MINUTES OF THE
ASSEMBLY COMMITTEE ON WAYS AND MEANS
Sixty-seventh Session
June 21, 1993
The Assembly Committee on Ways and Means was called to order by Chairman Morse Arberry, Jr., at 8:07 a.m., on Monday, June 21, 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 474- Requires registration of employee leasing companies.
Mr. Scott Young, State Industrial Insurance Commission (SIIS), noted SIIS had discussed a proposed amendment to AB 474 with Assemblyman Tom Collins and with the Secretary of State. He explained there was some concern the registration process proposed would necessitate hiring two individuals in the Secretary of State's Office. SIIS suggested rather than requiring registration through the Secretary of State, that the Manager of SIIS issue a certificate of insurance for employee leasing companies. If the leasing companies violated the provisions of AB 474, the certificate of insurance would be withdrawn and the companies would no longer be insured.
Mr. Young noted pursuant to discussions with the Insurance Commissioner, it appeared an additional amendment was required. He explained SIIS had proposed deleting the reference to the regulations which were adopted by SIIS and the Commissioner of Insurance. The Insurance Commissioner had indicated it would be necessary to maintain the reference to the insurance regulations.
Ms. Terry Rankin, Insurance Commissioner, proposed amending AB 474 to provide that employee leasing companies must use health insurers licensed pursuant to Title 57 of the Nevada Revised Statutes. She added there was no fiscal note attached to the amendment.
Chairman Arberry inquired whether additional positions would be required in the SIIS budget. Mr. Young said existing SIIS staff could handle the increased workload. If there was a substantial increase in employee leasing companies prior to the next legislative session, SIIS would request additional staffing at that time.
Chairman Arberry asked Mr. Young to submit his proposed amendments to the committee in writing. Mr. Young agreed to do so.
ASSEMBLY BILL 598- Requires establishment of program of regimental discipline for certain juvenile offenders.
Assemblywoman Erin Kenny, District 4, stated AB 598 proposed a juvenile boot camp as an alternative approach to sentencing non-violent juvenile offenders. She explained the juvenile boot camp would be discipline-oriented, both on a physical level as well as a mental level. She noted a similar program for adult offenders had proven very successful. California was currently successfully using a juvenile boot camp facility. The California program had served as the model for this proposal.
Ms. Kenny explained the fiscal note attached to AB 598 had two components based on whether the juvenile boot camp would be placed at an existing facility or whether a new facility would be constructed. Ms. Kenny said AB 598 envisioned using an existing facility.
Ms. Kenny pointed out she did not agree with the fiscal note. She questioned whether the fiscal note accurately reflected the costs and cost savings associated with the proposed program.
Ms. Kenny noted family court judges had indicated the establishment of a juvenile boot camp was one of their top priorities.
Mr. Marvel asked what existing facility could be used for this purpose. Ms. Kenny replied the fiscal note was based on using the cottages at Elko. A fence would be constructed to separate the boot camp from the remainder of the facility.
Mr. Marvel stated Elko was currently operating at full capacity. Ms. Kenny said it was her understanding there were vacant cottages.
Mr. Marvel inquired about education. Ms. Kenny responded the inmates would be required to participate in educational activities six hours per day, including training in self-esteem and learning and study skills. She indicated those costs were included in the fiscal note.
Mr. Marvel asked if the facility would be for boys only. Ms. Kenny answered she would like to include girls in the program; however, if it had to be limited to boys in order to get the program started, she would agree to that.
Mr. Marvel questioned who developed the fiscal note. Ms. Kenny replied Mr. John Sarb of the Division of Child and Family Services had developed the fiscal note. She noted the Research Division had prepared separate data based on information obtained from California. She agreed to provide copies of that data to the committee.
Mr. Humke noted AB 598 called for the juvenile court to sentence juveniles to the boot camp facility. Ms. Kenny noted the courts wanted boot camps as a sentencing alternative.
Mr. Humke said the fiscal note envisioned all state costs. He asked Ms. Kenny if this was her understanding. Ms. Kenny responded affirmatively. She noted the Division of Child and Family Services was not supportive of this program and she did not believe she could get a reasonable fiscal note from the division. She noted California was realizing substantial cost savings as well as a low recidivism rate from their program.
Mr. Humke said he would like to explore the area of state versus local funding, including the juvenile court sentencing a juvenile to a specific program. He noted there was a movement at the state level to limit the choices the courts could make in sending children to the Division of Child and Family Services for services. AB 598 would give total discretion to the juvenile court, which could have the effect of unbalancing the budget.
Ms. Kenny said there would be a specific time limit for the program which was shorter than the current average time of incarceration. This would amount to a cost savings. The program also represented a cost savings over alternatives such as foster care.
Mr. Humke questioned whether a child who would be sent to boot camp would be one who normally would have been sentenced to the Nevada Youth Training Center. Ms. Kenny said that was the intent of this piece of legislation. Only non-violent offenders would be eligible for this program.
Mr. Humke suggested if juvenile court judges wished to sentence juveniles to this type of facility, the counties should be willing to pay for those facilities.
Mr. Dini asked if the juvenile offenders would be less violent than juveniles involved in the Rite of Passage program. Ms. Kenny reiterated these would be non-violent offenders who could be rehabilitated.
Ms. Tiffany said she favored this concept. She asked if the program in Utah had been studied. Ms. Kenny said her proposal was based on other state programs. Ms. Tiffany suggested also reviewing county-based or private-based programs.
Mrs. Williams said she liked the program but had a philosophical problem with allowing juvenile court judges total discretion in sentencing.
Mrs. Williams questioned whether the fiscal data from California included startup costs. Ms. Kenny said it did include startup costs of approximately $50,000. She noted the fiscal note contemplated startup costs in Nevada of nearly $350,000.
Mrs. Williams asked if there had been an existing facility in California. Ms. Kenny said the California program moved into an existing facility.
Mr. Perkins said this sounded like a good program. He questioned whether existing staff could be transferred to this program since capacity would not be increased.
Mrs. Chowning noted the adult boot camp had been successful although there was much resistance to it at the outset.
Mr. Marvel said he would be more comfortable if the fiscal staff reviewed the fiscal note.
Mrs. Williams said she assumed populations would be mixed.
ASSEMBLY BILL 608- Provides for designation of Six-Mile Canyon Road in Storey and Lyon Counties as state highway.
Assemblyman Joe Dini, District 38, stated he introduced AB 608 in an effort to have Six-Mile Canyon Road declared a state highway. He explained the fiscal note contemplated paving and maintenance costs. He anticipated the paving would not occur for 10 years. The important component of the bill was to provide Highway Fund money to have the road properly maintained. He noted it would provide a shorter route and better access to Virginia City from the eastern side.
Mr. Steve Snyder, Lyon County Manager, indicated Lyon County was very supportive of this program. He noted the Lyon County Board of Supervisors was open to an opportunity to enter into a partnership with the state as proposed by AB 608.
Ms. Giunchigliani asked if the intent was to have the road maintenance paid for from the Highway Fund rather than funded by the counties. Mr. Snyder said that was part of the intent.
Ms. Giunchigliani inquired what the normal standard for declaring a road a state highway was. Mr. Dini said it had been done this way in the past. The State Highway Board also had the authority to declare a state highway.
Mr. Dini said it was important to move forward because with the bulk of the present Highway Fund allocation going to Clark County, it would be at least 10 years before the road could be paved, but at least maintenance would be assured. He pointed out Storey County did not have the money to maintain the road properly.
Ms. Giunchigliani said she was trying to understand if this was a state or a local responsibility. Mr. Dini reiterated Six-Mile Canyon Road represented a less congested route from Fallon to Reno than Highway 50. People did not use the road now because it was so rough.
Ms. Giunchigliani inquired whether there was any guarantee this would not be moved ahead of currently scheduled programs. Mr. Snyder said he did not envision this program being moved ahead of any existing plan. He added Lyon County was not trying to unload any responsibility on the state. The legislation contemplated a partnership between the counties and the state.
Ms. Giunchigliani questioned how this proposal would impact the cap on the Highway Fund. Mr. Dini noted there was little chance any construction money would be placed in this program for several years.
Mr. Ron Hill, Deputy Director, Nevada Department of Transportation, said this project would not affect the 22 percent cap. He pointed out the Department of Transportation's problem with this project was that the state had no equipment to maintain dirt roads.
Mr. Hill added that new federal laws had significantly reduced funding for new construction in rural areas. Therefore, construction of this road might never be accomplished.
Mrs. Evans asked if the bill would simply authorize the Department of Transportation to add this project to its schedule until funding might become available. Mr. Dini said Mrs. Evans was correct. He noted Storey County had indicated a willingness to cooperate with the Department of Transportation in maintaining the road.
Mr. Heller questioned whether school busses would be allowed to use the road immediately. Mr. Dini said some work would have to be done on the road before school busses could use it.
ASSEMBLY BILL 764- Makes various changes to statutes governing credit service organizations.
Mr. Sam McMullen, representing the Credit Reporting Association of Nevada, explained AB 764 affected credit clinics and was driven by tighter restrictions in California law which would become effective July 1, 1993. Theoretically, tighter requirements in California could force businesses to Nevada to continue offensive practices. AB 764 was intended to protect against that migration by strengthening NRS 598.
Chairman Arberry said he believed this bill should have been referred to the Commerce Committee rather than to Ways and Means.
MRS. EVANS MOVED TO REREFER AB 764 TO THE ASSEMBLY COMMITTEE ON COMMERCE.
MRS. WILLIAMS SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY. MRS. CHOWNING, MS. GIUNCHIGLIANI AND MR. PRICE WERE ABSENT.
ASSEMBLY BILL 765- Makes appropriation to account for local cultural activities.
Mr. Al Shay testified in favor of the state grant for musicians to perform at free concerts throughout the state. He noted a performance on the Capitol Mall on April 19 was part of the 1993 tour.
Mr. Shay said he was grateful to the National Youth Administration for helping him with his musical training and his professional career. He said he would like to see a similar program continue in Nevada which could bring music to schools.
Mr. Shay asked the committee to spend tax dollars on musical instruments rather than on prisons.
Mr. Humke said he had appreciated the concert on the Capitol Mall. He asked if this program encompassed matching funds. Mr. Merle Snider of the Musicians Union replied the Musical Performers Trust Fund contributed 10 percent to the $150,000 over the biennium. He noted the administrative costs of the program were borne entirely by the two musicians unions in Las Vegas and Reno.
Mrs. Williams noted the Musical Performers Trust Fund was funded by contributions from professional musicians. She said she had always been very involved in this program. It was important for children to have the opportunity to hear live performances.
Mr. Snider pointed out this program had been successful for six years and expressed the hope it could continue.
SENATE BILL 195 - Revises fees relating to numbering and ownership of motorboats.
Mr. Stevens explained SB 195 would increase the cost of titling boats from $5 to $15 to cover administration costs. He noted the fee had last been set 18 years ago. The bill also proposed charging a $10 fee for a duplicate validation decal. Additionally, dealers would be charged an annualized fee of $15 for demonstration boats.
MR. HUMKE MOVED DO PASS ON SB 195.
MR. PERKINS SECONDED THE MOTION.
Mrs. Williams questioned whether fees would be charged for sailboats. Mr. Stevens said fees had not been applied to sailboats in the past but there was no reason why they could not be.
Mr. Heller asked if the funds would be deposited into the Department of Wildlife budget. Mr. Stevens said the money went to a number of sources, including the Wildlife boat account.
THE MOTION CARRIED UNANIMOUSLY. MRS. CHOWNING, MRS. EVANS, MS. GIUNCHIGLIANI AND MR. PRICE WERE ABSENT.
SENATE BILL 239 - Increases amount that person who awards certificate of number for watercraft may retain from fee paid for certificate.
Mr. Stevens explained SB 239 would increase the share of the fee a licensing agent who registered boats could retain for administrative costs. Currently agents were allowed $.25. SB 239 would increase the amount to $.50.
MR. DINI MOVED DO PASS ON SB 239.
MR. MARVEL SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY. MRS. CHOWNING, MRS. EVANS, MS. GIUNCHIGLIANI AND MR. PRICE WERE ABSENT.
SENATE BILL 280 - Creates account for Lake Tahoe Nevada State Park and authorizes expenditures for sewer and water systems.
Mr. Stevens said SB 280 was designed to create a special account for fees charged at Lake Tahoe State Park for repair, operation and maintenance of the sewer and water systems within the park. The bill proposed collecting an additional $.50 fee. He noted the State Parks Division had requested an amendment to the bill authorizing the division to create similar special accounts for other state parks. The Senate Finance Committee did not approve that amendment.
Ms. Tiffany asked if the special accounts would be within the jurisdiction of the Treasurer. Mr. Stevens said they would be.
Mr. Dini noted it was expensive to maintain the sewer system.
Mr. Heller questioned whether an outside bank account would be created. Mr. Stevens responded the money would be accounted for in a special account within the State Treasury. Mr. Dini said the reason for this account was so the funds would not revert back to the General Fund.
MRS. EVANS MOVED DO PASS ON SB 280.
MR. MARVEL SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY. MRS. CHOWNING AND MR. PRICE WERE ABSENT.
ASSEMBLY BILL 737- Mandates adoption of regulations requiring certain state officers and employees to reimburse state for use of state vehicle to commute from residence to place of employment.
Mr. Perkins reported the subcommittee to review AB 737 met with representatives from the Department of Parole and Probation and the State of Nevada Employees Association. After considering six different possible amendments to AB 737, the subcommittee chose to recommend option number six (see Exhibit C). Mr. Perkins said he believed the amendment would satisfy most of the concerns raised during the full committee hearing and those addressed to the subcommittee.
MR. SPITLER MOVED AMEND AND DO PASS ON AB 737.
MS. GIUNCHIGLIANI SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY. MRS. CHOWNING WAS ABSENT.
ASSEMBLY BILL 388- Makes various changes to provisions governing administrative assessments for misdemeanors.
Mr. Ghiggeri stated the proposal was to reduce the minimum fine limit for administrative assessments from $5 to zero so that if someone was found guilty of a misdemeanor but not fined, they would still have to pay an administrative assessment of $10. The court administrator would receive 51 percent of the assessment revenue with the remainder going to Peace Officer Standards and Training (POST), the criminal history repository and other areas. Funds remaining after distribution would be deposited to a special account to be utilized by POST.
Mr. Ghiggeri said Assemblyman Bob Sader had proposed an additional amendment which would provide that excess funds received by the Supreme Courts be allocated to a program to certify court interpreters and for the cost of services of retired justices and retired district judges. Additionally, an amendment was proposed to provide that all other excess funds received would accumulate in a special fund for the purpose of financing capital construction for a Nevada law enforcement academy. Any balance in the special fund remaining at the end of fiscal year 1994-95 not committed to the acquisition of capital goods or for financing capital construction of a Nevada law enforcement academy would revert to the General Fund.
Chairman Arberry asked if the courts would have to approach the Interim Finance Committee for additional funding. Mr. Ghiggeri said that was true. He noted currently any excess court administrative assessments not authorized for expenditure would be deposited to the General Fund. If the amendments were approved, those funds would no longer go to the General Fund.
Ms. Giunchigliani questioned whether the counties would receive additional revenue. Mr. Ghiggeri responded lowering the fine limit from $5 to zero would generate additional revenue. He noted in the past year, the administrative assessment brought approximately $7 million into the state, approximately $13,000 of which was deposited in the General Fund. The revenue projections for the current year were approximately 3.8 percent lower. He reiterated the distribution would remain at 51 percent to the courts.
Ms. Giunchigliani asked if the additional revenue from reducing the fine limit would be deposited to a special account. Mr. Ghiggeri said the distribution would still be 51 percent/49 percent.
Ms. Giunchigliani questioned whether the special account would have an impact on the court distribution. Mr. Ghiggeri said the court distribution would not be lowered. However, the special account would remove the possibility of money flowing back to the General Fund.
Ms. Giunchigliani said she felt the money should continue to flow into the General Fund.
Mrs. Evans asked how AB 388 would comport with AB 55, the lower court bill. She also questioned whether the proposed amendment had been agreed to by the court.
Mr. Stevens responded AB 55 dealt with local money and there was no conflict with AB 388.
Mr. Ghiggeri stated the courts agreed with the 51 percent/49 percent split. Mr. Stevens explained the original draft had attempted to change the distribution to the court to 49 percent, which the courts would not agree to. Mr. Ghiggeri said the courts had also proposed not to repeal NRS 249.085 and Assemblyman Sader had agreed to that amendment.
Mrs. Williams asked if the law enforcement academy would be a POST academy. Mr. Stevens said it would be a POST academy.
Mrs. Williams inquired whether southern Nevada had its own academy. Mr. Price said Las Vegas Metro had its own academy. Other law enforcement agencies used POST training facilities.
Mr. Perkins indicated the larger agencies in southern Nevada utilized the Metro academy. There was also a POST-approved academy which was used by the City of Las Vegas to train detention officers, park rangers, etc. He said the only agency which utilized POST to train full-time peace officers was Boulder City.
Mrs. Williams inquired about training in Washoe County. Mr. Humke responded the Reno Police Department and the Washoe County Sheriff's Department operated a cooperative POST-approved academy. Several law enforcement agencies sent officers there for training. The smaller agencies, including rural county sheriffs and state agencies, sent their officers to the state POST academy for training.
Mrs. Williams said while the amount which would be deposited in the special account was not great, under the current financial circumstances it should not be used for a state program which did not serve the entire state.
Vice Chairman Spitler deferred action on AB 388.
There being no further business, the meeting was adjourned at 9:35 a.m.
RESPECTFULLY SUBMITTED:
_________________________
C. Dale Gray
Committee Secretary
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Assembly Committee on Ways and Means
June 21, 1993
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