MINUTES OF THE
ASSEMBLY COMMITTEE ON WAYS AND MEANS
Sixty-seventh Session
May 12, 1993
The Assembly Committee on Ways and Means was called to order by Chairman Morse Arberry, Jr., at 8:23 a.m., on Wednesday, May 12, 1993, in Room 352 of the Legislative Building, Carson City, Nevada. Exhibit A is the Meeting Agenda. Exhibit B is the Attendance Roster.
COMMITTEE MEMBERS PRESENT:
Mr. Morse Arberry, Jr., Chairman
Mr. Larry L. Spitler, Vice Chairman
Mrs. Vonne Chowning
Mr. Joseph E. Dini, Jr.
Mrs. Jan Evans
Ms. Christina R. Giunchigliani
Mr. Dean A. Heller
Mr. David E. Humke
Mr. John W. Marvel
Mr. Richard Perkins
Mr. Robert E. Price
Ms. Sandra Tiffany
Mrs. Myrna T. Williams
COMMITTEE MEMBERS ABSENT:
None
STAFF MEMBERS PRESENT:
Mark Stevens, Fiscal Analyst
Gary Ghiggeri, Deputy Fiscal Analyst
ASSEMBLY BILL 357- Directs state librarian to establish pilot project to provide grants to certain public libraries for purchase of books and library materials.
Assemblyman Kathy Augustine testified this bill was drafted at the request of the State Librarian. She noted an accompanying bill would be forthcoming from the Senate. AB 357 would direct the State Librarian to establish a pilot project to provide grants to rural libraries for the purchase of books and library materials. Public libraries would be required to match the state grant by an amount of at least $500. The state grant would be limited to not more than 50 percent of the amount expended by the rural library.
Ms. Augustine reiterated the grant monies would be used exclusively for the purchase of books and library materials.
Ms. Augustine noted the bill had been passed out of the Government Affairs Committee based on its merit and need. She introduced Ms. Joan Kerschner, State Librarian, Ms. Carolyn Rawles-Heiser of the Nevada Library Association, Mr. Chuck Manley and Ms. Martha Greene of the Washoe County Library and Mr. Danny Lee of the Governor's Library Council, who were appearing in support of AB 357. Additionally she requested a copy of a letter from Ms. Wendy Starkweather, President, Nevada Library Association, in support of AB 357 be included with the minutes (see Exhibit C).
Mr. Lee stated Nevada was one of eight states in the nation which did not provide support for libraries. He noted library districts could be very creative in constructing buildings with donated material and services, but money was needed to purchase books and other library materials.
Mr. Lee pointed out the bill did not include funding for urban libraries in Clark County, which were already fairly well-funded.
Ms. Rawles-Heiser said in those states where support was provided to libraries, state aid averaged 14 percent of each public library's budget. She noted AB 357 created an incentive for libraries to raise their own funding because the larger their contribution, the larger the state match would be. She explained costs of books and library materials were escalating beyond the rate of inflation. The average cost of a book was over $45.
Ms. Rawles-Heiser noted Nevada ranked below the national average on the amount spent on books and number of items owned by public libraries. In addition, many public library collections were badly out of date.
Ms. Rawles-Heiser stated AB 357 would have a significant impact on rural libraries. She expressed the hope the committee would support the bill.
Mr. Manley explained he was appearing on behalf of Ms. Martha Gould, Director of the Washoe County Library System. He distributed one-half candy bar to each member of the committee. He explained the one-half candy bar represented the per capita cost of AB 357, or $.18. He asked the committee to consider the bill an investment in the future of Nevada. He noted school libraries were suffering and would continue to suffer from inadequate funding. Therefore, use and demand on public library resources would increase. In terms of economic development, business and industry would seek areas with access to information. He suggested funding libraries and information resources could lead to reduced expenditures for prisons, indigent medical care and welfare.
Mrs. Evans asked what mechanism was used to provide state support to libraries in those states which funded libraries. Mr. Manley responded there was a variety of mechanisms in place. Ms. Kerschner explained every state had its own funding mechanism. Most programs were similar to that proposed in AB 357. She noted an administrative agency was required for audit purposes and to develop funding formulas. The Library Association had reviewed several funding formulas. AB 357 proposed a matching program in order to reward local effort. In some states funding was not limited to the purchase of books and materials. It was felt the need for books and materials was so critical in Nevada, the bill should be limited to those expenditures.
