The meeting of the Senate Committee on Finance was called to order by William J. Raggio, at 8:25 a.m., on Thursday, May 20, 1999, in Room 2134 of the Legislative Building, Carson City, Nevada. Exhibit A is the Agenda. Exhibit B is the Attendance Roster. All exhibits are available and on file at the Research Library of the Legislative Counsel Bureau.

COMMITTEE MEMBERS PRESENT:

Senator William J. Raggio, Chairman

Senator Raymond D. Rawson, Vice Chairman

Senator Lawrence E. Jacobsen

Senator William R. O’Donnell

Senator Joseph M. Neal, Jr.

Senator Bob Coffin

Senator Bernice Mathews

GUEST LEGISLATORS:

Senator Dean A. Rhoads, Northern Nevada Senatorial District

Assemblyman John C. Carpenter, Assembly District No. 33

Assemblyman Richard (Rick) D. Perkins, Clark County Assembly District No. 23

Assemblywoman Sandra J. Tiffany, Assembly District No. 21

STAFF MEMBERS PRESENT:

OTHERS PRESENT:

Senator Mathews stated that this is a simple bill and will provide matching funds for libraries. The monies would be appropriated to the State Department of Education to shore up the library funding. She explained that school districts would have to apply to the department for funds. She said this bill applies to school districts statewide.

Martha Gould, Interim Chairman, National Commission on Libraries and Information Services, testified she is also the retired director of the Washoe County Library System. She stated that the status of school libraries nationwide is "pathetic at best." She said the children of the state of Nevada are the future of the state and unless they are provided with library books and library materials, with current, up-to-date authentic information, "we do the future of the state a terrible disservice." She emphasized this is a good bill and urged support for funding to begin addressing, as a primary policy issue, the state and status of school libraries.

Senator Raggio noted section 4 of the bill would require each school district to receive not more than 50 percent of the money expended in the immediately preceding year, with the exclusion of gifts, on the purchase of library books for use in the media centers of school libraries. He said that is a mandate which would place a limitation on how the money could be used. He asked about the significance of that limitation.

Frankie Lukasko, Library Coordinator, Washoe County School District, explained that the 50 percent requirement is to preclude a school district from allocating all of its money into the library budget in one given year, so there would be a consistent amount of spending for library books.

Senator Raggio pointed out that with the Economic Forum reprojections there are considerable funds in the DSA over and above what the Governor recommended that has been added for textbooks and instructional supplies. He asked whether the DSA has provisions to meet some of the requests for library books.

Senator Mathews pointed out she had asked this question when the bill was drafted and the State Department of Education said the funding for books would not be available through the DSA. Senator Raggio stated the schools have other sources of funding for library books.

Ms. Gould said that in most school districts in the state the principal of the school decides how the money will be expended. If the principal has libraries as a priority, then the school library will have a budget; but if the principal is not sympathetic to library needs, there will be "no books for the library." Ms. Gould maintained this bill would provide for some funding to be earmarked specifically for library books.

Ms. Gould pointed out that the absence of anyone present from the State Department of Education to speak on behalf of this bill shows where the priority is for funding school libraries. Senator Raggio remarked the department was not notified that this issue would be raised.

Ms. Lukasco stated the copyright date of many of the books in school libraries is outdated. She provided a response from a school survey with 55 percent of schools responding out of a total 354 schools (Exhibit C). She called attention to one book entitled Stories of the Presidents wherein the most recent president referred to is President Eisenhower. She said this is just one example of the lack of current information available to students. Ms. Lukasco pointed out that many current books provide information on where to go on the Internet for additional information.

Ms. Lukasco testified the information received from the schools indicated that the average copyright date of publication for books in high school and middle school libraries was 1980, and for the elementary schools, 1984.

Ms. Lukasco pointed out it was reported that in 32.6 percent of all schools the regular library budget has been spent on technology over the past 5 years, so the book collection is "falling to the side." She stated the budgets have only been increasing slightly, if at all. Ms. Lukasco stated that with the price of books going up, "it is hard to do more when the funds are not available to do a good job."

Ms. Lukasco referred to a study conducted in Colorado in the late 1980s and finalized in 1992, whose research indicated that the reading scores of students are higher in the schools whose libraries have more books and library materials. She said, "The better the school library, the better the test scores." She stated that reading scores are the best predictors of student achievement in every subject area.

Ms. Lukasco pointed out that many students in the state do not have access to books at home. She said that in Washoe County alone there were 791 homeless children as of last month.

Sheila Linn, Librarian, Bernice Mathews Elementary School, read a poster-sized letter written by students at the school requesting more books for their library.

Marcella Bryant, Student, Bernice Mathews Elementary School, testified that a better selection of newer books is needed to provide accurate and updated information for reports. She said if the library has more books, the students’ reading level will increase.

Alex Hunt, Student, Bernice Mathews Elementary School, provided testimony that it is difficult to prepare reports without the proper books from which to get information.

Diane Bauer, Librarian, McQueen High School, pointed out the fact that $6.83 a pupil was allotted for library books in 1999, which is the same amount allotted when McQueen High School opened in 1982. Senator Raggio asked who makes the allotment. Ms. Bauer answered the allotment comes from the Washoe County School District. She said the fact is that more of the money is spent on technology than on books. She stated 50 percent of last year’s book budget for her library was spent on technology in order to provide the computer resources needed by the students for advanced research. Consequently, the book collection is declining. Ms. Bauer said she has 17,000 books for a student population of 1,759 students. She stated that is approximately 10 books per pupil and maintained that is a "pitiful" statistic.

Clark (Danny) Lee, Lobbyist, Nevada Library Association, testified his organization is a statewide group of employees, librarians, administrators and trustees and he was present to validate the need for the funding of library books in the schools.

Mary Ann McKibben, Librarian, Sparks High School, provided a library collection analysis for Sparks High School (Exhibit D). She pointed out that the average publication date of the collection is 1978. She stated library books are desperately needed and urged support of this bill.

Suzy N. Seppahpour, Librarian, Eagle Valley Middle School, stated that the average "age" of the book collection at Eagle Valley is 1984, as shown in Exhibit E. She said she has to do fund-raising in order to try to supplement her book budget. She requested the committee’s support on this issue.

Lucy W. Bouldin, Librarian, Storey County Public Library, pointed out that the public library is located in the school in Virginia City so there is an impact on the facility. She asked for support of this bill. She said the average year of publication of the books in the library that belong to the high school is 1977. Senator Raggio stated the residents of Storey County need to approve a school bond to help the school system. Ms. Bouldin said there is a need to build a public library to give the high school its space back.

Senator Raggio commented the State of Nevada spends approximately $1.7 billion for the K-12 (Kindergarten through Grade 12) school programs. He pointed out this is a shared responsibility because local revenues were allocated many years ago. He said the state’s share in Fiscal Year (FY) 2000, under the proposed budget, is approximately $550 million. He stated that the state and local governments make a strong commitment to fund the educational effort. Senator Raggio stressed that funding education is the highest priority the state has, and the committee is constantly reminded the school districts do not like the Legislature to micromanage and earmark money going to education because the school district administration wants to do its own managing.

Senator Raggio stated the reason some schools have more money for libraries and other purposes is that "it is the district’s decision." He said the Legislature is not expected to make decisions as to how much funding goes into particular categories; if it does it will be accused of telling the districts how to run their schools. He pointed out that some of these concerns need to be directed to the local school boards.

Ms. Seppahpour said she has been instrumental in trying to get this bill passed for the last four legislative sessions. She noted the purpose was to try to encourage, but not mandate, the school districts to allocate more money to school libraries by having support from the Legislature. Senator Raggio stated there is money in the Distributive School Account (DSA) that the school districts could allot for these purposes if they chose to do so. Ms. Seppahpour agreed. She explained the hope was that having the additional funding might encourage the school districts to place more money into libraries.

Senator Raggio commented there is very limited funding this legislative session. He closed the hearing on S.B. 23 and opened the hearing on S.B. 329.

Senator Dean A. Rhoads, Northern Nevada Senatorial District, called attention to an amendment to the bill. He said this is one of the most exciting projects that Elko has become involved in. He pointed out the bill does not become effective until the federal government provides a large share of the money and the funds will not be needed until the next biennium.

Senator Raggio explained that at some point the bill would require a contribution from the state in the amount of $3 million to assist in the center. He said the proposed interpretive center is a very impressive structure.

Assemblyman John C. Carpenter, Assembly District No. 33, testified in support of this bill. He said there is no question this is "a wonderful project" for the community of Elko and the state of Nevada and it will add to the economy of the area. He stated he is most interested in the preservation of the history of what pioneers had to go through to settle the West.

Dale Porter, Private Citizen, provided testimony in support of the bill (Exhibit F). He related information and beliefs of the Elko supporters of the drive to establish a California National Historic Trail Interpretive Center on the trail adjacent to Interstate 80 in Elko County. He stressed that the community of Elko "earnestly solicits the committee’s support and passage of S.B. 329."

Senator Raggio asked whether the federal government’s contribution would be $10 million for construction of the center. Mr. Porter answered the federal government would pay the balance of what would be necessary to build the center after the county, city and states’ contributions. Senator Raggio inquired about the status of the effort to obtain the federal funds. Mr. Porter responded that U.S. Senator Reid’s office is gathering facts to introduce a measure to provide funding for the Bureau of Land Management (BLM) to perform the initial studies.

Senator Raggio said the proposed amendment would make any state appropriation contingent upon an authorization sufficient to build the interpretive center with contributions from the City of Elko and Elko County and an agreement by the federal government to own and operate the center. He noted the effective date would be changed to July 1, 2001, instead of "upon passage and approval."

Senator Raggio asked whether this would delete any financial commitment during the forthcoming biennium. Senator Rhoads replied no. He said this has been discussed with the Fiscal Analysis and Legal Divisions of the Legislative Counsel Bureau (LCB). It was determined it would only be contingent if the federal government comes through with the funding. That would not be until after the year 2001, so there would not be an obligation during the coming biennium.

Senator Raggio asked whether passing the bill with the amendment would it be of assistance in receiving the federal money. Assemblyman Carpenter answered yes. He said the timeline for the need to actually receive the state funding would be 3 to 4 years.

Senator Coffin pointed out there is a great deal of interest around the world in what happened on the trails leading to the American West. He said it might be possible in the future to include all of the trails in the state that are famous.

Senator Rhoads added that he thinks Senator Coffin has an excellent idea and perhaps in the future an effort could be made to tie together all of the trails in the state.

Senator Raggio opened the hearing on Assembly Bill (A.B.) 220.

Assemblyman Richard (Rick) D. Perkins, Clark County Assembly District No. 23, testified this bill requests an appropriation of $500,000 for a needs assessment and implementation plan for a 4-year state teachers college in Henderson, Nevada.

Mr. Perkins stated this idea came to mind just after the 1997 Legislative Session. He said the requested Redfield campus for the University of Nevada, Reno (UNR) showed there can be great success when there is a partnership, and this started his idea for a college in Henderson.

Mr. Perkins stated that after the last legislative session he talked with the newly elected mayor of Henderson and discussed whether there might be parcels of land that would be large enough to sustain a college campus in the Henderson area and whether a campus would fit into the identity of the community. He said that after some time the mayor met with him again and identified several parcels of land that would be appropriate. He stated the 4-year college was the mayor’s idea and would provide a three-tiered system in the state rather than a two-tiered system.

Mr. Perkins testified that in talking with business and community leaders he learned there was overwhelming support within the community. He said there have been pledges for additional support. He pointed out the great growth in the area. He stated this is meant to be a college for students living in southern Nevada, not only for students from Henderson.

Mr. Perkins pointed out that all of the locations being discussed have close proximity to transportation systems, so anyone in "the valley" could travel to the institution were it to become a reality. He called attention to the burgeoning enrollments in the community colleges. He said the University of Nevada, Las Vegas (UNLV) campus has been expanded almost as much as it can be. He stated that when there is the kind of growth the state is experiencing, the students have to be housed somewhere. He pointed out it would be necessary to build additional buildings at any of the current campuses for more students, so building a college at Henderson would take some of the load off the other institutions.

Mr. Perkins further pointed out it is cheaper to educate a student at a state college than at a university. He said the average cost to educate a student to the bachelor’s degree level at the university is approximately $20,000 a year and about half that to educate a student to a bachelor’s level at a state college. He explained that it is less expensive because not as many buildings and amenities are needed as when there are graduate programs and ongoing research projects.

Mr. Perkins stated it is expected the private sector would provide funding that would help support a state college. He said the cornerstone of the college would be the education of more teachers. He pointed out it is a problem to recruit teachers with the growth in the state. He testified that one concept discussed was to have a national teaching academy, with every U.S. Senator allowed the opportunity to appoint someone from his or her state to the school. Mr. Perkins pointed out that education is a priority at the national level and by creating a teaching academy more federal dollars could be attracted to Nevada for the 4-year college.

Mr. Perkins said he feels there would be the ability to have more flexibility in some of the business curriculums. He noted that some in the business community have said they are unable to get some of the things needed by business into the current college business curriculum.

Mr. Perkins pointed out the college would create opportunity for more bachelor’s degrees to be earned in the state. He maintained that Nevada is near last among the states in the percentage of the population holding a bachelor’s degree. He said a bachelor’s degree-level education is tied very closely to an individual’s learning potential.

Senator Raggio asked what types of bachelor’s degrees are envisioned for the state college. Mr. Perkins indicated he envisions that the new college could offer answered any type of bachelor’s degree offered within the University and Community College System of Nevada (UCCSN). Senator Raggio asked whether this would be a research facility. Mr. Perkins responded no. He said he does not see the college as being that, but he does envision it taking some of the undergraduate load off of the current universities and allowing them to focus more on graduate programs and research.

Mr. Perkins pointed out that Nevada’s education system operates similarly to states having half the population of Nevada. He said most of the other states with populations the size of Nevada’s already have state colleges and it has allowed the universities to grow into research universities.

Senator Raggio asked whether this proposal envisions extracurricular activities such as athletics. Mr. Perkins answered that if a state college comes to fruition, at some time it becomes necessary to have athletic programs and all of the other activities that create a college experience. He stated that initially the focus needs to be on the academic areas. Senator Raggio said he would assume this would provide an alternative for community college students to transfer to a state college to meet their particular goals rather than having to attend college in a university setting. Mr. Perkins agreed.

Mr. Perkins pointed out the University of New Mexico receives approximately $117 million a year in research grants. He said UNLV receives approximately $17 million. He stated one of the factors in this disparity is that Nevada has not allowed UNLV to blossom into a research university as it could. He noted those involved with community development tell him the biggest obstacle in attracting new businesses to Nevada is the higher education system. There is not enough of it for the size of the state’s population and a 4-year college would help economic development efforts.

Mr. Perkins pointed out Henderson is projected to become the second largest city in Nevada in June 1999. He said the growth would support a campus. The community supports the campus in monetary donations and the city is considering a land donation. Mr. Perkins stated the amount of land being discussed is in the range of 200 acres. He maintained that Henderson would be an ideal college environment

Senator Coffin remarked that a state college would go a long way in filling one of the biggest needs in the state, that of training teachers. He asked whether teacher training would be the main focus of the college. Mr. Perkins answered the first thing that has been talked about when the college has been discussed has been a college of education to produce more teachers. He said teacher training would be the cornerstone of the college and would be the largest benefit of this college to the state. He noted that in the beginning the campus would be sparse, as new institutions always are.

Assemblyman Sandra J. Tiffany, Clark County Assembly District No. 21, stated that the main points have been covered. She said that UNLV is "bursting at the seams" at the undergraduate level, and what that has a tendency to do is to take away the resources from the graduate programs. She stated the desire is to see UNLV become more of a research-oriented university. She maintained that all of the growth at the university and at the high-tech centers "leads to" the answer to the question of why it makes sense to have a 4-year state college program.

Ms. Tiffany stated that some General Fund money will be needed, but with major fundraising for donations and the establishment of a foundation the college will become very self-sufficient. She encouraged support of A.B. 220.

Richard Jarvis, Chancellor, University and Community College System of Nevada, stated that the Board of Regents of the UCCSN has not taken a position on the addition of a state college but would welcome the passage of A.B. 220 to provide the resources to perform a study and needs assessment for this kind of institution. He said the largest deficiency in the educational attainment of Nevada’s population is at the bachelor’s degree level. Nevada has fewer residents with bachelor’s degrees than any other state in the west. He stated that every other state in the West with a population Nevada’s size or larger, with one exception, has met that need by establishing a state college tier in its college system.

Dr. Jarvis explained that this is done because reduced costs are achieved and the lower costs are passed on to the students. This is brought about not only by the need for less sophisticated facilities but by the fact that at 4-year state colleges, faculty teach one or two more courses a semester than at the universities. Dr. Jarvis noted the salaries at state colleges are lower compared to those at universities. He said the main expenses of undergraduate education are the faculty and the support staff. By going to a state college model, faculty would teach more and their salary costs would be less to the state.

Dr. Jarvis stated that the Board of Regents would welcome the opportunity provided by A.B. 220 to perform a needs assessment.

Senator Jacobsen asked whether there is a list of what professions are in short supply in the state. Dr. Jarvis answered that both occupational, teacher, and health care studies have been performed. He said there are many of baccalaureate-level health care programs wherein the state is deficient. Senator Jacobsen asked whether a list could be provided to committee members. Dr. Jarvis replied he would provide the information.

James Richardson, Lobbyist, Nevada Faculty Alliance, stated there is definitely a need for more capacity to provide education in the state. He suggested the Board of Regents be in charge of determining exactly what will be offered at any state college that might be established. He said he is certain the regents would look with care at the studies that have been done to try to avoid the kinds of duplication "that no one would look forward to."

Dr. Richardson said some alliance members have expressed concern regarding funding for a new college. He stated there is always the possibility that the growth of the state and the General Fund will, in fact, compensate and allow building the kind of capacity for education that is needed at the current institutions and potentially new ones. He suggested the long-term implications of building the needed capacity can certainly impact the state General Fund. He stated there are also long-term implications on the bonded indebtedness limit and the ability to service the debt.

Dr. Richardson pointed out his remarks are not to be seen as "negative to A.B. 220." He urged passage of the bill and completion of a study to see whether Henderson is the place to build a state college. He said his personal opinion is that it is the right place, but a study will provide this information.

Senator Raggio closed the hearing on A.B. 220 and opened the hearing on S.B. 306.

Stephanie Licht, Lobbyist, Elko County, pointed out there have been significant changes in Elko County since August 1998 when this bill was requested. She provided information on the water project shown in Exhibit G (Original is on file in the Research Library.). She suggested an amendment to the bill striking the appropriation for the sum of $1 million and adding "an elaborate letter of support from this committee to the board for financing water projects." She reviewed information shown on page 12 of Exhibit G, showing local and county expenses toward compliance with the federal Safe Drinking Water Act (SDWA) and the Surface Water Treatment Rule (SWTR).

Ms. Licht pointed out that Jarbidge, Nevada, and Elko County residents have put $403,725 into the Jarbidge water system to date. She stated that in 1992 when the Board for Financing Water Projects had money in the account, Elko County applied for funding, but the board rejected the application because Jarbidge was not a political subdivision of Elko County prior to 1992. She said the county commissioners made the town of Jarbidge an unincorporated town in 1993 or 1994. She stated that in 1997 another application was made to the board for water financing for $904,000 and that request was also denied on the basis that Jarbidge had an inability to fund the depreciation on such an expensive system.

Ms. Licht said page 13 of Exhibit G shows the continued efforts for the water system, as evidenced by a block grant received in the amount of $583,310 to improve the Jarbidge water system. She said pages 26 and 27 of Exhibit G show the budget for the filtration system that needs to be installed in the Jarbidge water system to bring the system into compliance with the federal mandate. She stated there is also information in Exhibit G on where and how the system would be installed.

Ms. Licht pointed out that since the application to the Board for Financing Water Projects had been denied twice, there was concern there was a technical glitch in the application; therefore, a bill was drafted to request this committee consider a $1 million appropriation. Senator Raggio asked whether there is a proposed letter requesting an amendment. Ms. Licht said she would provide the letter.

Roberta Skelton, County Commission, Elko County, testified Jarbidge is a heavy tourist attraction. She stated it has been noted there would be more tourists in the area if the interpretive center is built. She said the bottom line is that safe drinking water is needed. She said the county feels the water is safe, but the federal government maintains it is not; therefore, there is a dilemma.

