MINUTES OF THE meeting

of the

ASSEMBLY Committee on Ways and Means

 

Seventy-First Session

May 14, 2001

 

 

The Committee on Ways and Meanswas called to order at 8:00 a.m. on Monday, May 14, 2001.  Ms. Chris Giunchigliani, Vice Chairwoman, and Mr. Morse Arberry Jr., Chairman, presided in Room 3137 of the Legislative Building, Carson City, Nevada.  Exhibit A is the Agenda.  Exhibit B is the Guest List.  All exhibits are available and on file at the Research Library of the Legislative Counsel Bureau.

 

 

COMMITTEE MEMBERS PRESENT:

 

Mr.                     Morse Arberry Jr., Chairman

Ms.                     Chris Giunchigliani, Vice Chairwoman

Mr.                     Bob Beers

Mrs.                     Barbara Cegavske

Mrs.                     Vonne Chowning

Mrs.                     Marcia de Braga

Mr.                     David Goldwater

Mr.                     Lynn Hettrick

Ms.                     Sheila Leslie

Mr.                     John Marvel

Mr.                     David Parks

Mr.                     Richard D. Perkins

 

COMMITTEE MEMBERS EXCUSED:

 

Mr.                     Joseph Dini, Jr.

Ms.                     Sandra Tiffany

 

STAFF MEMBERS PRESENT:

 

Mark Stevens, Assembly Fiscal Analyst

Steve Abba, Principal Deputy Fiscal Analyst

Carol Thomsen, Committee Secretary

Connie Davis, Committee Secretary

 

 

Vice Chairwoman Giunchigliani called the meeting to order and announced the first order of business would be consideration of A.B. 286.

 

Assembly Bill 286:  Makes appropriation to Carson City for creation of team of             personnel to serve as central clearinghouse for mental health assessments          and coordination of services for mentally ill. (BDR S-1139)

 

Bonnie Parnell, Assemblywoman, District 40, indicated the legislation had been a collaboration of persons from Carson City, Douglas County, and Lyon County, along with the Department of Human Resources (DHR), working together to address the increasing needs of the mental health population within those counties and Carson City.  Ms. Parnell indicated she would relinquish the floor to John Berkich, City Manager for Carson City, who would explain the collaborative effort that had been put forth by all persons and entities involved. 

 

Mr. Berkich testified that he would request withdrawal of A.B. 286, because the need the legislation would have addressed had been met.  He explained that the history of addressing services for the mentally ill began in 1998, when the Board of Supervisors directed staff to review the mental health issues facing Carson City.  Mr. Berkich noted that the actual work began in January 1999 with a handful of people and, 16 months later, had become a coalition of 60 people representing 30 different agencies and organizations that had come together to examine the existing service levels, identify the unmet needs, and develop recommendations to meet the current and growing needs of the mentally ill. 

 

According to Mr. Berkich, the strategic decision had been made early in the process to adopt the same five-county area that had originally collaborated in the development of the Western Nevada Regional Youth Center in Silver Springs, which had been funded by the 1999 legislature.  Likewise, it would be approximately the same region as that served by the Carson-Tahoe Hospital, which included: Douglas, Lyon, Churchill, and Storey Counties, and Carson City.  Mr. Berkich stated that, impressed with the coalition’s progress and in support of its ongoing efforts, the Carson-Tahoe Hospital, the region’s largest provider of mental health services, once again provided grant funding for a coordinator position for one year, in an effort to further assure that the goals outlined by the coalition would be achieved.  Mr. Berkich indicated the coordinator position had been filled by Pat Hardy, who was the former director of the Rural Mental Health Clinics, and with his assistance, and that of Ms. Parnell, as well as resolutions of support from the counties and the hospital, A.B. 286 was drafted, which requested funding to provide for the development of a crisis response team for the aforementioned region.  Essentially, noted Mr. Berkich, that team would serve as a clearinghouse for mental health assessments, and coordinate service delivery. 

 

Per Mr. Berkich, as the session progressed and budgetary problems arose, the coalition began to explore the possibility of developing a partnership with Charlotte Crawford, Director, DHR, to provide those services.  Mr. Berkich testified that those efforts had resulted in a partnership that was now in conceptual form, whereby the state, the city, and Carson-Tahoe Hospital would join resources to fund the crisis response team for the region as a pilot program during the upcoming biennium.  With the concurrence of the committee, Mr. Berkich stated he would respectfully withdraw A.B. 286 and would seek the committee’s approval, in concept, of the agreement.  Finally, stated Mr. Berkich, in review of the future mental health needs and resources in the state, Carson City was anxious to participate in the strategic planning process anticipated by the DHR, which would perhaps review a different business model, with a more efficient delivery of services and the effective use of scarce and scattered resources. 

 

Mr. Berkich emphasized that Carson City remained very concerned over the issue of parody and the distribution of resources between the urban and rural areas of the state, and was likewise concerned with the equity of programs which were available only in the urban areas of the state.  Via the planning process, Mr. Berkich hoped that those issues could be addressed in a participatory, joint strategic planning process, involving local and state officials from both the public and private sectors to develop a better, more efficient business model for the state to address the growing needs of the mentally ill.  On behalf of the Carson City Mental Health Coalition, Mr. Berkich thanked Ms. Parnell for her support, and expressed sincere appreciation to Ms. Crawford and her staff for their willingness to attempt a program which the coalition felt would enhance the overall service levels for the mentally ill in Carson City and the region.

 

Jonathan Andrews, Deputy Director, DHR, explained the partnership would attempt to develop a pilot program which would provide mental health service coordination to the local community.  Per Mr. Andrews, the intent was to provide a system that would effectively and efficiently identify needs and access available services.  Mr. Andrews noted the DHR had been working to identify resources within its system that could be freed-up by the program, so funding that had been committed to those resources could be utilized for an inter-local agreement with the coalition to provide those services via contract.  It was hoped that the DHR could report to the legislature next session regarding what did or did not work in the program, while providing a model that could be utilized to provide those services within other communities.  Mr. Andrews emphasized that the DHR was extremely enthusiastic about the program, and appreciated the opportunity to participate.

 

Ms. Leslie asked what resources would be utilized to conduct the program.  Mr. Andrews stated the DHR was still in the process of identifying available resources.  Such things as vacant social worker positions were being reviewed, because the services provided in that capacity would be the same type of service that the project could provide.  The DHR would submit a work program to the Interim Finance Committee (IFC) for approval for any shift in funding to the local program.  Ms. Leslie stated she totally supported the concept of a crisis response team, and explained she had recently participated in the Mental Health Awareness Day activities in Reno, where a large contingent from Carson City were complaining that the wait for services was over six months.  Ms. Leslie assured the contingent that the legislature had added 13.25 positions to the rural clinics budget in the joint subcommittee closings, and the situation would be addressed.   Ms. Leslie stated she wanted to ensure that the positions dedicated to addressing the existing waiting list were not eliminated in order to facilitate the emergency crisis response team.  That would simply identify additional people who would then be placed on the waiting list.  Mr. Andrews stated it was hopeful that creation of the team would actually reduce the waiting list, avoid duplication of services, and allow the DHR to more effectively provide services.  The DHR viewed the emergency crisis response team as beneficial in providing services; one issue that had arisen during discussion was reduction of the waiting list.    

 

Mr. Hardy advised the committee that he was the coordinator of the coalition for Carson City, and explained the waiting list issue would be addressed in rural clinics by providing crisis care, service, and response, in order that the staff typically responsible for that care, service, and response could be diverted to the ongoing clinical issues and the waiting lists.

 

Ed Epperson, Administrator, Carson Tahoe Hospital, advised that the hospital was very much in support of the crisis response team, was very interested in the possibilities of inter-agency cooperation for mental health services, and had been involved in the aforementioned coalition from its inception.  Mr. Epperson stated the Hospital Board of Trustees was willing to fund the coordinator position, and to further that effort, would also contribute two full-time positions to assist the coordinator. 

 

Vice Chairwoman Giunchigliani inquired whether there was further testimony forthcoming regarding A.B. 286, and hearing none, declared the hearing closed.  The next item for committee consideration was A.B. 348.

 

Assembly Bill 348:  Makes appropriation to City of Las Vegas for enhancement        and implementation of a hydrogen reformer, fuel cell generator and             hydrogen vehicle refueling system to provide improved air quality and             public health. (BDR S-1160)

 

David Parks, Assemblyman, District 41, stated A.B. 348 requested an appropriation of $400,000 in each year of the biennium to the City of Las Vegas for the enhancement and implementation of a demonstration hydrogen reformer, fuel cell generator, and hydrogen vehicle refueling system to provide improved air quality, and public health.  Mr. Parks introduced Rory J. Reid, Attorney at Law with the firm of Lionel, Sawyer and Collins; James E. Gast, Project Manager, Air Products and Chemicals, Inc.; and, Janelle Kraft, Senior Financial Analyst, Office of Administrative Services, City of Las Vegas.

