MINUTES OF THE
ASSEMBLY COMMITTEE ON WAYS AND MEANS
Sixty-seventh Session
June 5, 1993
The Assembly Committee on Ways and Means was called to order by Chairman Morse Arberry, Jr., at 10:00 a.m., on Saturday, June 5, 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 407- Authorizes use of alternative financing for retrofitting of buildings occupied by state or local governmental entities to make use of energy more efficient.
Mr. Stevens noted AB 407, AB 408 and AJR 26 had all resulted from an Interim Finance Committee subcommittee on energy conservation. He explained there had been some questions about bond counsel issues at the original hearing of AB 407. He said the legislative counsel had worked with bond counsel to relieve the committee's concerns.
Mr. Lorne Malkiewich, Legislative Counsel, stated an amendment to AB 407 had been proposed incorporating the changes suggested by the Administrative Office of the Court and dealing with the concerns of bond counsel. The amendment would limit state indebtedness and provide certain requirements for the state to incur debt and exemptions from debt.
Mr. Malkiewich explained the amendment would provide for levying annual taxes sufficient to pay semi-annual interest and annual principal payments and require repayment of the debt within 20 years in order to satisfy bond counsel's concerns. He noted, as a practical matter, most such debts were repaid within five to seven years.
Mr. Malkiewich stated the legislation met constitutional requirements for creating a legal debt and pledging repayment. In actuality interest and principal payments would be made monthly. The savings on utility costs rather than bond proceeds would be used to retire the debt. Bond counsel had reviewed the draft language and found it acceptable to protect the state against any constitutional challenge.
Mr. Spitler asked if bonds would be sold. Mr. Malkiewich said no bonds would be sold. He said there was some confusion regarding the distinction between bonds and debt within the meaning of the Constitution. This proposal constituted debt because it obligated the state to repay the cost of energy retrofits over an extended period. It was not necessary to issue bonds to repay the debt, however.
Mr. Spitler inquired what would happen if the investment did not result in the return that was anticipated. Mr. Malkiewich responded the debt would still have to be repaid by issuing bonds. However, the intent of the legislation was for the state to make a determination there would be a sufficient return on investment prior to entering into the program.
ASSEMBLY JOINT
RESOLUTION 26 - Proposes to amend Nevada Constitution to clarify exemption from debt limitation of money borrowed to retrofit state buildings to make use of energy more efficient.
Mr. Malkiewich said AJR 26 was related to AB 407. He explained the debt proposed in AB 407 was not clearly exempt debt under the Constitution. AJR 26 proposed amending the Constitution to clarify that these energy retrofit projects would be exempt from the debt limit.
ASSEMBLY BILL 408- Requires establishment of program to track use of energy in buildings owned by state.
Mr. Stevens said AB 408 provided for a coordinator to track energy consumption in state buildings. Funding for the position would be provided by an assessment against agencies based on their energy usage. The funding mechanism would probably not have to be utilized in the coming biennium. It was likely funding could be provided through Exxon-Warner funds ($10,000) and a U.S. Department of Energy grant ($20,000). Expenses for a one-half time program coordinator position, effective January 1, 1994, computer and office equipment and operating expenses was projected at $29,095 for the biennium.
Mr. Stevens noted the program coordinator would track energy consumption and review the projects proposed for energy retrofits.
Ms. Tiffany inquired whether the program coordinator would also be responsible for evaluating buildings which state agencies might be moving into. Mr. Ghiggeri responded the Governor's recommendation for the Public Works Board included advance planning money. In addition, the proposed reorganization would consolidate the Public Works Board with the Division of Buildings and Grounds in order to better monitor and study the utilization of existing buildings. He said he envisioned the Division of Buildings and Grounds would also evaluate buildings it proposed to lease.
Mr. Dini noted planning and construction sometimes lagged behind technology and by the time a building was constructed the technology was outdated. Ms. Tiffany said she wanted to be certain any buildings which the state leased in the future would be evaluated for energy efficiency.
MS. GIUNCHIGLIANI MOVED AMEND AND DO PASS ON AB 407.
MR. PERKINS SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY. MR. HELLER WAS ABSENT.
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MS GIUNCHIGLIANI MOVED DO PASS ON AB 408.
MRS. EVANS SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY. MR. HELLER WAS ABSENT.
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MR. DINI MOVED DO PASS ON AJR 26.
MR. SPITLER SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY. MR. HELLER WAS ABSENT.
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SENATE BILL 274 - Transfers responsibility for administration of account for aid for victims of domestic violence.
Mrs. Evans noted SB 274 changed the procedures for administering the account for aid for victims of domestic violence. The recommendation was to transfer responsibility for the account from the Division of Mental Hygiene and Mental Retardation to the Division of Child and Family Services. The committee agreed with the recommendation, provided the responsibility remained under the auspices of the Board of Mental Hygiene and Mental Retardation.
Mrs. Evans added the population caps were decreased to allow eligibility for smaller counties. She pointed out there would be no General Fund impact.
MRS. EVANS MOVED DO PASS ON SB 274.
MR. HUMKE SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY. MR. HELLER WAS ABSENT.
ASSEMBLY BILL 207- Directs appointment of task force to study feasibility of establishing course work in American Sign Language in certain public schools.
Mr. Spitler said the bill required technical amendments to change the reference on page 2, line 13, to the Department of Mental Health and Mental Retardation to the Department of Human Resources and to direct the General Fund appropriation to the Rehabilitation Division rather than to the Department of Education.
MRS. WILLIAMS MOVED AMEND AND DO PASS ON AB 207.
MR. PERKINS SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY. MR. HELLER WAS ABSENT.
ASSEMBLY BILL 406- Makes appropriation to the State Board of Examiners to restore balance of certain accounts.
Mr. Stevens stated AB 406 was included in the Executive Budget to restore balances in the emergency, stale claims and statutory contingency funds. The Budget Division had recommended deleting Section 2 and increasing the requested appropriations to bring the fund balances to statutorily authorized levels. The emergency fund appropriation would be increased by $1,905 to $29,883. The stale claims fund appropriation would be increased $429,752 to $770,133. The statutory contingency fund appropriation would be increased $271,822 to $705,621. Fiscal staff recommended reducing the statutory contingency fund appropriation request by approximately $140,000 to compensate for an anticipated reimbursement from the Division of Forestry.
Mr. Stevens said if the fiscal staff recommendation was followed, the total appropriation would be $1,365,637, or an increase of $563,000 over and above amounts included in the Executive Budget.
MR. SPITLER MOVED AMEND AND DO PASS ON AB 406.
MR. MARVEL SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY. MR. DINI AND MR. HUMKE WERE ABSENT.
BUDGET CLOSINGS
OFFICE OF EQUAL RIGHTS - PAGE 1103
EQUAL EMPLOYMENT OPPORTUNITY - PAGE 1107
Mr. Stevens said the committee had requested additional information about the Equal Rights budget. The committee had discussed the need to add positions to the account and whether federal funds could be used for the proposed data processing expansion. He said fiscal staff and Budget Division staff agreed federal funding could be used to partially fund the data processing equipment. Fiscal staff recommended funding the project using 50 percent federal money and 50 percent state money. Fiscal staff also recommended reducing the projected cost of the data processing project to $19,450, including $5,000 for services from the Department of Data Processing.
Mr. Stevens noted the committee had considered funding additional compliance investigator or clerical positions in the budget. He pointed out there were currently 5 professional positions and 4.5 clerical positions. He said if the committee chose to add positions, fiscal staff recommended adding investigator positions rather than clerical positions. The cost of two additional investigator positions would be $53,403 in the first year of the biennium and $74,646 in the second year. Fiscal staff would also recommend adding some operating money to the budget ($1,500 in the first year and $2,000 in the second year).
Mr. Stevens said the above recommendations would require additional General Fund appropriations of $64,628 in the first year and $76,646 in the second year. A $9,725 addition would also be required in the federal account.
Mr. Stevens noted the committee had also discussed a letter of intent requiring the agency to report to the Interim Finance Committee quarterly regarding its progress in closing cases.
Ms. Giunchigliani asked if elimination of the agency was a consideration. She stated at some point it would have to be determined whether the agency was effective or not.
Mr. Dini suggested a two-year sunset clause be included in the legislation.
MR. DINI MOVED THE OFFICE OF EQUAL RIGHTS BUDGET BE AMENDED TO ADD DATA PROCESSING EQUIPMENT AND TWO INVESTIGATOR POSITIONS, REQUIRE A LETTER OF INTENT AND A SUNSET CLAUSE AND CLOSE THE BUDGET AS AMENDED.
MR. MARVEL SECONDED THE MOTION.
Mr. Price inquired about the sunset clause. Mr. Stevens explained the legislation would sunset the agency, effective June 30, 1995, so the issue could be revisited in the 1995 legislative session.
THE MOTION CARRIED UNANIMOUSLY.
BUDGET CLOSED.
Mr. P. Forrest "Woody" Thorne, Deputy Budget Administrator, Budget Division, noted the Equal Employment Opportunity budget remained to be closed. Mr. Stevens noted one-half of the data processing costs would have to be added to this account.
MR. DINI MOVED TO AMEND THE EQUAL EMPLOYMENT OPPORTUNITY BUDGET TO INCLUDE FUNDING FOR DATA PROCESSING EQUIPMENT AND CLOSE THE BUDGET AS AMENDED.
MR. SPITLER SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
BUDGET CLOSED.
There being no further business, the meeting was adjourned at 10:37 a.m.
RESPECTFULLY SUBMITTED:
_________________________
C. Dale Gray
Committee Secretary
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Assembly Committee on Ways and Means
June 5, 1993
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