Senator Raggio stated the Board for Financing Water Projects has some amount within its authorization, but receiving approval would be contingent upon "fitting it in" within the allowable tax rate to service any bonds authorized by the board. He said the committee would be glad to add its sanction upon the importance of the project.

Senator Raggio closed the hearing of S.B. 306 and opened the hearing on A.B. 341.

Pete English, Chief, Registration Division, Department of Motor Vehicles and Public Safety, stated this is a department request for an appropriation from the Highway Fund for the purchase and installation of the Cuematic customer control system for the offices at West Flamingo and Carey Streets in Las Vegas and Galetti Way in Reno. He explained that Cuematic is a customer cueing system, which provides lobby traffic management within the branch offices.

Mr. English explained that greeters would be able to check customers’ paperwork to ensure the forms are accurate and complete and to assist them in making a menu selection on the Cuematic ticket printer. He pointed out that a variety of menu selections are available. He said that behind the scenes, Cuematic provides up-to-the-minute information to branch managers and supervisors as to the number of service windows open, the number of customers in the facility, the types of transactions needed, the longest and average customer wait-times for each type of transaction, and the average transaction turnaround time. He stated this information is used by managers and supervisors to determine how to prioritize the types of service offered by each service window and make the necessary adjustments to more quickly and efficiently serve waiting customers.

Mr. English noted the system will enhance the service-center concept for field services and will enable customer service windows to be used more efficiently and effectively for one-stop service.

Senator Raggio asked whether the proposed locations of this system are the major customer offices in the state. Mr. English answered yes. Senator Raggio noted the one-shot appropriation request, in the amount of $297,946, is in The Executive Budget.

Senator Raggio closed the hearing on A.B. 341 and opened the hearing on A.B. 343.

R. Warren Lutzow, Deputy Chief, Division of Parole and Probation, Department of Motor Vehicles and Public Safety (DMV&PS), reviewed the one-shot funding for the automation system shown in Exhibit H. He said the $161,478 appropriation is necessary for the final phase of the division’s 5-year automation plan. He noted that the two positions initially hired by the division were transferred to the department in FY 1998. He stated that during the first year of the automation the department’s public safety technology unit started with a joint application design session in order to complete a business review. Chief Lutzow said that as a result of the fatal shooting of Sparks police officer Larry Johnson, the dangerous offender notification system (DONS) was fast-tracked as part of the overall production of the automation program. He noted that in FY 1997 the money appropriated was used for the building of "network requirements statewide." He pointed out that a number of personal computers were installed and are operational. Additionally, programs were developed for personal training and equipment inventory components of the division’s overall automation program.

Chief Lutzow stated that in FY 1998, $312,930 was expended for 129 computers. These have been installed and are operational, excluding the 24-hour central office and one floor of the Las Vegas office which needs to be wired. He noted the floor is an add-on in court services that was not in the original plan. He explained that programming for the accounting component has been developed and will be in full production at the central office at the end of May 1999. The chief said data entry of victim restitution accounts has been going on for several weeks and is necessary to make the program operational. He said full deployment of the accounting system will include importing existing offender data and system updating of offender information from the court cases and from victims. Chief Lutzow stated that once this information is completed, the full development of the accounting system, along with training, inventory and personal components, will begin by July 1, 1999, with the smaller district offices coming on-line some time thereafter.

Chief Lutzow said the replacement of the stand-alone database systems in the central office will begin and the warrant and prerelease systems will be in full production by July 1999.

Chief Lutzow called attention to the pending expenditures for equipment items listed on page 2 of Exhibit H. He said these are the necessary items to be purchased and the work program is awaiting approval. He noted that page 3 of Exhibit H identifies the equipment to be purchased through the one-shot funding in A.B. 343. Senator Raggio asked whether the LCB fiscal staff has examined this list. Dan Miles, Senate Fiscal Analyst, Fiscal Analysis Division, Legislative Counsel Bureau, indicated the list has been reviewed.

Senator Raggio closed the hearing on A.B. 343 and opened the hearing on A.B. 370.

Robert J. Gagnier, Lobbyist, State of Nevada Employees Association, stated that Assemblywoman Bonnie Parnell, who introduced this bill, was unable to be present today due to a slight emergency. He said the bill was requested by the association based upon the original information from the State Committee on Benefits and was amended in the Assembly to conform to the amounts contained in The Executive Budget.

Mr. Gagnier remarked that for those who feel costs are getting high for medical insurance, the State of Nevada as an employer pays "less than the average of all the major local government employers" in Nevada. He said this bill, in the second year of the biennium, will bring active employees almost to the level of the state average as of last fall.

Mr. Gagnier pointed out that health care costs in the state of Nevada are considerably higher than the national average. He said that for 4 quarters, Las Vegas is at 118.5 percent of the national average for health care costs, 119 in northern Nevada and 123 percent in the rural areas.

Senator Raggio stated that the first reprint of the bill, which is the amended version, is the amount accommodated in The Executive Budget. Mr. Gagnier agreed.

Randy Waterman, Acting Chief, Risk Management Division, Department of Business and Industry, stated this bill establishes the state contributions for active employees and retirees for the next 2 years and sets the rate at $327.20 a month for active employees in FY 2000 and $368.75 in FY 2001. The rate for retirees will be $ 183.59 a month in FY 2000 and $208.93 in FY 2001.

Martin Bibb, Lobbyist, Retired Public Employees of Nevada, spoke in support of A.B. 370. He stated this bill is particularly important this year in light of some of the challenges facing the group insurance plan. He urged the committee’s support of the bill.

Dr. Richardson testified in support of this bill on behalf of NFA and expressed appreciation to the committee members and the Governor for their support in "bailing out" the state health plan.

Senator Raggio closed the hearing on A.B. 370 and opened the hearing on A.B. 656.

Senator Raggio commented that the ceremony naming the building to be used by the tourism office the Paul A. Laxalt State Building was "a nice event" and a well-deserved recognition of former Governor Laxalt’s contribution to the state of Nevada.

John P. Laxalt, Deputy Commissioner, Division of Insurance, Department of Business and Industry, introduced Marilyn Espinosa, Administrative Services Officer, Division of Insurance, Department of Business and Industry, who reviewed the Insurance Examiners budget shown in Exhibit I.

Ms. Espinosa testified the division’s request is for supplemental funding for the insurance regulation budget in the amount of $171,070. She explained that the shortfall results from a decrease in revenue and the inability to make the budgeted transfer from the Insurance Examinaters budget. She said if the budgeted transfer were made it would leave the Insurance Examinaters budget insolvent.

Ms. Espinsoa stated that the impact of the inability to make the full transfer has been mitigated by cutting costs in all categories, with the exception of information services, and the additional funding is still required.

Senator Raggio recalled that the original bill for this purpose was less and asked whether the $171,070 is the amount now needed. Ms. Espinosa answered yes. Senator Raggio asked whether fiscal staff has reviewed the request. Mr. Miles responded yes.

Senator Neal asked for an explanation of the purpose of the Insurance Examiners Fund. Ms. Espinosa explained that the examinations of insurers in the state are provided through this fund. She said financial as well as market-conduct examinations are given and this is intended to be a self-supporting budget, funding itself through an administrative fee and also paying the Insurance Regulation budget for administrative overhead and oversight.

Senator Raggio closed the hearing on A.B. 656 and opened the hearing on A.B. 657.

Michael Hood, Chief, Nevada Highway Patrol Division, Department of Motor Vehicles and Public Safety (DMV&PS), testified the Nevada Highway Patrol has requested the FY 1996-97 work program be supplemented by $12,159.81 from the Highway Fund in order to liquidate accumulative stale/dated claims. He explained the Norwest phone system that was installed cost an additional $9,000, and more lines had to be rented and flares ordered. Also, there were two employees with information services, when information services was still under the highway patrol, before leaving and receiving a separate budget account.

Senator Raggio confirmed fiscal staff has verified the amount. He closed the hearing on A.B. 657 and opened the hearing on A.B. 658.

Chief Lutzow stated the bill provides a supplemental appropriation to the division to replace the funds that were used for a deficit expenditure in FY 1998. He explained that in FY 1998 the division incurred a revenue shortfall in supervision fees. He said the division has historically done this and annually has been able to recover the shortages through salary savings; however, in FY 1998 the salary savings were needed to cover not only the revenue shortages but absorption of a 3 percent cost of living increase for staff, plus a 2-step increase for sworn officers. Additionally, it was necessary to pay overtime expenditures, termination leave and psychosexual evaluation salaries.

Chief Lutzow testified that as a result of the funding shortfall the division appropriated the radio conversion funds to offset the deficit, which is the primary reason for this request. He explained that funding of the radio conversion plan is critical to the division. It is needed to purchase new radios that are compatible with the department’s anticipated new radio system. He said if the division is not funded to purchase the new radios, officers will be unable to communicate with other law enforcement agencies and the lack of communication could create a serious risk to officers in the field.

Chief Lutzow stated the division has initiated a vigorous program to educate staff in the importance of the supervision fee collection, which has proven to be successful. Also, the division has also prepared and implemented a comprehensive plan of action in order to prevent a deficit in FY 1999.

Senator Jacobsen inquired the number of parolees currently on the supervision list. Chief Lutzow there is a total population statewide in excess of 10,000. He pointed out there has been a steady increase each year and the Legislature and the division h developed programs that have brought additional individuals into the population.

Senator Raggio closed the hearing on A.B. 658. He suggested taking action on some of the bills heard thus far today.

Senator Raggio stated that S.B. 321 is the bill providing training for correctional officers. He said the fiscal note on this bill is approximately $600,000 a year. He stated that Mr. Comeaux has indicated to fiscal analysis staff that the fiscal note is still valid and in view of the large fiscal note the measure cannot be processed at this time.

Senator Raggio called attention to S.B. 305. He noted the committee voted earlier to amend and do pass the bill.

Mr. Miles explained this bill provides two conversion extensions, one for the Y2K appropriation from the 1997 Legislative Session and another for the Integrated Financial System (IFS). He stated the amendment appears to be correct. Senator Raggio said if there are no objections Amendment No. 1076 will be submitted as part of the action on the bill.

Senator Raggio said S.B. 280 is for modular furniture for DMV&PS in Carson City.

Senator Raggio noted the committee voted on May 18, 1999, to recommend the bill for amend and do pass. He said the correct amount of the appropriation is $1,185,000. He recalled staff had reviewed this and decided to reduce the amount required. He stated the reduced amount is incorporated into proposed Amendment No. 1075.

Senator Raggio called attention to S.B. 279.

Senator Raggio stated this bill was acted on and recommended for amend and do pass on May 18, 1999. He said Amendment No. 1074 adds a new section to the bill and extends the prior appropriation for 1 year. He said that on page 1, line 3, the amount is changed from $8.6 million to $8.7 million. He stated this amendment would be utilized with S.B. 279 pursuant to earlier action.

Senator Raggio suggested placing all of the bills approved this morning on the consent calendar.

Senator Raggio stated there is an amendment to S.B. 411. He recalled the amendment came about "as the result of everyone interested in this measure."

Stephanie Tyler, Lobbyist, Nevada Bell, testified this measure is a consensus piece of legislation worked on by all the local governments as well as all the utility companies. She said the amendment has a 5-year phase-down program for the removal of intangibles on centrally assessed properties and allows local governments the opportunity to slowly adjust to the process. Simultaneous to the phase-down, included in the Senate "253" tax redistribution committee charges would be the addition of the study of centrally and locally assessed properties.

Ms. Tyler noted the legislation and the amendment acknowledge the fact that utilities are no longer the monopolies they once were and are competing with "main street" business.

Senator Raggio asked who would conduct the study. Ms. Tyler explained there would be a separate subcommittee that would be part of the "253 committee."

Senator Coffin stated that he is on the Senate Committee on Taxation and there was unanimous support for S.B. 411 from that committee.

Senator Raggio pointed out S.B. 496 was heard on April 7, 1999. He stated there is a potential amendment to the bill.

Scott Scherer, General Counsel, Governor’s Office, explained the potential amendment to the bill. He stated there are two potential amendments. He said they are not essential but are felt to be "good ideas to include in the bill." He testified that one change would amend section 8, subsection 3 to add language that would allow for bonding against the stream of revenue received under the tobacco settlement. He noted several other states have begun doing this and the state treasurer thinks this would be a good way to eliminate any risk of the reduction of the payments in the future. Mr. Scherer stated the treasurer wants to see what price the market places when other states have implemented bonding against the revenue. He pointed out this amendment would allow the bonding to be done and would require approval of the State Board of Finance. It would also specify that any of the bonds, if issued, could only be repaid from proceeds out of the tobacco settlement and would not be general obligation bonds.

Mr. Scherer stated the second proposed amendment to S.B. 496 would add specificity to "satisfactory academic progress." He noted the UCCSN have a standard for satisfactory academic progress and this amendment would add language that a student must maintain a grade point average of at least 2.0, which is the current standard, in their first academic year and 2.5 thereafter.

Senator Raggio pointed out this would be a required maintenance of effort after the scholarship is awarded. He asked whether there is a time limit as to how long a student has to complete his or her studies. Mr. Scherer answered the bill states it is 8 years. This was to allow the opportunity for those going into the military to be able to go to college after completing their military obligation. It was also to accommodate others who wish to gain some experience before starting college.

Senator Raggio stated there is ongoing discussion in the Assembly regarding this bill but said it would be appropriate to amend and process the bill so it can be sent to the Assembly.

