MINUTES OF THE
SENATE COMMITTEE ON FINANCE
Sixty-seventh Session
May 26, 1993
The Senate Committee on Finance was called to order by Chairman William J. Raggio, at 8:20 a.m., on Wednesday, May 26, 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
Birgit Baker, Program Analyst
Dee Crawford, Committee Secretary
OTHERS PRESENT:
Howard Skolnik, Assistant Director, Industrial Programs, Department of Prisons
Henry Etchemendy, Executive Director, Nevada Association of School Boards
Gregory Betts, Nevada Rural School District Alliance
Jim Weller, Director, Department of Motor Vehicles and Public Safety
Bill Gosnell, Chief of Administrative Services Division, Department of Motor Vehicles and Public Safety
P. Forrest (Woody) Thorne, Deputy Budget Administrator, Department of Administration
The Senate Committee on Finance meeting commenced at the conclusion of the tour of the old state library building.
Senator Raggio opened the hearing on Assembly Bill 93.
ASSEMBLY BILL (A.B.) 93: Clarifies provisions governing revenue to be deposited in fund for new construction of facilities for prison industries.
Howard Skolnik, Assistant Director, Industrial Programs, Department of Prisons, testified this bill clarifies statutes regarding deductions from inmate wages for the purpose of construction of new prison industry buildings. He explained the measure limits the deductions of inmates working in prison industries. The previous language, he mentioned, included the restitution center and other working inmates.
Senator Raggio asked what public service would be solved by making the change in language.
Mr. Skolnik responded to the basic purpose of the language change:
The restitution center is funded out of the wages. The 5 percent under previous language would have also impacted the restitution center income. The money going into the General Fund, under the previous language, would clarify it to come out of just the prison industries wages only affecting those inmates.
Senator Raggio asked what effect would the language change have to prisoners working outside the program.
Mr. Skolnik said they will receive their wages "just as they always have. There will be no deduction for prison industry construction." Continuing, he explained:
There...[are] basically three types of incomes the inmates will be receiving. The inmates working in prison industries...are working at or near minimum wage. The inmates working at other institutional programs are...earning very small sums of money....The inmates working in the restitution centers are earning money, at least in part, to prepare them for their soon-to-be release. So what we've done is focus on those inmates who are in the institution who are earning a substantial sum of money, rather than take percentages from guys who are basically only able to cover their cigarettes and toilet articles.
Mr. Skolnik offered the information there have been three recent court decision rulings that all inmates are not protected by the Fair Labor Standards Act. Because of the rulings, it would not be necessary to pay inmates minimum wage, he maintained.
Senator Jacobsen asked if that ruling would also apply to inmates working at the prison ranch.
Mr. Skolnik responded in the affirmative. He explained the inmates covered under the proposal earn an average of $3.90 per hour statewide.
Senator Glomb asked how much revenue was expected to be generated from using that process.
Mr. Skolnik advised approximately $35,000 to $50,000 annually. He maintained the revenue would be used exclusively for construction of new industry programs, buildings and equipment.
Senator Jacobsen contended that type of process would provide more industries for prisoners to work at, and he strongly supported the concept. Senator Jacobsen commended Mr. Skolnik for his hard work.
Senator Raggio closed the hearing on A.B. 93.
SENATOR O'DONNELL MOVED TO DO PASS S.B. 93.
SENATOR JACOBSEN SECONDED THE MOTION.
THE MOTION CARRIED. (SENATOR CALLISTER WAS ABSENT FOR THE VOTE.)
* * * * *
Senator Raggio opened the hearing on Assembly Bill 96.
ASSEMBLY BILL (A.B.) 96: Repeals duplicate and obsolete provisions concerning funds maintained by school districts.
Henry Etchemendy, Executive Director, Nevada Association of School Boards, testified in support of the measure and declared the bill would eliminate conflicting statutes.
Senator Raggio asked for an explanation of the difference between Chapter 354 and Chapter 387 of Nevada Revised Statutes
Mr. Etchemendy responded Chapter 354 of NRS is the local government budget act that administers the budgets of all local governments including the school districts. Chapter 387 of NRS applies only to school districts, he noted.
Gregory Betts, Nevada Rural School District Alliance, testified in support of A.B. 96 and urged passage of the measure.
SENATOR O'DONNELL MOVED TO DO PASS A.B. 96.
SENATOR GLOMB SECONDED THE MOTION.
THE MOTION CARRIED. (SENATOR CALLISTER WAS ABSENT FOR THE VOTE.)
* * * * *
Exhibit C, Closing List #22, (Exhibit C - Original on File in the Research Library) was distributed to the committee.
Dan Miles, Fiscal Analyst, reminded the committee that under the original recommendation by the Governor, the agency (Department of Motor Vehicles and Public Safety) was going to be split into motor vehicles and public safety, but the consensus of the committee was to bring them back together as one agency.
Referencing Exhibit C, Birgit Baker, Program Analyst, summarized the changes in the respective budget of the Department of Motor Vehicles and Public Safety. Despite restoration of most of the positions targeted for reorganization savings, she maintained, there would still be a net savings in these budgets to the highway fund of approximately $67,000. The General Fund impact from these budgets would result in a net savings of approximately $287,000 over the biennium, she maintained.
Drivers License - Page l3l5
Ms. Baker explained there are two sources of revenue in this budget; a highway fund appropriation, and revenue designated as Other, which was the $l photo license fee the agency is allowed to charge in addition to the drivers' license fee to offset the cost of the photo on each driver's license. There is an offsetting expenditure category called Photo Licenses which reflects a cost of 57 cents per photo. She noted one of the adjustments on the closing sheet was to align the revenue to correspond with the level expenditures reflected in the FY l992 actual year. Ms. Baker explained the commercial drivers' license program does not contain a provision for the $l fee, and the agency was paying the commercial drivers' license fees out of the drivers' license budget without the $l fee being credited to the account for those photo transactions.
Senator Coffin referenced the $l photo license fee, compared it to the photo cost of 57 cents, and asked "if that includes the cost of supplies and use of the machine on a lease basis."
Ms. Baker responded 57 cents is the actual cost of the photo, but explained 43 cents goes into the budget to offset some of the additional operating costs.
Senator Coffin asked if the agency owned the photo equipment.
Ms. Baker answered the equipment is leased.
Senator Coffin asked if that system was the most advantageous.
Jim Weller, Director, Department of Motor Vehicles and Public Safety, responded in the affirmative.
Senator Coffin queried whether the charge also included the labor cost for the employee taking the photo.
Mr. Weller responded it does not and added the 57 cents is strictly the cost of the machine.
Senator Coffin wondered if the $l charge was sufficient to cover the labor cost as well.
Continuing her testimony, Ms. Baker pointed out one of the major changes in the driver's license budget was the regional manager position approved by the l99l legislature designated to oversee the rural regions. She maintained the agency did not use the position in the manner consistent with testimony promising to establish a third region. Ms. Baker explained the agency changed the regional manager position to a line supervisor in the Carson City office. The subcommittee for the Assembly Committee on Ways and Means recommended the position be eliminated since it was not used as previously defined.
Continuing, Ms. Baker testified the Executive Budget rcommended four replacement vehicles requested by the agency in Fiscal Year l995. The agency indicated the vehicle in Elko is failing and requested funding for one of the vehicles be provided in Fiscal Year l994. Additionally, she stated, in FY l993 the agency was provided with a new vehicle, which they initially indicated would be placed in Yerington as a backup vehicle for the Carson City drive team. Instead, that vehicle was placed in Carson City as an administrative vehicle, she disclosed. The subcommittee for the Assembly Committee on Ways and Means recommended that particular vehicle be used in lieu of one of the replacement vehicles recommended by the Governor for FY l995.
Ms. Baker expounded:
Additionally, during testimony, the agency indicated in order to meet the 22 percent cap in [FY] l995, due to the opening of the Cimmaron office in West Las Vegas, they would have to use some of the positions currently designated for their Jones Street express office for the Cimmaron office. In looking at the budgets, the Driver's License Division specifically has a new sit down team concept they have built into the [FY l993-] l995 [biennial] budget request which will change their staffing pattern. The subcommittee of the Assembly Committee on Ways and Means felt the agency should be able to, within existing resources, continue the Saturday services. They will be closing the Jones Street express office when they open the West Las Vegas office, but they were asked [byu the Assembly Committee on Ways and Means] to continue the Saturday services within the existing resources...provided in the Governor's budget.
Senator Raggio asked for clarification of the rural regional manager position which was used in Carson City.
Mr. Weller explained:
I agree wholeheartedly with the Assembly Committee on Ways and Means subcommittee. We didn't use it as we were told to in l99l and apparently there is not a need for it. So I have no problem with that at all.
SENATOR O'DONNELL MOVED TO ADJUST THE BUDGET AS RECOMMENDED BY STAFF AND OUTLINED IN EXHIBIT C, PAGE 2.
SENATOR JACOBSEN SECONDED THE MOTION.
THE MOTION CARRIED. (SENATOR CALLISTER WAS ABSENT FOR THE VOTE.)
* * * * *
Senator Raggio verified the approval of this budget was in accordance with action taken by the Assembly Committee on Ways and Means.
Commercial Driver's License - Page 1322
Ms. Baker referenced the performance indicators for this budget and announced there has been a substantial reduction in the activity for this program. She explained the agency had an April l, l992, deadline to issue commercial driver's licenses under the new federal guidelines. The budget was augmented to allow for hiring of seasonal positions to assist in meeting that deadline. She explained the agency was requested to reassess its need for this program since the revenue generated from the fees was not covering the highway fund appropriation. The agency had identified five positions that were approved for the April l992 deadline cycle and indicated they could delete those positions and still run the program, Ms. Baker reported.
SENATOR O'DONNELL MOVED TO ADJUST THE BUDGET AS RECOMMENDED BY STAFF AND OUTLINED IN EXHIBIT C, PAGE 5.
SENATOR GLOMB SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
* * * * *
Registration Division - Page l327
Ms. Baker reviewed Exhibit C, page 7, and explained certain adjustments to expenses as outlined on the exhibit material.
Senator Raggio asked how effective is the verification of insurance program.
Senator O'Donnell responded a subcommittee held numerous hearings on that issue. He explained insurance companies are required by law to report those individuals who drop their insurance coverage. The reporting mechanism is accomplished by name or partial Vehicle Identification Number [VIN] or partial policy number. When the insurance verification section receives that information, he explained, "there is no way of matching that information with the records at the DMV [DMV&PS Department of Motor Vehicles and Public Safety]. The best match they can get, is about 50 percent."
Ms. Baker explained when the budget was received from the Governor as two separate departments, there were two administrative services divisions established: one for motor vehicles and one for public safety. In order to maximize resources, the budget office transferred several management analyst positions from several of the divisions within DMV&PS, she explained. Ms. Baker stated, during testimony, it was indicated if the two departments were merged back into one, they would have sufficient administrative resources and these particular management analysts could be used by the programs to which they are currently assigned. In conclusion, Ms. Baker offered the recommendation to move those positions back into the respective programs.
Addressing the transfer to the Motor Vehicle Pollution Control budget, Ms. Baker explained l6 positions will be transferred from the registration division budget into that account.
Referencing page 8, of Exhibit C, Ms. Baker stated the positions of chief and assistant chief of registration were designated for reorganization savings. She explained because the agencies are being merged again, there will be only one director of Motor Vehicles and Public Safety, so the Assembly Committee on Ways and Means felt it was appropriate to restore the chief of the Registration Division, as well as the assistant chief's position.
SENATE BILL 222: Makes certain changes concerning licensing with regard to sale or lease of vehicles.
Ms. Baker explained the Executive Budget contemplated repealing the vehicle salesman licensing program in FY l995. The Senate Committee on Transportation amended Senate Bill 222 to increase the fees to support the cost of the vehicle salesman licensing program, she reported. This recommendation requires reinstatement of the vehicle salesman licensing costs in the budget of the registration division.
It was reported the Assembly Committee on Ways and Means recommended legislation to implement a $l0 surcharge to encourage renewal by mail and offset the cost of providing renewal services physically at DMV&PS offices. The Assembly Committee on Ways and Means also recommended the agency implement flexible driver and registration service hours, including the continuation of Saturday services in both southern Nevada locations within existing resources, Ms. Baker explained.
Senator Raggio noted the department receives a considerable amount of money through mail-in fees for registration. He asked if the currency goes directly to the department or if the agency uses a lockbox system wherein the depositor starts receiving interest immediately.
Bill Gosnell, Chief, Administrative Services Divisiion, Department of Motor Vehicles and Public Safety, replied bank deposits are conducted physically on a daily basis.
Senator Raggio advised Mr. Gosnell several state agencies are currently using the lockbox system and asked why the agency does not use this deposit method.
Mr. Gosnell responded the larger offices make direct bank deposits while some rural area offices use the lockbox method.
Senator Raggio requested Mr. Gosnell to meet with the state treasurer regarding usage of the lockbox system and advised "you may even be able to save a position or two."
Ms. Baker concluded one of the recommendations would be to permit the agency to implement flexible hours within existing resources.
SENATOR GLOMB MOVED TO ADJUST THE BUDGET AS RECOMMENDED BY STAFF AND OUTLINED IN EXHIBIT C, PAGE 7, AND IN ACCORDANCE WITH S.B. 222.
SENATOR CALLISTER SECONDED THE MOTION.
THE MOTION CARRIED. (SENATORS COFFIN AND O'DONNELL WERE ABSENT FOR THE VOTE.)
* * * * *
Forfeitures - Registration - Page l334
Ms. Baker explained the recommendation to combine the Department of Motor Vehicles and Public Safety eliminates the need for this budget. She stated this budget would be rolled back into the original forfeiture budget as outlined on page l426 of the Executive Budget.
SENATOR RAWSON MOVED TO ADJUST THE BUDGET AS RECOMMENDED BY STAFF AND OUTLINED IN EXHIBIT C, PAGE 12.
SENATOR JACOBSEN SECONDED THE MOTION.
THE MOTION CARRIED. (SENATOR O'DONNELL WAS ABSENT FOR THE VOTE.)
* * * * *
Motor Carrier - Page l336
Ms. Baker provided background information concerning this budget and explained Nevada became operational in the International Registration Plan (IRP) on January l, l992, and the International Fuel Tax Agreement (IFTA) on July l, l992. She reported the anticipated revenues from IRP and IFTA for FY l993 were less than projected. The subcommittee for the Assembly Committee on Ways and Means requested the agency report quarterly to the Interim Finance Committee on the status of the audit and collection activities from interstate motor carriers under these programs.
SENATOR JACOBSEN MOVED TO ADJUST THE BUDGET AS RECOMMENDED BY STAFF AND OUTLINED IN EXHIBIT C, PAGE 13, AND REQUESTED THE AGENCY REPORT ON A QUARTERLY BASIS REGARDING THE STATUS OF THE AUDIT AND COLLECTION ACTIVITIES FROM THE INTERSTATE MOTOR CARRIERS.
SENATOR RAWSON SECONDED THE MOTION.
THE MOTION CARRIED. (SENATOR COFFIN WAS ABSENT FOR THE VOTE.)
* * * * *
Salvage, Wreckers, Body Shops - Page l342
Ms. Baker stated there were no staff recommendations on this budget.
Senator Raggio solicited comments from the agency to justify existence of the program.
Mr. Weller answered it is a consumer protection issue and explained "the enforcement bureau is attempting to separate the law enforcement responsibility from the regulatory, licensing and administrative responsibilities."
Senator Raggio declared the performance indicators regarding the agency's effectiveness with consumer complaints were unclear.
Mr. Weller responded he thought the agency could do a better job in this area by separating the law enforcement and regulatory functions.
Senator Rawson asked for clarification of the objectives of the agency.
Mr. Weller explained the agency is attempting to ensure that stolen cars are not being processed through wrecking yards without proper paperwork.
Senator Rawson questioned the necessity of a special division to perform that function.
Mr. Weller responded, "I don't know. The suggestion was made that maybe since PSC [Public Service Commission] regulates some aspects of this business, it all ought to be put into one entity and I would certainly not disagree with that."
Senator Raggio explained although individual operators testified before the legislature to request this area be regulated, no feedback has been received from the individual operators as to the effectiveness of the agency.
Senator Rawson asked if there would be any advantage to merge this agency with the PSC.
Mr. Weller replied, "...I would guess there would be. It would give the industry one entity to deal with and not two or more."
Senator Raggio suggested to research the concept further and added, "I think we ought to make sure the representatives of this industry...at least ought to be asked about it." He requested Senator O'Donnell make inquiries on behalf of the committee.
SENATOR O'DONNELL MOVED TO APPROVE THE BUDGET AS RECOMMENDED BY THE GOVERNOR.
SENATOR RAWSON SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
* * * * *
Verification of Insurance - Page l346
Ms. Baker pointed out technical adjustments to this program would be to transfer the verification program supervisor from the Registration Division budget into this budget. The management analyst position would also be returned to this program, she explained.
Senator Raggio asked if this budget would be impacted if the Senate Committee on Transportation made changes.
Senator O'Donnell responded there were two different companies interested in doing the tracking of the insurance verification notices.
SENATOR O'DONNELL MOVED TO ADJUST THE BUDGET AS RECOMMENDED BY STAFF AND OUTLINED IN EXHIBIT C, PAGE 15.
SENATOR RAWSON SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
* * * * *
Motor Vehicles Administration - Page l350
Ms. Baker stated this budget was significantly impacted by merging the departments back together. She explained the Governor had recommended this budget be the administrative services and director's office budget for the Department of Motor Vehicles and Public Safety. The recommended closing action owuld result in restoring the director's office budget and would require the reversal of some positions previously placed into this budget, she stated.
Senator Raggio asked whether the committee desired to retain the Department of the Military within this department or leave it as a stand-alone organization. Concern has been expressed that the adjutant general should report directly to the Governor, he explained. Senator Raggio invited testimony regarding the Governor's concerns.
P. Forrest (Woody) Thorne, Deputy Budget Administrator, Department of Administration, testified:
We checked into this and there was language that was going to be included in the reorganization bill that would address that particular issue so that, in times of emergency, there is a direct line from the Governor to the adjutant general.
Senator Raggio asked Mr. Thorne if he discussed the issue with the Governor regarding authorization of the Department of the Military maintaining its autonomy.
Mr. Thorne answered, "I don't know, this is the first time I've heard the issue brought up to leave the military separate."
General discussion ensued and the consensus of the Senate Committee on Finance was to leave the Department of the Military as a separate entity.
Ms. Baker maintained if the Department of the Military was a separate agency:
The only adjustment necessary would be the two administrative positions, and there's $2,200 in operating that would then be transferred back to the military budget. So there's $l00,000 and $l02,000 for positions costs and then $2,200 for operating costs, that are already supported in this budget. We would merely transfer the General Funds from this budget to the military budget to accomplish that.
Ms. Baker addressed the enhancement portion of the budget and pointed out one of the issues the agency proposed, and was recommended by the Governor, was to repair the parking lots in Ely and Elko. That is non-state-owned space and a legal opinion stipulates the highway funds cannot be used for those purposes, she maintained. Ms. Baker declared, "Therefore $22,000 has been removed from that category." Ms. Baker provided a cursory review of the technical adjustments as indicated on Exhibit C, pages l6 and l7.
SENATOR O'DONNELL MOVED TO ADJUST THE BUDGET AS RECOMMENDED BY STAFF AND OUTLINED IN EXHIBIT C, PAGES 16 AND 17, AND TO AUTHORIZE THE DEPARTMENT OF THE MILITARY TO BE A SEPARATE AGENCY.
SENATOR COFFIN SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
* * * * *
Automation - Page l357
Ms. Baker explained this budget was proposed to be transferred to the new Department of Information Technology under the consolidation plan. Consistent with the desires of the respective subcommittees for the Senate Committee on Finance and Assembly Committee on Ways and Means, it is recommended 22 positions be restored to the Automation Division of the Department of Motor Vehicles and Public Safety budget, as outlined on page 18 of Exhibit C, she reported.
SENATOR GLOMB MOVED TO ADJUST THE BUDGET AS RECOMMENDED BY STAFF AND OUTLINED IN EXHIBIT C, PAGE 18.
SENATOR O'DONNELL SECONDED THE MOTION.
THE MOTION CARRIED. (SENATOR CALLISTER WAS ABSENT FOR THE VOTE.)
* * * * *
Records Search - Page l362
Ms. Baker offered no recommendation on this budget.
SENATOR COFFIN MOVED TO APPROVE THE BUDGET AS RECOMMENDED BY THE GOVERNOR AND OUTLINED IN EXHIBIT C, PAGE 19.
SENATOR GLOMB SECONDED THE MOTION.
THE MOTION CARRIED. (SENATOR CALLISTER WAS ABSENT FOR THE VOTE.)
* * * * *
Traffic Safety - Page l366
Ms. Baker announced this budget receives federal funding from the National Highway Traffic Safety Administration and is therefore considered a pass-through budget.
Senator Raggio reminded the committee it received a strong letter from the National Highway Traffic Safety Administration in opposition to the proposed reorganization transfer and asked Ms. Baker if merging the two departments into one Department of Mtoro Vheicles and Public Safety would alleviate their concerns.
Ms. Baker responded in the affirmative.
SENATOR GLOMB MOVED TO APPROVE THE BUDGET AS RECOMMENDED BY THE GOVERNOR AND OUTLINED IN EXHIBIT C, PAGE 20.
SENATOR O'DONNELL SECONDED THE MOTION.
THE MOTION CARRIED. (SENATOR CALLISTER WAS ABSENT FOR THE VOTE.)
* * * * *
Highway Safety Planning and Administration - Page l368
Ms. Baker referenced page l371 of the Executive Budget, budget summary, and pointed out the $45 and $59 recommended from the General Fund was in error. She explained the match for this budget should be from the highway fund.
SENATOR COFFIN MOVED TO APPROVE THE BUDGET AS RECOMMENDED BY STAFF AND OUTLINED IN EXHIBIT C, PAGE 21.
SENATOR RAWSON SECONDED THE MOTION.
THE MOTION CARRIED. (SENATOR CALLISTER WAS ABSENT FOR THE VOTE.)
* * * * *
Bicycle Safety Program - Page l373
SENATOR COFFIN MOVED TO APPROVE THE BUDGET AS RECOMMENDED BY THE GOVERNOR AND OUTLINED IN EXHIBIT C, PAGE 22.
SENATOR JACOBSEN SECONDED THE MOTION.
THE MOTION CARRIED. (SENATOR CALLISTER WAS ABSENT FOR THE VOTE.)
* * * * *
Motorcycle Safety Program - Page l378
SENATOR COFFIN MOVED TO APPROVE THE BUDGET AS RECOMMENDED BY THE GOVERNOR AND OUTLINED IN EXHIBIT C, PAGE 23.
SENATOR GLOMB SECONDED THE MOTION.
THE MOTION CARRIED. (SENATOR CALLISTER WAS ABSENT FOR THE VOTE.)
* * * * *
Highway Patrol - Page l383
Ms. Baker explained l7 computer- and communication-related positions were recommended to be transferred to the proposed Department of Information Services. The closing sheets reflected adjustment to restore those positions within the Highway Patrol budget, as outlined on Exhibit C, page 24. She explained the academy sergeant position was recommended for reorganization savings consistent with action taken by the Assembly Subcommittee on Ways and Means.
SENATOR JACOBSEN MOVED TO APPROVE THE BUDGET AS RECOMMENDED BY STAFF AND OUTLINED IN EXHIBIT C, PAGE 24.
SENATOR O'DONNELL SECONDED THE MOTION.
THE MOTION CARRIED. (SENATOR CALLISTER WAS ABSENT FOR THE VOTE.)
* * * * *
Highway Patrol Special - Page l390
Ms. Baker explained this budget is funded by a $6 fee transferred from each vehicle registration. She explained there was testimony before the Assembly Committee on Ways and Means that currently the Department of Motor Vehicles and Public Safety and Department of Transportation, as well as the budget office, are looking at some sort of adjustment to this budget because the department is required to transfer $6 for each vehicle registered in the state, but currently they are not collecting $6 from motor carrier registered in Nevada.
Mr. Thorne advised a previously scheduled meeting was arranged to address that issue but, due to conflicts, did not occur.
Mr. Gosnell offered the information:
There was an attorney general opinion written by one of the DAG [deputy attorney general] just recently. Now there is a BDR [bill draft request] drafted which would basically leave the $6 registration fee for vehicles under l0,000 pounds to continue to go to the special fund and any vehicles over l0,000 [pounds] would be exempted....The shortfall they had traditionally gotten from the motor carrier side, that money would be put into the highway fund and then they would have to appropriate the difference from the highway fund. So you would have kind of a two-layered budget there....That's the bill now that will be discussed. That has not been cleared through the budget office or through the administration yet, that's just a suggestion at this point.
Ms. Baker suggested to close the budget because it stands correct under current law.
Mr. Gosnell offered the information:
Approximately $2.5 million is derived from the motor carrier side. The remainder of the budget is derived from the $6 under l0,000-pound vehicle. So you can see the subsidy part in question is a relatively small part of the budget. If you close the budget and the bill comes through, it would be a matter of only changing the revenue line later on, it wouldn't be an effect on the expenditure side.
SENATOR RAWSON MOVED TO APPROVE THE BUDGET AS RECOMMENDED BY STAFF AND OUTLINED IN EXHIBIT C, PAGE 27.
SENATOR O'DONNELL SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
* * * * *
Hazardous Materials - Page l396
Ms. Baker explained this budget generates a hazardous materials [HAZMAT] transportation permit fee wherein 80 percent of the fee goes to the highway fund in support of this program, and 20 percent of the fee funds a portion of the State Emergency Response Commission budget. Ms. Baker pointed out testimony heard during the last session of the legislature stated the fees would support the program. She pointed out in looking at the level of fees that were estimated by the agency in the amount of $7l9,000 the first year of the biennium and $740,000 the second year of the biennium, those are currently less than the highway fund appropriations that are recommended in this budget to cover the cost of the program. She noted the fees for this particular program may be increased by administrative regulation in order to suport the cost of running the program.
Senator Raggio asked, "So they would have to raise $ll0,000 [in] the first year and $l92,000 the second year?" He asked if current regulations would allow the increase in fees for such a purpose.
Ms. Baker responded in the affirmative and advised no legislation would be required.
Senator Raggio queried who would raise the fees.
Mr. Gosnell answered, "The director. We would have to adopt rules."
Senator Glomb referenced pages l399 and l400 of the Executive Budget and opined the performance indicators were not accurate. Referencing Exhibit C, page 3l, she pointed out for 26 or more motor vehicles, the annual permit fee to transport hazardous materials across the State of Nevada, was $l,500. She asked if there were any comparisons reflecting what other states charge for transporting hazardous materials.
Mr. Gosnell responded he has not analyzed what other states are charging but has been informed by the individuals who run the program "that this is pretty much in line with what is going on nationally...."
Senator Glomb opined the permit fee appeared insufficient.
Mr. Gosnell asserted the agency would have to increase those fees to meet its budget.
Senator Glomb requested a more detailed breakdown of the agency's performance indicators as well as a more detailed breakdown of the revenue component of the budget.
Senator Raggio concurred.
Ms. Baker pointed out when the agency increases fees to permit it to be self-supporting, there will also be additional fees that will be placed in the State Emergency Response Commission budget since that entity receives 20 percent of the hazardous material permit fees collected.
SENATOR GLOMB MOVED TO APPROVE THE BUDGET AS RECOMMENDED BY STAFF AND OUTLINED IN EXHIBIT C, PAGE 29, AND ALLOW ADJUSTMENTS TO THE BUDGET OF THE STATE EMERGENCY RESPONSE COMMISSION.
SENATOR RAWSON SECONDED THE MOTION.
THE MOTION CARRIED. (SENATOR COFFIN WAS ABSENT FOR THE VOTE.)
* * * * *
Criminal History Repository - Page l40l
Ms. Baker pointed out this budget is funded by court administrative assessment.
Senator Rawson asked for an activity update of this program.
Mr. Gosnell responded:
We had a lot of things happen. From [the] l99l session, we were supposed to begin putting this thing together in l992 and l993....We got hung up a little with the [hiring] freeze. The court assessment money...went down the tubes this past year because of the kind of weather we had, so we saw a significant decrease in the amount of funds available to put this thing up. What we've done is we've held it until now....We're putting in a UCR [Uniform Crime Reporting] package that we're getting pretty much free of charge from Idaho that we will be able to start this data-gathering procedure that we've been talking about....We now expect to be operational in January l994. That we will be on UCR and reporting to the federal government under those guidelines the UCR calls for....
SENATOR JACOBSEN MOVED TO ADJUST THE BUDGET AS RECOMMENDED BY STAFF AND OUTLINED IN EXHIBIT C, PAGE 33, TO INCLUDE THE UTILIZATION OF THE UCR DATA BASE, AND THE AGENCY SUBMIT TO THE INTERIM FINANCE COMMITTEE A QUARTERLY STATUS REPORT BEGINNING OCTOBER 1, 1993 ON THE IMPLEMENTATION OF THE UCR PROGRAM.
SENATOR O'DONNELL SECONDED THE MOTION.
THE MOTION CARRIED. (SENATOR COFFIN WAS ABSENT FOR THE VOTE.)
* * * * *
Crimes Against Children - Page l405
Ms. Baker explained this budget was initially established so fingerprint checks could be conducted on people who work primarily with children. She stated this budget is funded with fees collected for that purpose. It has been expanded to include fingerprinting services for work permits.
Senator Glomb suggested since all fingerprint transactions now fall under this program, the name of the budget should be changed to more accurately reflect its current function.
Senator Raggio agreed and asked the budget office to note the committee's concerns and requested the budget be more appropriately identified.
SENATOR O'DONNELL MOVED TO APPROVE THE BUDGET AS RECOMMENDED BY STAFF AND OUTLINED IN EXHIBIT C, PAGE 34.
SENATOR RAWSON SECONDED THE MOTION.
THE MOTION CARRIED. (SENATOR COFFIN WAS ABSENT FOR THE VOTE.)
* * * * *
Investigations Division - Page l4l6
Ms. Baker provided a review of the technical adjustments as outlined in Exhibit C, page 35.
It was pointed out the Assembly Committee on Ways and Means recommended that $l5,957 in Fiscal year l994 and $l6,023 in Fiscal Year l995 of the General Fund savings be used to fund position reclassification approved after the budget was submitted to the legislature. Additionally, the agency requested an increase of $50,000 in each year of the biennium for overtime for its criminal investigators and supervisors as they fall under the consideration of the Fair Labor Standards Act ruling.
Turning to Mr. Weller, Senator Raggio announced the committee has requested all agencies to submit recommendations regarding how control and monitoring of overtime may be achieved. He disclosed "yours is one of the agencies with which we have great concern."
He asked Mr. Weller if he was cognizant of the committee's concern.
Mr. Weller responded in the affirmative and stated he was currently in the process of developing a policy to curtail the overtime situation. With respect to supervisory responsibilities, Mr. Weller avowed he could reduce the number of supervisors in the department. He stated, "The supervisor-to-employee ratio is awful high and I would like to see us be able to work on that."
Ms. Baker pointed out the major adjustment to this account. She stated when the budget was submitted by the Governor there was indication they intended to fund only General Fund agency lab contracts through this budget. The local law enforcement agencies would have to find other funding sources, she explained. In order to accomplish that, she advised, legislation was submitted in an attempt to offset those costs for local law enforcement agencies.
ASSEMBLY BILL (A.B.) 327: Requires certain fees for analysis to be collected from certain defendants before or at same time that any fine is collected.
Ms. Baker explained when the agency developed its budget, the estimates for lab contract services were high. She noted when some of the costs were reduced, they didn't take enough out, so there was actually some General Fund money in there that would currently support some lab contracts for local law enforcement agencies. If the intent was to have the local law enforcement agencies, through A.B. 327, find a funding source for those contracts, she stated, the legislature could save additional funding in this budget by authorizing the Division's budget support only state General Fund agencies' lab contract services.
Senator Raggio asked if A.B. 327 was enacted, would it provide the needed amount of revenue.
Mr. Weller answered a $60 assessment is proposed to be charged for all arrests for controlled substance and driving under the influence incidents.
Senator Raggio asked if the local law enforcement agencies support the concept they will no longer receive services paid for by the state if A.B. 327 passes legislation.
Mr. Weller responded in the affirmative.
Senator Raggio asked how the fee would be collected.
Mr. Weller stated it would be collected through the court assessment mechanism.
Senator Raggio asked, "Does staff recommendation included the fee and you're cutting out all of the General Fund that would have supported any local testing."
Ms. Baker responded in the affirmative.
SENATOR O'DONNELL MOVED TO APPROVE THE BUDGET AS RECOMMENDED BY STAFF AND OUTLINED IN EXHIBIT C, PAGE 35, AND SUBJECT TO PASSAGE OF A.B. 327.
SENATOR JACOBSEN SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
* * * * *
Narcotics Control - Page l421
Ms. Baker explained this particular budget receives grant funds from the Bureau of Justice Assistance which are matched with forfeiture revenue. The closing recommendation realigns the grant categories, she stated. In Fiscal Years l994 and l995 the agency will receive new grants and asked that separate budget categories be established to accommodate those new programs.
Senator Raggio asked for assurance the proposed utilization of the funds "is really going to be directed in the most meaningful way in dealing with the problem." He asked if the funds were being directed in the most useful manner.
Mr. Weller responded:
Yes, through the task force process, I think they are being used in the best way they can. Bearing in mind, Clark County has very good resources they are throwing at this. Much of our efforts are being put at the non-populous areas.
SENATOR O'DONNELL MOVED TO APPROVE THE BUDGET AS RECOMMENDED BY STAFF AND OUTLINED IN EXHIBIT C, PAGE 44.
SENATOR RAWSON SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
* * * * *
Forfeitures - Law Enforcement - Page l426
Ms. Baker explained during the previous biennium, the legislature provided the level of expenditure authority reflected in the Fiscal Year l993 work program outlined on page l426. With the exception of the Flash Roll expenditure, the agency requested the same level of expenditure authority in Fiscal Year l994 and l995 should the forfeiture funds materialize, Ms. Baker noted.
Senator Raggio asked if it was realistic to authorize those expenditures.
Mr. Weller responded in the affirmative.
Ms. Baker expounded on the purpose of the matching funds. She said the agency currently has a holding account at the General Fund level that has over $l million in forfeiture revenue that could be used. She pointed out the expenditure authority for the matching grant money is available. The other authority, she explained, would serve if the agency were to generate additional forfeiture revenue.
Senator Rawson asked if the holding account should be shown as a reserve account and reflected in the budget.
Ms. Baker explained the reason the budget office placed the funds in a holding account was to comply with the federal requirement the funds earn interest income.
Senator Rawson requested those postings be reflected in future respective budgets to enable the committee to project ahead.
Senator Raggio agreed.
Continuing, Ms. Baker explained that due to the subcommittee's recommendation to combine the two departments, it was suggested to change the account title to Department of Motor Vehicles and Public Safety Forfeitures.
SENATOR O'DONNELL MOVED TO APPROVE THE BUDGET AS RECOMMENDED BY STAFF AND OUTLINED IN EXHIBIT C, PAGE 45, AND TO REQUIRE THE AGENCY TO PROVIDE A DETAILED REPORT OF REVENUE AND EXPENDITURE TRANSACTIONS IN THE FORFEITURE ACCOUNT TO THE INTERIM FINANCE COMMITTEE AT THE END OF EACH FISCAL YEAR.
SENATOR RAWSON SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
* * * * *
Justice Assistance Act - Page l429
SENATOR COFFIN MOVED TO APPROVE THE BUDGET AS RECOMMENDED BY THE GOVERNOR AND OUTLINED IN EXHIBIT C, PAGE 46.
SENATOR RAWSON SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
* * * * *
Peace Officers Standards and Training - Page l43l
Ms. Baker explained action taken in this account would adjust the court administrative assessment to correspond with closings of judicial budgets in order to maintain the 5l/49 percent split for programs funded by court assessments. She explained the adjustment to Revenue corrects the negative General Fund appropriation reflected in the budget summary on page l434 of the Executive Budget.
SENATOR O'DONNELL MOVED TO APPROVE THE BUDGET AS RECOMMENDED BY STAFF AND OUTLINED IN EXHIBIT C, PAGE 47.
SENATOR RAWSON SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
* * * * *
Law Enforcement Administration - Page l474
Ms. Baker explained the decision by the money committees to combine the Department of Motor Vehicles and Public Safety eliminates the need for this budget account.
SENATOR RAWSON MOVED TO APPROVE THE BUDGET AS RECOMMENDED BY STAFF AND OUTLINED IN EXHIBIT C, PAGE 48.
SENATOR JACOBSEN SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
* * * * *
Motor Vehicle Pollution Control - Page l5l5
Ms. Baker explained this budget was designated to transfer to the proposed Department of Environmental Protection. The recommended action will place this budget back into the Department of Motor Vehicles and Public Safety, she emphasized. The recommendation was made to restore the microcomputer specialist position in charge of verifying accuracy of testing equipment, she testified.
SENATOR COFFIN MOVED TO APPROVE THE BUDGET AS RECOMMENDED BY STAFF AND OUTLINED IN EXHIBIT C, PAGE 50.
SENATOR CALLISTER SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
* * * * *
Communications Section, Nevada Highway Patrol - Page l709
Ms. Baker explained staff recommendations would restore this budget to pre-reorganization levels.
Senator Raggio pointed out actions of the committee at this time will be predicated upon the decision the Department of Information Services will not be a separate department.
SENATOR O'DONNELL MOVED TO APPROVE THE BUDGET AS RECOMMENDED BY STAFF AND OUTLINED IN EXHIBIT C, PAGE 51.
SENATOR JACOBSEN SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
* * * * *
Department of Motor Vehicles and Public Safety
Director's Office - Page l7l3
Ms. Baker stated that under the Governor's reorganization plan, this budget was to be eliminated. However, Assembly Committee on Ways and Means recommended this budget be restored, she maintained.
Continuing, she pointed out after conversations with Mr. Weller, he indicated that because one of the deputy director positions in the southern part of the state will remain, that the southern district manager position approved last session could be eliminated which is included in the recommendation.
SENATOR JACOBSEN MOVED TO APPROVE THE BUDGET AS RECOMMENDED BY STAFF AND OUTLINED IN EXHIBIT C, PAGE 52.
SENATOR COFFIN SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
* * * * *
Senator Raggio complimented Ms. Baker on her outstanding efforts.
There being no further business to come before the committee, Senator Raggio adjourned the meeting at l0:45 a.m.
RESPECTFULLY SUBMITTED:
Dee Crawford,
Committee Secretary
APPROVED BY:
Senator William J. Raggio, Chairman
DATE:
??
Senate Committee on Finance
May 26, 1993
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