 

Mr. Reid stated that he appeared before the committee on behalf of Air Products and Chemicals, Inc., and thanked Mr. Parks for his leadership in the issue.  Mr. Reid indicated that air pollution was an international problem which the United States had a significant responsibility for creating.  He noted that     4 percent of the people in the world were citizens of the United States, and that population created 25 percent of the greenhouse gasses that caused air pollution.  According to Mr. Reid, air pollution was a particular problem for southern Nevada, and aside from health concerns, the problem was serious because Nevada was no longer in compliance with federal standards.  That placed the state at risk to lose many millions of dollars, which could be utilized to address the growth in the southern Nevada area. 

 

Mr. Reid stated he would like to discuss a way to address the problem head-on, by utilization of cutting-edge technology and the public-private partnership which consisted of Air Products and Chemicals, Inc., the United States Department of Energy, and the City of Las Vegas.  Mr. Reid stated that hydrogen was the most abundant element in the universe, and was colorless, odorless, and light in weight.  When hydrogen was burned, it vaporized, and that was much different from the fossil fuels currently relied upon, which caused air pollution when burned.  Mr. Reid indicated the technology being developed would lead to economic diversification in southern Nevada, and eventually the entire state. 

 

Mr. Gast advised the committee that the project delineated by A.B. 348 was a cooperative effort between the City of Las Vegas, Air Products and Chemicals, Inc., and the Department of Energy, to undertake a five-year project to develop, construct, and operate an advanced alternative fueling station to dispense pure hydrogen, or a hydrogen/natural gas fuel blend, to vehicles.  Mr. Gast explained that Air Products and Chemicals, Inc. was a worldwide industrial gas and chemicals company located in Allentown, Pennsylvania.  The company generated $5.5 billion in sales, and employed 17,000 people worldwide, with operations in over 30 countries.  As part of the industrial gas business, Air Products and Chemicals, Inc. was the leading worldwide supplier of hydrogen and, in fact, Mr. Gast stated that the company had been the premiere supplier of hydrogen for governmental projects, including the National Aeronautics and Space Administration (NASA) for over 40 years.  Mr. Gast reported that the company had provided the liquid hydrogen fuel for every space shuttle flight since the first launch in April 1981, and was very experienced in the handling of hydrogen. 

Continuing, Mr. Gast stated that diesel fuel and gasoline generated significant smog-producing pollutants and greenhouse gasses.  Although clean, compressed natural gas (CNG) fuel substantially reduced those pollutants, it still generated the greenhouse gas carbon dioxide as a combustion product.  In contrast, the only basic combustion product of pure hydrogen was water. 

 

According to Mr. Gast, the Clark County Regional Transportation Commission (RTC) already operated over 120 natural gas fuel busses, which were reducing omissions, however, by blending some hydrogen into the natural gas, additional significant reductions in omissions would be generated.  Mr. Gast explained that pure hydrogen would eliminate greater emissions, and a zero emission fuel-cell vehicle was under development. 

 

Mr. Gast referenced Exhibit C, which contained information regarding the joint effort by the City of Las Vegas and Air Products and Chemicals, Inc., to develop, construct, and operate an advanced, alternative fueling station, which would dispense the CNG/hydrogen fuel blend to vehicles.  The proposed fueling station would have pure hydrogen capability from its first day of operation.  The project included the CNG fueling station that the City of Las Vegas and the RTC was installing, which would also provide the natural gas to the blend facility.  Mr. Gast indicated that the fueling station would comprise:  (1) a developmental natural gas-based, on-site hydrogen production unit; (2) hydrogen compression, storage, and dispensing units to provide pure hydrogen to vehicles; (3) a newly developed hydrogen/CNG blending system and dispenser for rapid dispensing to vehicles; (4) a liquid hydrogen backup system for reliability; and, (5) a fuel cell power generator to produce electric power for the station from hydrogen.  The fuel cell power generator was being provided under subcontract to another partner.

 

Mr. Gast indicated that in addition to the initial goals of the refueling station project, the project participants would like to demonstrate advanced compressor technology.  Furthermore, if the state wanted to continue to serve as a benchmark facility and test-bed for other advanced technology applications, while also meeting the expected growth in demand as more vehicles utilized it, a larger capacity hydrogen generator would be required.  Mr. Gast reported that the additional funds provided by the state of Nevada would be used to complete the development, fabrication, installation, and operation of the larger hydrogen generator and advanced technology compressor.  According to Mr. Gast, demonstration of those advanced pieces of equipment would further enhance the value of the City of Las Vegas, Air Products and Chemicals, Inc., and the Department of Energy’s hydrogen fueling station prototype as a testing facility for future transportation fuel supply centers.

 

Ms. Kraft stated that, obviously, the City of Las Vegas was wholeheartedly behind the project and supported it completely.  The city felt it was a wonderful public-private partnership that would benefit the citizens of southern Nevada via air quality.  Ms. Kraft noted the city was committed to do what it could in order to reach attainment with the Environmental Protection Agency (EPA) standards for air quality and was grateful to all parties involved with the drafting of A.B. 348; she urged committee support of the bill. 

 

In conclusion, Mr. Reid explained there were several stakeholders in the project, i.e., the Department of Energy, the City of Las Vegas, and private industry via Air Products and Chemicals, Inc., along with others.  Mr. Reid noted the importance of the technology under development, and urged support of the bill, so that Nevada could claim a portion of the future benefit that would accrue from the project. 

Vice Chairwoman Giunchigliani requested clarification regarding the participation of the RTC.  Mr. Gast explained that the RTC was not a direct participant in the specific proposed project, but was involved in installing the CNG fueling station on property owned by the City of Las Vegas adjacent to the property for the proposed project.  The proposed facility would utilize natural gas from the RTC’s facility, in order to reduce costs.  Vice Chairwoman Giunchigliani then referenced the $400,000 requested allocation for enhancement and implementation, and inquired whether the project was moving forward with construction.  Mr. Gast stated that the facility was currently being constructed, and most of the equipment was fabricated and ready for installation; however, the current hydrogen generator for the site was a small prototype that was being tested by Air Products and Chemicals, Inc. at its Allentown, Pennsylvania, facility.  Mr. Gast pointed out that the generator was not of sufficient size to meet the future goals of the facility or expanded fleet requirements.  It was anticipated that many additional buses and vehicles would be converted to the blend fuel, and the company was researching the possibility of developing and building a larger unit.  Vice Chairwoman Giunchigliani asked whether the initial targeted fleet would be comprised mostly of mass transit vehicles.  According to Mr. Gast, the fleet would include both mass transit buses and city-owned or county-owned light duty vehicles; however, he noted that as the heavy users, the bus fleet primarily generated the demand, along with the need for emission reductions.   

 

Vice Chairwoman Giunchigliani asked whether the RTC or the county would make any financial contributions.  Mr. Gast stated the RTC and Clark County were not involved in the cooperative, and would not make any contribution, other than the CNG station installed by the county and the RTC to operate the fleet of CNG buses.  Mr. Gast stated that was an attempt by the county and the RTC to take the first step to address the clean air issue in southern Nevada; both were also supportive of the proposed facility, and would start to convert buses to the “blend” fuel as well.  Vice Chairwoman Giunchigliani inquired whether the “cooperative” included an agreement in which the county and the RTC were not included.  Electing to respond was Mr. Reid, who explained that the process was not complete, and all parties involved would accept any available help.  The joint venture, as it currently existed, was between the Department of Energy, the City of Las Vegas, Air Products and Chemicals, Inc., and one other company.  The county was contributing in the manner described by Mr. Gast in his earlier testimony.  Mr. Reid explained it was a fluid situation and the project was underway, but could be much better with support from the state and other entities.

 

Mr. Parks explained there were many different “players” who would bring a variety of resources to the “table,” and there was an approximately $1 million contract with Air Products and Chemicals, Inc., along with a facility under development by the City of Las Vegas.  There was substantial investment on the part of all involved parties.  Mr. Reid stated that Air Products and Chemicals, Inc. had actually contributed approximately $6 million to the venture, the Department of Energy would match that amount, and the City of Las Vegas had donated property and other in-kind services to the project.

 

With no further testimony forthcoming regarding A.B. 348, Vice Chairwoman Giunchigliani closed the hearing, and announced the next order of business would be A.B. 405.  

 

 

 

Assembly Bill 405:  Expresses sense of Nevada Legislature regarding reading             proficiency of Nevada’s school children.  (BDR 34-652)

 

Sharron Angle, Assemblywoman, Washoe District 29, addressed the committee as sponsor of the bill, and thanked those who had assisted in creating the legislation.  Mrs. Angle addressed Exhibit D, a packet of material which contained background information regarding the fiscal impact of the bill, and statements of support. 

 

Mrs. Angle informed the committee that A.B. 405 was spawned because of a need that arose from the National Assessment of Educational Progress (NAEP) test, which reported in 1998 that children were failing in school because they were not able to read, which was especially true in Nevada.  According to Mrs. Angle, Nevada ranked fifth from the bottom with 79 percent of its children unable to read at grade level.  Research over a period of 30 years had shown that if reading was taught according to scientifically based reading research, 95 percent of the children would be able to learn to read by the end of grade three.  Mrs. Angle felt that research was significant to the passage in 1998 of the federal Reading Excellence Act (REA).  The REA gave $262 million to states in grant funding to teach reading according to scientifically based reading research.  Since the grant became available, 27 states had taken advantage of that funding. 

