MINUTES OF THE meeting

of the

ASSEMBLY Committee on Ways and Means

Eighteenth Special Session

July 31, 2002

The Committee on Ways and Means was called to order at 8:06 p.m., on Wednesday, July 31, 2002. Chairman Morse Arberry Jr. presided at the Bar of the Assembly of the Legislative Building, Carson City, Nevada.

COMMITTEE MEMBERS PRESENT:

Mr. Morse Arberry Jr., Chairman

Ms. Chris Giunchigliani, Vice Chairwoman

Mr. Bob Beers

Mrs. Barbara Cegavske

Mrs. Vonne Chowning

Mrs. Marcia de Braga

Mr. Joseph Dini, Jr.

Mr. David Goldwater

Mr. Lynn Hettrick

Ms. Sheila Leslie

Mr. John Marvel

Mr. David Parks

Mr. Richard D. Perkins

Ms. Sandra Tiffany

COMMITTEE MEMBERS ABSENT:

None

STAFF MEMBERS PRESENT:

Mark Stevens, Fiscal Analyst

Steve Abba, Principal Deputy Fiscal Analyst

Reba Coombs, Committee Manager

Chairman Arberry called the meeting to order to discuss S.B. 3 and Amendment No. 7, proposed by the Assembly Committee on Ways and Means, and to request a vote.

Senate Bill 3: Increases amount paid by state for group insurance for certain public employees.

Vice Chairwoman Chris Giunchigliani explained to the committee that no additional contributions to cover the cost of health care premiums would be asked of state employees for fiscal year 2002-03. State agencies would be requested to use vacancy savings and/or revenues from reserves to make up the shortfall. Additionally, Ms. Giunchigliani stated that no General Fund dollars would be used to fund the Public Employees Benefits’ Program. The act would become effective on October 1, 2002, rather than January 1, 2003.

Assemblyman Goldwater inquired if the smaller agencies would be affected more adversely than the larger agencies. Ms. Giunchigliani responded that was correct. Vacancy savings could be used, but the smaller agencies would suffer while the larger agencies could offset the cost.

Ms. Giunchigliani stated the original request had been for $15 million; however, the assembly agreed to provide $18 million to cover out-of-pocket expenses to the agencies. The agencies could then return to the legislature in 2003 to request additional funding. The amendment also provided that the Public Employees Benefits’ Program would be given a letter of intent in order to issue a request for information or a request for proposal as to whether privatization of the program would be economically feasible.

MR. MARVEL MOVED TO AMEND AND DO PASS S.B. 3.

SPEAKER EMERITUS DINI SECONDED THE MOTION.

THE MOTION CARRIED UNANIMOUSLY.

There being no further business, Chairman Arberry adjourned the meeting at 8:12 p.m.

RESPECTFULLY SUBMITTED:

Reba Coombs

Committee Secretary

APPROVED BY:

Assemblyman Morse Arberry Jr., Chairman

DATE: