MINUTES OF THE
ASSEMBLY COMMITTEE ON WAYS AND MEANS
Sixty-seventh Session
May 24, 1993
The Assembly Committee on Ways and Means was called to order by Chairman Morse Arberry, Jr., at 8:00 a.m., on Monday, May 24, 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 207- Directs appointment of task force to study feasibility of establishing course work in American sign language in certain public schools.
Assemblyman Larry Spitler, District 41, was the chief sponsor of AB 207. Mr. Spitler noted Nevada had over 10,000 deaf or severely hearing impaired residents. The intent of the legislation was to raise community awareness about the hearing impaired. Legislation for the distribution of telecommunications devises to the deaf (TDD) and hearing impaired was passed in 1985. In 1991 the legislation was expanded to include deaf relay centers. He commented AB 207 would continue to sensitize school districts and students to the deaf and severely hearing impaired.
Mr. Spitler said initially the Department of Education was asked to design curriculum for the project. He explained the original bill draft was not specific, therefore, estimates from the Department of Education ranged from the cost of one program, $4,000, to the cost of implementing the program in every public school in the state, $3,780,000. He advised the committee to disregard the fiscal note. He noted AB 207, as amended, would require $3,812 over the biennium.
Mr. Spitler noted the deaf and severely hearing impaired community designed the criteria for the proposed study. He thanked the deaf community for their assistance.
Section 1 directed the Superintendent of Public Instruction and the Director of the Department of Human Resources to establish a task force to study the feasibility of establishing course work in American Sign Language in secondary and post secondary schools for credit as a foreign language and as a special course in elementary schools. The task force would submit its findings to the Legislative Counsel Bureau for the drafting of possible legislation for the 1995 Legislature.
Section 1, subsection 2 identified the members of the task force and subsection 3 outlined the purpose and scope of the work to be performed by the task force. The task force would compile and analyze research from other states, identify potential impact of course work in American Sign Language, recognize increased opportunities for deaf persons, determine the interest of student, identify existing curricula, provide recommendations for legislation, and ascertain costs of the course work recommended. Mr. Spitler did not anticipate offering American Sign Language in every school in Nevada.
Mr. Spitler stated all members of the task force would be volunteers. He explained the appropriation, $3,812, would be used for the following: (1) airfare, $2,816; (2) food, $836; and (3) airport parking, $160.
Mrs. Williams supported AB 207 because her grandson had participated in an American Sign Language course offered to the hearing at Ruby Thomas Elementary school which was a magnet school for the hearing impaired in Las Vegas. She commented the ability to communicate with deaf and hearing impaired children had enriched her grandson's life.
Chairman Arberry asked if courses in American Sign Language would be offered to the public. Mr. Spitler indicated the University system could offer extension classes.
Chairman Arberry referred to a newspaper article about drug dealers using sign language to avoid voice monitoring by the police. Mr. Spitler did not foresee drug dealers participating in American Sign Language course work.
Ms. Giunchigliani explained federal mandates required community services for special education students after high school. She noted AB 207 could be utilized to meet the federal mandate.
Mr. Spitler requested an amendment to Section 2, subsection 1 which would allocate funds to the Rehabilitation Division rather than the Department of Education.
SENATE BILL 84 - Makes order for payment of money belonging to school district void if not presented for payment within certain time after issuance.
Mike Alastuey, Clark County School District, testified on behalf of SB 84. Currently the statutes did not specify a date on which a warrant issued by a school district became void. Therefore, all uncashed checks must be recorded for an indefinite time period. A similar state statute voided uncashed checks after 180 days. SB 84 would allow the school districts to void uncashed checks after one year.
Mr. Heller asked why the school district did not subscribe to the same time period specified by the state, 180 days. Mr. Alastuey explained one year was chosen because it allowed for a longer opportunity to cash the check. However, a time limit of 180 days was acceptable to the school district.
SENATE BILL 195 - Revises fees relating to numbering and ownership of motorboats.
Terry Crawforth, Deputy Director, Department of Wildlife explained SB 195 would increase boat registration and title fees effective January 1, 1994. Title fees were proposed to increase from $5 to $15, generating approximately $46,000 each year. Duplicate registration decal fees were proposed to increase to $10. Dealer demonstration fees were proposed to increase from $7.50 to $15. Increased fees would cover costs associated with issuing registration documents.
Mrs. Evans asked why sailboat were exempt from registration. Tom Atkinson, Department of Wildlife, explained sailboats were required to register if they had an auxiliary motor. Often sailboat owners voluntarily registered as proof of ownership.
Mrs. Williams asked if it was possible to require registration on boats 13 feet in length or longer. Mr. Crawforth said it was possible.
Chairman Arberry asked how the proposed fee increases were determined. Mr. Crawforth replied fee increases covered the cost of inspection, data processing and documentation expenses.
SENATE BILL 239 - Increases amount that person who awards certificate of number for watercraft may retain from fee paid for certificate.
Terry Crawforth, Department of Wildlife, supported AB 239 which would increase the commission paid to persons who help register boats effective January 1, 1994. He explained commissions were proposed to increase from .25 cents to .50 cents per registration. The increase would make boat registration commissions equitable with hunting and fishing license commissions.
Chairman Arberry asked where boat registration could be obtained. Mr. Crawforth replied they could be obtained from the Department of Wildlife, field offices, game wardens and occasionally boating retailers.
Mr. Perkins asked how much enforcement and public safety time was spent on personal watercraft. Mr. Atkinson replied personal watercraft represented approximately 12 percent of the registered boats in the state and 30 percent of accidents involved personal watercraft. Mr. Perkins commented fees might need to reflect increased patrol requirements for personal watercraft in the future.
SENATE BILL 306 - Makes appropriation to State Public Works Board for certain capital improvement projects.
Chairman Arberry informed the committee the Senate did not agree with the amendments made to SB 306. The bill made appropriations to the State Public Works Board for certain capital improvement projects. Assembly action amended the bill and removed the appropriations for remodeling the Fremont School of $127,239 and the old Nevada State Library of $29,678.
Chairman Arberry asked if the committee wished to call a conference meeting between the Senate Finance Committee and the Assembly Committee on Ways and Means or concur with the Senate recommendations to include the appropriation for the remodeling projects.
Mrs. Williams was not prepared to add the items back because of how severely services had been cut in other budgets.
Mr. Marvel asked the current status of the old state library. Mr. Heller replied another bill introduced in the Senate would provide for improvements to the old state library. After it had been heard more information would be available.
Mr. Tom Stevens, Manager, State Public Works Board, explained remodeling costs for the Fremont School and the old state library had originally been included in the Capital Improvements Budget. However, the items were included in SB 306 to expedite the design work and enable state agencies to utilize the building within the time frame specified by the Executive Budget. If the design of the Fremont School was not approved by the Legislature, then it would change the rent allocation in certain budgets, particularly the budgets of the Department of Education.
Chairman Arberry noted the fiscal impacts reflected in SB 306 were higher than original estimates provided in the Executive Budget.
Mrs. Evans said relocating the Department of Education to the Fremont School had been discussed during the K-12 subcommittee. She asked the time table of the move and its dependence on SB 207. Mr. Ghiggeri explained information obtained after the bill was amended and passed out of the committee indicated the Department of Administration intended to occupy the Fremont building July 1, 1994. In order to meet the timetable the Department of Administration requested legislation which would expedite the design process. The original CIP program did not indicate the need to expedite the project. He added the Southern Nevada Adult Mental Health Center cooling tower was also included in SB 306. The longer the bill was delayed the more likely it was the cooling tower would not be replaced before the summer season. Mrs. Evans noted the bill became a consideration in light of the new time table requirements.
Chairman Arberry asked who decided to move the Department of Administration to the Fremont School. He asked where they would be located if the Legislature did not recommend remodeling the school. Mr. Ghiggeri explained many of the education budgets assumed relocation to the Fremont School, however, the Legislature could make an independent decision about status of the building.
Mr. Spitler asserted repairing the cooling tower at the Southern Nevada Mental Health Institute had become an emergency situation. He reminded the committee of the letters written by facility employees which indicated roof tiles were falling out of the ceiling into their work areas. He noted if repairs were delayed the cost of repair would escalate. The cooling tower had been scheduled for repair in 1991 but was postponed because of budget cuts. He commented it was inappropriate to tie critical repairs to the cooling tower at the southern Nevada Mental Health Institute to remodeling the Fremont School and the old state library.
Mr. Stevens reiterated if no action was taken on the bill, repairs to the cooling tower would not be completed until the fall.
Mrs. Williams remarked original repairs to the cooling tower were scheduled in 1991. She stated action taken by the Assembly simply amended out the allocation for remodeling and did nothing to hamper necessary repairs to the cooling tower. She said if the Fremont School and the old state library were so important than the Senate should place the items in a separate bill. She said it was "dirty pool" to say that sick people were going to suffer if the Assembly did not pass SB 306, including allocations for remodeling the Fremont School and the old state library.
Mr. Marvel asked why the allocation for cooling tower repairs increased from approximately $60,000 to $83,000. Mr. Ghiggeri replied testimony indicated additional structural damage had occurred since the original estimates were made.
Chairman Arberry appointed a conference committee to meet with the Senate Finance Committee to discuss SB 306.
BUDGET CLOSINGS
DMV/NDOT SUBCOMMITTEE REPORT
Mr. Price reported subcommittee recommendations on the budgets of the Department of Motor Vehicles & Public Safety. The DMV/NDOT subcommittee met approximately five times to take testimony and review all of the budgets of the Department of Motor Vehicles, and those public safety related budgets of the existing Department that were designated to be transferred to the proposed Department of Public Safety. The report presented the results of those hearings and the recommendations of the subcommittee.
The governor's plan to reorganize state government proposed a stand-alone Department of Motor Vehicles and an expanded Department of Public Safety which included the Nevada Highway Patrol, the Investigations Division (NDI), and Peace Officers Standards and Training Committee (POST), as well as the Nevada Military Department, the State Fire Marshal, the Commission on Veterans Affairs, and the Department of Parole and Probation. To carry out this reorganization proposal, the Governor recommended establishing two director's offices and two administrative services divisions which would share the existing DMV & PS facility in Carson City.
In support of the guiding principles of the Commission on Reorganization to reduce the Governor's span of control, maximize existing resources and avoid duplication in the areas of administration and fiscal services, the subcommittee recommended the Department of Motor Vehicles be combined with the expanded Department of Public Safety.
The Governor's proposal would have eliminated ten positions, two in the Department of Motor Vehicles and eight in the Department of Public Safety. Despite the subcommittee's recommendation to restore most of the positions targeted for reorganization savings (including both Deputy Directors, the Internal Auditor and the Chief of the Registration Division), the overall impact of the subcommittee's recommendations resulted in savings to both the Highway Fund and the General Fund.
In summary, the subcommittee recommended that the Highway Fund appropriation for the budgets of the Department of Motor Vehicles and Public Safety be decreased by approximately $67,000 over the 1993-95 biennium. In addition, the subcommittee's recommendations provided a decrease in the General Fund appropriation of approximately $219,000 in FY 1994 and $184,000 in FY 1995. Minor fee increases were also recommended for the Hazardous Materials Transportation Program and the Vehicle Salesman Licensing Program to support the costs of those programs which currently exceed the revenue generated for the Highway Fund from those fees.
Included in the subcommittee's recommendations were several adjustments based upon revised price lists for fax machines and personal computers, as well as updated information concerning agency equipment and operating needs.
The subcommittee recommended several letters of intent to provide direction to the agency in areas of concern to the subcommittee. Specifically, letters of intent were recommended to request the Department provide for flexibility in Driver/Registration service office hours including continuation of Saturday services at both southern Nevada locations within existing resources, reports on motor carrier fee collections, policies on home storage of state-owned vehicles, reporting of forfeiture expenditures, and disbanding of the Office of Internal Affairs which was created without budgetary authority during the current biennium.
In the Drivers License Division, the subcommittee concurred with the Governor's recommendation for the addition of one new position in FY 1994 for a full-service office in Douglas County, as well as eleven new positions for the new West Las Vegas office scheduled to open on March 1, 1995. The subcommittee also recommends deleting a position approved by the 1991 Legislature for coordination of Drivers License Services in the rural areas of the state, since that position was assigned to the administrative offices in Carson City as the supervisor for the Driver Responsibility section and not as justified to the 1991 Legislature.
For the 1993-95 biennium, the highway fund appropriation as recommended by the Governor in support of the Commercial Drivers License program exceeded the estimated fees by approximately $500,000. The subcommittee recommended a reduction of five positions in this program to more closely align program costs with revenue projections. The agency concurs with this recommendation.
Additionally, AB 609 which established the CDL renewal fee required action by the 1993 Legislature. Currently, no renewal fee for commercial drivers licenses was provided in statute.
The subcommittee recommendation for the registration division concurred with the Governor's recommendation for the addition of 7 positions in FY 1994 to provide full service registration offices in Winnemucca and the Gardnerville/Minden areas, as well as twenty-six new positions in FY 1995 for the new west Las Vegas facility. Although recommended by the Governor for transfer to the Registration Division, the subcommittee recommended the boat registration function remain with the Department of Wildlife. In addition, the subcommittee recommended the Motor Vehicle Pollution Control Program remain the responsibility of the Registration Division rather than be transferred to the Department of Environmental Protection as recommended by the Governor.
The Executive Budget contemplated repealing the vehicle salesman licensing program in FY 1995. The subcommittee recommended reinstating the licensing program costs in the Registration Division's budget and the approval of SB 222, as amended, which increased fees deposited in the highway fund to support the costs of the Vehicle Salesman Licensing program.
In an attempt to reduce the increasing lines in the Department's offices, the subcommittee recommended legislation to encourage renewal by mail through the implementation of a $10 surcharge on vehicle registration transactions conducted in the Department's offices that would be eligible for mail in renewal. It was hoped that this surcharge would provide an incentive to utilize the mail-in renewal program which would reduce the number of customers and the waiting times in the Department's offices.
The subcommittee recommended legislation to revert the reserve balance in the Verification of Insurance Account to the Highway Fund at the end of each fiscal year. This recommendation would provide approximately $2.5 million in additional revenue to the Highway Fund for the 1993-95 biennium.
Based upon the recommendations of the Ways and Means Data Processing Subcommittee, the Automation Division's budget was recommended to be restored to support the existing 22 computer operator and programmer positions and associated operating costs.
For the budgets of the Nevada Highway Patrol, the subcommittee recommended the reinstatement of the computer and communications related positions, including restoring the budget of the Communications Subdivision, also known as the State Communications Board. The coordinator of communications currently budgeted in the Highway Patrol's budget was recommended to be transferred to the budget of the State Communications Board to isolate the costs of operating the state microwave system in one central budget. These recommendations were consistent with the direction of the Ways & Means Data Processing Subcommittee. The State Communications Board was envisioned to be part of the proposed Department of Information Services.
An issue that remained to be resolved dealt with the Highway Patrol Special Account. According to testimony, there was currently not a $6 fee collected for each $6 transferred to the Highway Patrol Special account from Interstate Motor Carriers whose registration fees were paid on a pro rata basis. The Departments of Motor Vehicles and Transportation were working with the Budget Office to resolve this funding issue. An adjustment to this budget might be required prior to the end of the 1993 Legislative session.
For the Hazardous Materials Transportation Program the subcommittee recommended the Highway Patrol increase the hazardous materials transport permit fees (by administrative regulation) to support the cost of the program which exceeded the estimated fees by approximately $300,000 for the 1993-95 biennium.
A letter of intent was recommended for the criminal history repository which would be required to implement the uniform crime reporting (UCR) program authorized by the 1991 Legislature. The Governor's recommendation would provide for reporting of crimes in seven major categories versus the enhanced capability of twenty-three categories as originally planned. The subcommittee recommended the Department provide a quarterly status report to the Interim Finance Committee on the implementation of the UCR program.
Currently all criminal justice related employment checks were exempt from both the state and FBI user fees. The subcommittee recommended legislation to require criminal justice applicants to pay the $15 state fee which would result in a revenue increase of approximately $65,000 over the biennium. In addition, the subcommittee recommended continuation of the policy to waive the state fee for foster care providers.
The subcommittee recommended the Investigations Division (NDI) should provide for lab contract services through the NDI budget for all state General Fund agencies and that local law enforcement agencies should be responsible for their own lab costs beginning July 1, 1993, as recommended by the Governor. Updated lab cost estimates provided by the agency indicated this proposal would result in additional General Fund savings of approximately $231,600 in FY 1994 and $230,500 in FY 1995. The subcommittee recommended approximately $66,000 in each year of the biennium be used to support position reclassification and overtime for the Investigations Division. The subcommittee also supported the approval of AB 327, currently pending in the Senate Committee on Transportation, which was introduced by the Nevada Sheriffs and Chiefs Association to pay laboratory costs that would no longer be paid through the Executive Budget.
In those budgets supported with Court Administrative Assessment, the subcommittee recommended an adjustment to correspond with the Ways and Means Committee closing actions on the budgets of the Judicial branch.
In combining the two departments the director's office budget was recommended to be reinstated, including 29 of 30 existing positions. The subcommittee recommended restoring both Deputy Director positions, which would allow deletion of the Southern Regional Manager position which had not been filled by the agency. One Deputy Director position recommended for reinstatement by the subcommittee was stationed in southern Nevada.
INTERNAL AFFAIRS
During the current biennium the Director established (without budgetary authority) an Office of Internal Affairs by assigning three investigator positions from the Highway Patrol Special Account, the Motor Vehicle Pollution Control budget and the Investigation Division budget. Estimates provided by the agency reflected an annualized cost of $178,280 to support the Office of Internal Affairs using a combination of General Funds, Highway Patrol Special Funds and Pollution Control Funds. The subcommittee recommended the Office of Internal Affairs be disbanded and the three positions currently assigned to it be eliminated within their respective budgets.
In addition, a letter of intent was recommended that an Internal Affairs Unit not be established in the future without prior approval of the Governor and the Legislature through the budget process.
AUTOMATION
The subcommittee felt a letter of intent was warranted in the area of automation to express concern about the actions taken by Director during the current biennium to consolidate the department's two data centers. The subcommittee recommended placing the operation of the Automation Division under the Department of Information Services. The subcommittee also recommended the Nevada National Guard be separated from the Department of Motor Vehicles and Public Safety and set up as a special purpose agency. This would require the transfer of two positions from the Motor Vehicle Administrative budget to the Nevada National Guard budget.
Mrs. Evans asked if it was possible to control the overtime charged by highway patrolman to the Highway Patrol budget. Mr. Price stated overtime was an inevitable part of the job. Mr. Ghiggeri noted a substantial payment for overtime had been allocated to the Chief of the Highway Patrol.
Mrs. Evans asked what the agency's justification was for an Office of Internal Affairs. Mr. Price explained for the most part, the subcommittee recognized the need for an Office of Internal Affairs in a law enforcement setting; however, it was difficult to justify such an office for civil service employees. The subcommittee was concerned about public complaints being handled by the Office of Internal Affairs rather than the employees' direct supervisors. Mr. Price asserted it was illegal to reallocate monies from several different budget accounts to form the office. He noted during orientation sessions at DMV/NDOT employees were informed 5th amendment rights were void during Office of Internal Affairs investigations.
Ms. Giunchigliani recommended a letter of intent which specified the proper use of the internal auditor be submitted to DMV/NDOT.
Ms. Giunchigliani noted public sector police officers were allocated call-back pay instead of overtime pay. She asked if a similar policy could be implemented in the Nevada Highway Patrol.
Ms. Giunchigliani asked if registration fees could be paid by credit card. Ms. Baker indicated the subcommittee was awaiting information from the agency and the State Treasurer's office.
Mr. Perkins asked if AB 327 would reinstate funding which had been eliminated in the Executive Budget for the regional forensic laboratories. Mr. Price affirmed AB 327 reinstated funding and this was the reason the subcommittee supported the bill.
Speaker Dini asked the fiscal impact to each county if AB 327 did not pass. He noted additional costs transferred to the counties from the state, such as increased sales tax collection fees and elimination of the juvenile subsidy. Ms. Baker indicated according to the Nevada Sheriffs and Chiefs Association, if there was 40 percent compliance on the fees recommended in AB 327, forensic contracts would be adequately funded. Speaker Dini noted the scenario assumed AB 327 would pass.
Mr. Humke asked what the Office of Internal Affairs replaced. Mr. Price indicated it replaced the Attorney General's criminal investigations on employees. In normal labor/management relations the office circumvented the supervisors role in disciplinary action. Mr. Humke commended the subcommittee for disbanding the Office of Internal Affairs.
Mr. Humke asked where the revenue from the $10 surcharge on renewal fees was located. Ms. Baker explained because the impact of the surcharge could not be estimated, it was not included as a revenue source at this time. Mr. Humke asked if the DMV had considered a public relations campaign to encourage mail-in registration. Ms. Baker noted although renewal statements included a reminder that mail in registration saved time, only approximately 35 percent of the public complied. She added the surcharge would not be charged as long as the registration form was postmarked by the due date. One problem, however, was that Las Vegas Metro would still issue "fix-it" tickets, with no financial impact, to citizens awaiting registration confirmation.
Mr. Humke asked if vehicle home storage was a problem. Mr. Price replied personal use of state vehicles was widespread.
Mrs. Williams asked how much the Chief of the Highway Patrol was paid in overtime compensation as a result of the Benzler case. She asserted there should be certain administrative positions which should not be paid overtime. Mr. Price did not know the exact amount of compensation the Chief was paid.
Mrs. Chowning favored increased fees to vehicle dealer licensees. She cited an incident where customers leased a car and were led to believe they were purchasing the car. As a result insurance fees were exorbitant. She advocated teaching dealers regulations for bilingual advertising. She asked if any dealers licenses had been revoked or denied over the last biennium. Mr. Price replied the subcommittee had not received a report on the subject.
Ms. Tiffany evaluated the data processing system within the Department of Motor Vehicles and Public Safety. She noted the two agencies had merged data processing functions into an Information Services Division. The subcommittee met resistance when requesting the separation of the data processing functions into two separate functions. She noted personnel from DMV data processing were assigned to Public Safety data processing duties. Non-criminal records were being put into the Public Safety system. Ms. Tiffany stated DMV was being cannibalized in the area of data processing. The subcommittee considered placing DMV under the supervision of the proposed Department of Information Services over the next biennium. Any further action would be taken through the data processing subcommittee.
MR. PRICE MOVED TO CLOSE THE DMV/NDOT BUDGET AS RECOMMENDED BY THE SUBCOMMITTEE, TO EXCLUDE THE RECOMMENDATION TO MAKE THE NEVADA NATIONAL GUARD A SPECIAL PURPOSE AGENCY.
MRS. EVANS SECONDED THE MOTION.
Mr. Heller commended the subcommittee for a job well done.
MOTION CARRIED UNANIMOUSLY BY VOICE VOTE.
BUDGET CLOSED.
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SUBCOMMITTEE REPORT ON TRANSPORTATION
Mr. Price reported the recommendations of the subcommittee on the Department of Transportation
TRANSFER FROM AGRICULTURE OF WEIGHTS AND MEASURES FUNCTION
The Governor's budget recommended the Department of Transportation assume responsibility from the Department of Agriculture for testing and licensing weighing and measuring devices. Twelve weights and measures employees were recommended to be transferred from agriculture to transportation, thereby shifting a portion of the cost of this program from the state General Fund to the Highway Fund.
When closing the Department of Agriculture's budgets, the full committee received testimony from Legislative Counsel Bureau staff attorneys indicating that use of Highway Funds to support the Weights and Measures Program would not be constitutional. At that time, the Committee determined that the Weights and Measures Program should be retained in the Department of Agriculture.
The subcommittee recommended 12 weights and measures employees be transferred back to the Department of Agriculture, which was in keeping with the way agriculture's budget was closed.
DATA PROCESSING AND TELECOMMUNICATIONS POSITIONS
The major impact of the Governor's plan to reorganize data processing services on the Department of Transportation (NDOT) was the transfer of its Data Processing Division to the Information Technology Services Division, including 31 of NDOT's data processing employees. Nine of NDOT's telecommunications workers would also have been transferred to Information Technology Contract Services. Some of these 40 employees might not have been retained by the proposed Division of Information Technology Services because the new agency had to realize reorganization savings of $1,086,047 in FY 1994 and $2,234,471 in FY 1995.
Based on actions taken by the Data Processing subcommittee, it was recommended that all 40 data processing and telecommunications employees be retained by the Department of Transportation during the 1993-95 biennium.
CONTRACTING WITH FORMER EMPLOYEES
The fiscal division asked the Department of Transportation for the number of former employees currently under contract with the agency. Director Dull responded that NDOT does not presently have any former employees under contract; however, the agency does contract with consultant firms that have hired some of NDOT's former employees.
Letter of intent: NDOT should refrain from contracting with former employees to perform the same work they did while employed by NDOT.
RECOMMENDED EQUIPMENT PURCHASES
The subcommittee chose not to require NDOT to submit a detailed plan for expenditure of $1.5 million of operational equipment in each of the next two years. The subcommittee did not make any recommendations regarding the NDOT Director's authority to approve major purchases without the approval of his board.
ADEQUACY OF OPERATING COSTS
Only minor increases have been approved in the agency's operating category in the last few years and were recommended for the next two years. In view of this harsh winter and the resulting deterioration of road surfaces and the Department's ambitious construction program, additional operating funds were recommended. The Governor provided approximately $1.5 million more each year in operating expenses than NDOT requested.
The subcommittee recommended the addition of $519,417 in FY 1994 and $822,753 in FY 1995 to increase the operating category to maintain funding at the current year's work-program level.
HOME STORAGE OF AGENCY VEHICLES
The Fiscal Division requested, for the committee's review, information regarding each employee that takes a vehicle home. The majority of vehicles stored at employees' homes were those used by highway maintainers. There were a few cases, however, where the employee failed to provide any detail on the number of "callbacks" and the main purpose for driving an agency vehicle appeared to be a long commute to and from work.
Letter of intent: home storage of vehicles should be restricted to only those employees that were frequently called back to work; home storage of agency vehicles should not be used to assist those who commute long distances between work and home.
BOND PROJECTS
The budget contemplates $80 million in bonded projects the first year of the biennium and $40 million the second year. The bonds would be financed over five years, with interest and 5 percent of the principal paid with state Highway Funds and 95 percent of the principal paid with federal funds. Projects to be financed by the sale of $120 million of bonds next biennium were as follows: US 395 in Reno south to the Brown School; the Spring Mountain interchange in Las Vegas; and the Las Vegas "spaghetti bowl," the interchange between U.S. 95 and I-15.
State-funded construction projects were budgeted at $127,483,388 in FY 1994 and $102,508,588 in FY 1995. These levels were significantly higher than the $43.8 Million spent in FY 1992 or the $54.7 million FY 1993 work program.
NEVADA BICYCLE ADVISORY BOARD
The Department of Transportation requested that expenditures for the Nevada Bicycle Advisory Board be placed into a separate category in the agency's budget to facilitate tracking of that activity's expenditures.
Assembly bill 517 of the 66th session created a position ("motor vehicle recovery and transportation planner") within NDOT. The position was supported by 65 percent of a 50-cent fee on drivers' licenses.
A separate category (#24) for the program's expenditures, except for the payroll costs of the transportation planner, should be established.
HONOR CAMP CREW PAYMENTS
NDOT has stated that payments to honor camp crews might be increased from $118,865, the amount expended in FY 1991-92, to the work-program level of $225,000 if honor camp crews were available.
The subcommittee increased the amount of funding budgeted for NDOT's use of honor camp crews, subject to the honor camps remaining open.
PERFORMANCE INDICATORS
For many of the Department's performance indicators, national averages or industry standards should be included to provide the Legislature with a more thorough understanding of Nevada's performance and its ability to respond to growth. Also, numbers and percentages from past years should be included to provide background upon which current performance might be measured.
The subcommittee encouraged NDOT to work over the coming biennium to improve their performance indicators.
MR. MARVEL MOVED TO CLOSE THE NEVADA DEPARTMENT OF TRANSPORTATION BUDGET AS RECOMMENDED BY THE SUBCOMMITTEE.
MR. HELLER SECONDED THE MOTION.
MOTION CARRIED UNANIMOUSLY BY VOICE VOTE.
BUDGET CLOSED.
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Jim Hawke, Director, Department of Emergency Management (DEM), presented information about costs associated with DEM providing administrative support to the State Emergency Response Commission (SERC) (Exhibit C). The Governor recommended in the Executive Budget the consolidation of DEM and SERC, with DEM providing administrative support to SERC. Mr. Hawke informed the committee that the Senate Finance Committee rejected the Governor's proposal and recommended SERC and DEM remain separate, independent agencies but recommended the transfer of SERC funds to DEM for one half-time earthquake response planning position and removal of funding for the Hazardous Mitigation Officer.
Mr. Hawke reviewed Exhibit C, which identified three cost scenarios outlining (1) the Governor's recommendation, (2) the Governor's recommendation without funding for the Hazardous Mitigation Officer and (3) SERC as an independent agency. He noted revenues from fees and interest and the balance forward in all three scenarios would be equal. Mr. Hawke illustrated expenditures for General Fund Paybacks of $5,000; Emergency Operations of $30,000; HMTUSA Grants of $102,000; revenue from Ways and Means Subcommittee on Transportation recommendation to increase hazardous materials transport fees of $27,747; and the Tonnage Fees of $50,000 would remain equal. However, administrative costs for each of the scenarios were as follows: $136,383 for the Governor's recommended budget; $103,260 for the Governor's recommendation without funding for the Hazardous Mitigation Officer; and $122,853 for SERC as a independent agency.
Mr. Hawke explained in FY 1992 SERC issued grants totaling $180,000, which were increased to $190,000 in the current year. He projected the SERC grant allocation would be $200,000 for all of the budget scenarios. However, the reserves would continue to decline if SERC and DEM remained independent. In the Governor's proposal reserve amounts would be $169,772 at the end of FY 1994 and $130,034 in FY 1995. Mr. Hawke urged the committee to approve the Governor's recommendation for the consolidation of SERC and DEM.
Speaker Dini commended Mr. Hawke and advocated closing the budget as the Governor recommended but excluding funding for the Hazardous Mitigation Officer.
ETHICS COMMISSION - PAGE 10
Chairman Arberry asked for staff recommendations. Mr. Stevens indicated the agency requested a full-time Deputy Attorney General. The Deputy Attorney General had been included in the Attorney General's budget.
MRS. WILLIAMS MOVED TO CLOSE THE ETHICS COMMISSION BUDGET AS RECOMMENDED BY THE GOVERNOR.
MR. MARVEL SECONDED BY THE MOTION.
MOTION CARRIED UNANIMOUSLY. MRS. CHOWNING, MR. PRICE, MR. PERKINS AND MS. GIUNCHIGLIANI WERE ABSENT.
BUDGET CLOSED.
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ATTORNEY GENERAL ADMINISTRATIVE FUND - PAGE 17
Chairman Arberry asked for staff recommendations. Mr. Stevens asked how the committee wanted to proceed. He noted several new positions were recommended. Chairman Arberry asked how the positions would be funded. Mr. Stevens replied funding for the positions would be through a combination of fees, federal funds and a General Fund appropriation. He noted the Governor's recommendation maximized funding from non-General Fund sources for the positions. The solicitor general position and several legal researcher positions were recommended to be funded exclusively from the General Fund.
Mr. Marvel asked the status of the bills which would implement fraud units. Mr. Stevens could not answer the question. He recommended closing the budget prior to passage of those bills because of time constraints. He noted the budgets could be modified if the bills impacted the budget.
Mr. Humke asked if SB 316 recommended the SIIS fraud unit be located in the Attorney Generals budget.
Chairman Arberry postponed action on the budget.
TORT CLAIM FUND - PAGE 24
Chairman Arberry asked for staff recommendations. Mr. Stevens said the Tort Claim Fund currently administered by the Department of Administration was recommended by the Governor to be transferred to the Attorney General along with two staff members.
MR. SPITLER MOVED TO CLOSE THE BUDGET AS RECOMMENDED BY THE GOVERNOR.
MRS. WILLIAMS SECONDED THE MOTION.
Ms. Tiffany asked if the actuarial study recommended that funding be increased. Mr. Stevens noted the reserve levels were increased. An actuarial analysis from the Risk Management Division revealed the reserve requirements for the fund. He noted in the past the actuarial requirements were exceeded. Mr. Thorne clarified when the amount budgeted for Tort Claim Liability claims payment was exceeded, then claims were paid out of the Statutory Contingency Fund, which was comprised of General Funds. The actuarial report conducted at the request of the Risk Management Division revealed an increase in the reserve category could prevent the need to use the Statutory Contingency Fund and thereby decrease potential demands on the General Fund. Mr. Stevens concurred with the explanation given by Mr. Thorne.
THE MOTION CARRIED UNANIMOUSLY BY VOICE VOTE. MR. PRICE AND SPEAKER DINI WERE ABSENT.
BUDGET CLOSED.
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WICHE ADMINISTRATION - PAGE 172
Chairman Arberry deferred action on the budget.
WICHE LOAN AND STIPEND - PAGE 176
Chairman Arberry deferred action on the budget.
INSURANCE REGULATION - PAGE 339
Chairman Arberry asked for staff recommendations. Mr. Stevens said based on previous action taken by the Assembly Committee on Ways and Means and the Senate Finance Committee, the Insurance Division would become a separate division. The adjustments to the account were as follows: (1) retain the Insurance Commissioner position; (2) retain the account technician position to collect license and exam revenues; and (3) remove the purchasing assessment from the account. The cost of the adjustments was $82,000 in FY 1994 and $117,000 in FY 1995. Based on the Governor's recommendation to fund a substantial portion of the budget from the Insurance Examiners Fund, staff recommended funding the required adjustments through the Insurance Examiners Account.
MR. SPITLER MOVED TO CLOSE THE INSURANCE REGULATION BUDGET AS RECOMMENDED BY STAFF.
MR. MARVEL SECONDED THE MOTION.
MOTION CARRIED UNANIMOUSLY BY VOICE VOTE. SPEAKER DINI WAS ABSENT.
BUDGET CLOSED.
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INSURANCE FRAUD - PAGE 347
Chairman Arberry deferred action on the budget.
SELF INSURED - WORKERS COMPENSATION - PAGE 355
Chairman Arberry asked for staff recommendation. Mr. Stevens noted only three positions existed in the budget and salary of the self-insurance coordinator was reflected as reorganizational savings. He stated the committee had to decide whether the account could function without the professional position.
Ms. Giunchigliani reminded the committee the duties of the self-insurance coordinator would be given to the Department of Industrial Relations (DIR) if the recommendations of the Assembly Labor and Management Committee were approved.
Chairman Arberry deferred action on the budget.
INSURANCE EXAMINERS - PAGE 358
Chairman Arberry asked for staff recommendations. Mr. Stevens noted the Governor recommended utilizing funds from the Insurance Examiner's Account to substantially fund the Insurance Regulation Account. He explained a new program which would charge companies exam fees of $9 per day had been proposed by the Department of Insurance to fund an examiner education program. The program was designed to generate approximately $60,000 per year and provide up to $2,400 per year per examiner for continuing education. The committee must decide whether it was appropriate to subsidize education for contract insurance examiners.
Mrs. Williams asked if the state gave any other profession continuing education assistance. Mr. Stevens replied group course funding was available within the Attorney Generals Office and the Gaming Control Board. However, funds were provided on an individual basis.
MRS. WILLIAMS MOVED TO CLOSE THE INSURANCE EXAMINERS BUDGET AS RECOMMENDED BY THE GOVERNOR.
Mr. Humke asked if the state funded education for contract employees. Mr. Stevens was not aware of education subsidies for any other contract employees.
Mr. Stevens stated because of the actions taken previously to restore the Insurance Commissioner and the Accounting Technician in the Insurance Regulation Account, funds would have to be transferred from this account.
Mrs. Evans asked why a large reserve was necessary in the account. Mr. Stevens agreed the $500,000 reserve balance was large. The Governor recommended utilizing $200,000 of the reserve balance to finance a portion of the administrative account within the Department of Insurance.
MRS. WILLIAMS WITHDREW HER MOTION.
MS. GIUNCHIGLIANI MOVED TO CLOSE THE INSURANCE EXAMINERS BUDGET TO PROHIBIT INSURANCE EXAMINERS EDUCATION SUBSIDY PROGRAM AND TO INCLUDE A TRANSFER OF $136,000 IN FY 1994 AND $172,000 IN FY 1995 TO THE INSURANCE REGULATION BUDGET.
MR. PERKINS SECONDED BY THE MOTION.
MOTION CARRIED UNANIMOUSLY BY VOICE VOTE.
BUDGET CLOSED.
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INSURANCE INSOLVENCY FUND - PAGE 368
Chairman Arberry asked for staff recommendations. Mr. Stevens said staff had no recommendations for the account.
Ms. Giunchigliani asked the purpose of the fund. Mr. Stevens explained the fund was created for the purpose of paying claims of insolvent self-insured employers.
Ms. Giunchigliani asked if the funding for the budget was created through assessments. Mr. Stevens confirmed assessments generated funds for the account.
Chairman Arberry deferred action on the budget.
LABOR RELATIONS - PAGE 390
Chairman Arberry asked for staff recommendations. Mr. Stevens indicated based on committee action to retain the Employee Management Relations Board (EMRB), a number of adjustments needed to be made to the account. Adjustments were as follows: (1) remove $18,145 in FY 1994 for commissioner and clerical salaries; (2) remove board and commission pay at $3,600 per year; (3) remove $4,370 for in-state travel in each year of the biennium; (4) delete $3,889 in operating expense; and (5) delete $1,665 in building rent. Mr. Stevens stated all of the above adjustments would be included in the EMRB account. He asked the committee to consider funding Apprenticeship Board Commission salaries of $1,920 in each year of the biennium. No funding had been recommended by the Governor. If all of the recommendations were implemented a reduction to the General Fund of $29,752 in FY 1994 and $6,053 in FY 1995 would occur. However, the savings would be utilized to reinstate the EMRB.
Ms. Giunchigliani advocated funding for the Apprenticeship Board commissioners. She also advocated additional staffing for EMRB in order to decrease the backlog. Mr. Stevens replied the EMRB did not request additional staffing. Ms. Giunchigliani asked if the EMRB could provide a request for staff. Mr. Stevens would make the request.
Mrs. Evans asserted agency requests in this account and others were phoney because agencies were not permitted to make legitimate requests to enable them to meet the budget targets established by the Administration. Mr. Thorne did not agree with Mrs. Evans statements and asserted budget targets were assigned to the Governor's recommendation portion of the budget and not to the agency request.
Chairman Arberry deferred action on the budget.
ATHLETIC COMMISSION - PAGE 569
Chairman Arberry asked for recommendations from the Athletic Commission subcommittee. Mr. Spitler stated the subcommittee recommended an increase in funding during the next biennium. The Athletic Commission's appropriation was reduced by 20 percent in FY 1993 and in addition the Executive Director position remained vacant resulting in a 46 percent overall reduction in funds during the current fiscal year. Funds had not been recommended by the Governor to allow commissioners to travel to world boxing conventions nor was funding provided to allow the Commission to belong to the world boxing organizations such as the World Boxing Association or the World Boxing Council. Funding had not been allocated to reimburse commissioners for meetings they attend and travel costs related to Athletic Commission duties were, for the most part, borne by the Commissioners themselves. The subcommittee did not feel this was appropriate. Major boxing events generate substantial amounts of gaming and non-gaming revenue for the state. Mr. Spitler asserted without a strong and adequately funded Athletic Commission, this major source of economic activity would be placed in jeopardy.
The subcommittee recommended the approval of an additional General Fund appropriation of $56,113 in FY 1994 and $51,706 in FY 1995. This would be offset by license fees anticipated to generate approximately $32,550 per year. Therefore the net increase to the General Fund was approximately $20,000 per year.
The following areas were recommended for increased funds. The subcommittee recommended a salary increase from $46,000 to $53,000 for the Executive Director. Salaries paid to similar positions ranged from $56,000 in Florida to $84,000 in New Jersey. In addition it was recommended the position be authorized effective August 1, 1993 rather than October 1, 1993 as funded in the Executive Budget. The additional costs of these recommendations was approximately $16,100 in FY 1994 and $8,100 in FY 1995.
The Attorney General recommended the Athletic Commission have a half-time investigator on staff to conduct background checks as required for managers and promoters. The additional cost of the position was $17,775 in FY 1994 and $23,862 in FY 1995.
Additional recommendations were made concerning the board salaries, out-of-state travel, in-state travel, and the overall operating costs of the Athletic Commission. The subcommittee recommended a $2,500 allocation for the purchase of a new personal computer.
Ms. Giunchigliani asked if the increase in fines had any impact on the Athletic Commission's budget. Mr. Stevens explained fines assessed by the Athletic Commission were allocated to the General Fund.
MS. GIUNCHIGLIANI MOVED TO CLOSE THE ATHLETIC COMMISSION BUDGET AS RECOMMENDED BY THE SUBCOMMITTEE.
MR. MARVEL SECONDED THE MOTION.
MOTION CARRIED UNANIMOUSLY BY VOICE VOTE.
BUDGET CLOSED.
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RESPECTFULLY SUBMITTED:
_________________________
C. Dale Gray
Committee Secretary
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Assembly Committee on Ways and Means
May 24, 1993
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