SENATE BILL 276 - Authorizes transfer of money from offenders' store fund to prisoners' personal property fund.
Mr. John Neill, Chief, Fiscal Services, Department of Prisons, testified SB 276 would provide a mechanism for the transfer of funds from inmate store profits to the prisoners' personal property fund to cover losses resulting from fraud, invalid deposits and posting errors.
Mr. Marvel asked Mr. Neill to describe the causes of the shortage. Mr. Neill responded the largest shortage had resulted from a case of employee fraud. During the development of internal procedures it was discovered approximately $250,000 had been embezzled.
Mr. Marvel inquired whether the loss had been discovered by prison staff or by legislative auditors. Mr. Neill said the loss was discovered by prison staff. The Department of Prisons reported the matter to the Legislature and requested an audit to determine the exact amount of loss.
Mr. Marvel asked if the employee had made any restitution. Mr. Neill responded the employee had repaid approximately $2,000. Court-ordered restitution was only $2,600 because the state was unable to prove the total amount of the loss. The state estimated the total loss to be approximately $152,000 and was pursuing bond recovery.
Mr. Marvel inquired whether the internal controls were now in place. Mr. Neill said there were extensive internal controls in place.
Mr. Spitler asked if General Fund money would be affected by this bill. Mr. Neill replied AB 276 dealt strictly with profits from the inmate store.
Mr. Spitler questioned whether AB 276 would prevent the state from seeking prosecution of people caught stealing. Mr. Neill stated it would not.
Mr. Spitler inquired whether the transfer of funds would be retroactive in order to offset past losses. Mr. Neill replied it would not be possible to offset losses with one transfer. It was contemplated up to $80,000 per year could be transferred, depending on profits. Profits would not be diminished to the extent that it would damage any programs currently offered to the inmates.
Mr. Spitler asked if the Department of Prisons would be able to present an accounting of losses when it appeared before the Interim Finance Committee to request the transfer of funds. Mr. Neill responded affirmatively.
Mr. Spitler asked what the profits from the inmates' store were used for. Mr. Neill said profits were used for store operation, for recreational equipment and to support the law library.
MR. MARVEL MOVED DO PASS.
MR. SPITLER SECONDED THE MOTION
THE MOTION CARRIED UNANIMOUSLY. MS. TIFFANY WAS ABSENT.
CONTROLLER'S OFFICE - PAGE 47
Mr. Ghiggeri stated the Governor recommended transferring all data processing personnel into the proposed Information Services and Technology Department. The transportation subcommittee recommended funding 10 of those positions in the Controller's Office budget. Further, the Controller testified before the committee that $24,000 per year would be required for EDP system program charges for printing. The proposed adjustments would add $9,578 in the first year of the biennium and $70,616 in the second year.
MR. SPITLER MOVED TO AMEND THE CONTROLLER'S OFFICE BUDGET TO ADD 10 DATA PROCESSING POSITIONS AND ADJUST EDP SYSTEM PROGRAM EXPENSES TO $24,000 PER YEAR AND CLOSE THE BUDGET AS AMENDED.
MR. HELLER SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY. MS. TIFFANY WAS ABSENT.
BUDGET CLOSED.
SECRETARY OF STATE - PAGE 52
Mr. Ghiggeri noted there were 15.5 positions in this budget which could be funded entirely by expedite fees. This would reduce the General Fund appropriation by $72,216 in the first year of the biennium and $70,661 in the second year. This reduction could fund the microcomputer specialist position, which was recommended by the Governor to be transferred to the Information Services and Technology Department, and allow that position to remain within this budget.
Mr. Spitler noted the Secretary of State had testified about the need for additional staff if election laws were enhanced. Mr. Ghiggeri stated the budget could be re-opened to make necessary adjustments or funding could be placed within the legislation.
MR. SPITLER MOVED TO AMEND THE SECRETARY OF STATE BUDGET TO FUND 15.5 POSITIONS WITH EXPEDITE FEES AND RETAIN THE MICROCOMPUTER SPECIALIST AND CLOSE THE BUDGET AS AMENDED.
MR. HUMKE SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
BUDGET CLOSED.
SECRETARY OF STATE SECURITIES - PAGE 57
Mr. Ghiggeri stated the committee had previously indicated concern about the relocation of the education information officer position to Carson City. He distributed copies of a memo from the Secretary of State explaining her decision to relocate the position (see Exhibit D).
MR. MARVEL MOVED TO CLOSE THE SECRETARY OF STATE SECURITIES BUDGET AS RECOMMENDED BY THE GOVERNOR.
MR. SPITLER SECONDED THE MOTION.
THE MOTION CARRIED. MR. HUMKE WAS OPPOSED.
BUDGET CLOSED.
DEPARTMENT OF MINERALS - PAGE 503
Mr. Stevens said he had been requested by Mr. Marvel to contact the Department of Minerals to ensure SB 263 would have no impact on the budget. Mr. Stevens said he had not had an opportunity to review this matter. He suggested holding action on the budget.
Chairman Arberry agreed to defer action on this budget.
DRUG COMMISSION - PAGE 1009
Mr. Stevens explained the Governor recommended transfer of the Drug Commission from the Department of Motor Vehicles to the Department of Human Resources. The narcotics control function of the Drug Commission would remain within the Department of Motor Vehicles. Fiscal staff did not feel financial adjustments were needed in this budget.
MRS. WILLIAMS MOVED TO CLOSE THE DRUG COMMISSION BUDGET AS RECOMMENDED BY THE GOVERNOR.
MR. HUMKE SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
BUDGET CLOSED.
STATE JOB TRAINING OFFICE - PAGE 1059
Mr. Stevens noted the Executive Budget included funding for the administrative services officer position as reorganizational savings. The Executive Budget contemplated the function would be funded from the central administrative account within the Department of Employment Training and Rehabilitation. The State Job Training Office believed strongly that the position should be retained.
Mr. Stevens suggested restoring the administrative services officer position to the budget. He noted if the position was not restored, funding should still be included in the budget to cover an administrative assessment to the central administrative account to pay for the service provided by the position.
Mr. Stevens explained if the position was restored, the technical assistance grant revenue would be adjusted upward $29,000 in the first year of the biennium and $47,000 in the second year. If the position was deleted, additional funding would be required in the reserve account for potential transfer to the administrative account for services provided.
MS. GIUNCHIGLIANI MOVED TO AMEND THE STATE JOB TRAINING OFFICE BUDGET TO RESTORE THE ADMINISTRATIVE SERVICES OFFICER POSITION AND INCREASE TECHNICAL ASSISTANCE GRANT REVENUE AND CLOSE THE BUDGET AS AMENDED.
MRS. EVANS SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
BUDGET CLOSED.
COMMITTEE TO HIRE HANDICAPPED - PAGE 1116
Mr. Stevens stated the Governor proposed including $31,685 in the first year of the biennium and $41,102 in the second year from gifts, donations, training fees, etc. The agency indicated it would be difficult to generate that amount of revenue.
Ms. Giunchigliani expressed concern about requiring this agency to charge fees when they were already receiving donated space in which to conduct training seminars. She questioned how the agency could then charge the donors fees for training.
Mrs. Williams requested that this budget be held.
Chairman Arberry agreed.
STATE LANDS - PAGE 1561
Mr. Stevens noted the recommendations which would be forthcoming from the Natural Resources Subcommittee would impact this budget. He noted there was an error in rent expense of $3,075 in the first year of the biennium and $3,041 in the second year. Fiscal staff recommended increasing revenue and operating expenses $250 per year to account for funding from the state association for the agency newsletter. Mr. Stevens pointed out $800 per year in longevity pay expenses could be absorbed in vacancy savings.
Mr. Stevens said the Natural Resources Subcommittee had heard testimony concerning boards and commissions within the Natural Resources Department. The subcommittee recommendation would be to consolidate the State Parks Advisory Commission, the Board of Forestry, Fire Control and the State Multiple Use Advisory Committee on Federal Lands into a new Natural Resources Board. The State Conservation Commission, the Board of Wildlife Commissioners and the State Environmental Commission would remain independent.
Mr. Stevens explained the State Conservation Commission was normally funded in this account because staff support was provided by State Lands. If the committee adopted the subcommittee recommendation, additional funding of $6,325 per year would be required for four commission meetings, travel for the commissioners and $725 per year for operating costs.
Mrs. Evans noted the agency director chaired a national board. The Executive Budget eliminated out-of-state travel and the director had no funding to travel to national meetings. She suggested the committee address this issue as well. She noted fiscal year 1991-92 actual out-of-state travel expenses were $876.
Chairman Arberry suggested $1,000 per year be included in the budget for out-of-state travel. Mr. Dini expressed support for the Chairman's suggestion.
Mr. Marvel pointed out the director's term may not extend into the second year of the biennium.
Mr. Stevens noted another subcommittee recommendation which could affect this account was the restoration of the conservation districts.
Chairman Arberry deferred action on this budget.
FEDERAL LAND LAWS - PAGE 1571
Mr. Stevens stated fiscal staff recommended deleting this account since the State Multiple Use Advisory Committee on Federal Lands was recommended to be consolidated into the Natural Resources Board. Costs related to this account would be moved to the Director's Office account.
MRS. WILLIAMS MOVED TO DELETE THIS ACCOUNT.
MR. HUMKE SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
BUDGET CLOSED.
FORESTRY INTERGOVERNMENTAL AGREEMENTS - 1579
Mr. Ghiggeri stated the Department of Forestry indicated Washoe County had requested funding for an additional seasonal position. Additionally, technical corrections of $13,274 in the first year of the biennium and $3,596 in the second year were required to align the transfer from the previous account for cost sharing for a dispatcher. Fiscal staff suggested issuing a letter of intent to the agency requiring it to strengthen its accounting practices to guarantee counties were accurately assessed for charges for employees and expenses.
MR. MARVEL MOVED TO AMEND THE FORESTRY INTERGOVERNMENTAL AGREEMENTS BUDGET TO ADD FUNDING FOR A SEASONAL POSITION, ADJUST TRANSFERS FOR COST SHARING OF A DISPATCHER POSITION AND REQUIRE ISSUANCE OF A LETTER OF INTENT REGARDING ASSESSMENTS TO COUNTIES AND CLOSE THE BUDGET AS AMENDED.
MRS. EVANS SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
BUDGET CLOSED.
FORESTRY FIRE SUPPRESSION - PAGE 1582
Mr. Ghigerri pointed out the Forestry Division would probably appear before the Interim Finance Committee and/or the Board of Examiners for additional funding, depending upon the fire season.
MRS. WILLIAMS MOVED TO CLOSE THE FORESTRY FIRE SUPPRESSION BUDGET AS RECOMMENDED BY THE GOVERNOR.
MR. PERKINS SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
BUDGET CLOSED.
FORESTRY NURSERIES - PAGE 1588
Mr. Ghiggeri noted there were no General Fund dollars in this account. He indicated fiscal staff had received updated information regarding grants, awards and expenditure authority which would require technical adjustments to the budget totaling $38,000 in the first year of the biennium and $62,000 in the second year.
MR. MARVEL MOVED TO AMEND THE FORESTRY NURSERIES BUDGET TO MAKE ADJUSTMENTS IN GRANTS, AWARDS AND EXPENDITURE AUTHORITY AND CLOSE THE BUDGET AS AMENDED.
MR. DINI SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
BUDGET CLOSED.
SENATE BILL 18 - Extends the time for repayment and reversion of money previously appropriated to the Supreme Court for costs associated with the temporary relocation of the Las Vegas office.
Mr. Stevens stated the committee had closed the Supreme Court budget based on passage of SB 18. The bill would change the reversion date of funding for the temporary relocation of the Las Vegas office from June 30, 1993, to June 30, 1995. Mr. Stevens noted a one-time appropriation had been made in 1991 but the funds had not yet been expended.
MR. MARVEL MOVED DO PASS.
MR. DINI SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
SENATE BILL 21 - Makes supplemental appropriation for district judges' salaries and judicial pensions.
Mr. Stevens explained this bill would fund costs which would be incurred in the current fiscal year. Payment of the costs was required by statute.
MR. HUMKE MOVED DO PASS.
MS. TIFFANY SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
Mrs. Williams said judges's salaries and pension benefits were totally out of line with the way every other state employee or elected official was compensated. She suggested the Legislature review this situation. She requested the permission of the committee to have an appropriate bill drafted. The committee concurred.
SENATE BILL 194 - Makes supplemental appropriations for district judges' salaries and judicial pensions.
Mr. Dini asked if there was a shortage in the judges' salary account. Mr. Stevens said there were shortages in the salary account and the pension account.
MR. DINI MOVED DO PASS.
