students?
Dr. Nichols:
We do not give out information on our students and so we do not get money for giving out information on our students.
Senator Mathews:
Is there a reason alumni was not included in this bill?
Assemblywoman Giunchigliani:
The bill does refer to alumni when they opt-out.
Ms. Parnell:
I have a response for Senator Cegavske, as indicated on page 1 of my handout (Exhibit H), credit card purchases generate about $100,000 for the UNLV student alumni center and about half that much for the University of Nevada, Reno (UNR). The UCCSN entered into a 7-year contract with a credit card company this past December.
Senator Cegavske:
Now I understand. It is the credit card purchases, which generate money for the university and not the sale of names. That is what I wanted to clarify.
Assemblywoman Giunchigliani:
I will be happy to put the definition of “commercial purposes” in this legislation.
Senator Raggio:
If we are going to amend this bill, we will want an acceptable definition of the term “commercial purpose.” We also would like to see the term “except as required by federal law” included in the legislation where appropriate.
Dr. Jill T. Derby, Board of Regents, University and Community College System of Nevada:
Until the 1980s, there were 9 regents on the board. That fit us well then because our university system was about one-third the size it is now. The demands on regents are not only those of attending meetings and committees, but also in attending many events at our eight campuses. Even with 13 of us now, it stretches us thin. Going back to a 9-member board would make it very difficult.
Most of the issues that come before the board, come through our committee structure. The board almost always passes these issues because they are confident that the committees have done a good job. It is important that our committees are of a size that brings diversity of perspectives, and gives all issues a chance to be thoroughly considered. We are now working very well together, and changing that structure would give the board a sense of uncertainty.
Senator Mathews:
We just increased the number of members to 13 in the last few years. We need to give that number a chance to work.
Brett Whipple, Board of Regents, University and Community College System of Nevada:
I would like to address Section 7 of A.B. 353. Nearly one-third of the Board of Regents has been on the job for no more than 5 months. We would like the opportunity to finish what we started by concentrating fully on higher education rather than on an election next year.
Laura M. Mijanovich, Lobbyist, American Civil Liberties Union of Nevada:
Nevadans highly prize privacy. We are not asking for an outright ban on use of student information, and we want students to be able to make their own choices. We feel this can be best accomplished by an opt-in policy, which would allow the student to make a proactive choice to have the information given out. It would also help eliminate the large number of students who leave college with enormous credit card debt. FERPA is a minimum standard of privacy; we feel UCCSN should exceed that standard. We endorse the original bill, with the opt-in scheme, rather than the current version.
Senator Raggio:
Did you present this testimony to the Assembly hearing on the bill?
Ms. Mijanovich:
I did not.
Senator Raggio:
Should we assume that when a student reaches the age of entry into a college or university, they are not intelligent enough to understand the written instructions regarding their consent to release information?
Ms. Mijanovich:
It is not a matter of intelligence. The opt-out provision requires them to pay additional attention, which they often do not.
Senator Raggio:
We will close the hearing on A.B. 353. This bill is not exempt so we need to take some action before tomorrow. I suggest we not deal with the issue of changing the number of regents at this time. We should take that up again when we consider A.J.R. 11. If we process the remainder of the bill, we need to have the definition of “commercial purposes.” We will need that today so we can process the bill tomorrow. Unless the Legislative Counsel Bureau’s Legal Division objects, we should also add the term “except by federal law.”
Senator Rawson:
I think we could accept an amend and do pass vote, subject to review of the amended language by the committee.
Senator Mathews:
Is there a possibility of considering the opt-in scheme at this time?
Senator Raggio:
In the interest of time, I think that would not be possible.
Senator Coffin:
I will support this motion with the understanding that we have received assurance from the UCCSN that their Internet pages will be reviewed for clarity.
SENATOR RAWSON MOVED TO AMEND AND DO PASS A.B. 353 SECTION 2 TO PROVIDE FOR A DEFINITION OF ”COMMERCIAL PURPOSES,” AND LANGUAGE TO INDICATE IT WOULD APPLY EXCEPT AS OTHERWISE REQUIRED BY FEDERAL LAW; AND DELETING THE REMAINING SECTIONS WHICH WOULD IMMEDIATELY CHANGE THE COMPOSITION OF THE BOARD OF REGENTS, WITH THE REQUIREMENT THE BILL BE BROUGHT BACK TO THE COMMITTEE BEFORE WE SEND IT TO THE FLOOR.
Senator Raggio:
Should the requirement in A.B. 353, Section 6, requiring the Board of Regents to mail a form to each enrolled student, be kept in this legislation?
Dr. Nichols:
I think it is unnecessary because we are committing to you that the student gets the form every semester on line as well as in the written schedule.
SENATOR TIFFANY SECONDED THE MOTION.
Senator Cegavske:
I really do not support them lending any list and I do agree with Senator Mathews that this should be an opt-in scheme. It sounds like FERPA uses the word “may,” in a context that would allow the UCCSN to choose either the opt‑in, or opt-out scheme.
Senator Raggio:
We will let the legal researchers decide on that.
THE MOTION CARRIED UNANIMOUSLY
*****
Joyce Garrett, Program Analyst, Fiscal Division, Legislative Counsel Bureau:
I refer you to the Department of Business and Industry Closing Report (Exhibit J. Original is on file in the Research Library.).
B&I, Business and Industry Administration – Budget Page B&I-1 (Volume 2)
Budget Account 101-4861
Ms. Garrett:
The subcommittee approved a new information technology position within the Director’s Office of the Department of Business and Industry (B&I) to develop and implement the Real Estate Division’s licensing system and to provide support to other agencies within the department. A portion of the funding for the position is to be transferred to the Director’s Office in budget account (B/A) 101-4681 from the Information Technology Projects budget in B/A 101‑1325, E-300. The subcommittee approved funding of $12,568 to replace a file server in fiscal year (FY) 2004, with funding of $12,398 budgeted in the base for server repair costs.
Information Technology Projects – Budget Page ADMIN-14 (Volume 1)
Budget account 101-1325
E-300 Maximize Internet & Technology – Page ADMIN-15
The subcommittee approved the Governor’s recommendation to increase in‑state travel over the 2003-2005 biennium, primarily to fund travel required during the 2005 Legislative session. An increase in out-of-state travel was also approved to allow the director to attend a conference of state bank supervisors in the San Francisco area in FY 2004, as well as a similar conference in FY 2005 related to the mission of the Housing Division.
SENATOR TIFFANY MOVED TO CLOSE B/A 101-4861 AS RECOMMENDED BY THE SUBCOMMITTEE.
SENATOR CEGAVSKE SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
*****
B&I, Real Estate Administration – Budget Page B&I-9 (Volume 2)
Budget Account 101-3823
Ms. Garrett:
The subcommittee increased the Governor’s recommended license and fee revenue by $29,160 to $203,720 over the 2003-2005 biennium, contingent on the passage of S.B. 428. The subcommittee approved the Governor’s recommended addition of 2.5 full-time employees (FTE) positions. The subcommittee also approved the elimination of a vacant auditor position.
SENATE BILL 428 (1st Reprint): Makes various changes regarding certain state agencies that regulate real estate practices and professions. (BDR 54‑‑471)
Senator Raggio:
We received a copy of a letter from the director on May 1, 2003, expressing some concerns about the integrated licensing system. Is that still an issue?
Sydney H. Wickliffe, CPA, Director, Department of Business and Industry:
That issue has been fully resolved.
SENATOR TIFFANY MOVED TO CLOSE B/A 101-3823 AS RECOMMENDED BY THE SUBCOMMITTEE.
SENATOR RAWSON SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
*****
B&I, Real Estate Education and Research – Budget Page B&I-17 (Volume 2)
Budget Account 216-3826
Ms. Garrett:
In closing this budget, the subcommittee increased the Governor’s recommended transfer to support the Real Estate Division’s new licensing system by $49,337 in FY 2003-2004 and $13,416 in FY 2004-2005. The subcommittee also approved $50,000 of additional funding in each year of the 2003-2005 biennium for real estate licensee education programs.
SENATOR TIFFANY MOVED TO CLOSE B/A 216-3826 AS RECOMMENDED BY THE SUBCOMMITTEE.
SENATOR COFFIN SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
*****
B&I, Common-Interest Communities – Budget Page B&I-26 (Volume 2)
Budget Account 101-3820
Ms. Garrett:
In closing this budget, the subcommittee recommended issuing a Letter of Intent to the agency to have it submit a report to the Interim Finance Committee (IFC) on the future reserve balance, if S.B. 100 is approved. Senate Bill 100 creates a board to hear disputes between owners and board members and provides funding for supporting costs, including six support positions. If S.B. 100 is not approved, the Real Estate Division is to submit a proposal to IFC to adjust fees imposed on common-interest communities. The subcommittee concurred with the Governor’s recommendation to approve four new positions if S.B. 100 is approved. The subcommittee also increased support for the Real Estate Division’s new licensing system by $73,675 in FY 2003-2004 and $30,832 in FY 2004-2005.
SENATE BILL 100 (1st Reprint): Makes various changes to provisions governing common-interest communities. (BDR 10-29)
Senator Raggio:
If there is anyone here who wishes to testify or comment about these budgets, please let us know.
SENATOR TIFFANY MOVED TO CLOSE B/A 101-3820 AS RECOMMENDED BY THE SUBCOMMITTEE.
SENATOR CEGAVSKE SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
*****
B&I, Insurance Regulation – Budget Page B&I-34 (Volume 2)
Budget Account 101-3813
Jeffrey A. Ferguson, Program Analyst, Fiscal Division, Legislative Counsel Bureau:
Assembly Bill (A.B.) No.1 of the 18th Special Session eliminates the medical/dental screening panel within the Division of Insurance as of June 30 2003. As a result, the subcommittee approved the Governor’s recommendation to eliminate the two positions that support the medical/dental screening panel, providing General Fund savings of $228,477 during the biennium. The subcommittee also approved the transfer of the producer licensing supervisor position from the Insurance Education and Research account to the Insurance Regulation account. However, instead of funding the position 100 percent from the General Fund, as recommended in Executive Budget, the subcommittee recommends funding 20 percent of the position’s costs with funds transferred from the Insurance Education and Research account. This adjustment reduces the General Fund requirement in this account by $13,792 in FY 2003-2004 and $13,821 in FY 2004-2005. The subcommittee based this recommendation on the fact that the transferred position would spend 20 percent of its time on education and research matters. The subcommittee also approved the recommendation to eliminate a vacant administrative assistant position, which will reduce the division’s General Fund appropriation by $74,622 during the biennium.
Personnel in the Insurance Regulation account supervise outside examiners that perform insurance examinations funded through the Insurance Examiners account. The subcommittee approved the recommendation to pass these supervisory costs on to the insurer by transferring examination fees totaling $202,504 for the biennium from the Insurance Examiners’ account to the Insurance Regulation account. This recommendation reduces the General Fund requirement in the Insurance Regulation account by $202,504.
Senator Raggio:
I wanted to ask the chairman of that subcommittee, Senator Tiffany, if there is an issue of accreditation by the National Association of Insurance Commissioners (NAIC), since we do not have laws conforming to the model laws, and the fact that they were only given provisional accreditation.
Senator Tiffany:
I do not recall a discussion of that issue.
Mr. Ferguson:
Those issues are addressed in A.B. 453.
ASSEMBLY BILL 453 (1st Reprint): Makes various changes to provisions relating to insurance. (BDR 57-546)
John R. Orr, Deputy Commissioner, Division of Insurance, Department of Business and Industry:
We recently found out we will be fully accredited, and they will review us again in 2 years.
Senator Raggio:
How vital is that accreditation.
Mr. Orr:
It is critical to the industry because it removes a disincentive to a company to relocate in Nevada, or maintain their businesses in Nevada. It also enables us to participate in the NAIC zone examinations as a zone representative. If we are not accredited, our examiners are not invited to participate in those national examinations.
SENATOR TIFFANY MOVED TO CLOSE B/A 101-313 AS RECOMMENDED BY THE SUBCOMMITTEE.
SENATOR CEGAVSKE SECONDED THE MOTION.
Senator Coffin:
I want to disclose that I am an insurance producer licensed by the State of Nevada.
THE MOTION CARRIED UNANIMOUSLY.
****
B&I, Insurance Examiners – Budget Page B&I-41 (Volume 2)
Budget Account 223-3817
Mr. Ferguson:
The subcommittee approved the recommendation to reduce authority in the Special Liquidation fund by $25,000 in each year of the biennium, thereby lowering the authority in the fund to $100,000 and allowing the division to increase reserves by $25,000 in each year of the biennium. The subcommittee recommends this action in order to assist the division in maintaining an adequate reserve level in the account.
SENATOR TIFFANY MOVED TO CLOSE B/A 223-3817 AS RECOMMENDED BY THE SUBCOMMITTEE.
SENATOR CEGAVSKE SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
*****
B&I, Insurance Education & Research – Budget Page B&I-49 (Volume 2)
Budget Account 101-3824
Mr. Ferguson:
The subcommittee approved the Governor’s recommendation to convert the division’s contract research actuary, authorized by the IFC, to a permanent unclassified lead actuary position. However, the subcommittee recommends that this position sunset at the end of the 2003-2005 biennium, thereby requiring the Division of Insurance to re-justify the position during the next budget cycle. The subcommittee based its decision on the division’s need for professional assistance to address the numerous issues currently facing Nevada’s insurance industry.
Senator Coffin:
I ask the committee to look favorably on keeping the research actuary and not contracting out that position.
Senator Raggio:
As I understand the recommendation, the position will sunset unless it is reviewed.
Senator Coffin:
That is correct. We will need that position.
SENATOR TIFFANY MOVED TO CLOSE B/A 101-3824 AS RECOMMENDED BY THE SUBCOMMITTEE.
