MINUTES OF THE

      SENATE COMMITTEE ON FINANCE

 

      Sixty-seventh Session

      July 1, 1993

 

 

 

The Senate Committee on Finance was called to order by Chairman William J. Raggio, at 7:30 p.m., on Thursday, July 1, 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 Diana Glomb

Senator William R. O'Donnell

Senator Matthew Q. Callister

 

COMMITTEE MEMBERS ABSENT:

 

Senator Bob Coffin (Excused)

 

STAFF MEMBERS PRESENT:

 

Dan Miles, Fiscal Analyst

Bob Guernsey, Principal Deputy Fiscal Analyst

Marion Entrekin, Committee Secretary

 

OTHERS PRESENT:

 

James F. Nadeau, Lieutenant, Washoe County Sheriff's Office

Randy Oaks, Captain, Las Vegas Metropolitan Police Department

Gary Crews, Legislative Auditor, Audit Division, Legislative         Counsel Bureau

 

Senator Raggio referred the committee to a detailed listing of bills pending in the Senate Committee on Finance (Exhibit C). He  has made a tentative agreement with the chairman of the Assembly Committee on Ways and Means that the combined committees will place an absolute limit for the biennium of $l.2 million to cover any of the bills that are warranted.  He said this would allow the Senate Committee on Finance to allocate $600,000 toward some of the bills shown in Exhibit C.  He indicated the criteria must be the bills should have merit and not be perceived as "pork barrel".  He suggested the committee prioritize the bills to be considered today.

 

Senator Raggio said he was approached by many who wanted commitments on issues, items and bills before they said they would be willing to vote for the particular bill.  He stated that absolutely will not occur and there will be no commitments of any kind made on bills or projects attached to passing the bill.

 

Senator Raggio suggested the committee prioritize by cost and interest for passage the bills they wish to have considered today.  He said he has no bills or projects he will recommend from the pending list.

 

Senator Rawson asked the committee to look at Senate Bill (S.B.) 56.

 

SENATE BILL 56:   Provides cost-of-living increases for reimbursements paid to a foster parent by the welfare division of the department of human resources; and providing other matters properly relating thereto.

 

Senator Rawson recommended the cost-of-living adjustment (COLA) be amended out and a one-shot be allowed to provide an increase in the reimbursement.  He suggested $175,000 to $200,000 be appropriated.

 

Senator Glomb said she understands the reluctance to connect the proposed increase to a COLA but would appreciate consideration for some increase for these families.  She said what the foster parents receive is not a salary.  It is money they receive to offset the cost of caring for foster children.

 

Senator Raggio added it would be fiscally irresponsible to place a COLA into any of the programs at this time.

 

Senator O'Donnell asked if federal matching dollars could be obtained by putting somewhat less than $175,000 into this program.

 

Senator Raggio said this program involves all state funding and no federal matching funds are involved.

 

Senator Raggio suggested the committee first identify the bills they wish to be considered after which the appropriate funding amounts can be determined.

 

Senator Rawson drew the committee's attention to Senate Bill (S.B.) 96.

 

SENATE BILL 96:   Provides for establishment of veterans' home.

 

Senator Rawson said S.B. 96 is a bill that had been informally rejected by the committee because of a $7 million or $8 million fiscal note.  He believed it would be possible to appropriate about $50,000 to provide what needs to be established or allow for the planning of the veterans' home.  He pointed out that all of the veterans' bills were rolled into S.B. 96.  If it is rejected, the veterans will lose all of their bills.

 

Senator Rawson said it should be noted that revenue from the sale of special license plates for veterans provides revenue for veterans which is another reason he believes a one-shot appropriation not to exceed $50,000 would suffice.

 

Senator Raggio noted the bill calls for an appropriation to appoint an operational coordinator at a salary level of $51,000 for the first year of the biennium and $53,000 the second year of the biennium. 

 

Senator Glomb pointed out the bill also proposes a $7.7 million bond.

 

Senator Rawson said 70 percent of that bond would be funded by the federal government and the state would only be required to appropriate 50 percent of the remaining 30 percent in order to get the federal money.  This would amount to $700,000 or $800,000 that the state would have to fund.  He said in 2 or 3 years the revenue from the license plates will generate the money so that there would no longer be a need for the state to provide the bonding money.

 

Senator Raggio asked if any real value would be accomplished by providing $35,000 to $50,000 as a one-shot.  He does not think there would be.

 

Senator Rawson said it would not build anything for them this time.  In fact, he would suggest not granting the coordinator position and letting the veterans establish a fund to start accruing money from the sale of license plates.

 

Senator O'Donnell said he does not believe additional funding should be granted for this bill.

 

Senator Glomb requested the committee review Senate Bill (S.B.) 244.

 

SENATE BILL 244:  Provides for certification of court interpreters for Spanish-speaking persons involved in judicial proceedings.

 

Senator Glomb said Clark County has a program to certify Spanish-speaking individuals to act as court interpreters but the rest of the state does not have a mechanism for the hiring of Spanish-speaking interpreters.

 

Senator Rawson said this would amount to approximately $65,000 per year and suggested this amount be appropriated in the second year of the biennium or 6 months into the first year of the biennium.

 

Senator Rawson asked the committee to look at Senate Bill (S.B.) 300.

 

SENATE BILL 300:  Directs state librarian to establish pilot project to provide grants to certain public libraries for purchase of books and library materials.

 

Senator Jacobsen suggested granting as little as $500 per year into each of 36 libraries across the state for a total appropriation of $18,000.  He said this could be a one-shot appropriation.

 

Senator Rawson suggested granting $1,000 to each of the libraries for the biennium or $18,000 in each year of the biennium.

 

Senator Raggio said he would include this bill on the list.  He asked that the committee make a note of any of the bills that are not one-shot appropriations since they have to be cognizant of any future appropriations.  He said S.B. 244 would involve a continuing commitment.

 

Senator Rawson requested consideration be given to Senate Bill (S.B.) 301.

 

SENATE BILL 301:  Makes appropriation to Clark County for development of system of communication between certain entities that respond to emergencies.

 

Senator Rawson  said this asks for $45,000 for each year of the biennium and this could be a one-shot appropriation that would not be repeated.  He explained this is for an emergency-response team trained to go anywhere in the state to respond to any emergency situation.  It would be part of a team to respond to emergencies locally, nationally, and even overseas.

 

Senator Raggio inquired about Senate Bill (S.B.) 331.

 

SENATE BILL 331:  Provides for designation of Six-Mile Canyon Road in Storey and Lyon counties as state highway.

 

Senator Raggio noted the fiscal note requests $2,961,000 for fiscal year 1993-1994 and a continuing appropriation of $45,600 for each year of the biennium.

 

Senator Rawson said the state highway department cannot take this project over as it would require them to bring the highway up-to-grade which would cost approximately $3 million.

 

Senator Raggio suggested the committee not consider this bill at this time.

 

Senator Rawson called Senate Bill (S.B.) 459 to the attention of the committee.

 

SENATE BILL 459:  Makes conditional appropriations for establishment of forensic laboratories and purchase of specialized equipment.

 

Senator Rawson said this would involve a one-shot appropriation of $320,000 to be split between Las Vegas and Reno. 

 

Senator Raggio asked what this could be cut to which would make it meaningful.

 

Senator Rawson said he started out with about $850,000 then cut it to $320,000. He suggested a match from the counties on the $320,000  but did not receive any approval from them.  Rather than requiring a match, he suggested this be a one-shot appropriation only.

 

James F. Nadeau, Lieutenant, Washoe County Sheriff's Office, said Washoe County is not prepared for a match at this time but would accept any funding that could be granted at this time.

 

Senator Raggio asked if any decreased amount would have value.

 

Mr. Nadeau said he believes the sheriff's office would try to come up with some plan to accommodate a match to obtain whatever funding could be granted.

 

Senator Rawson advised the committee the offices must have about $1 million in equipment to complete their forensic laboratories for such things as Deoxyribonucleic Acid (DNA) testing.  He said the most that could be appropriated at this time would be approximately $90,000 to $100,000 for Washoe County and the balance of approximately $200,000 to Las Vegas.

 

Randy Oaks, Captain, Las Vegas Metropolitan Police Department, testified it was the understanding of the department that this would require a match.  He was advised as a representative of the department to fully support this issue although it was not something they have budgeted for.  He said if the money is reduced  it will obviously mean the department would have to come up with more but at this point he said anything would be better than nothing.

 

Senator Raggio asked in the event the state would furnish some funding towards this bill what the benefit to the state would be.

 

Lieutenant Nadeau said the forensic laboratories in both Reno and Las Vegas handle the laboratory work for the entire state.  Washoe County handles everything for 14 northern counties and Las Vegas handles the remaining southern counties.  This would benefit all of the rural counties as well as Clark and Washoe counties.

 

Senator Raggio said in other words the services that would be provided would be available on a statewide basis.  He asked if all law enforcement agencies throughout the state would have some type of access to the facilities or services.

 

Lieutenant Nadeau answered in the affirmative and said they have contracted with the rural counties and are still doing all of their laboratory work.

 

Senator Glomb asked if they are prohibited from performing their work without this equipment.

 

Captain Oaks responded what is really needed in  Las Vegas is the equipment necessary for DNA testing.  Right now, they must have this testing done out-of-state.  He pointed out that anytime fragile evidence is transported across state lines for analysis purposes handling problems occur. 

 

Captain Oaks said the equipment is something they need and something they must pay a good deal of money for now on a contract basis for services out-of-state.  The department would much prefer to offer those services in the State of Nevada.

 

Lieutenant Nadeau said the Washoe County Sheriff's Department is currently developing their DNA laboratory and currently have several DNA aspects on line.  They currently require additional equipment in order to complete the laboratory for complete testing purposes.

 

Senator Rawson wanted to mention an issue not related to an actual bill.  He said one issue involved filling the position of Indian Affairs Coordinator in the Department of Education that would require funding of $30,000 to fill the position on a contract basis.

 

Senator Raggio pointed out if this is granted they would be committed to continue the funding beyond the biennium.

 

Senator Glomb drew attention to the testimony the committee heard regarding the Geographic Alliance In Nevada (GAIN) Program for the National Geographic Society that involves training elementary and secondary teachers how to present material regarding geography.  She said the National Geographic Society will match a $50,000 grant with either $100,000 or $150,000. 

 

Senator Raggio asked if this would involve a one-shot appropriation.

 

Senator Glomb answered in the affirmative.  She said it would be a grant that would be matched by the society.

 

Dan Miles, Fiscal Analyst, Fiscal Analysis Division, Legislative Counsel Bureau, said it would require $50,000 for each year of the biennium to be included in the budget.

 

Senator Glomb said she attended a presentation sometime in 1992 and noted the program appeared to receive a lot of support and appears to be a worthwhile program.

 

Senator Glomb asked the committee to consider an appropriation of $15,000 for a pregnancy hotline proposed by Senate Bill (S.B.) 224.

 

SENATE BILL 224:  Requires establishment of toll-free telephone service for dissemination of information about effects of exposure to teratogenic agents during pregnancy.

 

Senator Raggio said testimony regarding this bill revealed $48,000 funding would be required, not $15,000.

 

The committee discussed this and arrived at the fact that an individual could obtain the same information by calling the local health department.

 

Senator Callister arrived for the meeting at 8:10 p.m.  Senator Raggio provided him with an overview of the discussions that have occurred to this point on bills still pending in the Senate Committee on Finance for which consideration may be given. 

 

In reviewing the pending list of bills (Exhibit C), Senator Callister said he did not have a preference for action on any item shown.  In fact he commented there is a possibility money could be removed from S.B. 244 by requiring that a program for Spanish-speaking interpreters be accomplished through the court system.  He noted the amount for a statewide coordinator would amount to $115,000 and that Clark County already has someone funded at the county level to provide those services.  He further commented that person is now being compelled to either translate herself or provide for translation herself outside of Clark County.  Increasingly this service has been needed in the rural counties.

 

Senator Jacobsen asked if there is any indication about the number of cases and time required to provide for a Spanish-speaking interpreter.

 

Senator Raggio replied that in Clark County alone interpreter services are required 40 to 50 times on a daily basis from a bank of about 200 interpreters that are certified in Clark County.

 

Senator Callister said the intention of S.B. 244 was to focus on certification for Spanish-speaking interpreters in the rural counties where there is a large number of transient farm workers requiring services.  Although he believes this to be a crucial issue, he believes this can be accomplished through the court system rather than by a state appropriation. 

 

Senator Glomb said the committee should consider the fact that the state also has custody cases regarding children and juvenile matters and many involve Spanish-speaking families requiring someone qualified for the court on these matters.

 

Senator Callister also wanted to point out this would be for a continuing position for someone statewide who certifies and establishes minimum standards.  The actual cost in each case becomes a cost of litigation in that case whether it be a civil or criminal case, the funding would come from counsel or the individual requiring services.

 

Senator Raggio asked if it would be of any value to fund enough to start the coordinator program the second year of the biennium with the understanding the county would have to continue the program.

 

Senator Callister said that would certainly be preferable to nothing.  He would appreciate anything at this time for what he believes to be a meritorious program.

 

Senator Rawson suggested an appropriation in either the first or second year of the biennium of $63,600 which would be half of the amount requested on the fiscal note.

 

Senator Raggio said he has been keeping track of the bills that have been suggested for an appropriation along with the amounts involved for each bill.  He arrived at $100,000 for S.B. 56, $63,500 for S.B. 244, $36,000 for S.B. 300, $90,000 for S.B. 301,

$150,000 for S.B. 459, and $100,000 for the GAIN program.  This would total $539,500.  He noted that the suggested appropriation for S.B. 459 would allow $50,000 for Washoe County and $100,000 for Las Vegas.

 

Discussion ensued within the committee concerning the funding amounts suggested.  Senator Glomb requested funding of more than $100,000 for S.B. 56.

 

Senator Raggio opened the hearing for discussion of Assembly Bill (A.B.) 206.

 

ASSEMBLY BILL 206:      Requires legislative auditor to conduct performance audit of state's program of group health insurance that is provided by committee on benefits through plan of self-insurance.

 

Gary Crews, Legislative Auditor, Audit Division, Legislative Counsel Bureau, said there have been concerns raised about the sharp increase in the Self-Insurance Trust Fund premium payments.  Also, there are 16 or 17 contracts that tie into the Self-Insurance Trust Fund, and there are concerns regarding the contracts due to some losses that have been experienced over the last few years.

 

Senator Raggio said he is not certain this would justify a study. He asked Mr. Crews if in his opinion it would be useful to conduct a performance audit.

 

Mr. Crews  answered:

 

      Perhaps, if we can identify what transpired.  There are some ways we could cut administrative costs.  We may be able to identify some savings there.  It might be worthwhile.  This was a bill that was pursued...mostly by state employees who were concerned about their premium increases, and this prompted the bill.

 

Senator Raggio asked if $7,500 would cover the cost of a performance audit.

 

Mr. Crews said this would not cover the cost.  This involves out-of-pocket money that was not built into the budget.  It would involve travel costs since most of the program is administered in Las Vegas. The division did not anticipate getting involved in a performance audit there when the budget was determined.

 

In response to Senator Raggio's question regarding the actual cost of the performance audit, Mr. Crews said he would not know until they actually got into doing the audit but it would be absorbed with their existing budget.

 

Senator Raggio said there is a limit as to what is available in the legislative fund and asked Mr. Crews again what he anticipates would be the cost of the audit on this issue.

 

Mr. Crews replied about $40,000 to $50,000.

 

Senator Raggio said unless Mr. Crews can give the committee a firm recommendation that this is essential, he will defer action on this bill until this recommendation can be provided.

 

Mr. Crews said he was not in a position to provide this recommendation since this was not a bill originated by the Audit Division. 

 

Senator Raggio closed the hearing on A.B. 206 and returned the committee's attention to S.B. 56, S.B. 244, S.B. 300, S.B. 301, S.B. 459, and the GAIN program.

 

Senator Callister said the most compelling bill on the list is S.B. 56 for foster home services since this would involve dollars for individuals who struggle to raise children across the state.  He recommended an appropriation of $250,000 to S.B. 56. He pointed out this program has not had an increase for 6 years.  Senator Callister also suggested nothing be appropriated for S.B. 301.  He said if Clark County wants this emergency-response system, they can fund it.  He also believed funding should not be granted for the GAIN program at this time.

 

Senator Rawson said he would like to see the committee appropriate something for as many of the aforementioned bills as possible.  He pointed out if no funding is granted for the forensic program, that will put a stop to laboratories being established and he feels they are needed.

 

Senator Callister said he did not suggest no funding be granted for the forensic equipment, only for S.B. 301 and the GAIN program.  He would rather see funding for service programs.

 

Senator Raggio suggested increasing S.B. 56 to $200,000 by eliminating the GAIN Program and leaving the other suggested appropriations as previously described, and this would still amount to total funding of $539,500.

 

Senator Glomb said she would like to see as much as possible go into S.B. 56.  Senator O'Donnell and Senator Callister concurred with the suggestion.

 

Senator Rawson remarked the committee ought to support S.B. 56 but the more that is funded for the foster home program will build a problem for next year's budget.

 

Senator Glomb said the legislature has a responsibility to make up for a lot of lost time during which the families took care of the state's children with no additional compensation for a 6-year period. 

 

Senator O'Donnell said he did not want to leave the meeting today doing nothing for the foster home program just because the committee could not come to an agreement on funding for this bill.

 

Senator Callister said he agrees with Senator O'Donnell but does not understand why the committee has to be unanimous as opposed to casting a vote.

 

Senator Raggio said because each issue involves a separate bill that will each have to pass both houses in short order, there has to be general agreement by this committee on all of the bills or they will not be acted upon.

 

Senator Callister said he has problems supporting S.B.301.  The others he could support.

 

      SENATOR CALLISTER MOVED TO APPROPRIATE $245,000 TO S.B. 56, $63,500 TO S.B. 244, $86,500 TO S.B. 300, $45,000 TO S.B. 301, AND $150,000 TO S.B. 459 FOR A TOTAL APPROPRIATION OF $590,000.

 

      SENATOR GLOMB SECONDED THE MOTION.

 

      THE MOTION FAILED.  (SENATOR JACOBSEN, SENATOR O'DONNELL, SENATOR RAWSON, AND SENATOR RAGGIO VOTED NO. SENATOR COFFIN WAS ABSENT FOR THE VOTE.)

 

      * * * * *

 

      SENATOR JACOBSEN MOVED TO APPROPRIATE $200,000 TO S.B. 56, $63,500 TO S.B. 244, $86,000 TO S.B. 300, $90,000 TO S.B. 301, AND $150,000 TO S.B. 459 FOR A TOTAL APPROPRIATION OF $589,500.

 

      SENATOR RAWSON SECONDED THE MOTION.

 

      THE MOTION CARRIED.  (SENATOR CALLISTER AND SENATOR GLOMB VOTED NO.  SENATOR COFFIN WAS ABSENT FOR THE VOTE.)

 

      * * * * *

 

Senator Raggio adjourned the meeting at 8:50 p.m.

 

 

 

                                                RESPECTFULLY SUBMITTED:

 

 

 

                                                                        

                                                Marion Entrekin,

                                                Committee Secretary

 

 

 

APPROVED BY:

 

 

 

 

                                   

Senator William J. Raggio, Chairman

 

 

DATE:                              

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Senate Committee on Finance

July 1, 1993

Page 1