MS. GIUNCHIGLIANI SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
Mrs. Williams expressed the same concerns as she had with SB 21.
SENATE BILL 238 - Makes supplemental appropriation to the Supreme Court of Nevada for the support of the Commission on Judicial Selection.
Mr. Stevens explained the Supreme Court had originally requested $7,000 to fund the Commission on Judicial Selection. Fiscal staff reviewed the account and recommended a supplemental appropriation in the amount of $4,333 to fund meetings which had taken place in the current fiscal year and a meeting scheduled for June 1993.
MS. GIUNCHIGLIANI MOVED AMEND AND DO PASS.
MR. DINI SECONDED THE MOTION.
Mr. Humke asked if the original bill included funding for newspaper advertising of judicial vacancies. Mr. Stevens said he did not know the answer to the question.
THE MOTION CARRIED UNANIMOUSLY.
SENATE BILL 264 - Makes appropriation to the Budget Division for reimbursement of the Legislative Counsel Bureau for expenses for bill draft preparation.
Mr. Stevens noted this was an appropriation of $100,000 and it was included within the Executive Budget.
MR. DINI MOVED DO PASS.
MRS. WILLIAMS SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
SENATE BILL 266 - Makes supplemental appropriation to Nevada Equal Rights Commission for certain expenses.
Mr. Stevens explained this bill would fund a merit increase for an employee which was granted in a previous fiscal year. The $1,632 appropriation was included within the Executive Budget.
MRS. WILLIAMS MOVED DO PASS.
MRS. EVANS SECONDED THE MOTION.
Mrs. Chowning noted for the record her belief the validity of the commission should be investigated. She questioned the need to fund a commission which had not met in five years.
Mr. Stevens noted the Equal Rights Commission budget had not yet been closed. Fiscal staff was uncertain if the committee desired additional review of the budget. He noted the Senate Finance Committee had requested a revised budget from the agency. He asked for committee direction on this budget.
Ms. Giunchigliani pointed out the agency was not properly funded. She asked why this appropriation was being made to the agency. Mr. Stevens explained this amount was owed to the employee and was not an Executive Budget issue.
Chairman Arberry agreed the committee needed to either eliminate this agency or fund it adequately to perform its function.
THE MOTION CARRIED UNANIMOUSLY.
ASSEMBLY BILL 200- Makes various changes regarding enforcement of provision requiring registration of motor vehicles in this state.
Chairman Arberry asked for committee discussion regarding AB 200.
Mr. Stevens said this bill would create a separate unit within the Nevada Highway Patrol to check registrations on motor vehicles. Testimony before the committee had indicated funding could be provided from the Highway Patrol special fee. Fiscal staff requested time to review the financial impact of the bill prior to passage by the committee.
Mr. Perkins expressed concern about allotting troopers to specific areas. He suggested Highway Patrol administration was best able to determine how to allocate resources. He was also concerned about citing vehicles for violations in public parking lots or on private property. He explained there was a potential for abuse if troopers were allowed to enter private property to issue citations because troopers would be unable to determine if out-of-state vehicles in parking lots belonged to someone who was living in the state or only visiting.
Mr. Marvel asked if a casino parking lot was considered public or private property. Mr. Perkins said it would be considered privately owned.
Mr. Dini recommended either rereferring the bill to the Transportation Committee or creating a subcommittee to consider the issues associated with this bill. Mr. Humke agreed with Mr. Dini. Mrs. Evans said she favored subcommittee review of this bill.
Chairman Arberry appointed Mr. Price, Mr. Perkins and Ms. Tiffany to a subcommittee to consider AB 200, with Mr. Perkins to chair.
Mrs. Williams expressed the hope the subcommittee could work out the problems with this bill. She noted the Legislature had struggled with this issue for many sessions but so far no adequate legislation had been developed which would not snare innocent people.
Ms. Giunchigliani asked the subcommittee to consider whether it was necessary to establish a new unit within the Highway Patrol to deal with this legislation.
Mr. Price noted the Department of Motor Vehicles Subcommittee had discovered a full-time Highway Patrolman assigned to an unauthorized budget. He suggested the patrolman be transferred to the new unit.
There being no further business, the meeting was adjourned at 10:15 a.m.
RESPECTFULLY SUBMITTED:
_________________________
C. Dale Gray
Committee Secretary
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Assembly Committee on Ways and Means
May 12, 1993
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