Senator Coffin asked whether this bill contains the original percentage of money going to the scholarships from the tobacco settlement. Senator Raggio answered the proposed amount is 50 percent. Senator Coffin commented the percentage seems to be the primary problem between the Senate and the Assembly. He mentioned 25 percent as a figure the Assembly is considering. Mr. Scherer stated there has been some discussion regarding the appropriate percentage. He emphasized that 25 percent will not adequately fund the millennium scholarships. He pointed out that if the amount of money in the trust fund was not needed, the excess money could be used for other programs, including health care. He stressed it will take 50 percent, or close to it, to adequately fund the scholarships.

Senator Coffin said that were the percentage lowered, outreach would have to be reduced to keep the fund fiscally sound. Mr. Scherer agreed. He maintained that if the percentage were reduced to 25 percent, roughly every other student in the state would be eliminated. He said a means test would have to be at a median household income of approximately $36,000. He stated that based on figures presented, he believes the Assembly is considering the 50 percent level.

Senator Raggio reiterated the bill should be processed. Senator Coffin said he has no problem in processing the bill except that he feels more money should be spent on health care and he thought that was the intent of the attorney general’s settlement.

* * * * *

Senator Mathews stated she wants to retain the right to reconsider her vote on the Senate floor.

Senator Raggio noted that S.B. 370 is the other portion of proposed utilization of the tobacco settlement money and should be sent to the Assembly along with S.B. 496.

Senator Raggio noted the bill was heard in the Senate Committee on Human Resources/K-12 and has come to the Senate Committee on Finance because of the fiscal note. He asked for an explanation of the proposed amendments.

Scott Scherer provided a draft of the proposed amendments (Exhibit J). He explained that the amendments were developed by the Governor’s Office. He said the Governor wants to make sure it is clear senior citizens in the long-term care insurance program would actually have to have used their long-term care insurance policy for 3 years before becoming eligible for the "nest egg" and protection program. He pointed out that basically this means individuals would not have to spend down their assets if they have taken advantage of this program.

Mr. Scherer stated that under the proposed amendments the asset protection provisions would be made available to any person age 55 years or older. He explained the reason is that long-term care is significantly cheaper at 55 than it is at older ages and this provision would encourage individuals to buy the insurance earlier, when it is less expensive.

Mr. Scherer said another amendment would raise the household income requirement from $100,000 to $200,000. He pointed out this is for the asset protection program. He noted there is no state subsidy for buying the long-term care insurance, and increasing the income level is an incentive for people who have the means to buy the insurance. He stated the belief is that this would provide peace of mind to individuals, would save the state money over the long term, and would keep people out of Medicaid.

Mr. Scherer stated another suggestion is to clarify that the state’s payment does not begin until seniors receive the 3 years of benefits under their insurance policy. The policy has to be used, not just purchased.

Mr. Scherer said it is provided that the rural health care proposal would apply to counties with populations under 100,000. He stated an advisory board would be created and would be made up of county commissioners. He said it might be appropriate to have commissioners on the committee that are from counties with populations under 100,000. He noted it has been suggested there are rural areas in Clark and Washoe Counties that should be included and there would not be an objection to having them included.

Senator Raggio clarified that rural areas in counties over 100,000 could be included. Mr. Scherer stated language could be included for the bill if the committee decided to make the change. He said there is a definition the federal government uses for defining rural communities that are eligible for matching federal funds.

Mr. Scherer explained that page 7, section 18, line 3 would amend the age to 62, to coordinate the age with the senior citizens’ property tax rebate. He said the desire is to make it as simple as possible for seniors to receive the pharmaceutical insurance subsidy, as well as the property tax rebate, if they qualify. This would be for low-income seniors. He explained the targeted population is low-income seniors who are not quite Medicaid-eligible.

Mr. Scherer said page 7, section 19 would be amended to stipulate that an applicant who is Medicaid-eligible would not be eligible for the program. He pointed out the presumption is that individuals who are Medicaid-eligible are not going to purchase long-term care insurance.

Senator Raggio said it is his understanding there are no conflicts between the proposed amendments to this bill and the action taken on S.B. 496. Mr. Scherer stated there are not. Senator Raggio noted the bill was heard in another committee and there has been a considerable amount of input from the public.

Senator Raggio asked how the remaining proportion of the tobacco settlement funds would be allocated under this measure. Mr. Scherer explained:

Mr. Scherer stated the two other components of the proposed use of the tobacco settlement funds are the Tobacco Cessation and Prevention Program and the creation of an advisory board for the prevention and reduction of the use of cigarettes and other products made from tobacco. He said the advisory board would make recommendations to the state health officer regarding educational/ informational programs to be created and advise and make recommendations to the Governor and the Legislature concerning the policy of the state regarding prevention and reduction of tobacco use.

Mr. Scherer said section 12 of the bill would provide for the state health officer, in cooperation with the advisory board, to establish and coordinate the educational informational programs and would allow for grants to be made to local governments to fund the programs. He stated the intent was to allow, for example, cessation programs where individuals who were already smoking could receive help with smoking cessation.

Mr. Scherer noted that approximately $6 million to $7 million a year would go to smoking prevention and cessation. He stated the money for all programs would not be available until July 1, 2000. He pointed out it will take time to set up programs and a number of the programs will be reviewed again in the 2001 Legislative Session. He noted that one suggestion, because all of the money will not be needed in the first year, is to provide a one-shot appropriation to create a trust fund for rural health care. Mr. Scherer pointed out there is currently a federal program to create critical access hospitals and there is already a working group within the medical school at the university to work on the program. He explained the idea is to take some of the rural hospitals that are struggling and focus the facilities on critical access health care, which he said is the greatest need in the rural communities. He said this would allow more things, such as telemedicine, where patients can see a specialist in one of the urban areas without having to drive into the urban area. The focus could be on emergency medical services and improving billing systems in order to make the hospitals more financially sound. He pointed out the advisory board would decide on the grants in conjunction with the state health office and the medical school.

Senator Coffin asked which bill contains language regarding the varying amounts of money coming into the tobacco settlement fund. Mr. Scherer answered that the settlement agreement has a schedule of how much money will come into the fund each year, and the state’s share varies from year to year. He said that the first year the state should receive two payments for a total of $53 million. Following that the amount will decline to approximately $50 million and some years it will be in "the low $40s."

Senator Coffin asked whether there is an amount in the settlement that is supposed to be spent on prevention programs. Mr. Scherer replied no. Senator Coffin asked:

Mr. Scherer answered he believes $10 million is to be spent for the long-term care portion, $6 million for the prescription drug program and what is then in excess of the $16 million a year would be used for tobacco cessation and prevention. 50 percent of the settlement money would create the Millennium Scholarship Trust Fund.

Senator Raggio noted section 30 of the bill indicates $2 million for educational/informational programs on tobacco use. Senator Coffin stated the amount of money to be used for cessation and prevention programs is not known because there is not a defined figure; therefore, it will not be known how much is being spent on the effort to reduce smoking. He maintained there should be a commitment to a definite amount, even if it is a percentage, as opposed to "backing into it." He stated the amount to be spent seems to be contingent on a number of things.

