MINUTES OF THE

      ASSEMBLY COMMITTEE ON WAYS AND MEANS

 

      Sixty-seventh Session

      June 29, 1993

 

 

The Assembly Committee on Ways and Means was called to order by Chairman Morse Arberry, Jr., at 8:26 a.m., on Tuesday, June 29, 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

     

 

SENATE BILL 52          -     Allows constitutional officers to submit budgets directly to Legislature.

 

Mr. Stevens explained SB 52 had been voted out of committee do pass but it now required an amendment to resolve a conflict with SB 316.

 

Mr. Dini indicated SB 52 merely required a technical correction.

 

SENATE BILL 107   -     Makes appropriation to legislative fund for computer equipment and software for Legislative Counsel Bureau.

 

Mr. Stevens explained SB 107 requested an appropriation of $132,700 for data processing equipment for the Legislative Counsel Bureau.  He noted during the interim, updates had to be made to the data processing operation.  Fiscal staff recommended amending the bill to make the effective date June 30, 1993.

 

      MR. MARVEL MOVED AMEND AND DO PASS ON SB 107.

 

      MR. HUMKE SECONDED THE MOTION.

 

      THE MOTION CARRIED UNANIMOUSLY.

 

SENATE BILL 551   -     Revises provisions governing approval by Board of Directors of Department of Transportation of certain purchases by Department of Transportation.

 

Mr. Stevens said SB 551 required that the Board of Directors of the Department of Transportation not delegate its authority to approve equipment purchases over $50,000 to the Director of the department.  The Board would be required to review and approve large purchases.

 

      MR. SPITLER MOVED DO PASS ON SB 551.

 

      MRS. EVANS SECONDED THE MOTION.

 

Mr. Humke asked if the committee had heard sufficient justification for increasing the purchase limit from $25,000 to $50,000.  Mr. Ghiggeri responded Senate fiscal staff had indicated the $50,000 limit would allow for more flexibility in purchasing equipment.

 

      MR. HUMKE MOVED TO AMEND THE MOTION TO REDUCE THE PURCHASING LIMIT TO $25,000.

 

      MR. SPITLER SECONDED THE MOTION.

 

Chairman Arberry indicated the Senate would not agree to such an amendment.

 

Mr. Dini said it was impossible to buy heavy equipment for $25,000 and keeping the limit at that amount would impair the department's ability to function effectively.

 

      MR. HUMKE WITHDREW HIS MOTION TO AMEND.

 

      MR. SPITLER WITHDREW HIS SECOND.

 

Chairman Arberry called for a vote on the original motion.

 

      THE MOTION CARRIED UNANIMOUSLY.  MR. PRICE WAS ABSENT.

 

SENATE BILL 562   -     Delays effective and expiration dates of Assembly Bill No. 407 of this session.

 

Mr. Stevens said SB 562 would delay implementation of AB 407 and was required due to the closing of the Capital Improvement Program budget.

 

      MRS. WILLIAMS MOVED DO PASS ON SB 562.

 

      MR. SPITLER SECONDED THE MOTION.

 

      THE MOTION CARRIED UNANIMOUSLY.  MR. PRICE WAS ABSENT.

 

SENATE BILL 567   -     Provides funding for reduction of ratio of pupils to teachers in certain grades.

 

Mr. Stevens indicated this was the class-size reduction measure.  He noted it had not been heard in committee prior to this time.

 

Mr. Dini noted this issue had been dealt with in joint committee meetings.  Mr. Stevens pointed out the amounts in the bill were based on the joint closure of the class-size reduction program.  He noted the Senate closing mirrored the Assembly closing.

 

Ms. Giunchigliani asked if the only change to the current statute was the requirement that the Department of Education submit annual reports to the Budget Division, the Department of Administration and the Fiscal Division.  Chairman Arberry responded affirmatively.

 

 

      MS. GIUNCHIGLIANI MOVED DO PASS ON SB 567.

 

      MRS. CHOWNING SECONDED THE MOTION.

 

      THE MOTION CARRIED UNANIMOUSLY.  MR. PRICE WAS ABSENT.

 

ASSEMBLY BILL 409-     Makes various changes relating to state financial administration.

 

Mr. Stevens stated this measure had been reviewed by a subcommittee composed of Chairman Arberry, Mr. Dini and Mr. Marvel.

 

Mr. Stevens explained the bill would change the thresholds for work programs which required Interim Finance Committee approval.  Additionally, it would require the Executive Branch to follow guidelines established by the Legislature in the event it was necessary to reduce budgets.

 

Mr. Stevens said AB 409 would change the cumulative nature of the requirement to obtain Interim Finance Committee approval on work program changes over $25,000.  AB 409 proposed amending the statute to limit individual requests rather than the cumulative total of work programs.  In addition, it would increase the threshold to $100,000.  The subcommittee recommended retaining a cumulative threshold of 15 percent or $50,000, with work programs less than $5,000 being exempt from the requirement.

 

Mr. Stevens stated AB 409 proposed increasing the threshold for Interim Finance Committee approval of governmental grants which did not require the hiring of new employees from $50,000 to $100,000.  The subcommittee recommended retaining the $50,000 threshold.

 

Mr. Stevens noted AB 409 proposed repealing NRS 353.224 regarding Interim Finance Committee approval for position reclassifications.  The subcommittee agreed with the proposal but requested that position reclassifications be submitted to the Interim Finance Committee as informational items.

 

Mr. Stevens said AB 409 also recommended eliminating Interim Finance Committee approval for allocation of money received under federal block grants.  The subcommittee recommended retaining that provision, which provided for public hearings.

 

Mr. Stevens said AB 409 also contained guidelines to be followed by the Executive Branch in the event budgets had to be reduced.

 

Ms. Giunchigliani indicated she did not support the portion of AB 409 dealing with legislative guidelines.  She noted the committee had not discussed possible priorities in cutting budgets.

 

Mrs. Evans asked if the guidelines would be placed in the Appropriations Act.  Mr. Stevens responded affirmatively.  He noted the language in the Appropriations Act would be effective for the 1993-95 biennium and the issue would have to be revisited by the 1995 Legislature.

 

Mr. Stevens pointed out AB 409 referred to the items which the guidelines "must" include.  He suggested the bill could be amended to list items which the guidelines "may" include.  Ms. Giunchigliani questioned the need for the language since the guidelines were included in the Appropriations Act.  Mr. Stevens noted AB 409 would amend the statute to conform to the language in the Appropriations Act.

 

Ms. Giunchigliani indicated she was concerned that amending the statute would allow the Governor to set aside funds from the Distributive School Account.  Chairman Arberry said the Governor already had the authority to set aside reserves from the Distributive School Account.  Ms. Giunchigliani stated the Legislative Counsel had previously advised the committee the amendment to the statute would strengthen the Governor's authority to set aside reserves from guaranteed funds.

 

Mr. Price agreed with Ms. Giunchigliani.  He noted he was opposed to conferring additional authority to the Executive Branch.  He said he would object to AB 409 and the Appropriations Act in general session.

 

Mr. Humke said he supported the work of the subcommittee regarding the bill and the Appropriations Act.  He questioned, however, whether changing "must" to "may" would weaken the legal defensibility of the bill.  If "must" had to remain in the language, it would necessitate a concurrent resolution to convey the legislative guidelines.

 

      MR. MARVEL MOVED AMEND AND DO PASS ON AB 409.

 

      MS. TIFFANY SECONDED THE MOTION.

 

      THE MOTION CARRIED.  MRS. CHOWNING, MS. GIUNCHIGLIANI AND MR. PRICE WERE OPPOSED.

 

ASSEMBLY BILL 787-     Makes appropriations for support of civil government of state.

 

Mr. Stevens explained AB 787 was the General Appropriations Act.

 

      MR. PERKINS MOVED DO PASS ON AB 787.

 

      MR. HELLER SECONDED THE MOTION.

 

Mrs. Evans noted she would abstain from voting on this measure since she was an employee of the University and Community College System.  She stated she would vote in general session, however.

 

Mr. Humke indicated he would abstain on the same basis.

 

      THE MOTION CARRIED.  MRS. EVANS AND MR. HUMKE ABSTAINED.  MS. GIUNCHIGLIANI WAS ABSENT.

 

ASSEMBLY BILL 788-     Authorizes and provides funding for certain projects of capital improvement.

 

Mr. Stevens stated AB 788 related to the Capital Improvements Program.

 

Mr. Marvel questioned whether the tax rate had been adjusted.  Mr. Stevens responded affirmatively.

 

      MR. MARVEL MOVED DO PASS ON AB 788.

 

      MR. DINI SECONDED THE MOTION.

 

      THE MOTION CARRIED UNANIMOUSLY.  MS. GIUNCHIGLIANI WAS ABSENT.

 

ASSEMBLY BILL 321-     Revises fees for certain court-appointed attorneys in criminal proceedings.

 

Mr. Stevens said AB 321 had been amended to change the proposed hourly rate for court-appointed attorneys from $115 to $75 and to add language which was recommended during previous testimony.  He noted passage of this bill would impact the General Fund appropriation used by the State Public Defender from the Statutory Contingency Fund by approximately $30,000 per year.

 

      MRS. WILLIAMS MOVED AMEND AND DO PASS ON AB 321.

 

      MS. TIFFANY SECONDED THE MOTION.

 

      THE MOTION CARRIED UNANIMOUSLY.  MR. PRICE WAS ABSENT.

 

ASSEMBLY BILL 20  -     Increases amounts paid to certain public officers and employees as travel and subsistence allowances.

 

Mr. Stevens noted AB 20 would increase per diem and travel allowances for state employees.  He said this proposal was not included in the Executive Budget.

 

Mr. Perkins pointed out previous testimony had indicated increased costs could be absorbed in the agencies' travel budgets.  Mr. Stevens stated increases in travel allowances traditionally had not been included in the Executive Budget.  The agencies compensated for those increases by reducing staff travel.

 

Mr. Dini stated the current rates were unreasonably low and state employees were having to pay the difference themselves.

 

      MR. DINI MOVED DO PASS ON AB 20.

 

      MS. GIUNCHIGLIANI SECONDED THE MOTION.

 

      THE MOTION CARRIED.  MS. TIFFANY WAS OPPOSED.  MR. PRICE WAS ABSENT.

 

There being no further business, the meeting was adjourned at 8:55 a.m.

 

                                                RESPECTFULLY SUBMITTED:

 

 

                                                _________________________

                                                C. Dale Gray

                                                Committee Secretary

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Assembly Committee on Ways and Means

June 29, 1993

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