MINUTES OF THE
SENATE COMMITTEE ON FINANCE
Sixty-seventh Session
April 22, 1993
The Senate Committee on Finance was called to order by Chairman William J. Raggio, at 10:15 a.m., on Thursday, April 22, 1993, in Room 223 of the Legislative Building, Carson City, Nevada. Exhibit A is the Meeting Agenda. Exhibit B is the Attendance Roster.
COMMITTEE MEMBERS PRESENT:
Senator William J. Raggio, Chairman
Senator Raymond D. Rawson, Vice Chairman
Senator Lawrence E. Jacobsen
Senator Bob Coffin
Senator Diana M. Glomb
Senator William R. O'Donnell
Senator Matthew Q. Callister
STAFF MEMBERS PRESENT:
Dan Miles, Fiscal Analyst
Bob Guernsey, Principal Deputy Fiscal Analyst
Dee Crawford, Committee Secretary
OTHERS PRESENT:
Mike Johaneson, Collective Bargaining Coalition
Al Edmundson, President, Retired Public Employees of Nevada
Bob Gagnier, Executive Director, State of Nevada Employees Association
P. Forrest (Woody) Thorne, Deputy Budget Administrator, Department of Administration
Senator Raggio opened discussion on Senate Bill (S.B.) 389.
SENATE BILL 389: Specifies amount to be paid by certain public employers for group insurance for public employees for next biennium.
Mike Johaneson, Collective Bargaining Coalition, distributed Exhibit C, memorandum dated April 2l, l993, to the committee. Mr. Johaneson announced the Collective Bargaining Coalition represents the Employees International Union, Operating Engineers Local Union Number 3, State of Nevada Peace Officers' Association, Nevada Highway Patrol Association and Nevada Corrections Association.
Mr. Johaneson urged the committee to increase the state allocation for monthly group insurance premiums for public employees with dependent coverage. He offered the suggestion the state and its employees share the increased health costs over the next biennium. He also recommended to postpone the endorsement of the Governor's subsidy philosophy until such time as employees are better able to offset the full burden of the insurance increase with potential future salary increases.
Bob Gagnier, Executive Director, State of Nevada Employees Association (SNEA), distributed Exhibit D, SNEA Information on Health Insurance, to the committee and testified while referencing that document.
Mr. Gagnier drew the committee's attention to Exhibit E, April 8, 1993 memorandum from David Thomas to Birgit Baker, regarding inflationary increases used in developing the estimated insurance premiums. The SNEA, in concert with independent insurance agents, reviewed that material, he disclosed. Mr. Gagnier announced the trends presented by Mr. Thomas were "off by $5 million." He stated the l6.3 percent trend used in the sample is accurate, however, it
should have been projected for 30 months, not just the second year of the biennium.
Further, he declared:
We were absolutely shocked when Senator Glomb brought up this memo yesterday. Fred Suwe, [Quality Control Manager, Employment Security Department] who was testifying, is the legislative liaison for the Committee on Benefits. You have a memo on their letterhead, which no member of the committee had, at that point, seen. The chairman of the committee had not seen this letter, they are not aware of these figures that...were supplied to you. I think that is an important thing to note that they were unaware of these projected costs that had been given to the committee, which we think make our case actually even stronger, because we're looking at, in less than 2 years, according to Mr. Thomas's estimates, that an employee...with a spouse and child or children, is going to be paying $430 for their health insurance....
That, combined with the $5 million we estimate that their figures are off, would lead you to believe that there are going to be very substantial increases to employees. They are predicting that, as of January l, l995, for the first time in the history of the state, state employees will have to pay out of their own pockets for their health insurance.
Senator Raggio queried, "Notwithstanding their projections, there would be an additional $5 million shortfall?"
Mr. Gagnier responded in the affirmative.
Senator Raggio requested documentation supporting Mr. Gagnier's estimated shortfall.
Senator Raggio closed the hearing on S.B. 389 and opened discussion on Senate Bill (S.B.) 390.
SENATE BILL 390: Specifies amount payable by state for group insurance for retired public employees.
Al Edmundson, President, Retired Public Employees of Nevada, testified briefly in support of the increase budgeted for retired public employees as outlined in S.B. 390.
Senator Raggio closed the hearing on S.B. 390 and opened discussion on Senate Bill 220, Senate Bill 222, and Senate Bill 333. General discussion ensued.
SENATE BILL 220: Increases licensing fees for motor vehicle manufacturers, distributors, dealers, rebuilders and lessors.
SENATE BILL 222: Makes certain changes concerning licensing with regard to sale or lease of vehicles.
SENATE BILL 333: Establishes fee for dealer's report of sale and for special permit that enables buyer of motor vehicle to operate motor vehicle for l0 days.
Senator Coffin suggested these bills be closed at the same time the applicable Department of Motor Vehicle and Public Safety budget is closed.
Senator O'Donnell recommended to act on S.B. 222 but hold the other two bills for review. Senator O'Donnell provided an overview of the findings of the subcommittee which reviewed S.B. 222. It was the subcommittee's recommendation the initial application fee be changed to $75, the renewal fee be changed to $40 and transfer fees be changed to $20.
SENATOR O'DONNELL MOVED TO AMEND AND DO PASS S.B. 222 WITH A CHARGE OF $75 FOR INITIAL APPLICATION, $40 CHARGE FOR TRANSFER FEES AND $20 CHARGE FOR TRANSFER FEES.
SENATOR JACOBSEN SECONDED THE MOTION.
THE MOTION CARRIED.
* * * * *
There being no further business to come before the committee, Senator Raggio adjourned the meeting at l0:40 a.m.
RESPECTFULLY SUBMITTED:
Dee Crawford,
Committee Secretary
APPROVED BY:
Senator William J. Raggio, Chairman
DATE:
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Senate Committee on Finance
April 22, 1993
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