Mr. Scherer pointed out the long-term care insurance and pharmaceutical policies many times are for illnesses that are smoking-related. He said the money that is left to be used on cessation and prevention programs averages approximately $6 million a year. He noted the trust fund is a statutory trust fund, not a constitutional trust fund; therefore, the Legislature could adjust the percentages in the future based on experiences with the various programs. He reiterated there is a commitment that everything over the $16 million goes to tobacco cessation and prevention. He pointed out the $2 million one-shot funding is to set up and plan the programs in the first year.

Mr. Scherer stated that there is also one-shot funding in the amount of $5 million for the Health Sciences Center for the University of Nevada School of Medicine, which would be in Las Vegas. He called attention to a commitment from the Del Webb Foundation and others to donate $7 million in matching money, which will be lost if the one-shot appropriation is not approved. He stated the health sciences center would help in addressing telemedicine for rural health care. Senator Raggio asked whether the tobacco settlement money would be available in time to receive the matching funds. Mr. Scherer answered the timeline has expired; however, the Governor has spoken with the private donors and has a commitment the money will be provided if the Legislature makes the commitment that money would be provided for the health sciences center when the tobacco settlement funds arrive. Additionally, the City of Las Vegas has agreed to donate land valued at over $7 million. Mr. Scherer pointed out that with the $5 million one-shot appropriation out of the tobacco settlement, an additional $14.5 million can be leveraged in other funds.

Senator Neal asked whether there is a standard, in terms of a student receiving a millennium scholarship, requiring that the student be a nonsmoker. Mr. Scherer replied there is no standard in the bill requiring a student to be a nonsmoker. He explained that the concern was a standard such as this would be unenforceable. He said there would not be an objection to the concept of such a standard.

Senator Raggio called attention to S.B. 184 and S.B. 185 dealing with the requested appropriations to continue the drug court programs in both Clark and Washoe Counties’ court districts. He said these bills were heard on March 17, 1999, and there is an indication the Governor has proposed an amendment.

Mr. Scherer stated be could not give an outline of the amendment but he did not have the specific language. Senator Raggio said these bills need to be processed, if it is the wish of the committee, and an amendment could be dealt with later. Mr. Scherer offered to provide the concepts of the amendment and said he would try to expedite drafting of the language of the amendment.

Mr. Scherer explained that the concept of the amendment is to set up a pilot program for up to 150 individuals who would otherwise be in the prison system, to be released into the drug court program. An advisory board would be set up in each county having a drug court program which would have to include the drug court judge, representatives of the district attorney’s office, representatives of the sheriff’s office, the public defender and also treatment professionals. The members of the advisory committee would review every person who was potentially going to be placed into the program to make sure the person was low-risk and was appropriate for the program.

Mr. Scherer said the "317 program" that allows for residential confinement and for release of inmates in the Department of Prisons to residential confinement, would be included.

Mr. Scherer explained the proposal would be to extend the 317 program in two ways. Currently, the Department of Prison’s policy is that individuals are only eligible for the 317 program if they are within 1 year of probable release. Mr. Scherer said the proposal is to extend the period to 24 months. He noted that the criteria include having a place to live and having employment. Occasionally there are individuals who meet all the other criteria but do not meet one of those two requirements. Mr. Scherer stated the drug court judges have volunteered their advisory boards to try to help find places to live and jobs for individuals who would otherwise meet the criteria, so they can qualify for the program. He explained that the names of those individuals would be referred to the advisory board and if the individuals could be helped to meet the criteria they would be eligible to participate in the program.

Mr. Scherer stated that the second group of people who might be eligible are those who have had their parole or probation revoked because of technical violations, not for commission of a new crime. He said the desire is to have eligible individuals diverted to the drug court program, which is a more intensive supervision program. He explained that phase I requires daily attendance for counseling and phase II requires the counseling three times a week. He further explained that phase III requires counseling twice a week and drug testing twice a week and individuals must pay for their own drug tests.

Mr. Scherer emphasized this is an intensive program and those in the program are monitored very closely. The rate of recidivism has been only 14 percent. He said that even if broadening the program increases the recidivism rate, the rate is significantly better than what has been experienced in other programs.

Senator Raggio asked what the cost of the pilot program would be. Mr. Scherer answered it is believed the program will actually save money rather than cost money. Senator Raggio asked whether an initial appropriation would have to be made. Mr. Scherer replied that initial seed money will be required. He recalled that the drug court judges in Clark County had indicated they would need what was received last biennium, which was $250,000. The Washoe County program would need what it received last biennium as well, to make sure the program can be continued.

Senator Raggio stated S.B. 184 is a request from Clark County for $700,000 and the request in S.B. 185 from the Second Judicial District in Washoe County is for $330,000. He commented the program is probably a very good one as proposed but asked whether the amendments require augmenting the amounts in the bills. Mr. Scherer answered no. In fact, he explained, the amounts in the bills could be reduced. Senator Raggio requested someone work with staff to prepare an amendment by the following day. He asked whether more parole officers would be needed. Mr. Scherer answered it is not believed more would be needed because the recommendation is that only 150 people be in this program.

B&I, Transportation Services Authority – Budget Page B&I-203 (Volume 2)

Budget Account 226-3922

B&I, Taxicab Authority – Budget Page B&I-224 (Volume 2)

Budget Account 245-4130

Senator Raggio asked whether there is a report from the Senate subcommittee working on the issue of the Transportation Services Authority (TSA) and the Taxicab Authority (TA). Senator O’Donnell testified that S.B. 491 is a bill dealing with the TSA and TA and the combination with different entities and industries operating in various locations. He said the subcommittee decision, with consensus from the industry, is that a TA would be established in Reno, the TA in Las Vegas would be retained, and the TSA would be used for the purposes of regulating household goods for the next 2 years, as well as regulating the "nonconsent tows." He pointed out the budget would have to be recrafted because the responsibilities for limousines had to be transferred from the TSA, which has dealt with limousines, and now the TAs in both Reno and Las Vegas will have the responsibility for regulating limousines. The positions, as well as the money to fund the TA, had to be placed in escrow essentially, so that after regulations are drafted the TA could go to the IFC after July 1, 1999, and before October 1, 1999, to request a budget for operating funds.

Senator O’Donnell pointed out there were some amendments that will be provided. He asked Ginny Wiswell, Program Analyst, Fiscal Analysis Division, Legislative Counsel Bureau, to explain the budgetary responsibility decided upon by the committee.

Ms. Wiswell noted that as proposed, S.B. 491 has an October 1, 1999, effective date. She said that as proposed S.B. 491 would, if the budget with the staff corrections is approved, allow both of the agencies to come to the IFC with a plan on how to rededicate the existing positions and the highway funding as well as the fees that would be approved.

Senator Raggio asked whether "the budget reviewed previously" (Transportation Services Authority budget account 226-3922) could be closed. Senator O’Donnell said that there are amendments that will take out language dealing with diversion. Mr. Miles pointed out that if the bill is passed, language would be placed in both the General Appropriations Act and the Authorizations Act giving the IFC authority to make the adjustments by October 1, 1999.

High Level Nuclear Waste – Budget Page ELECTED-10 (Volume 1)

Budget Account 101-1005

Senator O’Donnell testified he opposed this measure and still opposes giving the office this amount of money from the General Fund. He maintained it is a lot of money out of the budget to spend on nuclear waste oversight. He said, however, he would support it if language could be drafted that would allow the federal government, if funds are available and the federal government agrees, to reimburse the state for the $1.9 million that will be spent from the budget.

Senator Raggio stated that the reasons the federal funding was not forthcoming have either been addressed or will be, and some federal funding may be freed up, with the understanding that the General Fund money used for "those purposes"could be reimbursed. He remarked that a Letter of Intent in the budget closing might be a satisfactory way to address this issue.

DETR, Alcohol & Drug Rehabilitation – Budget Page DETR-105 (Volume 2)

Budget Account 101-3170

Senator Raggio recalled this budget had been held on May 18, 1999, pending the hearing on A.B. 181.

Mr. Miles testified there were some concerns expressed by people from the Department of Employment, Training and Rehabilitation (DETR) who run the current program. He noted DETR is the agency that would lose the Bureau of Alcohol and Drug Abuse (BADA) program under this bill. He explained the concern was that the bill requires that the bureau go through an RFP process for new programs for adolescents. The idea was that the new MAXIMUS revenue that was approved by the joint subcommittee would be added to this budget. He stated the only concern was if the program is mandated and the MAXIMUS money does not come in, adult programs might have to be reduced to implement the new programs.

Senator Raggio stated "that is not the intent" and asked how this could be covered. Mr. Miles commented that perhaps the new programs could be permissive. Senator Raggio asked where the change would have to take place in the bill. Mr. Miles answered it would be in section 5. Senator Raggio stated the budget could be closed with that understanding.

Birgit Baker, Program Analyst, Fiscal Analysis Division, Legislative Counsel Bureau, referred the committee to the closing action by the Assembly Committee on Ways and Means shown on page 14 of Exhibit K, including A.B. 181. She explained there is $500,000 of MAXIMUS revenue placed into BADA’s budget for adolescent treatment programs addressed in A.B. 181 with a Letter of Intent that the agency would not obligate those funds for expenditure until they are realized. She said with the transfer of BADA to the Department of Human Resources there are three other DETR budgets affected which have positions that would need to be transferred into the BADA budget.

Senator Raggio noted that any motion should include the authority to make those adjustments in the other budgets. He asked whether A.B. 181 has to be amended. Ms. Baker stated the concern is that section 5 of A.B. 181 indicates the bureau shall prepare an RFP for the provision of certain services, one of which is the comprehensive evaluation of adolescents with problems relating to substance abuse or mental illness. She stated that is a service which is not currently provided by BADA or covered in any other way. She pointed out the concern is the possibility the MAXIMUS money will not be received.

Senator Raggio asked whether a Letter of Intent would cover this issue. Mark Roberts, Administrative Services Officer IV, Department of Human Resources, answered that a Letter of Intent would suffice.

Senator Raggio noted that A.B. 527 was heard on May 19, 1999 and is the measure that would provide for the augmentation and authority to issue revenue bonds by the respective universities. He noted the UCCSN was amenable to the proposal to increase the authority to provide for the dental school.

Senator Rawson reported there were two amendments discussed. One allows the revenue bond authority to increase to $67,500,000 at UNLV and also adds a new subsection that says "any revenue derived or otherwise pertaining to the imposition and collection of fees for dental services provided to a facility at the university." Senator Rawson explained the second amendment would allow, as an alternative, the "placement" of payback general obligation bonds that would not be considered a security of the state and would add no debt to the state. He stated this provides two options on the way to finance the dental school. Additionally, he said it would "not be a bad idea" to specifically state that this action is for the construction of the dental school and outlying clinics.

Senator Rawson explained that S.B. 401 would allow for the expansion of the number of judges in Clark County. He noted the county understands it is responsible for all other expenses involved. He said the county is asking for authority for an override, which causes concern. He stated he has discussed this with county commissioners and fiscal staff and a schedule has been established for bond repayment. The tax level will not be raised "because of the authority for an override."

Senator Raggio asked whether there is a report on the issue of the highway high-band radios, which was in S.B. 504. Senator Rawson answered that he and Senator O’Donnell served on the subcommittee and consulted with others on this issue. He said the essence of the report is the development of the very high frequency (VHF) system being developed, but there is a need to add the 800-megahertz (MH₂) system, primarily to the northern border of Washoe County. He explained an amendment would add the sum of $4,332,250 to the Nevada Department of Transportation (NDOT) for the cost to complete the 800 MH₂ system and would also allow the continuance of the VHF system.

Senator Rawson noted NDOT has agreed that the money can be taken from highway funds and will not defer other projects. Senator Raggio asked whether that amount is in addition to the appropriation in the bill. Senator Rawson answered yes. He pointed out this appropriation will assist the department in finishing its VHF system.

Ed Wilson, Customer Services, Director’s Office, Nevada Department of Transportation, testified he is aware of the meetings that have been held and the context of the meetings and the department agrees with the senators’ recommendation. Senator Raggio asked whether this action would impede other projects. Mr. Wilson responded no.

Raymond L. Sparks, Deputy Director, Department of Motor Vehicles and Public Safety, concurred that the proposed resolution to this situation would allow the department to continue the expansion of the VHF high-band system. He pointed out a revision to the appropriation the department had requested was submitted when the bill was heard. He stated the request increased from $8.2 million to $10.5 million and the increase would still be needed to finish the department’s system.

Senator Neal asked Mr. Sparks whether the system the department is setting up would be different from other systems within the state. Mr. Sparks explained that the system the NDOT and DMV&PS is developing is a department radio system. He said a number of NDOT’s divisions, as well as several other agencies, are serviced by that system but it is a separate system from the NDOT radio system. Senator Neal inquired whether there would be any type of interceptive communication or ability to talk to anyone across jurisdictional lines. Mr. Sparks replied yes. He said the system being developed would allow interoperability, which is the ability to communicate with other radio systems, with approximately 95 percent of the law enforcement agencies in the state.

Senator Raggio stated that S.B. 283 was heard on April 22, 1999. Mr. Miles testified the contingency fund is normally restored to $8 million. He recalled he had indicated to the committee this appropriation would be $8,634 less than the $8 million. Senator Raggio stated that rather than ask for an amendment, he would take a motion on this bill.

Senator Raggio adjourned the meeting at 11:27 a.m.

RESPECTFULLY SUBMITTED:

Patricia Hampton,

Committee Secretary

APPROVED BY:

Senator William J. Raggio, Chairman

DATE: