MINUTES OF THE
ASSEMBLY COMMITTEE ON WAYS AND MEANS
Sixty-seventh Session
May 27, 1993
The Assembly Committee on Ways and Means was called to order by Chairman Morse Arberry, Jr., at 8:00 a.m., on Thursday, May 27, 1993, in room 352 of the Legislative Building, Carson City, Nevada. Exhibit A is the Meeting Agenda.
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
AB 20INCREASES AMOUNTS PAID TO CERTAIN PUBLIC OFFICERS AND EMPLOYEES AS TRAVEL AND SUBSISTENCE ALLOWANCES.
Bob Gagnier, State of Nevada Employees Association (SNEA), advocated the passage of AB 20 which would increase the mileage and per diem allowance paid to state employees. The bill provides the following changes: (1) increases state per diem rate from $58 to $64; (2) increases out-of-state meal allowance from $24 to $26 per day; (3) increases mileage allowance from $.24 to $.27 per mile; and (4) increases mileage allowance for personal vehicles from $.12 to $.15 per mile.
Mr. Gagnier noted the per diem rate was not sufficient to pay room allowances in most parts of the state and in many instances state employees were being forced to use personal funds to conduct the business of the state. He noted the per diem rate was last changed in 1989.
Mr. Gagnier explained if employees were traveling less than one day the rate was broken down into the following: (1) room, $34 and (2) meals, $24.
Mr. Gagnier stated the mileage rate had not been increased since 1981. The proposed mileage increase to $.27 would make state milage rates in tandem with IRS milage rates. He argued increased costs associated with maintaining and repairing vehicles were two reasons to increase mileage rates paid to employees who use personal vehicles for state business.
Mr. Gagnier commented in the past when increases to the per diem rate occurred, no additional monies were appropriated to agencies. Instead agencies were required to absorb additional travel costs which resulted in less travel for employees. He asserted the fiscal impact of AB 20, approximately $250,000, should not prevent the Legislature from approving increased per diem rates. He asserted since state employees had not received cost-of-living increases and were paying more for health insurance benefits, they should not absorb additional travel expenses when on state business.
Mr. Marvel asked the price of gas in 1981. Mr. Gagnier said he would have to research the information.
Mr. Spitler asked if employees could choose to use personal vehicles when on state business. Mr. Gagnier explained if a motor pool vehicle was available the agency could preclude employees from using personal vehicles. He asserted personal vehicle charges were less expensive than motor pool charges. However, most agencies preferred employees use motor pool vehicles. He noted the state had deferred the purchase of new vehicles due to budget constraints. Therefore, fewer motor pool vehicles were available for use. Consequently, state employees were more likely to use personal vehicles than in the past.
Mr. Spitler asked if employees were required to show that they were fully insured in order to use a personal vehicle on state business. Mr. Gagnier replied employees were not required to show proof of insurance. Mr. Spitler asked if an uninsured state employee was in an accident while traveling on state business who would be liable. Mr. Gagnier speculated the liability would fall on both the state and the employee. Mr. Spitler asserted personal vehicles on state business should be reimbursed at the same rate as motor pool vehicles. Additionally, when motor pool vehicles were available employees should not be permitted to use their own vehicles. Mr. Gagnier explained state rules preferred employees use motor pool vehicles however, state vehicles were frequently unavailable. He noted many state employees preferred to use personal vehicles on long trips because of their comfort and reliability.
Mr. Heller asked how the travel revolving fund would be increased to compensate for increased per diem rates. Mr. Gagnier replied increasing the travel revolving fund required separate legislation. He approximated the amount in the fund at $180,000. According to information from the State Treasurer, serious problems existed in the account because agencies did not repay advances in a timely manner. Increased funding to the travel revolving fund would give agencies additional incentive to delay repayment to the account. Mr. Heller commented employees had been forced to cancel travel requests because of cash flow problems in the account. Mr. Gagnier had been informed by the State Treasurer that agencies currently owed $170,000 to the travel revolving account.
Mr. Price asked if per diem allocations for both the legislative branch and state employees were covered under the same statute. Mr. Gagnier explained the legislative branch received two separate per diem rates; one during legislative sessions and the other during the interim between sessions. He noted the legislative distribution of the per diem rate for meals and lodging differed from that of state employees.
Ms. Giunchigliani asked if the state could contract with hotels for special rates. Mr. Gagnier replied contract rates had been established in the past. However, because of restrictions the rates were inconsistent and ineffective.
Ms. Giunchigliani asked if the state had a policy to increase per diem rates when federal milage rates increased. Mr. Gagnier replied the state had not enacted such a policy.
Speaker Dini explained the legislative per diem rate followed the IRS code. Ms. Giunchigliani advocated that state per diem rates also follow the IRS code.
Mr. Gagnier asserted when employees traveled to Laughlin, the room rates were much higher than the per diem rate and employees were required to fund the difference. He asserted it was grossly unfair that agencies made reservations for employees and failed to reimburse them for these additional expenses.
Mr. Humke asked if SNEA sponsored AB 20. Mr. Gagnier confirmed SNEA sponsored the bill. Mr. Humke asked how many SNEA members traveled. Mr. Gagnier explained a number of employees traveled on day trips and others traveled full-time.
Ms. Tiffany asked if SNEA had negotiated hotel room rates. Mr. Gagnier reiterated the Budget Division attempted to negotiate rates but they were in large part ineffective. Ms. Tiffany encouraged negotiated room rates. While working in the private sector she was given a per diem rate of $25 and $.12 per mile for personal vehicle reimbursement. She argued current reimbursement rates for state employees were similar to private industry. Ms. Tiffany asserted per diem rates did not need to be increased, however, the state did need to negotiate room rates. Mr. Gagnier replied the hotels did not want to relinquish rooms at negotiated rates during holidays, peak season and conventions.
Mrs. Williams agreed conventions and peak tourist seasons precluded the state from negotiating room rates. She argued at times it was difficult to get a room at the Motel Six. Mr. Gagnier replied it was even difficult to stay at the Motel Six because of its popularity with tourists in Las Vegas.
Mrs. Evans asked if employees were informed during interviews that they would be required to incur some travel expenses because the per diem rates did not reflect market rates. Mr. Gagnier speculated each agency would have a different policy. He explained job announcements for positions which required travel included information about vehicle requirements and the amount of travel involved. However, job announcements did not include reimbursement information and travel became expensive for employees such as social workers and other case workers.
Mrs. Evans asked if employees could refuse to travel based on the expense of subsidizing the state. Mr. Gagnier explained employees must have vehicles if the job announcement required a vehicle. He noted a grievance proceeding which involved an auditor who wished to use a motorcycle rather than a vehicle.
Mrs. Evans concluded employees were subsidizing the state for travel expenses. She was concerned about the disparity between the per diem rate for legislators and state employees. She asserted legislators should not be receiving a higher per diem rate than state employees.
Mr. Spitler asserted AB 20 should not have been proposed by SNEA instead it should have sponsored by the Administration.
AB 18Creates a committee on catastrophic leave and requires Department of Personnel to establish account for catastrophic leave.
Mr. Stevens introduced an amendment to AB 18. He explained a bill on catastrophic leave passed in 1989 and would sunset in 1993. If catastrophic leave was to continue over the next biennium, legislation had to be passed in the 1993 session. He explained AB 18 established a committee. He explained the proposed amendment would eliminate the proposed committee. It would also change Section 1, subsection 4 to allow 120 hours to be transferred by employees in a calendar year rather than 80 hours. Additionally, Section 1, subsection 5 would be amended to allow the transfer of hours between employees of any branch of government.
Mrs. Williams explained she sponsored the original catastrophic leave bill. She noted the success of the catastrophic leave program and urged the committee to remove the sunset provision.
Speaker Dini asked if the amendment removed the $40,000 data processing allocation. Mr. Stevens explained a number of requirements were placed on the Department of Personnel in the original bill. Those requirements had been eliminated. The appointing authority designated specific agencies to track catastrophic leave. The amendment had been provided and approved by both the Department of Personnel and SNEA.
SPEAKER DINI MOVED TO AMEND AND DO PASS AB 18.
MRS. WILLIAMS SECONDED THE MOTION.
MOTION CARRIED UNANIMOUSLY BY VOICE VOTE.
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AB 432 Makes various changes regarding administration of state welfare programs.
Mrs. Evans explained AB 432 had been submitted by the Welfare Division and would adjust statutory language to reflect language used in federal statute. The fiscal note, $1,200, associated with AB 432 provided per diem funding to the medical care advisory committee. The Welfare Division indicated costs could be absorbed through the Medicaid in-state travel budget. Therefore the Medicaid budget would not need to be augmented.
MRS. WILLIAMS MOVED DO PASS AB 432.
MS. TIFFANY SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY BY VOICE VOTE.
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AB 561 Makes various changes relating to appraisers of real estate.
Mr. Stevens explained AB 561 had been submitted by the Administration and related to real estate appraisal fees. The bill would change the accounting procedure relating to real estate appraiser dues to the national organization. It would also allow the dues to be paid biannually rather than annually.
MRS. WILLIAMS MOVED DO PASS AB 561.
MS. TIFFANY SECONDED THE MOTION.
MOTION CARRIED UNANIMOUSLY BY VOICE VOTE.
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SB 238 Makes supplemental appropriation to the Supreme Court of Nevada.
Mr. Stevens explained the bill had been amended and passed out of the Assembly Committee on Ways and Means on May 12, 1993. The amendment lowered the appropriation from $7,000 to $4,333 over the next biennium. The amendment was based on a memorandum from Don Mello, Administrator, Administrative Office of the Courts, which indicated $4,333 was the amount needed for the Commission on Judicial Selection to complete its duties this fiscal year. The Senate Finance committee did not concur with the amendment.
MR. HUMKE MOVED THE ASSEMBLY COMMITTEE ON WAYS AND MEANS NOT RECEDE FROM ITS AMENDMENT TO AB 238.
MS. TIFFANY SECONDED THE MOTION.
MOTION CARRIED UNANIMOUSLY BY VOICE VOTE.
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TELEMARKETING SUBCOMMITTEE REPORT
Mr. Humke suggested the parties meet to establish their position and draft a bill for submittal to the committee for appropriate budget action.
Mrs. Evans explained the issue of telemarketing was raised during budget closing in the Consumer Affairs Committee. Presently two telemarketing bills existed, one had been introduced by the Senate the other by the Assembly. The Senate bill and its fiscal implications would be heard by the Senate Finance Committee at a later date.
The subcommittee recommended members of the telemarketing industry, Attorney Generals Office, Consumer Affairs and Legislative Counsel Bureau Staff consolidate the two bills and submit legislation at a later date. The bill should propose the agency which would regulate the telemarketing industry for the state, its staffing requirements and its fiscal impact.
Mr. Price noted the Taxation Committee had a bill draft request which would tax the telemarketing industry. He offered the Taxation Committee's cooperation with the efforts of the Ways and Means Committee.
BUDGET CLOSINGS
MOTION PICTURES - PAGE 593
Chairman Arberry deferred action on the budget.
COMMISSION ON TOURISM - PAGE 602
Chairman Arberry deferred action on the budget.
COMMITTEE TO HIRE THE HANDICAPPED
Chairman Arberry asked for staff recommendations. Mr. Stevens explained $31,813 in FY 1994 and $41,275 in FY 1995 was recommended to be derived from gifts, donations and charges for training.
Mrs. Williams asserted generating those amounts in private funds was infeasible. However, since no money was available, there was no other alternative but to adopt the Governor's recommendation.
MRS. WILLIAMS MOVED TO APPROVE THE COMMITTEE TO HIRE THE HANDICAPPED BUDGET AS RECOMMENDED BY THE GOVERNOR.
MR. MARVEL SECONDED THE MOTION.
THE MOTION CARRIED. MRS. EVANS VOTED NO. MS. GIUNCHIGLIANI WAS ABSENT.
BUDGET CLOSED.
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HAZARDOUS MATERIAL TRAINING CENTER - PAGE 1440
Chairman Arberry asked for staff recommendations. Mr. Stevens noted the Hazardous Materials subcommittee report and pending bills could postpone action on the budget. The Hazardous Waste fee, an agency transfer totaling $459,000, was not anticipated to meet projected levels. Current year Hazardous Materials Fees were projected to be $320,000, $70,000 of which was in reserves. Fee projections for each year of the biennium were $250,000. As a result reserves would be decreased from $422,000 listed in the Executive Budget to $2,304.
Chairman Arberry deferred action on the budget.
WILDLIFE - PAGE 1603
Chairman Arberry asked for staff recommendations. As a result of the Data Processing Subcommittee recommendations, the communications positions and their related in-state travel, operating and training expenses were restored to the budget. The restoration would reduce the communications line item by $97,382 in FY 94 and $79,333 in FY 95.
The Governor recommended a Land Use Planner II position be funded by a General Fund allocation for the Department of Wildlife. The Natural Resources Subcommittee recommended the position be included in the Director's Office of the Department of Conservation and Natural Resources, thus eliminating the position in the Wildlife budget.
Based on the Department of Motor Vehicles Subcommittee recommendations, the Department of Wildlife would retain the boat registration function. Therefore, six related positions would be restored in the Department of Wildlife budget.
Adjustments to revenues included: (1) restoration of the Dingell Johnson monies, $108,120 in FY 94 and $36,832 in FY 95; (2) transfer from boat, $331,553 in FY 94 and $331,877 in FY 95, which matched the expenditure for retaining the boat registration function; (3) reduce the General Fund appropriation, -$38,981 in FY 94 and -$37,718 in FY 95, which resulted from the transfer of the Land Use Planner to the Directors Office; and (4) balance forward, $171,757, as an adjustment.
SPEAKER DINI MOVED TO APPROVE THE WILDLIFE BUDGET AS RECOMMENDED BY THE STAFF.
MR. MARVEL SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY. CHAIRMAN ARBERRY AND MS. GIUNCHIGLIANI WERE ABSENT.
BUDGET CLOSED.
WILDLIFE - BOATING PROGRAM - PAGE 1611
Vice-Chairman Spitler asked for staff recommendations. Mr. Stevens explained adjustments to expenditures: (1) retention of the boat registration functions; and (2) communications personnel expense of $51,553 in FY 94 and $51,877 in FY 95.
Mr. Thorne asked if a corresponding decrease in communications would fund the personnel expense. Mr. Stevens replied the position was paid out of the wildlife account and was also boat related. Therefore, the money would be transferred from the boat account to the wildlife account with corresponding reductions to the communications line item and a corresponding adjustment to the wildlife account.
Mr. Stevens recommended the building improvements item, $130,270, be eliminated. In addition he recommended a letter of intent to the Parks Division and Department of Wildlife requesting a list of improvements to boating access in the state parks over the next biennium. Building Improvements could be transferred to the CIP projects category.
Mr. Stevens explained Remit to Federal Government, $270,000, was an error, the allocation should be listed as CIP Structure Improvements. All of the recommendations would be balanced to Improvements, -$62,796 in FY 94 and -$336,186 in FY 95.
Mr. Stevens explained the recommendations assumed revenue from the Motor Boat Fuel Tax would be split 50/50 between the Department of Wildlife and Division of State Parks. Funds were added to the Division of State Parks budget in order to retain some maintenance positions.
Mr. Stevens mentioned if all of the recommendations were approved by the committee the CIP budget for the account would be approximately $800,000 in FY 94 and $500,000 in FY 95 with the reserve balance at approximately $435,000.
MR. HUMKE MOVED TO APPROVE THE WILDLIFE - BOATING PROGRAM BUDGET AS RECOMMENDED BY STAFF.
MR. MARVEL SECONDED THE MOTION.
MOTION CARRIED UNANIMOUSLY BY VOICE VOTE. CHAIRMAN ARBERRY WAS ABSENT.
BUDGET CLOSED.
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WILDLIFE - TROUT MANAGEMENT - PAGE 1614
Vice-Chairman Spitler asked for staff recommendations. Mr. Stevens said staff had no recommendations on the budget.
MR. MARVEL MOVED TO APPROVE THE WILDLIFE - TROUT MANAGEMENT BUDGET AS RECOMMENDED BY THE GOVERNOR.
MS. TIFFANY SECONDED THE MOTION.
MOTION CARRIED UNANIMOUSLY BY VOICE VOTE. CHAIRMAN ARBERRY WAS ABSENT.
BUDGET CLOSED.
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Mr. Stevens explained the Department of Wildlife requested the establishment of an additional budget account titled Wildlife Habitat Mitigation. The new account would authorize expenditure of gifts and donations from businesses. The Department of Wildlife received $500,000 from the Independence Mining Company for use on habitat improvements. The new account would bring in $600,000 in FY 94 and $850,000 in FY 95. It would also establish an expense category called habitat improvements, $50,000 in each year of the biennium, with the balance placed in the reserve category.
MR. MARVEL MOVED TO ESTABLISH THE WILDLIFE - HABITAT MITIGATION ACCOUNT.
MS. TIFFANY SECONDED.
Mr. Humke asked if the funds were donated pursuant to a negotiated agreement that came about as a result of a mining application to the Department of Environmental Protection. Mr. Stevens stated it was a possibility but he was not sure.
MOTION CARRIED UNANIMOUSLY BY VOICE VOTE. CHAIRMAN ARBERRY WAS ABSENT.
BUDGET CLOSED.
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STATE PARKS - PAGE 1619
Vice-Chairman Spitler asked for staff recommendations. Mr. Stevens requested the State Parks budget be reopened.
MR. HUMKE MOVED TO REOPEN THE STATE PARKS BUDGET.
MR. MARVEL SECONDED THE MOTION.
MOTION CARRIED UNANIMOUSLY BY VOICE VOTE. MRS. CHOWNING WAS ABSENT.
Mr. Stevens explained Fiscal staff recommendations were based on estimated revenue from the Motor Boat Fuel Tax. Original tax revenue estimates were $200,000. New estimates, which were based on splitting the tax 50/50 between the Department of Wildlife and State Parks, were $140,425 in FY 94 and $197,465 in FY 95. New estimates resulted in a $60,000 revenue reduction in FY 94 and $2,500 in FY 95. Recommended corresponding offsets in the expenditure categories were: (1) reducing seasonal salaries from $105,058 to $52,590 in FY 94 and from $172,880 to $170,345 in FY 95; and (2) maintenance of buildings and grounds reduced by $7,107 in the first year.
MR. HUMKE MOVED TO CLOSE THE STATE PARKS BUDGET AS RECOMMENDED BY STAFF.
MR. MARVEL SECONDED THE MOTION.
Mrs. Evans asked if bill draft requests and letters of intent suggested by Fiscal staff were part of the motion. Mr. Humke stated the items were part of the motion.
MOTION CARRIED UNANIMOUSLY BY VOICE VOTE. MRS. CHOWNING WAS ABSENT.
BUDGET CLOSED.
DEFERRED COMPENSATION - PAGE 1664
Vice-Chairman Spitler asked for staff recommendations. Mr. Stevens indicated the account was not recommended for funding in the Executive Budget over the next biennium. Instead the Governor recommended the Committee on Benefits assume responsibility for the function. A separate committee would be formed to administer the deferred compensation program if AB 359 was approved by the Legislature. AB 359 had been passed out of the Ways and Means Committee and was awaiting third reading on the Assembly floor. Based on the bill, a budget would have to be approved for the Deferred Compensation Committee. A budget totaling $25,800 in each year of the biennium was requested by the agency which would be used for consulting fees ($12,000), and the remainder for an annual audit. Actual costs in FY 91-92 were $21,909. Out-of-state travel totaling $1,500 in each year of the biennium could be eliminated.
Mr. Perkins asked if the budget would be funded from the fund itself. Mr. Stevens explained the budget would be funded by participants of the program.
Mr. Perkins asked how the out-of-state travel allocation would be used. Mr. Stevens explained it would fund one member of the committee to attend the National Association of Government Deferred Compensation Administrators national meeting.
MR. PERKINS MOVED TO APPROVE THE DEFERRED COMPENSATION BUDGET AS REQUESTED BY THE AGENCY.
MR. HUMKE SECONDED THE MOTION.
Mr. Thorne indicated no provision had been made for separate funding for the financial consultant required in AB 359. He added based on the size of the fund approximately $50,000 to $100,000 per year would be required.
Mr. Spitler asked if separate funding for the financial consultant had been addressed. Mr. Stevens noted $12,000 for a financial audit and $8,500 each year for a comprehensive performance review were included in the agency request.
Mr. Humke asked once a consultant was hired, could the agency request funding from the Interim Finance Committee. Mr. Stevens stated requests could be made to IFC if the budget was not sufficient.
MOTION CARRIED UNANIMOUSLY BY VOICE VOTE. SPEAKER DINI AND MS. GIUNCHIGLIANI WERE ABSENT.
BUDGET CLOSED.
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The meeting was adjourned at 10:30 a.m.
RESPECTFULLY SUBMITTED:
_________________________
C. Dale Gray
Committee Secretary
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Assembly Committee on Ways and Means
May 27, 1993
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