SENATOR MATHEWS SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
*****
B&I, Manufactured Housing – Budget Page B&I-73 (Volume 2)
Budget Account 101-3814
Ms. Garrett:
Based on staff’s review of current fiscal year revenue collections, it appears that revenues will not reach budgeted levels in FY 2002-2003. The Governor’s recommended revenue of $1.1 million in each year of the 2003-2005 biennium is based on FY 2001-2002 actual revenue, and it appears to be overstated by approximately $214,000 in each year of the upcoming biennium. The subcommittee recommended issuing a Letter of Intent to the agency to have them report revenue and expenditure activity to IFC on a quarterly basis over the 2003‑2005 biennium, and to include any planned action to accommodate any realized or projected reduction in revenues. The agency has proposed to the Governor increasing the fees that are established in the Nevada Administrative Code.
Senator Raggio:
Why are we sending the Letter of Intent? What is the fee amount?
Ms. Garrett:
The Letter of Intent is so IFC can monitor the revenue and expenditure activity. There are a number of fees, such as license fees, inspection fees, mobile home fees, and more. It will create a 20 to 30 percent increase in fee amounts.
SENATOR TIFFANY MOVED TO CLOSE B/A 101-3814 AS RECOMMENDED BY THE SUBCOMMITTEE.
SENATOR CEGAVSKE SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
*****
B&I, Housing Division – Budget Page B&I-89 (Volume 2)
Budget Account 503-3841
Ms. Garrett:
The subcommittee concurs with the Governor’s recommendation to increase the tax credit audit fee revenue, to ensure projects receiving tax credits are in compliance with federal tax code. The subcommittee approved the Governor’s recommendation to increase tax credit program expenditures. Tax credits awarded to the Housing Division, by the U.S. Treasury Department, will increase from $2.5 million to $3.5 million over the 2003-2005 biennium. Increased activity would be funded through additional tax credit application fees. The subcommittee approved the Governor’s recommendation to fund the cost of issuing $15 million in bond debt financing for housing projects that address special needs projects. Further, the subcommittee concurs with the Governor’s recommendation to fund a replacement telephone system, two laptop computers, and one file server over the 2003‑2005 biennium.
SENATOR TIFFANY MOVED TO CLOSE B/A 503-3841 AS RECOMMENDED BY THE SUBCOMMITTEE.
SENATOR CEGAVSKE SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
*****
B&I, Low-Income Housing Trust Fund – Budget Page B&I-96 (Volume 2)
Budget Account 101-3838
Ms. Garrett:
The subcommittee approved the Governor’s recommendation to fund a special needs housing project. The project identified for funding over the 2003‑2005 biennium is a low-income housing project in southern Nevada. Project funding would come from the program’s discretionary portion of the annual real property transfer tax.
Senator Raggio:
Where is the location of the special needs housing project described in enhancement E-400?
E-400 Reduce Recidivism & Juvenile Violence – Budget Page-98
Ms. Garrett:
I do not know exactly, except that it is in southern Nevada.
SENATOR MATHEWS MOVED TO CLOSE B/A 101-3838 AS RECOMMENDED BY THE SUBCOMMITTEE.
SENATOR TIFFANY SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
*****
B&I, Financial Institution – Budget Page 103 (Volume 2)
Budget Account 101-3835
Ms. Garrett:
The subcommittee approved the Governor’s recommendation to make the necessary adjustments for the budget to become self-funded. Decision unit E‑125 includes a General Fund appropriation of $357,976 in FY 2003-2004, which would be treated as a loan to the division to facilitate the transition, and would be repaid in full by the end of FY 2003-2004. Fiscal year 2004-2005 includes a $1,000 General Fund appropriation, which would provide the division with access to the IFC and the General Fund to support operations if a funding deficit, should occur. The $1,000 General Fund appropriation would continue in each fiscal year going forward and would be treated as a loan to the division as well, being repaid in full by the end of each fiscal year. The subcommittee also approved the elimination of a vacant financial examiner position.
Senator Raggio:
Will this no longer have General Fund support? Is it correct to say that some financial institutions in the past have not been assessed for this and now they will be?
Ms. Garrett:
Yes, all the financial institutions that have been assessed in the past will continue to be assessed. However, there are some operating fees that were excluded from the assessment as a General Fund agency.
SENATOR TIFFANY MOVED TO CLOSE B/A 101-3835 AS RECOMMENDED BY THE SUBCOMMITTEE.
SENATOR MATHEWS SECONDED THE MOTION.
THE MOTION CARRIED. (SENATOR CEGAVSKE WAS ABSENT FOR THE VOTE.)
*****
B&I, Consumer Affairs – Budget Page B&I-115 (Volume 2)
Budget Account 101-3811
Ms. Garrett:
The subcommittee withheld approving $27,000 for a replacement telephone system in order to review additional price quotes. Staff has attempted to work with the Department of Information Technology (DoIT) to obtain additional quotes as recommended, but was not successful. The committee needs to determine whether to approve $27,000 for a new telephone system. The subcommittee reduced database maintenance funding by $9000 in each fiscal year. After this reduction, $6249 remains in each year for potential database system maintenance costs. The subcommittee reduced funding for two high‑end color network printers by $1500 in each year of the upcoming biennium and provided funding for two black and white network printers. The subcommittee also concurred with the Governor’s recommendation to eliminate two vacant administrative assistant positions.
Senator Raggio:
Does the committee need to determine the cost of the telephone system?
Ms. Garrett:
Yes, staff recommends purchasing the system from Sprint because it is a local company and provide better service to the agency, but they will cost $5000 more than SBC Nevada Bell.
Senator Raggio:
Is not SBC Nevada Bell a local company too?
Ms. Garrett:
According to DoIT, they do not have the customer service support locally as does Sprint.
Senator Tiffany:
I would recommend going with Sprint due to the better customer service support.
Senator Raggio:
The issue here is whether the lowest bidder can provide the same customer support. I think we need to get a better idea about this.
SENATOR TIFFANY MOVED TO CLOSE B/A 101-3811 AS RECOMMENDED BY THE SUBCOMMITTEE WITH THE APPROVAL OF THE TELEPHONE SYSTEM BASED ON THE RECOMMENDATION OF THE DEPARTMENT OF INFORMATION TECHNOLOGY.
SENATOR CEGAVSKE SECONDED THE MOTION.
THE MOTION CARRIED. (SENATOR RHOADS WAS ABSENT FOR THE VOTE.)
*****
B&I, Division of Industrial Relations – Budget Page B&I-119 (Volume 2)
Budget Account 201-4680
Ms. Garrett:
The subcommittee concurs with the Governor’s recommendation to eliminate two vacant FTE positions, over the 2003-2005 biennium. The division determined the positions were no longer essential to operations. The subcommittee also concurs with the Governor’s recommendation to transfer three positions into this budget from the Occupational Safety and Health Enforcement section, B/A 210-4682 as the result of reorganization. This transfer of positions has no fiscal impact on the division as a whole. In addition, the subcommittee approved the Governor’s recommendation to replace the existing telephone system in the Reno office and to replace one print server and five fax machines.
B&I, Occupational Safety & Health Enforcement – Budget Page B&I-125 (Volume 2) Budget Account 210-4682
Senator Raggio:
What company is going to replace this telephone system?
Ms. Garrett:
It will be SBC Nevada Bell.
Senator Raggio:
Did anyone bid lower than SBC Nevada Bell?
Ms. Garrett:
SBC Nevada Bell was the only bidder.
SENATOR TIFFANY MOVED TO CLOSE B/A 210-4680 AS RECOMMENDED BY THE SUBCOMMITTEE.
SENATOR MATHEWS SECONDED THE MOTION.
THE MOTION CARRIED. (SENATOR RHOADS WAS ABSENT FOR THE VOTE.)
*****
B&I, Nevada Attorney For Injured Workers – Budget Page B&I-137 (Volume 2)
Budget Account 101-1013
Ms. Garrett:
We went over this section with the committee yesterday, however I would like to respond to a question of Senator Mathews about the impact the Division of Industrial Relations workers’ compensation assessment. According to NRS 680B.036, industrial insurance in this State is entitled to a credit against the premium tax paid for its policies of industrial insurance in an amount equal to the assessment paid by the insurer to the Division of Industrial Relations. It would be a dollar-for-dollar credit.
SENATOR MATHEWS MOVED TO CLOSE B/A 101-1013 AS RECOMMENDED BY THE SUBCOMMITTEE.
SENATOR TIFFANY SECONDED THE MOTION.
THE MOTION CARRIED. (SENATOR RHOADS WAS ABSENT FOR THE VOTE.)
*****
Ms. Garrett:
I would like clarification by the committee on the issue of the three positions.
Gary L. Ghiggeri, Senate Fiscal Analyst, Fiscal Analysis Division, Legislative Counsel Bureau:
In lieu of the three positions, the subcommittee went with making the half-time position in Las Vegas a full-time position.
B&I, Taxicab Authority – Budget Page B&I-147 (Volume 2)
Budget Account 245-4130
Ms. Garrett:
Contingent upon the approval of S.B. 288, the subcommittee approved the Governor’s recommendation to increase the taxicab trip and permit fee revenue, restore 11 positions, add three new positions, and add support costs to increase and expand audit functions to conduct additional scheduled audits and surprise audits. Additionally, the subcommittee approved the Governor’s recommendation to fund the Senior Ride Program and to replace six patrol vehicles in accordance with the recommended mileage replacement schedule. Both recommendations are contingent upon the approval of S.B. 288, which passed out of the Assembly Committee on Transportation on May 6, 2003.
SENATE BILL 288:Increases fees for compensable trips of taxicabs and driver’s permit to operate taxicab. (BDR 58-1251)
SENATOR TIFFANY MOVED TO CLOSE B/A 245-4130 AS RECOMMENDED BY THE SUBCOMMITTEE AND CONTINGENT UPON THE PASSAGE OF S.B. 288.
SENATOR CEGAVSKE SECONDED THE MOTION.
THE MOTION CARRIED. (SENATORS RHOADS AND COFFIN WERE ABSENT FOR THE VOTE.)
*****
B&I, Transportation Services Authority – Budget Page B&I-152 (Volume 2)
Budget Account 226-3922
Ms. Garrett:
Senate Bill 192 increases the agency’s regulatory responsibility and increases fees. Contingent upon the approval of S.B. 192, the subcommittee approved the Governor’s recommendation, as amended by the agency, to fund 7.6 new FTEs and related costs to support the additional regulatory functions proposed in this bill. To align expenditures with the revised revenue projections in S.B 192, expenditures were reduced by eliminating the purchase of two vehicles, downgrading proposed positions, eliminating one new position, and eliminating a variety of enforcement equipment. Senate Bill 192, as amended, is currently being considered by the Assembly Committee on Transportation.
SENATE BILL 192 (1st Reprint): Makes various changes to provisions governing certain motor carriers and drivers. (BDR 58-537)
SENATOR TIFFANY MOVED TO CLOSE B/A 226-3922 AS RECOMMENDED BY THE SUBCOMMITTEE AND CONTINGENT UPON THE PASSAGE OF S.B. 192.
SENATOR CEGAVSKE SECONDED THE MOTION.
THE MOTION CARRIED. (SENATOR RHOADS WAS ABSENT FOR THE VOTE.)
*****
B&I, Transportation Services Authority Admin Fines – Budget Page B&I‑158 (Volume 2) Budget Account 226-3923
Ms. Garrett:
Contingent upon the approval of S.B. 192, the subcommittee approved the Governor’s recommendation, as amended by the agency, to fund the purchase and implementation of licensing system for limousine and taxicab drivers, as recommended by DoIT. In addition, this will fund the lease of additional office space to support the proposed licensing function, the purchase of new enforcement equipment, and the purchase of two new enforcement vehicles.
SENATOR TIFFANY MOVED TO CLOSE B/A 226-3923 AS RECOMMENDED BY THE SUBCOMMITTEE AND CONTINGENT UPON PASSAGE OF S.B. 192.
SENATOR COFFIN SECONDED THE MOTION.
THE MOTION CARRIED. (SENATOR RHOADS WAS ABSENT FOR THE VOTE.)
*****
Ms. Garrett:
The following budgets were closed by the subcommittee as recommended by the Governor, with only minor and technical adjustments:
B&I, Industrial Development Bonds – Budget Page B&I-6 (Volume 2)
Budget Account 101-4683
B&I, Self-insured – Workers Compensation – Budget Page B&I-64 (Volume 2)
Budget Account 210-4684
B&I, Dairy Commission – Budget Page B&I-69 (Volume 2)
Budget Account 233-4470
B&I, Mobile Home Lot Rent Subsidy – Budget Page B&I-77 (Volume 2)
Budget Account 630-3842
B&I, Weatherization – Budget Page B&I-100 (Volume 2)
Budget Account 101-4865
B&I, Occupational Safety & Health Enforcement – Budget Page B&I-125 (Volume 2) Budget Account 210-4682
B&I, Safety Consultation and Training – Budget Page B&I-129 (Volume 2)
Budget Account 210-4685
B&I, Mine Safety & Training – Budget Page B&I-133 (Volume 2)
Budget Account 210-4686
B&I, Employees Management Relations Board – Budget Page B&I-144 (Volume 2) Budget Account 101-1374
B&I, Athletic Commission – Budget Page B&I-162 (Volume 2)
Budget Account 101-3952
B&I, Labor Commissioner – Budget Page B&I-165 (Volume 2)
Budget Account 101-3900
SENATOR TIFFANY MOVED TO CLOSE B/A 101-4683, B/A 101-4684, B/A 233-4470, B/A 630-3842, B/A 101-4865, B/A 210-4682, B/A 210-4685, B/A 210-4686, B/A 101-1374, B/A 101-3952 AND B/A 101-3900 AS RECOMMENDED BY THE SUBCOMMITTEE.
SENATOR CEGAVSKE SECONDED THE MOTION.
THE MOTION CARRIED. (SENATOR RHOADS WAS ABSENT FOR THE VOTE.)
*****
Colorado River Commission – Budget Page CRC-1 (Volume 3)
Budget Account 296-4490
Ms. Garrett:
I refer you to the Closing Report for the Colorado River Commission budget (Exhibit K). The Joint Subcommittee on Public Safety, Natural Resources and Transportation has completed its review of the budget accounts for the Colorado River Commission budget section of the Executive Budget and is recommending the following closing actions.
The subcommittee voted to close the Colorado River Commission budget account as recommended by the Governor, with one exception. Of the eight new positions recommended by the Governor over the 2003-2005 biennium, three positions were deferred to the second year of the biennium to meet workload increases expected in that year. The subcommittee approved funding for potential contracts for research and development-related studies, and also approved funding to support the commission’s anticipated water and power research activities along the Colorado River. The subcommittee concurred with the Governor’s recommendation to eliminate three vacant positions. Also, the subcommittee approved the Governor’s recommendation to purchase new computer hardware and software.
Senator Raggio:
Is this budget funded by an administrative charge on the sale of power to their customers?
Ms. Garrett:
That is correct, and Southern Nevada Water Authority (SNWA) is their largest customer.
Senator Coffin:
We have not considered Legislative oversight yet. Will we need to adjust travel, or things like that, or do they have a lot of cash available?
Ms. Garrett:
I have not had an opportunity to review that budget. They do have some cash reserves available to them, but I do not know what is going to be required of them.
Mr. Ghiggeri:
The budget as submitted had a projected reserve of $342,000, with $1.2 million by the end of FY 2005. If there is a need to augment their travel, they can come to IFC.
SENATOR RHOADS MOVED TO CLOSE B/A 296-4490 AS RECOMMENDED BY THE SUBCOMMITTEE.
SENATOR COFFIN SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
*****
Power Delivery System – Budget Page CRC-13 (Volume 3)
Budget Account 502-4501
Ms. Garrett:
The subcommittee approved the Governor’s recommendation to provide additional funding for the other SNWA and Colorado River Commission (CRC) customers’ projected increase in demand for power. Additionally, the subcommittee approved the Governor’s recommendation to fund a pilot project for renewable energy resources in collaboration with SNWA. Funding for the project will be provided under a contract with SNWA.
Senator Raggio:
Is this paid for by SNWA?
Ms. Garrett:
That is correct.
SENATOR RHOADS MOVED TO CLOSE B/A 502-4501 AS RECOMMENDED BY THE SUBCOMMITTEE.
SENATOR COFFIN SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
*****
Power Marketing Fund – Budget Page CRC-17 (Volume 3)
Budget Account 505-4502
The subcommittee approved the Governor’s recommendation to provide additional funding to support the growth projected by CRC hydropower customers for the 2003-2005 biennium. The subcommittee also approved the Governor’s recommendation to fund operating and rebuilding costs of the basic industry’s substation in Henderson. The revenue will be derived through an additional power charge to industrial customers as agreed upon by both parties.
Senator Raggio:
Does this go to SNWA or directly to the customers in Henderson.
Ms. Garrett:
It goes to a separate group of customers in Henderson.
SENATOR RHOADS MOVED TO CLOSE B/A 505-4502 AS RECOMMENDED BY THE SUBCOMMITTEE.
SENATOR COFFIN SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
*****
Senator Raggio:
We heard S.B. 391 on April 23, 2003. It called for an increased stipend to those Legislators who lose money during the session. The Legislature is still operating under an archaic provision from the original Nevada Constitution that pays Legislators for only 60 days. The public would support a constitutional amendment to provide that the Legislators get paid for each day they serve in the Session. Instead of processing S.B. 391, we should request a Bill Draft Request (BDR) that would pay the Legislators for each day of service and increase the postage allocation. I suggest we indefinitely postpone the bill, and Senator Nolan the bill’s sponsor, is amenable to this plan.
SENATE BILL 391:Provides for stipends and payment of costs of postage for Legislators under certain circumstances. (BDR 17-949)
Senator Tiffany:
I support that, and wonder if instead of doing an individual line item for postage and telephone expenses, we could vote on a reasonable amount whenever we come into session.
SENATOR TIFFANY MOVED TO INDEFINITELY POSTPONE S.B. 391.
SENATOR COFFIN SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
* * * * *
SENATOR TIFFANY MOVED TO REQUEST A BILL DRAFT TO AMEND THE CONSTITUTION TO ALLOW FOR PAYMENT OF A SALARY TO LEGISLATORS FOR EACH DAY OF SERVICE, AND TO PROVIDE LANGUAGE THAT WOULD ALLOW THE LEGISLATURE TO PROVIDE A REASONABLE AMOUNT FOR OTHER ITEMS DELINEATED IN THE CONSTITUTIONAL PROVISION.
SENATOR CEGAVSKE SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
Julie Brand, Program Analyst, Fiscal Analysis Division, Legislative Counsel Bureau:
Please refer to the Closing Report for the Department of Administration and Personnel budget (Exhibit L. Original is on file in the Research Library.). The Joint Subcommittee on General Government developed recommendations for a number of Department of Administration budgets. While most of the accounts of the Department of Administration are funded through fees or assessments, the subcommittee’s recommendations resulted in General Fund savings of $628,134 in FY 2004, and $147,704 in FY 2005.
Budget and Planning – Budget Page ADMIN-1 (Volume 1)
Budget Account 101-1340
The subcommittee concurs with the Governor’s recommendation to fund $125,000 in FY 2004 for an external contractor evaluation of current information technology services throughout the Executive Branch. Additionally, the subcommittee concurs with the Governor’s recommendation to fund a $225,000 enhancement in FY 2004 for the Nevada Executive Budget System (NEBS) with a condition that the changes to the NEBS not result in the need for the Legislature’s Budget Analysis System of Nevada (BASN) to be changed, as the two systems will remain compatible. In addition, the subcommittee recommended Legislative Counsel Bureau staff attend weekly project status meetings. This funding will add funding source maps, internal service fund rate structures, and provide more flexible reporting. The subcommittee also concurs with the Governor’s recommendation to transfer the ongoing system operation and maintenance costs of the Integrated Financial System (IFS) allocated to the Budget Division in the amount of $95,346 in FY 2004 and $95,894 in FY 2005.
SENATOR TIFFANY MOVED TO CLOSE B/A 101-1340 AS RECOMMENDED BY THE SUBCOMMITTEE.
SENATOR COFFIN SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
*****
Information Technology Projects – Budget Page ADMIN-14 (Volume 1)
Budget Account 101-1325
Ms. Brand:
The subcommittee recommends funding the implementation of new client information and billing system for the Division of Mental Health Developmental Services in the amount of $1.8 million in FY 2004 and $708,000 in FY 2005. The recommended funding will enable the Division of Mental Health Developmental Services to transition from the Advanced Information Management System (AIMS) to an Avatar system. Additionally, the subcommittee recommended a Letter of Intent directing the division to provide quarterly reports, including project cost information, to the IFC.
The subcommittee also recommends funding the replacement of the AIMS billing and data collection system for Southern Nevada Child and Adolescent Services with the Avatar system for $817,649 over the biennium adjusted for technical corrections, and the replacement of the Synergistic Office Solutions billing system for Northern Nevada Child and Adolescent Services with the Avatar system for $747,828 over the biennium, also adjusted for technical corrections.
The subcommittee reduced the Governor’s recommendation to fund an integrated licensing system for the Real Estate Division to $500,000 over the biennium, recommended the addition of a technical staff position allocated to the B&I administrative budget, and recommended the division report to the IFC in September 2003 with an implementation plan for the system.
The subcommittee concurred with the Governor’s recommendation to fund $6.8 million from the State Highway Fund over the biennium for the completion of the state microwave system upgrade.
Senator Raggio:
Mr. Comeaux, do those recommendations meet with your approval?
Mr. Comeaux:
Yes they do.
Senator Raggio:
What is the advantage of this Avatar system? Will this system have some longevity?
David McTeer, Information Systems Manager II, Budget Division, Department of Administration:
I will be providing oversight for this budget account. I do not have the details of the Avatar system, only that it is a replacement for AIMS. The vendor of AIMS
will no longer support that product. I do not know the projected life span of the Avatar system.
Senator Raggio:
Is this a one-time cost, or a continuing cost?
Mr. McTeer:
Those are one-time costs and the operation of those systems will be in the specific agency’s budget.
SENATOR TIFFANY MOVED TO CLOSE B/A 101-1325 AS RECOMMENDED BY THE SUBCOMMITTEE.
SENATOR CEGAVSKE SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
*****
Insurance and Loss Prevention – Budget Page ADMIN-29 (Volume 1)
Budget Account 715-1352
Ms. Brand:
The subcommittee concurred with the Governor’s recommendation to increase rates over the biennium for both the workers’ compensation insurance premium and property and contents insurance premium. However, the subcommittee also recommends the department conduct a thorough evaluation of the rate models for future biennia.
Senator Raggio:
How much is the increase in workers’ compensation?
Ms. Brand:
It is an increase in premiums, projected claims costs, and administrative fees. It would equate to an increase in the over all rate.
SENATOR TIFFANY MOVED TO CLOSE B/A 715-1352 AS RECOMMENDED BY THE SUBCOMMITTEE.
SENATOR COFFIN SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
*****
Printing Office – Budget Page ADMIN-29 (Volume 1)
Budget Account 741-1330
Ms. Brand:
The subcommittee concurs with the Governor’s recommendation for funding the Printing Office, but recommends a Legislative Letter of Intent for the department to report quarterly to the IFC on the status of its operations regarding the General Fund repayment, marketing efforts, inventory, and rates.
Senator Tiffany:
I would also like them to report on recommendations from the audit that their inventory is correct and they are using computer systems.
SENATOR TIFFANY MOVED TO CLOSE B/A 741-1330 AS RECOMMENDED BY THE SUBCOMMITTEE.
SENATOR COFFIN SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
*****
Motor Pool – Budget Page ADMIN-36 (Volume 1)
Budget Account 711-1354
Ms. Brand:
The subcommittee recommends funding the motor pool with increased rates necessary to fund current operations and relocation costs associated with the Las Vegas motor pool facility. The subcommittee reduced the Governor’s recommendation to amend the current lease rate for the Las Vegas facility from $10,000 per month to $8167 per month with a Legislative Letter of Intent to report to the IFC the status of an intended relocation in Las Vegas as well as an updated cost benefit analysis associated with privatization.
The subcommittee concurs with the Governor’s recommendation to transfer the depreciation expense to the motor pool vehicle purchase budget associated with the addition of 104 replacement vehicles and 23 additional vehicles. The subcommittee approved reductions to this expense contingent upon approval of funding in related budget accounts.
SENATOR TIFFANY MOVED TO CLOSE B/A 711-1354 AS RECOMMENDED BY THE SUBCOMMITTEE.
SENATOR COFFIN SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
*****
Mail Services – Budget Page ADMIN-67 (Volume 1)
Budget Account 713-1346
Ms. Brand:
The subcommittee concurred with the Governor’s recommendation for funding the Mail Services Division including the Governor’s recommendation for a technical adjustment of $151,500 per year in the treasurer’s budget for postage charged on the mailing of vendor checks formerly captured within mail services’ overhead rate. It should be noted that the technical adjustment of $151,500 per year reflected as expense in the treasurer’s budget was approved as recommended by the Senate Committee on Finance, however, the Assembly Committee on Ways and Means retained the $151,500 within the mail services overhead rate.
Senator Raggio:
What was our reasoning for doing that? Mr. Comeaux, what is your recommendation?
Mr. Comeaux:
It boiled down to money. To make that work, the $151,500 from the General Fund would have to be put into the treasurers’ budget, and the committee probably understood why we ought to do that, but thought the timing could be better. It is something we ought to do because when we include this in mail services overhead rate, the wrong people end up paying for it. If we put the money in the treasurers’ budget, then the agencies who are responsible for the costs will end up paying for it with the state-wide cost allocation plan a couple of years from now.
Senator Raggio:
And that was the recommendation of the Senate committee members?
Senator Coffin:
Yes.
SENATOR TIFFANY MOVED TO CLOSE B/A 713-1346 AS RECOMMENDED BY THE SENATE MEMBERSHIP ON THE JOINT SUBCOMMITTEE, AND INCLUDES THE ADJUSTMENT AS AN EXPENSE IN THE TREASURERS’ BUDGET.
SENATOR COFFIN SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
*****
Dept of Administration – Hearings Division – Budget Page ADMIN-101
(Volume 1) Budget Account 101-1015
Ms. Brand:
The subcommittee recommends the approval for the division to relocate the Las Vegas office effective September 2003 from state-owned property to non‑state owned property. Additionally, the subcommittee reduced the funding for equipment repair due to duplicate funding in the division’s base budget.
Senator Raggio:
When we are trying to rid ourselves of non-owned state property for use by agencies, why are we doing just the opposite here?
Mr. Comeaux:
The space available in the Grant Sawyer State Office Building is limited. We try to first accommodate the constitutional officers who are housed there. The Hearings Division, which includes personnel from the Victims of Crime office, have been in inadequate space for years. There is no space in the Grant Sawyer State Office Building available to them, so we must move them to non‑state owned space. We will backfill the available space in the Grant Sawyer State Office Building.
SENATOR TIFFANY MOVED TO CLOSE B/A 101-1015 AS RECOMMENDED BY THE SUBCOMMITTEE.
SENATOR CEGAVSKE SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
*****
Senator Coffin:
Have you finished approving the budget on the proposed office building here in Carson City? Do we have the same kind of space problem up here?
Mr. Comeaux:
We are just now getting to the point where we can support another office building in Las Vegas, just for administrative personnel, as opposed to front-line personnel who need to be out in the community. We are long overdue here in Carson City.
Victims of Crime – Budget Page ADMIN-107 (Volume 1)
Budget Account 287-4895
Ms. Brand:
The subcommittee recommends the approval to increase federal funding for this program in the amount of $908,000 per year due to recent notification of an increase in the current grant award. Additionally, the subcommittee recommends increasing court assessment revenue in the amount of $12,000 in FY 2004 and $13,000 in FY 2005, contingent upon passage of A.B. 29. The subcommittee also recommends funding the relocation of the Victims of Crime office in Las Vegas in conjunction with the approved relocation of the Hearings Division.
ASSEMBLY BILL 29 (1st Reprint): Makes various changes concerning administrative assessments and forfeiture of bail. (BDR 14-130)
SENATOR COFFIN MOVED TO CLOSE B/A 287-4895 AS RECOMMENDED BY THE SUBCOMMITTEE.
SENATOR TIFFANY SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
*****
Technology Improvement Plan – Budget Page ADMIN-113 (Volume1)
Budget Account 101-1320
Ms. Brand:
The subcommittee concurs with the Governor’s recommendation to fund the ongoing support of the IFC. Total General Fund support recommended and adjusted for technical corrections is $943,514 in FY 2004 and $907,516 in FY 2005.
SENATOR TIFFANY MOVED TO CLOSE B/A 101-1320 AS RECOMMENDED BY THE SUBCOMMITTEE.
SENATOR COFFIN SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
*****
Department of Personnel – Budget Page PERNSL-1 (Volume 1)
Budget Account 717-1363
Ms. Brand:
The subcommittee concurs with the Governor’s recommendation to increase the payroll and personnel assessment rates for the 2003-2005 biennium. The subcommittee concurs with the Governor’s recommendation to fund the establishment of a discrimination and harassment unit, including the addition of one new personnel analyst position and the reclassification of an existing computer systems technician position to a personnel analyst. Additionally, the subcommittee concurred with the Governor’s recommendation to increase the current equal employment opportunity officer from a part-time position to a full‑time position to support additional sexual harassment training classes in rural areas.
The subcommittee reduced funding by 50 percent each year of the biennium for the establishment of a certified public manager program. The subcommittee recommends the department report to the IFC in December 2003, June 2004, and September 2004, on the results of this training program as implemented. The subcommittee also eliminated the funding for an outside consultant to provide consulting services in relation to workforce planning in the amount of $100,000 over the biennium, and recommended the department implement similar efforts with existing staff.
The subcommittee also concurred with the Governor’s recommendation to fund the transfer of one program officer position from DoIT to perform help desk responsibilities for the personnel and payroll system. Additionally, the subcommittee concurred with the Governor’s recommendation to fund ongoing support costs of the personnel and payroll system in the amount of $532,675 in FY 2004 and $541,032 in FY 2005.
SENATOR TIFFANY MOVED TO CLOSE B/A 717-1363 AS RECOMMENDED BY THE SUBCOMMITTEE.
SENATOR CEGAVSKE SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
*****
Ms. Brand:
The following budgets were closed by the subcommittee as recommended by the Governor with only minor and technical adjustments:
Division of Internal Audits – Budget Page ADMIN-7 (Volume 1)
Budget Account 101-1342
Purchasing – Budget Page ADMIN-45 (Volume 1)
Budget Account 718-1358
Division of Admin – Administrative Services – Budget Page ADMIN-96 (Volume 1) Budget Account 716-1371
Motor Pool Vehicle Purchase – Budget Page ADMIN-7 (Volume 1)
Budget Account 717-1356
State Unemployment Compensation – Budget Page PERSNL-10 (Volume1)
Budget Account 101-1339
SENATOR TIFFANY MOVED TO CLOSE B/A 101-1342, B/A 718-1358, B/A 716‑1371, B/A 717-1356, AND B/A 101-1339 AS RECOMMENDED BY THE GOVERNOR WITH TECHNICAL ADJUSTMENTS.
SENATOR CEGAVSKE SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
*****
Mark Krmpotic, Senior Program Analyst, Fiscal Analysis Division, Legislative Counsel Bureau:
I refer you to the Closing Report for the Department of Public Safety budget (Exhibit M. Original is on file in the Research Library.). The Joint Subcommittee for Public Safety, Natural Resources and Transportation has completed its review of the budgets for the Department of Public Safety and developed the following closing recommendations. The subcommittee’s closing actions resulted in an overall savings to the General Fund of $545,819 in FY 2003‑2004 and $542,968 in FY 2004-2005 when compared to the Governor’s recommended budget.
Director’s Office – Public Safety – Budget Page PS-1 (Volume 3)
Budget Account 201-4706
Senate Bill 6 eliminates the Division of Emergency Management in the Department of Public Safety and creates the Office of Emergency Management in the Office of the Governor. This bill has been passed by the Senate and has been assigned to the concurrent Assembly committees on Government Affairs and Ways and Means. The Executive Budget excludes the Division of Emergency Management from the allocation of expenses from the Director’s Office. The subcommittee authorized staff to include the Division of Emergency Management in the allocation of expenses from the Director’s Office if S.B. 6 fails to receive approval to transfer the Division of Emergency Management from the Department of Public Safety.
SENATE BILL 6: Makes various changes relating to emergency management. (BDR 18-233)
Senator Raggio:
Were there any other major issues?
Mr. Krmpotic:
There were no other major issues.
SENATOR RHOADS MOVED TO CLOSE B/A 201-4706 AS RECOMMENDED BY THE SUBCOMMITTEE.
SENATOR COFFIN SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
*****
Public Safety – Administrative Services – Budget Page PS-5 (Volume 3)
Budget Account 201-4714
Mr. Krmpotic:
The subcommittee supports the Governor’s recommendation to add funding of $42,090 in each year of the biennium to enable the department to increase and improve the pool of applicants available by attending job fairs at the state’s two major universities to target college graduates and attend job fairs in surrounding western states. Recommended funding also allows the department to complement these efforts by producing printed material and advertising on radio or television.
The subcommittee also supports the Governor’s recommendation to transfer a personnel analyst position from the Division of Parole and Probation to provide personnel services to employees in the southern part of the state.
Staff seeks authorization from the committee to include the Division of Emergency Management in the allocation of expenses from the Administrative Services Account if S.B. 6 fails to receive approval to transfer the Division of Emergency Management from the Department of Public Safety to the Office of the Governor.
SENATOR RHOADS MOVED TO CLOSE B/A 201-4714 AS RECOMMENDED BY THE SUBCOMMITTEE WITH AUTHORIZATION STAFF TO INCLUDE THE DIVISION OF EMERGENCY MANAGEMENT IN THE ALLOCATION OF EXPENSES FROM THE ADMINISTRATIVE SERVICES ACCOUNT IF S.B. 6 FAILS TO PASS.
SENATOR COFFIN SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
*****
Public Safety – Office of Prof Responsibility – Budget Page PS-11 (Volume 3)
Budget Account 201-4707
Mr. Krmpotic:
The subcommittee concurred with the Governor’s recommended budget with minor technical adjustments.
SENATOR RHOADS MOVED TO CLOSE B/A 201-4707 AS RECOMMENDED BY THE SUBCOMMITTEE
SENATOR RAWSON SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
*****
Public Safety, Drug Commission – Budget Page PS-21 (Volume 3)
Budget Account 101-4704
Mr. Krmpotic:
Based on information provided by the department regarding the benefits of the Drug Commission to the State, the subcommittee did not support the Governor’s recommendation to continue funding for the Drug Commission. The subcommittee recommended legislation that repeals those sections of statute relating to the Drug Commission.
Senator Raggio:
This goes against the Governor’s recommendation. Does the committee want to comment on that?
Senator Rhoads:
We did not think there was a need for it, so we moved to eliminate it.
SENATOR RHOADS MOVED TO CLOSE B/A 101-4704 AS RECOMMENDED BY THE SUBCOMMITTEE.
SENATOR COFFIN SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
*****
Public Safety Technology Division – Budget Page PS-14 (Volume 3)
Budget Account 201-4733
Jim Rodriguez, Program Analyst, Fiscal Analysis Division, Legislative Counsel Bureau:
The subcommittee approved the Governor’s recommendation for new positions for the Technology Division with the following exceptions: the recommendation for four programmer positions was reduced to three, based on the department’s FY 2003-2005 programming workload projections; the recommendation to add three network specialist positions was reduced to two, which more appropriately reflected the department’s system service demands and utilization projections; and the subcommittee did not approve the recommendation for an administrative assistant position. The subcommittee supported the Governor’s recommendation to add a computer systems programmer position to function as the department’s information technology security officer. The subcommittee did not approve the Governor’s recommendation to add an additional DS-3 data communication line because DoIT indicated that it could provide the needed data communications services without additional cost to the Department of Public Safety.
SENATOR RHOADS MOVED TO CLOSE B/A 201-4733 AS RECOMMENDED BY THE SUBCOMMITTEE.
SENATOR COFFIN SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
*****
Public Safety, Emergency Management Division – Budget Page PS-36 (Volume 3) Budget Account 101-3673
Mr. Rodriguez:
The subcommittee approved the Governor’s recommendations to reclassify two positions and eliminate cost for duplicate building rent.
SENATOR RHOADS MOVED TO CLOSE B/A 101-3673 AS RECOMMENDED BY THE SUBCOMMITTEE.
SENATOR COFFIN SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
*****
Public Safety, Criminal History Repository – Budget Page PS-42 (Volume 3)
Budget Account 101-4709
Mr. Rodriguez:
The subcommittee concurs with the Governor’s recommendation to include authority to receive increased court assessments contingent upon approval of A.B. 29. The Budget Office projects that the passage of A.B. 29 would provide the Criminal History Repository with approximately $1 million in additional court assessment revenues in each year of the biennium. This funding would offset a projected shortfall in court assessments and would be used to fund the repository’s ongoing criminal background check operations.
The subcommittee approved a $100 General Fund appropriation in each year of the biennium, which would allow the department access to the Contingency Fund in the event court assessment revenues do not meet projections.
SENATOR RHOADS MOVED TO CLOSE B/A 101-4709 AS RECOMMENDED BY THE SUBCOMMITTEE.
SENATOR COFFIN SECONDED THE MOTION.
Senator Raggio:
What is the status of these assessment bills?
Mr. Ghiggeri:
The Assembly Committee on Ways and Means is still hearing A.B. 29, and S.B 6 is still in the Senate Committee on Finance.
THE MOTION CARRIED UNANIMOUSLY.
*****
Public Safety, Training Division – Budget Page PS-104 (Volume 3)
Budget Account 101-3775
Mr. Rodriguez:
In reviewing the budget account for the Training Division, the subcommittee determined that the Highway Fund was supporting a disproportionate share of the Training Division’s budget. The subcommittee approved adjusting the proportion of Highway and General Fund funds to more appropriately represent the composition of state personnel being trained at the academy. The subcommittee approved a reduction in highway funds of $120,242 in FY 2003‑2004 and $67,123 in FY 2004-2005 and an increase in the General Fund of $43,189 in FY 2003-2004 and $47,306 in FY 2004-2005. The adjustments approved by the subcommittee would align funding for the Training Division’s operations with the division’s training plan submitted for the 2003‑2005 biennium and would be in compliance with State constitutional provisions relating to the allowable use of Highway Fund funding.
The subcommittee did not approve the Governor’s recommendation to increase funding for food expenditures at the academy for FY 2004, but did support the increase in funding for FY 2005 anticipating that the department will have all components of the division’s training program in full operation.
SENATOR RHOADS MOVED TO CLOSE B/A 101-3775 AS RECOMMENDED BY THE SUBCOMMITTEE.
SENATOR COFFIN SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
*****
Public Safety, Parole and Probation – Budget Page PS-90 (Volume 3)
Budget Account 101-3740
Tracy Raxter, Program Analyst, Fiscal Analysis Division, Legislative Counsel Bureau:
The subcommittee recommends restoring funding of $90,372 in FY 2003-2004 and $92,852 in FY 2004-2005 for offender drug testing, community service contract, absconder return, residential confinement contract, and records microfilming through increasing supervision fee revenue to the level collected in FY 2001-2002. The subcommittee concurs with other budget reductions recommended by the Governor including the elimination of 26 positions and a reduction in operating expense.
The subcommittee recommends General Fund support for the drug court programs of the Washoe County 2nd Judicial District, and the Clark County 8th Judicial District of $525,000 in each year of the biennium be eliminated from this budget and placed in the rural drug court budget under the administration of the Administrative Office of the Courts.
The subcommittee recommends all funding related to drug courts be accounted for in one budget under the umbrella of the courts. The subcommittee concurs with the Governor’s recommendation to add funding for ongoing costs of the Interstate Compact for Adult Offender Supervision, which was ratified by the state through S.B. No. 194 of the 71st Session and became effective in June 2002.
Senator Raggio:
Is this the budget that contains all the funding for the drug courts? If so, why are we looking at it in here?
Mr. Ghiggeri:
The Governor has recommended $525,000 per year in this budget and the subcommittee closing placed all that funding in the drug courts’ budget within the courts system. They fully funded the operation of the drug courts in the second year, with administrative assessments in the first year, and General Fund money provided for the first 6 months. The drug court budget hearing was held yesterday and we will be discussing it again later this week.
Senator Raggio:
We have all received some urgent communications that this must be funded, so I think we need to look at that.
Senator Tiffany:
When we heard the drug court budget in subcommittee, they did get funded, but what they wanted was an increase to $6.3 million. I think we need to look at that too.
Senator Raggio:
Why is some of the appropriation in this budget, and some in other budgets?
Mr. Ghiggeri:
When the Governor submitted his budget, he recommended funding for this portion in the Division of Parole and Probation budget. In the subcommittee closings they consolidated all drug courts within the court system.
SENATOR RHOADS MOVED TO CLOSE B/A 101-3740 AS RECOMMENDED BY THE SUBCOMMITTEE.
SENATOR COFFIN SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
*****
Public Safety, Parole Board – Budget Page PS-167 (Volume 3)
Budget Account 101-3800
Mr. Raxter:
The subcommittee recommends approval of funding for the purchase and operation of video conferencing equipment for the parole board to conduct parole hearings from its Carson City and Las Vegas offices with a link to the respective correctional facility, thereby providing for enhanced productivity of the parole board and increased accessibility of hearings for victims, inmate families, and other interested members of the public. The subcommittee concurs with the Governor’s recommendation to reduce funding for travel, training, and contract case hearing representatives as a result of the utilization of video conferencing. This concludes the subcommittee’s report on the budgets for the Department of Public Safety.
Senator Raggio:
I think this is an excellent concept that is long overdue.
SENATOR RHOADS MOVED TO CLOSE B/A 101-3800 AS RECOMMENDED BY THE SUBCOMMITTEE.
SENATOR COFFIN SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
*****
Senator Raggio:
This meeting is adjourned at 11:38 a.m.
RESPECTFULLY SUBMITTED:
Michael Archer,
Committee Secretary
APPROVED BY:
Senator William J. Raggio, Chairman
DATE: