MINUTES OF THE

      ASSEMBLY COMMITTEE ON WAYS AND MEANS

 

      Sixty-seventh Session

      June 23, 1993

 

 

The Assembly Committee on Ways and Means was called to order by Chairman Morse Arberry, Jr., at 8:16 a.m., on Wednesday, June 23, 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 596-     Makes various changes to encourage education of illiterate offenders in custody of Department of Prisons.

 

Assemblyman Jack Regan, District 19, testified he had received information from the Maryland State Department of Education regarding a literacy program for inmates in Maryland correctional institutions indicating officials were finding lower recidivism, better employment records and fewer parole problems with inmates who completed the education program.

 

Mr. Regan said there was no fiscal impact associated with AB 596.  Implementation of the proposed program would simply mean redirecting currently existing programs and funding.

 

Vice Chairman Spitler inquired what programs were currently in place.  Mr. Regan said he was familiar with programs at the Jean and Indian Springs facilities.  He explained the programs in southern Nevada were operated by the Clark County School District and the Community College of Southern Nevada.  In northern Nevada the program was handled by the community college.

 

Mr. Regan said there was also a volunteer program in northern Nevada which was operated by Vietnam veterans.

 

Mrs. Evans asked if any adult education funds were used for similar programs.  Mr. Ghiggeri answered the Department of Prisons received funding from the Distributive School Account and the Adult Diploma Program but the funding level was capped.  He noted in the early 1980s the Department of Prisons had employed its own teachers.

 

Mr. Regan added the southern Nevada programs were funded by federal Pell grant monies for post-secondary education.  He explained the program proposed by AB 596 was aimed at the totally illiterate prisoners to improve their status and reduce recidivism rates.

 

Mrs. Williams noted the program needed to be standardized because prisoners were frequently transferred from one prison to another.

 

Mr. Ben Graham of the Clark County District Attorney's Office indicated he had researched the Maryland program.  He reiterated the results of the Maryland program were decreased recidivism, improved employment opportunities and fewer problems associated with parole supervision.

 

Vice Chairman Spitler asked what incentives had been used in inmate literacy programs.  Mr. Graham replied good-time credits were used as incentives as well as allowing inmates to remain in one institution while they were enrolled in the program.  He noted Maryland mandated 90 days in the program and it was found that 80 to 90 percent of the inmates who completed the first 90-day program enrolled for additional educational opportunities.

 

Mrs. Chowning questioned whether attendance in education programs was tied to other privileges.  She asked if, for example, inmates would be barred from industrial or vocational programs if they did not participate in educational programs.  Mr. Regan said federal programs taught basic literacy in conjunction with vocational education.

 

Mrs. Chowning suggested inmates might not take advantage of literacy programs unless they were required to enroll before they could participate in vocational programs.  She said she was interested in seeing statistics regarding the correlation between illiteracy and crime.  Mr. Graham indicated very little statistical data was available.

 

Mr. Graham noted one factor of the program was that inmates could become tutors in the program and the inmate tutors were benefitting from an increased sense of self-worth.

 

Mr. Regan stated a survey conducted by the American Bar Association found 13 states had mandatory literacy programs in their prison systems.  Four other states were in the process of developing similar programs.

 

Mr. Humke asked why the fiscal note was nullified.  Mr. Graham explained in Maryland the program was implemented in correctional institutions only if funding was available.  If resources were not available, the program was not implemented.  He added participation in the program was not construed as an offender's right and Maryland had not experienced any cases of prisoner lawsuits.

 

Mr. Humke questioned whether implementation of the program was at the discretion of the prison director.  Mr. Graham responded affirmatively.

 

Mr. Regan pointed out the fiscal note included no figures.  Mr. Humke said he liked the intent of the bill but he was troubled by the narrative in the fiscal note, specifically the reference to changing the Parole Board's mandate.  He explained the effect of this legislation could be a disruption in prison programming and the direction parole decisions might take.  In effect, prisoners could remain incarcerated longer due to their failure to complete a literacy program.

 

Mr. Regan said Mr. Humke was correct; however, he was concerned with the cost benefit of the legislation.  Although prisoners might have to stay in prison longer, if they did not return to prison, the state would be saving money.

 

Mr. Humke said he was concerned about the effect on the Prison Industries Program.  Pursuant to AB 596, an inmate could be held out of regular programs, e.g., work, training or culinary service, for failing to participate in the literacy program.

 

Mr. Marvel said prohibiting inmates from participating in the Prison Industries Program would have an adverse impact on the program, which had been successful in the past.

 

Mr. Regan noted some problems had arisen in prison industry programs as a result of illiterate individuals being placed in those programs.

 

Mr. Marvel questioned whether any research had been conducted to determine how the proposed program would impact the present Prison Industries workforce.  Mr. Regan said, to his knowledge, it had not.  Mr. Marvel asked fiscal staff to do so.

 

Mr. Graham noted it did not appear literacy programs interrupted other programs but rather became an integral part of those programs.

 

Mr. Glen Whorton, Public Information Officer, Department of Prisons, said while AB 596 was a well-intentioned measure, and the Department of Prisons recognized the benefits of educational programs for inmates, some unanticipated elements of the bill should be considered.  Primarily, there could be a decline in parole grant rate if inmates were denied parole because they were illiterate and did not deal with that problem in prison.  In addition, there would be a fiscal impact related to the provision of educational programs.  Since the measure related to suitability of parole, the Department of Prisons would have to provide a substantive educational program in every prison facility.  Presently, small facilities did not offer education programs.

 

Vice Chairman Spitler asked if it would be preferable to state in Section 3. of AB 596 "The board may adopt regulations" rather than "The board shall adopt regulations."  Mr. Whorton said it was difficult to anticipate what the results of decisions made pursuant to this legislation would be.

 

Vice Chairman Spitler inquired whether the Department of Prisons' concern regarding the fiscal impact would be alleviated if language making illiteracy a consideration in determining whether or not to release a prisoner on parole was deleted.  Mr. Whorton said deleting the language would make AB 596 a more stable measure.  He noted the necessity to provide programs at every facility would remain, however.

 

Mr. Marvel questioned whether AB 596 would invite litigation.  Mr. Whorton responded the Attorney General's Office had drafted language in the bill which would remove the liberty interest.  However, if literacy was tied to the parole decision, and the Department of Prisons did not provide prisoners with the opportunity to engage in educational programs, a difficult legal issue could arise.  He noted Vice Chairman Spitler's suggestion to delete language from the draft would reduce that liability.

 

Mr. Whorton pointed out 35 percent of the prison population, or 2,200 inmates, read at less than an eighth grade level.

 

Mr. Humke noted prisoners had no incentive not to bring suit to test this legislation.  He suggested changing "shall" to "may" in Section 3.  He also agreed with the changes suggested by Vice Chairman Spitler.

 

Mr. Humke questioned whether literacy programs or alcohol and substance abuse counseling programs were more important.  Mr. Whorton said, in terms of statistical impact, alcohol and substance abuse was a more serious issue.  He noted 60 to 70 percent of inmates had substance abuse problems.  He added crime did not correlate to illiteracy but substance abuse did.

 

Ms. Giunchigliani asked if the proposed program would be in addition to the programs provided by the school district.  Mr. Whorton replied affirmatively.

 

Mrs. Williams inquired about the success rates of substance abuse programs in prisons in other states.  Mr. Whorton said he could research the issue.  He noted a that recidivism was a difficult concept to identify in research programs.  Additionally, it was difficult to isolate the factors which were affecting outcomes.

 

Mrs. Evans questioned whether the Department of Prisons had ever taken the initiative to recommend programs to help inmates become productive citizens.  Mr. Whorton said that had not been done.  The Department of Prisons had not been significantly involved in educational programs since it lost its centralized education program in 1983.  Current programs had been developed by local school districts.  Mrs. Evans suggested it might be timely to do so.  She encouraged the prison system to work closely with Mr. Regan on this issue.  Mr. Whorton responded this measure had taken the Department of Prisons by surprise and the department would welcome involvement in its future development.

 

Assemblyman Bernie Anderson, District 31, added his support for AB 596.  He noted one major element of the continuing recidivism rate was that prisons did not prepare inmates to fit into society on their release.  Unless inmates' outlooks on life were changed dramatically through education or substance abuse programs, they would not be equipped to deal with society outside prison.

 

Mr. Anderson said AB 596 was a key element in the rehabilitation of Nevada's enormous prison population.

 

Mr. Regan pointed out there was a substance abuse program operated by the Incarcerated Vietnam Veterans Intervention Project in coordination with the Bureau of Alcohol and Drug Abuse.

 

SENATE BILL 334   -     Increases compensation to state for collecting certain sales taxes.

 

Mr. Perry Comeaux, Executive Director, Department of Taxation, said if SB 334 was approved, it would increase compensation to the state for the cost of collecting school support and basic and supplemental city/county relief taxes from .5 percent to 1 percent.  In fiscal year 1991-92 the state's compensation for collecting those taxes was approximately $1.25 million short of covering the cost of those collections.  Similar shortages were projected for the current and future years.  SB 334 would provide adequate compensation to cover the cost of collection.

 

Mrs. Evans asked how much money the .5 percent increase represented.  Mr. Comeaux replied the increase would generate approximately $3.5 million annually.

 

Vice Chairman Spitler questioned whether the Department of Taxation intended to make a profit on collections.  Mr. Comeaux stated the fee was designed to cover costs.  He pointed out one-half of the $3.5 million was associated with the local school support tax and would be deposited to the Distributive School Account.

 

Mrs. Evans asked if the fee increase was included in the Executive Budget.  Mr. Comeaux responded affirmatively.

 

Ms. Giunchigliani asked what the opposition to this bill had been in the Senate.  Mr. Comeaux said some senators had argued that this revenue would deplete local government resources.  He reiterated the bill was simply designed to provide the state with adequate compensation to cover the cost of collecting tax revenue for the local governments.

 

Ms. Giunchigliani questioned whether the Department of Taxation had worked with the local governments to draft this legislation.  Mr. Comeaux said the department had not.

 

Mr. Bob Hadfield, Nevada Association of Counties, testified in opposition to SB 334.  He described the bill as a direct hit on the revenue of local governments.  He explained counties collected revenues for the state but were not afforded the opportunity to collect an administrative fee.

 

Mr. Hadfield proposed amending the bill to identify the dollar amount of revenue needed by the state and increase the fee accordingly.  He said a percentage of collection did not necessarily correlate to the cost of collection.

 

Mr. Tom Grady, Nevada League of Cities, said this measure would erode local government financing and, combined with the shift of services to counties and cities, would have a heavy impact on local government.  He asked the committee to consider amending the bill to phase in implementation of SB 334 for the dollar amount needed to cover the cost of the service or provide local governments with some method to offset their losses.

 

Mr. Marvel questioned whether the 1 percent fee was realistic.  Mr. Comeaux said the figure was realistic.  Estimates for fiscal year 1993-94 revenue were only $500,000 to $600,000 more than the costs of the departments, which did not include the costs of the Controller's Office, the Treasurer's office, processing the distributions, etc.

 

Mr. Marvel said increased sales tax should not create significant additional administrative costs since the collection procedures were already in place.  Mr. Comeaux noted several other administrative fees were fixed in an amount calculated to cover the cost.  The sales tax collection allowance had always been a percentage allowance, however.  He noted all collection allowances had been 1 percent until the tax shifting in 1981.  He added the level of expenditures in proportion to revenues collected was approximately 1 percent.

 

Ms. Giunchigliani asked how SB 334 would impact the Distributive School Account.  Mr. Comeaux replied the fee increase would generate approximately $3.5 million annually, half of which represented the local school support tax which was deposited into the Distributive School Account.

 

Ms. Giunchigliani asked if there would be a loss in the Distributive School Account.  Mr. Stevens said SB 334 would result in less local school support tax in the Distributive School Account which would be replaced by a General Fund appropriation.

 

Ms. Giunchigliani agreed with the proposal to identify the dollar amount in the bill.

 

Mr. Price said he recalled the recommendation for the tax shift in 1981 had come from fiscal staff.  Mr. Comeaux said in theory the plan would have doubled revenue collected at no additional cost.  In fact, since 1981 the collection allowance had never been adequate to cover the cost.

 

ASSEMBLY BILL 723-     Revises provisions regarding group insurance and taxable compensation of public employees.

 

Chairman Arberry said if all the committee members had reviewed the amendments to AB 723, which had been discussed previously, he would accept a motion to amend and do pass.

 

      MR. PERKINS MOVED AMEND AND DO PASS ON AB 723.

 

      MRS. CHOWNING SECONDED THE MOTION.

 

      THE MOTION CARRIED UNANIMOUSLY.  MR. DINI, MS. GIUNCHIGLIANI, MR. HUMKE, MR. SPITLER AND MS. TIFFANY WERE ABSENT.

 

      BUDGET CLOSINGS

 

CAPITAL IMPROVEMENTS SUBCOMMITTEE REPORT

 

Chairman Arberry said he appreciated the opportunity to report the subcommittee's recommendations.  He thanked the members of the subcommittee, Mr. Spitler, Mr. Dini, Mr. Marvel and Mr. Humke, for their work.

 

Chairman Arberry distributed to the committee copies of a spreadsheet displaying comparisons of the capital improvement programs recommended by the Public Works Board, the Governor and the subcommittee (Exhibit C).  He noted the recommendations of the subcommittee were determined during joint subcommittee meetings with the Senate Committee on Finance subcommittee.

 

Chairman Arberry explained the Executive Budget's recommended capital improvement program for the 1993-95 biennium totalled $74,019,667.  The capital improvement program recommended by the subcommittee totaled $80,999,173, or $6,979,506 more than the amount recommended by the Governor.

 

Chairman Arberry noted the subcommittee recommended approximately $106,898 less in General Fund appropriations than was recommended by the Governor.  This reduction would be accomplished by redirecting previously appropriated but uncommitted General Fund appropriations for advance planning from the 1989 and 1991 capital improvement programs.  Additionally, two projects that were recommended by the Governor--replacing the cooling tower at Southern Nevada Adult Mental Health Services and repairing and upgrading perimeter fencing at Southern Nevada Correctional Center--were funded by the 1993 Legislature via SB 306.  The subcommittee also recommended funding in the amount of $149,100 for various projects for the legislative building which were not recommended in the Executive Budget.

 

The subcommittee recommended a total General Fund appropriation of $17.4 million, $10 million of which would be provided to the University and Community College System for campus improvements.  Approximately $1.2 million of the remaining $7.4 was recommended for statewide paving projects; $710,000 for advanced planning, including $200,000 to conduct a university system library study, $110,000 to conduct a facility study at the Nevada Mental Health Institute, $300,000 to conduct an inventory and assessment of all state facilities, and $100,000 to formulate the 1995-97 capital  improvement program; $2.1 million for furnishings for the new Las Vegas office building; approximately $300,000 to restore the exteriors of the Capitol and the Governor's Mansion; approximately $1.1 million for various renovations/repairs to facilities operated by the Department of Human Resources; and approximately $1.3 million for various repairs/renovations for facilities operated by the Department of Prisons.

 

Chairman Arberry stated no funding was included in the Executive Budget for projects for the Legislature.  The subcommittee recommended an appropriation of approximately $149,000 for repairs to buildings operated by the Legislature.

 

The subcommittee recommended approximately $4.2 million more in general obligation bonds than was recommended by the Governor.  However, by utilizing previously authorized but unused bond proceeds, the amount of additional general obligation bonds that would be issued was approximately $1.9 million.  The Executive Budget's recommended capital improvement program indicated a property tax rate increase from the current $.1440 to $.1575.  The increase in property tax that would result from the subcommittee's recommendations (to be calculated by bond counsel) was anticipated to be minimal.

 

Projects recommended by the subcommittee for funding with general obligation bonds included statewide roofing projects ($3.9 million), projects to address the requirements of the Americans With Disabilities Act ($2.3 million), installation of fire sprinklers in state buildings ($2.1 million), site improvements at the new Las Vegas office building ($1.3 million), remodeling Building "A" at the Fremont School ($1.6 million), remodeling the old state library ($500,000), Cheyenne Campus Phase V at the Community College of Southern Nevada ($14.1 million), the library phase of the advanced technology and library expansion at Truckee Meadows Community College ($7.3 million), the Winnemucca branch of Northern Nevada Community College ($1.6 million), the West Charleston Campus Phase III at the Community College of Southern Nevada ($15.1 million), expansion and renovation of the state health lab ($2.4 million), and expansion/rebuild of the Stewart conservation camp ($4.6 million).

 

Chairman Arberry said the subcommittee recommended approximately $2.8 million more in Highway Fund appropriations than was recommended by the Governor.  Funding recommended by the subcommittee would provide approximately $500,000 for roofing, addressing the requirements of the Americans With Disabilities Act and paving; approximately $300,000 to improve the uninterrupted power source and address electrical code problems at the Department of Motor Vehicles office in Carson City; approximately $179,000 to improve the water flow to the hydrants and fire sprinklers and to add a walkway to the warehouse mezzanine at the Department of Motor Vehicles office in Carson City; approximately $3.3 million to remodel the Department of Motor Vehicles office in Reno; and approximately $2.3 million to construct a commercial drivers license and express office at the former proposed site of the state warehouse in Las Vegas.

 

      MR. MARVEL MOVED TO ADOPT THE RECOMMENDATIONS OF THE CAPITAL IMPROVEMENTS SUBCOMMITTEE.

 

      MR. HUMKE SECONDED THE MOTION.

 

Ms. Giunchigliani asked how the subcommittee decided to fund the Winnemucca project.  Chairman Arberry said some of the projects recommended by the subcommittee were not recommended by the Governor.

 

Ms. Giunchigliani inquired about the Truckee Meadows Community College project.  Chairman Arberry stated the project had been recommended by the Public Works Board.

 

Mrs. Chowning asked if funding had been shifted from other budgets and, if so, from what budgets.  Mr. Ghiggeri explained the proceeds from previously authorized but unused general obligation bonds were redistributed to the 1993-95 capital improvement program.  Approximately $2.2 million more than was originally identified in the Executive Budget was available.  The Governor had also recommended $1 million for the rehabilitation of the culinary at the Nevada State Prison which was subsequently withdrawn by the Public Works Board.  The Executive Budget also included $5 million for energy retrofit projects and it was subsequently determined the bonds to finance those projects did not actually have to be issued.

 

Mrs. Chowning asked if the Cheyenne Campus project included lighting for the entire parking lot.  Chairman Arberry answered the funding was for lighting the new parking lot.  The existing parking lot had adequate lighting in place.

 

Mrs. Evans inquired whether the funding for the Fremont School project would cover the total remodel or was only a first step.  Mr. Ghiggeri responded the funding would provide for renovation of Building "A".  Minimal work would also be done on Building "B" but it was not anticipated Building "B" would be occupied over the biennium.  Funding for additional renovations could be requested during the 1995 legislative session.

 

Mrs. Evans asked the same question about the old state library.  Mr. Ghiggeri said the funding would provide for the renovation recommended in the Executive Budget.  There was no provision for structural enhancement.

 

      THE MOTION CARRIED.  MS. GIUNCHIGLIANI WAS OPPOSED.  MR. SPITLER AND MS. TIFFANY WERE ABSENT.

 

      BUDGET CLOSED.

 

BUDGET AND PLANNING - PAGE 178

 

Mr. Stevens stated fiscal staff had received correspondence from the Budget Director which indicated the budget analysts in the budget were not exempt from Fair Labor Standards Act (FLSA) requirements and would, in fact, earn overtime pay.  Therefore, $120,000 had to be added in the second year of the biennium, when the Budget Division would be constructing the 1995-97 budget.

 

Mr. Stevens noted there was a slight adjustment in state-owned building rent and the purchasing assessment was deleted pursuant to actions taken by the committee in funding the Purchasing Division budget.

 

Mr. Stevens explained in enhancement item number 420 the demographer position was restored to the Department of Taxation's budget and the economist position was restored in the Water Planning budget.  Thus, both positions would be removed from the Budget and Planning budget.  Adjustments would be made for operating, travel and personnel expenses associated with those positions.

 

Mr. Stevens explained enhancement number 440 would provide funding for a principal budget analyst to develop performance indicators.

 

Mr. Stevens informed the committee the Senate Finance Committee had recommended adjusting personnel expenses to include additional overtime payments, adjusting state-owned building rent and deleting the demographer.  The Senate retained the economist within the Department of Administration and added associated travel and operating costs to the budget.  The Senate eliminated funding for pre-audit automation ($100,000 in the second year of the biennium).  Finally, the Senate eliminated a management analyst I position.

 

Mr. Humke noted AB 201 would necessitate funding two principal budget analysts and their associated costs.  He asked if those positions had been included in this budget.  Mr. Stevens said they had not.  He said the committee had two options.  If the committee wished to pass AB 201, funding for the positions could be added to the budget.  In the alternative, appropriations for funding could be included in the bill.  Chairman Arberry suggested amending the bill.

 

      MR. DINI MOVED TO CONCUR WITH THE RECOMMENDATIONS OF THE SENATE.

 

      MR. HUMKE SECONDED THE MOTION.

 

      THE MOTION CARRIED UNANIMOUSLY.  MR. PRICE, MR. SPITLER AND MS. TIFFANY WERE ABSENT.

 

      BUDGET CLOSED.

 

INTERNAL AUDIT - PAGE 184

 

Mr. Stevens stated the Governor recommended including three professional positions and one support position in the budget.  He noted the Senate Finance Committee had closed the budget pursuant to the Governor's recommendation.

 

      MR. MARVEL MOVED TO CLOSE THE INTERNAL AUDIT BUDGET AS RECOMMENDED BY THE GOVERNOR.

 

      MR. DINI SECONDED THE MOTION.

 

      THE MOTION CARRIED UNANIMOUSLY.  MR. PRICE, MR. SPITLER AND MS. TIFFANY WERE ABSENT.

 

      BUDGET CLOSED.

 

HEARINGS APPEALS DIVISION - PAGE 308

 

Mr. Stevens noted this budget had been held pending resolution of SB 316.  He said fiscal staff had no recommendations.

 

      MR. MARVEL MOVED TO CLOSE THE HEARINGS APPEALS DIVISION BUDGET AS RECOMMENDED BY THE GOVERNOR.

 

      MR. DINI SECONDED THE MOTION.

 

      THE MOTION CARRIED UNANIMOUSLY.  MR. SPITLER AND MS. TIFFANY WERE ABSENT.

 

      BUDGET CLOSED.

 

 

WORKERS' COMPENSATION HEARINGS RESERVE - PAGE 313

 

Fiscal staff had no comments.

 

      MS. GIUNCHIGLIANI MOVED TO CLOSE THE WORKERS' COMPENSATION HEARINGS RESERVE BUDGET AS RECOMMENDED BY THE GOVERNOR.

 

      MR. DINI SECONDED THE MOTION.

 

      THE MOTION CARRIED UNANIMOUSLY.  MR. SPITLER AND MS. TIFFANY WERE ABSENT.

 

      BUDGET CLOSED.

 

NEVADA ATTORNEY FOR INJURED WORKERS - PAGE 455

 

Mr. Stevens said this account was also held pending resolution of SB 316.  He noted the agency had expressed concern regarding the salary level of attorneys.  He suggested that matter could be handled separately from the budget.

 

Mr. Stevens explained a fiscal note had been attached to SB 316 regarding additional personnel.  He noted this was not a General Fund account and the agency had the ability to come to the Interim Finance Committee for funding for additional positions, if necessary.  Ms. Giunchigliani suggested reviewing salaries to equalize them with other state attorneys.  She also suggested placing this agency under the auspices of the Public Defender.  She also noted the agency would require additional personnel.

 

Ms. Judy Matteucci, Budget Director, pointed out the Workers' Compensation Hearing Reserve account was used to fund additional positions.  She suggested the request for additional positions be directed to the Interim Finance Committee at the August meeting.

 

Mr. Dini questioned why the Attorney for Injured Workers had no secretary.  Ms. Giunchigliani said she recommended funding at least a half-time position.  Chairman Arberry asked the Budget Director to prepare a recommendation for the Interim Finance Committee.  She agreed to do so.

 

Mr. Price asked if revisions to the State Industrial Insurance System could result in an increased caseload and if the possibility had been considered in the budget.  Ms. Giunchigliani said there would be an increase in caseload.  That was why she was recommending additional personnel.

 

Mrs. Williams said she understood the Public Defender only handled criminal cases.  She questioned whether placing this budget in the Public Defender's Office was appropriate.  She would not want injured workers to be stigmatized by association with the Public Defender's clients.  Ms. Giunchigliani clarified the Attorney for Injured Workers would not be in the Pubic Defender's Office.  Her suggestion was to structure this office as a special purpose agency separate from other state agencies.

 

Ms. Matteucci said she shared Mrs. Williams concerns.  She pointed out the agency had been removed from the Department of Administration and moved into the Department of Business and Industry.  Ms. Giunchigliani stated this issue could be revisited at a later time.

 

Mr. Stevens noted a technical adjustment was needed in this budget to correspond to the closing of the Business and Industry budget.

 

      MR. MARVEL MOVED TO CLOSE THE NEVADA ATTORNEY FOR INJURED WORKERS IN ACCORDANCE WITH THE RECOMMENDATIONS OF FISCAL STAFF.

 

      MR. HUMKE SECONDED THE MOTION.

 

      THE MOTION CARRIED UNANIMOUSLY.  MR. SPITLER AND MS. TIFFANY WERE ABSENT.

 

      BUDGET CLOSED.

 

ASSEMBLY BILL 763-     Repeals temporarily provisions establishing permanent net proceeds fund.

 

Mr. Stevens explained AB 763 would transfer the money from the Mining Trust Fund to the General Fund.  He noted those funds were included in revenue projections provided to the committee by the Budget Division.  The Fiscal Division was also including those funds in its revenue projections.

 

Mr. Stevens reminded the committee of previous discussions regarding sunsetting AB 763.  He explained the bill could be amended to either repeal the current statute for a limited time or to sunset at June 30, 1995.

 

Mr. Price suggested another option was for the Administration to have presented a resolution to the Legislature requesting a transfer of the funds without amending the statute.  Chairman Arberry noted the money was included in revenue projections.

 

Ms. Matteucci stated the original budget anticipated the action suggested by Mr. Price.  However, in light of the revised revenue projections presented in May which contemplated requesting the 1995 Legislature for the same appropriation, the bill drafters suggested drafting AB 763.

 

Mr. Marvel noted the Trust Fund was established for a reason.  He said it was not good business practice to base an operating budget on net proceeds tax revenue because of its instability.  He suggested the committee adopt one of the staff recommendations.

 

Mr. Stevens said if some form of legislation was not processed, the money (approximately $1.8 million) could not be included in the revenue stream for the coming biennium.

 

Ms. Giunchigliani said she would not support this legislation.  She questioned whether fiscal staff had researched the constitutionality of changing the dates.  Mr. Stevens answered the Legislative Counsel had advised the bill could be amended to indicate the provisions of the statute were not effective during a certain period of time or the statute could be repealed, effective July 1, 1993, and reinstated, effective July 1, 1995.  Either action would allow the money to be counted in the 1993-95 biennium for revenue purposes.

 

Ms. Giunchigliani questioned whether a precedent would be established.

 

Ms. Matteucci noted the Trust Fund had been established for an emergency situation.  She stated this was an emergency situation.

 

Ms. Giunchigliani expressed frustration at having to react with bad policy to fund the budget rather than raising revenue in the proper manner.

 

Mr. Humke asked if the money could remain in the Trust Fund and be transferred to the General Fund only if needed.  Ms. Matteucci replied the Trust Fund was separate and apart from the General Fund.  An act of the Legislature was required to transfer the Trust Fund balance.

 

Mr. Humke agreed the current statute should not be repealed.

 

      MR. DINI MOVED AMEND AND DO PASS ON AB 763.

 

      MR. MARVEL SECONDED THE MOTION.

 

      THE MOTION CARRIED.  MS. GIUNCHIGLIANI AND MR. PRICE WERE OPPOSED.  MR. SPITLER AND MS. TIFFANY WERE ABSENT.

 

There being no further business, the meeting was adjourned at 10:25 a.m.

 

                                                RESPECTFULLY SUBMITTED:

 

 

                                                _________________________

                                                C. Dale Gray

                                                Committee Secretary

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Assembly Committee on Ways and Means

June 23, 1993

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