 

Mrs. Angle pointed out that Nevada had applied for grant funding twice, with both applications ultimately rejected.  The two things in place in other states that had been successful in receiving grant funding was support by both the Governor, and support from the legislature in the form of legislation passed prior to the grant application, or passed as a result of receipt of grant funds.  After discussion with several states which had been successful in securing grant funding, Mrs. Angle was informed that the most important elements were teacher training and support from school administration.  Those were the issues that A.B. 405 attempted to address, i.e., the need to access federal dollars to support reading programs in Nevada, and specifically to teach the teachers to teach according to scientifically based reading research.

 

Continuing, Mrs. Angle stated that Robert W. Sweet, Jr., formerly of the U.S. Department of Education and author of the REA, testified before the 1999 legislature regarding A.B. 294 of the Seventieth Session, which proposed revision of the provisions regarding literacy in public schools.  At that time, Mr. Sweet indicated that if A.B. 294 of the Seventieth Session was passed in Nevada, it would place the state on the cutting edge of reading reform, as the most current research-based practices in reading instruction would be part of Nevada’s classroom teaching.  He went on to state there had been several research studies conducted over the last half of the twentieth century, which made it clear that scientific research findings supported sequential, systematic instruction in the alphabetic principle, i.e., phonics.  According to Mrs. Angle, Mr. Sweet asked the legislature to keep in mind that Nevada was not alone in considering such legislation; at that time, more than 30 states had been considering similar legislation.  Mrs. Angle reported since that time, of those 30 states, 27 had received federal grant funds.  Testimony presented by Mr. Sweet during the 1999 legislature indicated that the benefits from passage of such legislation would be to teachers, who would be satisfied that their hard work was resulting in children who could read, parents who would be pleased with the schools, taxpayers who would see that the cost of education was not rapidly increasing and, more importantly, Nevada would be doing the right thing for its children.

 

Mrs. Angle referenced Exhibit D, which contained a report of the National Reading Panel that defined the instructional approaches to phonics as: (1) analogy phonics; (2) analytic phonics; (3) embedded phonics; (4) phonics through spelling; and, (5) synthetic phonics.  It was noted that the exhibit explained how phonics instruction might be provided systematically or incidentally.  Mrs. Angle explained that with incidental phonics instruction, the teacher did not follow a planned sequence of phonics elements to guide instruction, but highlighted particular elements opportunistically when they appeared in text.  Systematic synthetic phonics instruction had a positive and significant effect on reading skills for disabled readers.  The report indicated that systematic synthetic phonics instruction was significantly more effective in improving low socioeconomic status and children’s alphabetic knowledge and word reading skills than instructional approaches that were less focused on those initial reading skills.  In synthetic phonics approaches, students were taught to link an individual letter or letter combination with its appropriate sound, and then blend the sounds to form words.

 

Mrs. Angle stated the REA referred to the United States Code, which was comprised of two definitions: (1) reading; and, (2) scientifically based reading research.  Included in both definitions were the words “systematic” and “systematic phonics instruction.”  Per Mrs. Angle, also included in Exhibit D was a copy of the Reading First legislation, which would soon take the place of the REA.  She indicated she had highlighted the section that referenced systematic and explicit instruction in phonemic awareness, phonics, vocabulary development, reading fluency, and reading comprehension strategies.  Mrs. Angle remarked that A.B. 405 contained those elements.

 

Also included in Exhibit D were proposed amendments to A.B. 405, and Mrs. Angle explained the amendments would delete the references to the REA, since that legislation would be replaced by the Reading First bill, and would change the language in Section 1(a) which read, “. . . at an early grade level . . . ,” to, “. . . by the end of third grade. . . .”  According to Mrs. Angle, that language would align not only with national findings that children should be able to read by the end of third grade, but also with the national reading program entitled, No Child Left Behind, and the Governor’s stance that his goal for Nevada was that every child would be able to read by the end of the third grade.  Mrs. Angle stated that at the fourth grade level, a child would utilize reading skills to actually learn. 

 

Mrs. Angle reported that the first portion of A.B. 405 established the mission statement, as amended: “It is essential to the educational success of the children who are enrolled in Nevada’s public schools that they learn to read with proficiency by the end of third grade.”  The second goal was to increase reading proficiency by the end of third grade, and to establish a plan with the Governor and the Department of Education to ensure the maximum financial and educational benefits to the state through the grant process.  That would be accomplished by alignment with the federal requirements for issuance of the grant funds, which would put Nevada in a better position to submit applications for grant funds.  Mrs. Angle noted that the state had applied for the grant funding, and it was hoped that A.B. 405 would add credibility and foundation to that grant application.

 

Also addressed in the bill was the professional development in reading, based on scientifically based reading research which, according to Mrs. Angle, was one of the two elements addressed by the states that had been successful in securing grant funding.  The legislation would not recommend a specific curriculum, but rather would recommend that teachers be trained to select curriculums that would best suit their classrooms.  Another aspect of the bill was the provision of instruction reading that prepared teachers in the major components of reading, i.e., phonemic awareness, systematic phonics, spelling, vocabulary, fluency, reading comprehension, and writing.  Mrs. Angle stated phonics was simply a body of knowledge, 26 letters, 44 sounds and blends, 70 most common spellings, and approximately 160 rules.  Once those rules were learned, spelling and reading skills improved.  Not to be overlooked was the importance of parental participation in activities related to reading and literacy, along with the use of technology for teachers and a testing component to evaluate progress.  Mrs. Angle informed the committee that legislation had been passed which proposed a basic test for reading comprehension. 

 

Mrs. Angle indicated that included in Exhibit D were statements from the Clark and Washoe County School Districts, which indicated the amended version of the bill would have no fiscal impact on the districts or the Department of Education.  Also included were letters of support from Nevada’s Congressional Representatives, and summaries by states on reading for children in grade three and younger.

 

Mrs. Cegavske thanked Mrs. Angle for her work on the legislation, which had been fully supported by members of the Assembly Committee on Education.  Mrs. Cegavske was pleased to note that the fiscal impact had been removed, as it had proven to be a stumbling block for the school districts; she also noted the list of states that had undertaken legislation addressing reading for children, which included Wisconsin and Minnesota.  Mrs. Cegavske encouraged the committee to support A.B. 405 as amended, and felt it was a project that Nevada needed to embrace.

 

Mrs. Angle noted that the state of California was ranked lower than Nevada, however, had made good strides in adopting legislation and had received $60 million in grant funding.  Mrs. Cegavske referenced the letter included in Exhibit D from Senator John Ensign, which indicated $260 million would be available for grants to states by the REA, and asked whether that was a viable figure.  Mrs. Angle indicated that $262 million was the total amount available, and Nevada had applied for a grant of $21 million.

 

Vice Chairwoman Giunchigliani inquired whether the term “scientifically based terminology” meant phonics instruction only, or was that a component.  Mrs. Angle stated it was not phonics only, and read the following excerpt from the United States Code, Title 20, Section 6661a:

 

• (5) Scientifically based reading research

The term ‘scientifically based reading research’ –

(A) means the application of rigorous, systematic, and objective procedures to obtain valid knowledge relevant to reading development, reading instruction, and reading difficulties; and

(B) shall include research that –

§         (i) employs systematic, empirical methods that draw on observation or experiment;

§         (ii) involves rigorous data analyses that are adequate to test the state hypotheses and justify the general conclusions drawn;

§         (iii) relies on measurements or observational methods that provide valid data across evaluators and observers and across multiple measurements and observations; and

§         (iv) has been accepted by a peer-reviewed journal or approved by a panel of independent experts through a comparably rigorous, objective, and scientific review.

 

Continuing, Mrs. Angle read the following from the United States Code, Title 20, Section 6661a:

 

• (4) Reading

 

The term ‘reading’ means a complex system of deriving meaning from print that requires all of the following:

o       (A) The skills and knowledge to understand how phonemes, or speech sounds, are connected to print.

o       (B) The ability to decode unfamiliar words.

o       (C) The ability to read fluently.

o       (D) Sufficient background information and vocabulary to foster reading comprehension.

o       (E) The development of appropriate active strategies to construct meaning from print.

o       (F) The development and maintenance of a motivation to read.

 

Mrs. Angle pointed out that phonics was not directly stated in either of those two definitions, however, in the REA, it was specifically stated as one of the components of reading.  As a special education teacher, Vice Chairwoman Giunchigliani noted that phonics did not tend to work on special education children with auditory problems.  Mrs. Angle stated that statistics indicated 95 percent of all children could learn through phonetics, however, there were some disabilities where the method was not effective.  Vice Chairwoman Giunchigliani felt that phonics should be introduced, however, at times there were other programs that might be more appropriate for certain students.  Vice Chairwoman Giunchigliani inquired whether the grant money could be utilized for remediation for students.  Mrs. Angle stated the grant specified that funds would be used for at-risk situations, and explained that A.B. 405 did reference the Even Start Family Literacy Program, which was a remedial or beginning step before children started to school.  Vice Chairwoman Giunchigliani asked whether the State Department of Education wrote the grant; Mrs. Angle replied in the affirmative. 

 

Vice Chairwoman Giunchigliani then addressed the professional development aspect of the bill, which she felt was an excellent idea, because not all elementary teachers were trained in how to teach reading, and it should be ensured that teachers in kindergarten through third grade had the necessary training background. 

 

Mrs. Angle indicated it had been interesting to converse with other states that had actually implemented the grant and conducted the professional development component.  She referenced a conversation she had with a person in Mississippi who opined that the program was like a revival in the school when teachers were given tools they had never received before; it was discovered that those teachers could be successful in teaching 95 percent of the students in their classes.  Many special education departments had been eliminated, because many children in special education classes were there because of reading difficulties.  The professional development in Mississippi was extremely teacher-based, where teachers were given tools never before utilized, even in college classes.  According to Mrs. Angle, teachers were also trained to look for decodable text, as early readers should be provided text that was at least 80 percent decodable and many states, including California and Texas, also required 80 percent decodable text. 

 

Al Bellister, Nevada State Education Association, advised that the association had worked with Mrs. Angle on A.B. 405, and its support would encompass the proposed amendment.  Mr. Bellister felt it would be a balanced approach to reading instruction, and would hopefully prove to be a gateway to additional federal funds for education.

 

Kami Dempsey, representing the Las Vegas Chamber of Commerce, voiced support for the bill, and felt it would allow teachers to secure the necessary training to teach phonics to children.  The Chamber of Commerce also supported the additional federal dollars the legislation would secure.

 

Steve Williams, representing the Washoe County School District, voiced support for the bill as amended, and appreciated the passion displayed by Mrs. Angle in creating the bill in support of reading excellence, which was also a goal of the district.

 

Helen Glenn, representing the 1,400 members of the Nevada Federation of Republican Women, asked that the committee pass the bill, and voiced support.  Ms. Glenn indicated reading and English were taught in various places around the world more easily than they were taught in Nevada.  According to Ms. Glenn, she had taught conversational English in Korea and Japan, and it was her opinion that scientifically based reading really did work.

 

Mrs. Chowning commended the hard work of those involved in the Academic Standards document, which included teachers, parents, business representatives, and legislators, and noted that phonics was included in the standards from the beginning.  Phonics was in place within the schools as a teaching technique, contrary to the opinion that phonics was not a recognized teaching tool.  Mrs. Chowning noted there had been much hard work, discussion, and debate regarding phonics, which were implemented into the standards document.  While A.B. 405 could assist with federal dollars, it should be noted that phonics had already been recognized as an important component.

 

With no further testimony forthcoming on A.B. 405, Vice Chairwoman Giunchigliani closed the hearing, and indicated the next item for committee consideration would be A.B. 448. 

 

Assembly Bill 448:  Provides for licensing and operation of railroad gaming.              (BDR 41-1066)

 

Marcia de Braga, Assemblywoman, District 35, introduced the mayor of Ely, Robert B. Miller and Ken Dailey, Executive Director, Nevada Northern Railroad.  Mrs. de Braga explained that A.B. 448 would do several things, the first of which would be to allow gambling on what the bill defined in Section 1, 4(a) as:

 

‘Historic railroad train’ means a steam, electric or other motor locomotive of historic distinction, with or without railroad cars coupled thereto, which travels upon stationary rails within this state and which is operated by a nonprofit organization.

 

Under current law, Mrs. de Braga explained gaming was not allowed on trains, and the Nevada Northern Railroad operated tourist excursions on its historic trains, which had become an extremely important tourist attraction for the area of Ely and White Pine County by providing economic assistance.  The railroad continued to be promoted and expanded, in the hopes that it would build tourism in an economically deprived area. 

 

According to Mrs. de Braga, A.B. 448 stipulated that the regulations governing licensing and operation of railroad gaming would be established by the Gaming Commission.  The bill had been amended to allow for only slot machines on trains, rather than the original request for an unrestricted gaming license.  Mrs. de Braga noted that the bill would further ask for the sum of $2 million for the repair of the two steam engine locomotives used on the Nevada Northern Railroad, the replacement of the wye switch, and the renovation of the Nevada Northern track, repairs that were currently mandated by the Federal Railroad Administration.  Mrs. de Braga pointed out that in order for the Nevada Northern Railroad to continue operating, certain renovations would have to be made.  Mrs. de Braga referenced Exhibit E, which contained the costs for renovation of the two locomotives. 

 

Mrs. de Braga stated the money requested in the bill would allow for the renovation of the Nevada Northern track.  As originally written, the language indicated the allocation would be used for the “purchase” and renovation of Nevada Northern track, however, “purchase” was omitted when the bill was amended.  Mrs. de Braga asked that “purchase” be added back to the language of A.B. 448 in Section 3, “. . . and the purchase and renovation of the Nevada Northern Track.”  Mrs. de Braga explained that the Nevada Northern Railroad wished to purchase the track from McGill to the point where it linked with the Union Pacific Railroad track from Utah.  According to Mrs. de Braga, that would enable increased tourism and economic development in that area, because there were a number of businesses and small industries that had expressed an interest in relocating to that area.  The track under consideration was currently owned by the Los Angeles Department of Power and Water, which had entered into an agreement with the Nevada Northern Railroad for sale of the track at a reduced price.  Should the track under consideration for purchase not be renovated by the existing owners, or if it was not sold to the Nevada Northern Railroad and renovated, it would be lost, as the cost to rebuild would become astronomical.

 

Mr. Dailey advised he was the Executive Director for the Nevada Northern Railway Museum, and referenced Exhibit E, which dealt with the portion of the bill that addressed the repair of the locomotives.  The cost was approximately $800,000 because of the unfunded mandate from the Federal Railroad Administration (FRA), which affected all short line and steam operations across the country.  Mr. Dailey pointed out that the Nevada Northern Railroad was the only intact short line railroad remaining in Nevada and one of only about three in North America that was 100 percent authentic and complete.  It was hoped that the engines could be repaired and the track acquired, so that the main line would remain intact, not only for the commercial implication, but because of the historic and cultural value of the railroad. 

 

Mr. Marvel asked for clarification regarding the condition of the locomotives.  Mr. Dailey stated the locomotives were in quite good condition prior to the time the FRA’s mandate was issued with a deadline of January 2002.   Currently, steam locomotive Number 40 was operational for the tourist season, and Number 93 had actually been taken out of service to begin the repairs, in order to comply with the aforementioned mandate by the January 2002 deadline, and at that time, locomotive Number 40 would undergo the necessary repairs.  Mr. Marvel inquired whether all the repairs noted in Exhibit E were necessary, and asked whether the Nevada Northern Railroad had attempted to secure a waiver.  Mr. Dailey stated that incidents around the country had prompted the FRA’s regulation, largely because of safety concerns, inspection, and proper operation of the steam boilers on the locomotives.  The railroad’s FRA representative could testify to the Nevada Northern Railroad’s maintenance program, and the fact that its equipment was in better condition than most.  Mr. Dailey felt the railroad could have continued in its present state, but the regulations did have value, and all railroads were required to comply, which might result in the shutdown of some of the smaller short line steam railroads around the country.  Mr. Marvel then inquired whether there was any federal funding available for the mandated repairs.  Mr. Dailey stated the railroad had been in conversation with Senators Reid and Ensign to ask for assistance, however, there did not appear to be any funding available at the current time.  Mr. Marvel inquired about the track available for purchase; Mr. Dailey indicated there were approximately 124 miles in poor condition, with the speed limit for commercial trains set at 10 miles per hour. 

 

Mr. Hettrick commented that he felt the Nevada Northern Railroad was a great project, and he and his grandson had attended the christening of locomotive Number 40 after it had been refurbished.  The train literally stopped traffic on Highway 50, with people pulling over to watch the steam train.  Mr. Hettrick felt the project was beneficial, and if funding became available, he would urge the committee to support A.B. 448. 

 

Mr. Miller testified that a portion of the requested funding would be used to purchase the track from the Los Angeles Department of Water and Power, and indicated there was a tentative deal in the works.  A portion of the funding would be utilized to secure a $3.2 million Economic Development Administration (EDA) grant; $1.6 million would be the city’s portion, which would be funded via A.B. 448.  According to Mr. Miller, there had been interest expressed for use of the railroad, however, the permits had not been secured from the Los Angeles Department of Power and Water, which could be disastrous to the city’s economy.  Mr. Miller felt the Nevada Northern Railroad should own the track, in order to control its own destiny. 

 

Mrs. de Braga reiterated that should the funding portion of the bill pass, Section 3 would require amendment to add the aforementioned language.  According to Mrs. de Braga, the railroad played a significant role in the economy of White Pine County, and it would be tragic if the train was not allowed to continue.  The long-term goals were to enhance the “ghost” train ride and hopefully make it roundtrip via Ruth. 

 

Mr. Miller disclosed that the city of Ely was applying for a $50,000 Community Block Grant for tourism expansion of the railroad, a $50,000 grant to expand the commercial operation of the railroad, and $200,000 for a transfer facility. 

 

Vice Chairwoman Giunchigliani stated the committee would note that additional funding source.  The committee did recognize the need for tourism and enhancements for the rural areas, however, budget constraints were problematic for the legislature. 

 

Robert Ostrovsky, Chairman, Nevada Commission on Cultural Affairs, and Vice Chairman of the Museum of History Board, indicated he would like to go on record in support of A.B. 448.  Like Mr. Hettrick, Mr. Ostrovsky felt a ride on the “ghost” train at Ely was an amazing adventure.  The Commission on Cultural Affairs had invested substantial funds in buildings in Ely, and had recently made an additional grant to the railroad for the purpose of improving the buildings.  The state operated the Nevada Northern Railway Museum, which was an association manned by volunteers.  Mr. Ostrovsky emphasized that the railroad was a substantial economic driver in the Ely area, and he encouraged the committee to note its importance.  According to Mr. Ostrovsky, a good deal of tourism was drawn to the area because of Great Basin National Park and the Nevada Northern Railroad.  There had also been some movie work conducted in the area, and Mr. Ostrovsky felt it was a worthy project from the standpoint of investing in the history of Nevada.

 

Vice Chairwoman Giunchigliani inquired whether there was further testimony forthcoming on A.B. 448, and hearing none, declared the hearing closed.  The next item for committee consideration was A.B. 460.

 

Assembly Bill 460:  Revises provisions governing remittance of fees collected by             short-term lessors of passenger cars to department of taxation.               (BDR 43-589)

 

David Parks, Assemblyman, District 41, testified as the sponsor of A.B. 460, and explained the bill modified the manner in which the Department of Taxation collected rental car fees.  Currently, he explained, the rental charge was 6 percent and was collected from January 1 through December 31 by all rental car agencies and had to be reported to the Department of Taxation no later than January 31 of the following year.  Mr. Parks explained that meant that the rental car companies collected the 6 percent fee all year long, and earned the interest on it for as long as 13 months.

 

According to Mr. Parks, the rental car companies were required to remit only 2 percent of the 6 percent fee to the state.  Of the remaining 4 percent, the rental car companies were allowed to deduct all costs that were incurred to title, register, and transfer their fleet of vehicles.  Mr. Parks explained if the total expended was less than the 4 percent, the difference had to be remitted to the state.  Currently, about .25 of 1 percent of the 4 percent was remitted to the state and, therefore, the state would realize approximately 2.25 percent and the rental car companies would retain 3.75 percent of the 6 percent fee. 

 

Mr. Parks noted that the original bill called for rental car companies to remit the entire 6 percent to the state on a monthly or quarterly basis, however, the Transportation Committee removed that language and left only the quarterly remission of the 2 percent.  By reporting and remitting quarterly, the state stood to generate interest income of approximately $116,640 annually, based on an interest rate of 4 percent.  Mr. Parks noted there were, however, added expenses for mailing forms quarterly rather than annually, along with the expense to record and deposit receipts.  Reconciliation would still be performed only once per year.  Mr. Parks pointed out that in the next fiscal year, rental car companies would collect $23.3 million, remit $8.8 million to the state, and retain $14.5 million to offset their costs of doing business.

 

Mr. Parks referenced Exhibit F, which contained a summary reflecting the incremental revenue that would be generated by reporting and remitting the 2 percent tax on a quarterly basis.  Also included in the exhibit was a document that Mr. Parks had provided to the Committee on Taxation, which included a Nevada Taxpayers Association cover sheet regarding how the revenue was collected; the estimate for the upcoming biennium; the Department of Taxation form for reporting of revenue; and, an instruction page which indicated the fees that were eligible for the rental car companies to retain.  The exhibit also contained examples of receipts from various car rental companies, and a chart reflecting rental car costs in Las Vegas in relation to rental car costs in other major cities.

 

Vice Chairwoman Giunchigliani asked for clarification regarding reporting of income.  Mr. Parks replied that it would be his desire to have the rental car companies report the fee collection on a quarterly basis, rather than the current annual report, which allowed the companies to retain the revenue for the entire year.  The Department of Taxation had asked for a fiscal note on A.B. 460, which indicated that if the department was required to collect the revenue on a monthly or quarterly basis, it would incur increased costs.  Mr. Parks noted that the cost would include quarterly mailings, as well as receipting and recording the deposits of the 2 percent revenue. 

 

Vice Chairwoman Giunchigliani asked whether the revenue that would be transmitted to the state on a quarterly basis would be split equally.  Mr. Parks indicated the state would continue to receive the 2 percent it was currently receiving, however, the bill would continue to allow the rental car companies to retain up to 4 percent of the revenue.  Vice Chairwoman Giunchigliani asked what portion would be allocated to the RTC.  Mr. Parks explained that the original bill contained language that would split revenue between the Highway Fund and the RTC in the county of origin.  The amended version of the bill did not contain that split.  According to Mr. Parks, there had been much discussion in previous sessions regarding similar legislation.  The original legislation was initiated in 1993 in the closing hours of the session, and was intended to support and assist the smaller rental car companies in Nevada versus the major rental car companies.  Unfortunately, the language contained in the bill that ultimately passed did not achieve that goal.  Both large and small rental car companies were allowed to deduct direct operating expenses. 

 

Vice Chairwoman Giunchigliani stated it was her understanding that other than the quarterly reporting stipulation, there would be no change in the fee collection; Mr. Parks replied in the affirmative. 

 

Mr. Ostrovsky indicated he would speak to the bill as a representative of Hertz, Avis, National, and Budget rental car companies, and the Nevada Rental Car Association.  He voiced support of A.B. 460 in its amended format, and explained it was a cash flow mechanism favorable to the state, which would produce additional revenue.  Mr. Ostrovsky stated he had contacted the Department of Taxation, and it was the consensus of opinion that, while the department would be required to shift resources to accommodate the quarterly reporting, it would not be substantial.  The department would still be required to hire a revenue auditor at the end of the year to balance out the payments.  Should the committee choose to review the tax in general, he would like the opportunity to discuss that matter with the members. 

 

Vice Chairwoman Giunchigliani asked about the original intent of the 1993 legislation regarding the state capturing additional dollars, rather than the rental car agencies.  Mr. Ostrovsky stated various bills had been presented over past legislative sessions, some of which reduced the fee over a period of time, and some which eliminated the fee altogether. 

 

Mrs. Chowning reported that the members of the rental car industry had promised her, as Chair of the Transportation Committee, that before the next legislative session, the industry would work with her and all parties involved, to craft some type of resolution.  The problem, according to Mrs. Chowning, was that if the fee was totally removed, the smaller, Nevada-based companies would be impacted far differently than the national companies which could leverage their costs overall; the Nevada-based companies would be hurt significantly.  Mrs. Chowning stated the industry realized it was time to craft a solution to correct the problem.

Mr. Hettrick asked for clarification regarding the $44,000 fiscal note and the reported $116,640 income, assuming an average interest rate of 4 percent.  Mr. Parks indicated the amount in the fiscal note dealt with a monthly billing cycle, and reflected the need for a full-time position.  The costs in the personnel area would be minimal, and the only expense would be the operating costs.  Mr. Parks indicated he would be very surprised if those costs were more than $16,000 of the $116,640.  Mr. Hettrick urged the committee to support the bill because of the positive cash flow.

 

Vice Chairwoman Giunchigliani requested input from Mr. Ostrovsky regarding how to assist the smaller companies before the committee made a policy decision.  She also noted that in 1993, when the legislation originated, it was proposed to add to the General Fund in order to assist with education funding.  Vice Chairwoman Giunchigliani felt that the committee needed to look at the legislation in an effort to capture more of the available dollars.  Mr. Ostrovsky indicated he would contact a representative from the Nevada Rental Car Association, which was the agency that represented the 35 to 40 smaller rental car operators in the state, to ascertain whether the association wanted to comment regarding the situation.

 

Chairman Arberry inquired whether there was further testimony forthcoming regarding A.B. 460, and hearing none, the hearing was declared closed.  The next order of business was A.B. 514.

 

Assembly Bill 514:  Makes appropriation to Interim Finance Committee for             allocation to Department of Human Resources for electronic application             process for Nevada Check Up program and Medicaid assistance.               (BDR S-1409)

 

Michael J. Willden, Administrator, Welfare Division, DHR, testified in support of A.B. 514.  The bill was part of the Governor’s one-shot request for improvements to the state’s health care system.  The $500,000 appropriation included in A.B. 514 would give the DHR the ability to match an additional $918,481 in federal funds, for a total project cost of $1,481,480.  That funding would create a Web-based application system for not only the Medicaid program, but also for the Nevada Check Up Program.  Mr. Willden stated the DHR also envisioned that it would be able to incorporate the Temporary Assistance to Needy Families (TANF) Program and the Food Stamps Program. 

 

Mr. Willden submitted Exhibit G, which consisted of a fiscal note that depicted the cost matrix for the one-shot appropriation, along with the federal dollars that would create an approximately $1.5 million pool of money to bring the project on-line.  The exhibit also contained a simplistic drawing of what the DHR envisioned for the on-line application.  Mr. Willden explained that individuals would be able to submit applications to the programs via the Internet, and the DHR would have the ability to filter the applications and interface them with the appropriate eligibility systems. 

 

Mr. Willden reported that the DHR felt that a Web-based application process would be a huge improvement over the current paper process, and would speed the eligibility determination process while improving the DHR’s overall operation.  The DHR would undertake a Request For Proposal (RFP) process in order to secure a vendor.  Along with other legislation to improve policy, i.e., elimination of the Child Health Assurance Program (CHAP) assets test, and expedition of processing for pregnant women, the bill would greatly improve the eligibility process.

 

Jon Sasser, Washoe Legal Services, Inc., and Co-Chair of the Nevada Covering Kids Coalition, explained that the Governor had been kind enough to extend an invitation to the Covering Kids Coalition regarding ideas about how one-shot appropriation monies might be spent to address health care policies in Nevada.  The coalition came forward at a meeting in early December 2000 with a suggestion for an interactive Web-based application for Nevada Medicaid and the Nevada Check Up Program.  Mr. Sasser reported that the coalition was grateful to the Governor for including the one-shot appropriation in The Executive Budget. 

 

Continuing, Mr. Sasser explained that when a person applied for the Nevada Check Up Program, a paper mail-in application was sent to a centrally located office, where staff reviewed the application and determined whether or not to contact the family.  If the family appeared to be eligible, instructions were issued regarding how to enroll, and the payment of premiums, et cetera.  When staff reviewed the application, if it was determined that the person would be eligible for Medicaid, both applications were processed.  According to Mr. Sasser, of the 1,700 applications reviewed for Medicaid eligibility, which consumed a great deal of the eligibility staff’s time, only 85 were actually determined eligible.  The proposed system would point people in the right direction up front, in order to eliminate duplication of effort. 

 

It was not envisioned that the main users of the Web-based system would be the applicants, but rather would be entities such as the Covering Kids Coalition.  Mr. Sasser explained that the coalition, in addition to its statewide efforts, had established pilot projects in northern and southern Nevada, and the rural areas.  There were 16 Volunteers in Service to America (VISTA) slots working with the coalition, in addition to ongoing Covering Kids Coalition staff.  The volunteers’ job was to assist persons with the paper application process, and it was envisioned that in the future the VISTA staff would assist with the Web-based applications. 

 

In addition, Mr. Sasser noted that other nonprofit and social service agencies and workers at health care providers could participate in the system.  The goal of the Covering Kids Coalition was to sign up every Nevada child for the appropriate insurance program, and the adoption of the proposed system, along with the aforementioned elimination of the CHAP assets test, would be a giant step in that direction.  Mr. Sasser stated the coalition would urge committee support of A.B. 514. 

 

The system was realistic, and Mr. Sasser introduced Linda Sheldon, Statewide Coordinator for the Covering Kids Coalition, Great Basin Primary Care Association, who had had a great deal of contact with the system developed for use by the state of California.

 

Ms. Sheldon called the committee’s attention to an overhead presentation of an application developed by Deloitte Consulting through a grant from the California Health Care Foundation for Medi-Cal (Exhibit H).  She explained that Medi-Cal was an expansion of California’s Children’s Health Insurance Program (CHIP), rather than a stand-alone program, however the concept was the same.  According to Ms. Sheldon, the California program utilized certified application assistants, which was somewhat similar to the VISTA health advocates in Nevada; however, the certified application assistants were paid a stipend for each approved application that was submitted to Medi-Cal.  Assistants could track the application they submitted via their own identifier, and could look for applications, start a new application, or enter an enrollment number.  Ms. Sheldon explained the automated application process as depicted in the overhead presentation.  The program would assist in completion of the application, and after the application was completed, the information was reviewed and the data verified. 

 

Ms. Sheldon referenced the “Smart Screen” program, which processed and examined client questionnaires and routed the information to the best qualifying program.  The program continued to verify information, which virtually eliminated mistakes.  Once the application was completed, Ms. Sheldon indicated the program would advise the family regarding eligibility for the correct programs.

 

For the counties that worked with Health Maintenance Organizations (HMOs), Ms. Sheldon pointed out that the provider information could be loaded into the application, which would allow the applicant to choose the provider at the time the application was completed, which would save time during the enrollment process.  Smart Screen included electronic signature, so that the applicant could sign when the application was submitted.  Ms. Sheldon explained that the application was actually faxed from the computer to the Medi-Cal office, along with the required documentation. 

 

Testifying next before the committee was Roger Volker, Director, Great Basin Primary Care Association, who submitted Exhibit I, “Uninsured Persons in Nevada – Estimates and Trends.”   Basically, stated Mr. Volker, it was discovered that there were currently approximately 388,000 persons in the state of Nevada who were uninsured, which represented an 11.3 percent increase from 1999 to 2000.  The population in Nevada had grown at about a 5 percent rate during that same period of time.  Mr. Volker indicated that review of the population at, or below, the 100 percent federal poverty level, or those who were primarily eligible for Medicaid, showed that population had grown at an alarming rate of 22.8 percent during that same time period.  The population whose income fell between 100 and 200 percent of the federal poverty level, or those families eligible for the Nevada Check Up Program, had grown at approximately 6 percent. 

 

Mr. Volker stated that statistics presented a trend which indicated the Medicaid population in Nevada was growing dramatically faster than the overall population.  He believed that the electronic application, particularly in the absence of presumptive eligibility, would be a step in the right direction to increased access so that more people could become enrolled in the programs, thereby reducing the number of uninsured.  Mr. Volker urged the committee to support A.B. 514. 

 

Ms. Leslie asked about the impact of the Nevada Check Up Program.  Mr. Volker stated it appeared that the Nevada Check Up Program had been holding its own against the population growth.  In 1999 there were approximately 33,000 eligible children, and in 2000 that number had increased to approximately 35,000.  There were approximately 16,000 children enrolled in the program, which was somewhere close to the 50 percent category.  Mr. Volker indicated that particular population segment was not growing as rapidly as the Medicaid population.  Ms. Leslie asked whether the percentage of truly poor people moving into Nevada was increasing, which was responsible for the 11.3 percent increase in uninsured persons, even with the Nevada Check Up Program.  Mr. Volker remarked that analysis indicated the lower income level was increasing because of growth in the economy, along with a variety of other factors.  Mr. Volker believed the numbers were clear and indicated the poverty level in Nevada was growing, even though the poverty level for the United States in the same categories was decreasing.

R. Alexis Miller, representing the Nevada Women’s Lobby, stated the Nevada Women’s Lobby had supported efforts to increase enrollment in the Nevada Check Up Program.  Health insurance for low-income children was one of the issues covered in the 2001 issue of the “Nevada Women’s Agenda” publication.  Ms. Miller explained that an article in that publication pointed out that the lack of insurance coverage for children translated into the lack of access to primary and preventative health care.  Routine well-child check ups were designed to assess a child’s growth and development, with the purpose of detecting early medical conditions or developmental delays.  Ms. Miller indicated that enrollment in the Nevada Check Up Program had been slow, and efforts to expand program marketing to increase outreach and eliminate barriers to enrollment were important to ensure the accessibility of that insurance program for children.  There was a need for improvement in the application process and the need to interface with the Medicaid system, which would be available via a state-of-the-art computer system.  Ms. Miller noted that other states had implemented such programs, and it was hoped that Nevada would also soon be able to offer such a program.  Ms. Miller emphasized that the Nevada Women’s Lobby supported the appropriation in A.B. 514 to fund an electronic application process for the Nevada Check Up Program and Medicaid, and urged the committee to support the bill.

 

Joe Edson, Field Organizer, Progressive Leadership Alliance of Nevada, stated the alliance had praised the Governor for including health care concerns in The Executive Budget.  The alliance would lend its support to A.B. 514.  From his personal experience in dealing with clients, Mr. Edson noted that such a program would eliminate delays in processing applications. 

 

With no further testimony forthcoming regarding A.B. 514, Chairman Arberry declared the hearing closed, and announced that the committee would commence with consideration of the following bills, with a view toward appropriate action.

 

Assembly Bill 69:  Imposes fee each time employer withholds income for             payment of support for child. (BDR 3-110)

 

Mark Stevens, Assembly Fiscal Analyst, Legislative Counsel Bureau (LCB), advised that A.B. 69 had been amended and re-referred to the Ways and Means Committee.  Basically, when the committee amended the bill, the proposal was to use the bill as a vehicle to incorporate the child support fee that was included in the Child Support Budget within The Executive Budget, in order to adequately finance that program.  Mr. Stevens pointed out that A.B. 69 would be completely eliminated in its current form, and replaced with Amendment 393.  The committee could consider the amendment for a period of time, and then reschedule the bill for action, or the committee could have the bill reported to the floor, reprinted, and re-referred back to Ways and Means.  Mr. Stevens noted there was a timing issue involved, as the bill would also need to be considered by the Senate. 

 

Chairman Arberry asked members for input regarding possible action.  Vice Chairwoman Giunchigliani suggested that, since time was an issue, the bill be amended and placed on the Chief Clerk’s desk, which would allow members time to review the amendments.  Mr. Stevens explained that if the bill was sent to the floor, it would be re-referred back to the Ways and Means Committee, based on previous action.  The committee could rescind the previous action, amend the bill and report it out, and then place it on the Chief Clerk’s desk. 

 

VICE CHAIRWOMAN GIUNCHIGLIANI MOVED TO RESCIND THE PREVIOUS ACTION ON A.B. 69.

 

MR. HETTRICK SECONDED THE MOTION.

 

THE MOTION CARRIED.  (Mrs. de Braga, Mr. Dini, Mr. Goldwater, Mr. Perkins, and Ms. Tiffany were not present for the vote.)

 

Chairman Arberry then called for a motion regarding amendment of the bill.

 

VICE CHAIRWOMAN GIUNCHIGLIANI MOVED TO AMEND AND DO PASS A.B. 69, AND PLACE IT ON THE CHIEF CLERK’S DESK.

 

MR. HETTRICK SECONDED THE MOTION.

 

THE MOTION CARRIED.  (Mrs. de Braga, Mr. Dini, Mr. Goldwater, Mr. Perkins, and Ms. Tiffany were not present for the vote.)

 

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Assembly Bill 469:  Makes various changes relating to safe use of watercraft.             (BDR 43-462)

 

MR. HETTRICK MOVED TO DO PASS A.B. 469.

 

MR. PARKS SECONDED THE MOTION.

 

THE MOTION CARRIED.  (Mrs. de Braga, Mr. Dini, Mr. Goldwater, Mr. Perkins, and Ms. Tiffany were not present for the vote.)

 

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Assembly Bill 558:  Establishes for next biennium amount to be paid by this     state for group insurance for certain public employees, public officers and             retired public employees. (BDR S-1437)

 

Mr. Stevens explained that, based on The Executive Budget, there was a slight reduction in the premium amount in the first year of the biennium from $368.75 per month in the current fiscal year to $357.50 per month for the next fiscal year.  The bill was originally sent to the Committee on Government Affairs, where it was amended to increase the premium amount during the first year of the upcoming biennium to the current rate of $368.75.  Mr. Stevens noted that the Public Employees’ Benefit Program budget was closed in joint subcommittee at the Governor’s recommend level of $357.50 per month for the first year of the biennium and with no change in the second year’s premium of $384.50 per month.   That would also impact A.B. 558 regarding the employee group insurance portion of the benefit for retired employees.  The question was whether the committee wanted to keep the bill in its original form, which indicated the premium amount of $357.50 per month for the first year of the biennium, or whether it wanted to consider the first reprint of the bill, which indicated the premium amount of $368.75 per month.  According to Mr. Stevens, if the committee included the higher premium amount, it would incur an additional cost to the state of many thousands of dollars, possibly in the million-dollar range. 

 

MR. MARVEL MOVED TO AMEND AND DO PASS A.B. 558.

 

VICE CHAIRWOMAN GIUNCHIGLIANI SECONDED THE MOTION.

 

THE MOTION CARRIED.  (Mrs. de Braga, Mr. Dini, Mr. Goldwater, Mr. Perkins, and Ms. Tiffany were not present for the vote.)

 

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Assembly Bill 273:  Makes certain appropriations to State Department of             Agriculture. (BDR S-1261)

 

Mr. Stevens explained the bill referenced the supplemental appropriation of $12,035 that was included in The Executive Budget for the Department of Agriculture.  The language of the bill in Section 1 should not include a reversion date; the appropriation was for a shortfall in a revolving account, which should not include a reversion date, and Mr. Stevens recommended that the language be corrected, with the amount remaining the same.  Also, Mr. Stevens noted that the Budget Division had alerted staff that the retirement contribution for Paul J. Iverson, Director of the State Department of Agriculture, had not been paid for the period from FY1999 into FY2001, due to a payroll error.  Mr. Stevens indicated the cost would be $6,803, and he recommended that amount be added to A.B. 273.

 

MRS. CHOWNING MOVED AMEND AND DO PASS A.B. 273.

 

MR. MARVEL SECONDED THE MOTION.

 

THE MOTION CARRIED.  (Mrs. de Braga, Mr. Dini, Mr. Goldwater, Mr. Perkins, and Ms. Tiffany were not present for the vote.)

 

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Assembly Bill 234:  Makes supplemental appropriations to Department of Motor             Vehicles and Public Safety for shortfalls in budgets of Division of Parole             and Probation, Field Services, Central Services, Parole Board, Division of             Compliance Enforcement and Hearings Office. (BDR S-1258)

 

Mr. Stevens stated the bill contained a supplemental appropriation that was included in The Executive Budget for the Department of Motor Vehicles and Public Safety (DMV&PS).  A number of issues had arisen since the drafting of the bill, and Mr. Stevens advised the committee that the bill would require a number of amendments regarding the allocation amounts.  LCB Fiscal Division staff had worked with the DMV&PS to arrive at the corrected amounts.  Mr. Stevens stated staff recommended the amount be eliminated from Section 1 of the bill; the amount in Section 2 was correct; the amount in Section 3 of $1.8 million was recommended for reduction to $830,000; and, in Section 4, the recommended adjustment would be $230,000.  According to Mr. Stevens, two additional sections needed to be added to the bill, should the committee follow staff recommendations, which would include an appropriation of $62,000 to the Compliance Enforcement Account for a shortfall in fingerprint revenues and payment of terminal leave.  A new section would also be required for appropriation of $15,000 to the Hearings Office for shortfall due to payment of terminal leave.

 

MRS. CHOWNING MOVED TO AMEND AND DO PASS A.B. 234.

 

MR. PARKS SECONDED THE MOTION.

THE MOTION CARRIED.  (Mrs. de Braga, Mr. Dini, Mr. Goldwater, Mr. Perkins, and Ms. Tiffany were not present for the vote.)

 

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Senate Bill 492:  Clarifies provisions governing transfers of money to fund to             stabilize the operation of the state government. (BDR 31-1476)

 

Mr. Stevens indicated the committee had heard testimony on the bill at a previous hearing, and explained the bill was designed to clarify the language for triggering dollars into the Rainy Day Fund.  In the interim between legislative sessions and at the end of the fiscal year, the amount in excess of 10 percent of General Fund appropriation, times 40 percent, was transferred to the Rainy Day Fund, if there were sufficient funds to do so.  The language would clarify the existing practice, however, would not change the procedure; the language was requested by the State Controller.  Chairman Arberry asked, since the bill would not make any changes, why the new language was necessary.  Mr. Stevens explained that, while he was not sure what the bill would accomplish, the State Controller had questioned whether the current practice was supported in the Nevada Revised Statutes (NRS).  The Attorney General had reviewed the issue, and recommended that the current practice be followed, however, language be submitted to clarify the procedure to ensure there was no ambiguity in the current statutory language, which prompted the drafting of S.B. 492. 

 

Mr. Stevens advised that staff recommended the bill be approved.  He noted there was a question regarding the added language, “. . . and funding for schools. . . .”  According to Mr. Stevens, the current practice of calculation was that the total General Fund appropriations were multiplied by 10 percent to arrive at the amount to be placed in the General Fund surplus; those appropriations were not only for state agency operations, but also for the Distributive School Account (DSA), which the bill also clarified.

 

VICE CHAIRWOMAN GIUNCHIGLIANI MOVED DO PASS S.B. 492.

 

MR. MARVEL SECONDED THE MOTION.

 

THE MOTION CARRIED.  (Mrs. de Braga, Mr. Dini, Mr. Goldwater, Mr. Perkins, and Ms. Tiffany were not present for the vote.)

 

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BUDGET CLOSINGS

 

Assemblywoman Vonne Chowning, Chairwoman of the Assembly Ways and Means/Senate Finance Joint Subcommittee on General Government, read from the Closing Report of May 14, 2001, as follows:

 

DEPARTMENT OF PERSONNEL

 

THE DEPARTMENT OF PERSONNEL’S BUDGET IS FUNDED THROUGH A PAYROLL AND A PERSONNEL ASSESSMENT CHARGED AS A PERCENT OF GROSS SALARIES FOR APPROVED POSITIONS.  THE GOVERNOR’S RECOMMENDED BUDGET INCLUDES A PERSONNEL ASSESSMENT RATE OF .90 PERCENT OF GROSS SALARIES AND A PAYROLL ASSESSMENT RATE OF .25 PERCENT OF GROSS SALARIES IN FISCAL YEAR 2002 AND .24 PERCENT IN FISCAL YEAR 2003.

 

THE SUBCOMMITTEE AUTHORIZED STAFF TO MAKE THE NECESSARY COST ALLOCATION ADJUSTMENTS TO THE DEPARTMENT OF PERSONNEL’S BUDGET AND ADJUST THE ASSESSMENT RATES ACCORDINGLY.

 

THE SUBCOMMITTEE EXPRESSED CONCERN ABOUT THE POSSIBILITY OF IDENTITY THEFT RESULTING FROM THE USE OF SOCIAL SECURITY NUMBERS ON TIMESHEETS.  THROUGH MEETINGS OF THE WORKING GROUP THAT WAS APPOINTED TO EXAMINE THIS ISSUE AND DISCUSSIONS WITH THE AGENCY, IT WAS DETERMINED THAT THE NECESSARY CHANGES COULD BE MADE TO REMOVE THE SOCIAL SECURITY NUMBERS FROM THE TIMESHEETS BY REDIRECTING $54,660 OF THE AMOUNTS RECOMMENDED FOR OVERTIME IN THE EXECUTIVE BUDGET.

 

THE NET RESULTS OF THE SUBCOMMITTEE’S RECOMMENDATIONS REFLECT A DECREASE OF $6,825 IN FISCAL YEAR 2002 AND $12,388 IN FISCAL YEAR 2003 IN BUDGETED EXPENDITURES WHEN COMPARED TO THE GOVERNOR’S RECOMMENDED BUDGET.

 

Chairman Arberry called for a motion from the committee.

 

MR. MARVEL MOVED TO ACCEPT THE CLOSING REPORT FOR THE DEPARTMENT OF PERSONNEL BUDGET.

 

MR. HETTRICK SECONDED THE MOTION.

 

THE MOTION CARRIED.  (Mrs. de Braga, Mr. Dini, Mr. Goldwater, Mr. Perkins, and Ms. Tiffany were not present for the vote.)

 

BUDGET CLOSED.

 

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Assemblywoman Chris Giunchigliani, Chairwoman of the Assembly Ways and Means/Senate Finance Joint Subcommittee on K-12/Human Resources, read from the Closing Report of May 14, 2001, as follows:

 

DHR, DIVISION OF AGING SERVICES

 

THE SUBCOMMITTEE ON K-12 AND HUMAN SERVICES DEVELOPED THE FOLLOWING RECOMMENDATIONS FOR THE DIVISION FOR AGING SERVICES BUDGETS.

 

THE SUBCOMMITTEE RECOMMENDS CLOSING THE AGING SERVICES GRANTS BUDGET WITH AN INCREASE OF $4.2 MILLION FOR EACH FISCAL YEAR OF THE UPCOMING BIENNIUM IN TOBACCO SETTLEMENT FUNDS.  THE SUBCOMMITTEE RECOMMENDS ADDING AN AUDITOR POSITION TO BE FUNDED BY THE INCREASED TOBACCO SETTLEMENT MONIES.  THE TOBACCO SETTLEMENT FUNDS DISTRIBUTED TO THIS BUDGET ARE TO BE USED TO PROVIDE ASSISTANCE TO SENIORS TO ENABLE THEM TO AVOID INSTITUTIONAL PLACEMENT.

 

THE GOVERNOR’S BUDGET RECOMMENDS FUNDING CASELOAD GROWTH IN ONGOING PROGRAMS, DIRECT SERVICES STAFF, AND ADMINISTRATIVE STAFF IN OTHER AGING SERVICES BUDGETS WITH TOBACCO SETTLEMENT MONIES.  THE SUBCOMMITTEE EXPRESSED CONCERN OVER FUNDING POSITIONS FROM TOBACCO SETTLEMENT MONIES, PARTICULARLY POSITIONS THAT ARE NOT PROVIDING DIRECT SERVICES TO CLIENTS.  THE SUBCOMMITTEE FUNDED EIGHT POSITIONS IN OTHER DIVISION BUDGET ACCOUNTS, IN WHOLE OR IN PART FROM TOBACCO SETTLEMENT MONIES, BUT RECOMMENDS A LETTER OF INTENT TO DIRECT THE DIVISION TO LOOK TO REVENUE SOURCES OTHER THAN TOBACCO SETTLEMENT FUNDS IN THE FUTURE.

 

THE SUBCOMMITTEE RECOMMENDS CLOSING THE DIVISION’S ADMINISTRATIVE BUDGET WITH SEVERAL CHANGES TO THE GOVERNOR’S RECOMMENDED BUDGET.  THE SUBCOMMITTEE APPROVED FOUR NEW POSITIONS TO BE FUNDED BY A COMBINATION OF GENERAL FUND AND FEDERAL FUNDS TOTALING $228,766 OVER THE UPCOMING BIENNIUM.  THE POSITIONS WILL SUPPORT THE DIVISION’S ADMINISTRATIVE INFRASTRUCTURE.  THE NEW POSITIONS INCLUDE A PERSONNEL TECHNICIAN, A MANAGEMENT ANALYST FOR BUDGET ANALYSIS, AND A COMPUTER SYSTEMS TECHNICIAN FOR THE CARSON CITY/RENO/ELKO AREA.  A POLICY AND PLANNING ANALYST IS TO BE FUNDED BY VACANCY SAVINGS.

 

A LONG-TERM CARE OMBUDSMAN POSITION FOR THE RENO-SPARKS AND OUTLYING AREAS IS RECOMMENDED BY THE SUBCOMMITTEE, TO BE FUNDED BY A COMBINATION OF STATE AND FEDERAL FUNDS.  IT IS ESTIMATED THAT THE LONG-TERM CARE OMBUDSMAN WILL INVESTIGATE 2,000 ABUSE, NEGLECT, AND EXPLOITATION COMPLAINTS PER YEAR IN LONG-TERM CARE FACILITIES.

 

THE SUBCOMMITTEE RECOMMENDS A WIDE AREA NETWORK FOR THE LAS VEGAS AND RENO OFFICES, THE COST OF WHICH IS TO BE SPLIT AMONG THREE DIVISION BUDGETS.  THE WIDE AREA NETWORK WOULD TIE THE OFFICES TOGETHER AND ALLOW DOCUMENT MANAGEMENT CONTROL, ACTIVITY CALENDARING, AND INDIVIDUAL E-MAIL ACCOUNTS.

 

THE SUBCOMMITTEE RECOMMENDS CLOSING THE SENIOR SERVICES BUDGET, ALSO KNOWN AS THE COMMUNITY HOME-BASED INITIATIVES PROGRAM (CHIP), WITH AN INCREASE OF $3 MILLION FOR THE UPCOMING BIENNIUM, FROM MEDICAID AND TOBACCO SETTLEMENT FUNDS, TO FUND CASELOAD GROWTH.  FUNDING WOULD PROVIDE THE RESOURCES TO SERVE AN ADDITIONAL 171 CLIENTS.  ANOTHER $1.1 MILLION IN MEDICAID FUNDING FOR THE 2001-03 BIENNIUM IS RECOMMENDED BY THE SUBCOMMITTEE TO EXPAND THE CHIP PROGRAM TO SERVE 160 ADDITIONAL CLIENTS.  IN TOTAL, THE $4.1 MILLION INCREASE IN FUNDING OVER THE UPCOMING BIENNIUM WOULD SERVE AN ADDITIONAL 331 CLIENTS.  FIVE SOCIAL WORKERS, TWO PROGRAM ASSISTANTS, AND A SOCIAL WORK SUPERVISOR ARE RECOMMENDED FOR THE LAS VEGAS OFFICE, ALONG WITH A SOCIAL WORKER POSITION FOR THE RENO OFFICE AND AN ACCOUNTING CLERK FOR THE CARSON CITY OFFICE.  THE SUBCOMMITTEE DOES NOT RECOMMEND FUNDING ANOTHER COMPUTER SYSTEMS TECHNICIAN POSITION FOR THE LAS VEGAS OFFICE.

 

THE SUBCOMMITTEE RECOMMENDS AN EXPANSION OF THE ADULT GROUP CARE WAIVER PROGRAM FOR AN ADDITIONAL 100 SENIORS.  THE ELIGIBILITY CRITERIA FOR THIS WAIVER WILL BE MODIFIED TO ALLOW SENIORS BETTER ACCESS TO THIS PROGRAM WHICH IS A LESS RESTRICTIVE AND LESS EXPENSIVE LEVEL OF CARE COMPARED TO INSTITUTIONALIZATION.  TWO NEW SOCIAL WORKER POSITIONS FOR THE LAS VEGAS OFFICE AND A PROGRAM ASSISTANT POSITION IN THE CARSON CITY OFFICE ARE RECOMMENDED TO SUPPORT THE ADDITIONAL CASELOAD.

 

THE SUBCOMMITTEE RECOMMENDS INCREASING THE CONTRACT RATES FOR SERVICE PROVIDERS BY THREE PERCENT EACH FISCAL YEAR, AT A COST OF $574,042 FOR THE 2001-03 BIENNIUM, TO BE FUNDED BY GENERAL FUND, TOBACCO SETTLEMENT MONIES, AND MEDICAID FUNDING.  THIS WILL ASSIST RECRUITING EFFORTS FOR SERVICE PROVIDERS, ESPECIALLY IN THE RURAL AREAS WHERE THE NUMBER OF AGENCY PROVIDERS IS LIMITED.

 

THE SUBCOMMITTEE RECOMMENDS AN EXPANSION OF THE HOMEMAKER PROGRAM WITH $415,947 IN TOBACCO SETTLEMENT MONIES FOR THE NEXT BIENNIUM.  THE ADDITIONAL FUNDING WILL PROVIDE FOR A SOCIAL WORKER POSITION FOR THE LAS VEGAS OFFICE AND ADD 100 ELDERLY PARTICIPANTS TO THE HOMEMAKER PROGRAM FOR IN-HOME SERVICES TO AVOID INSTITUTIONAL PLACEMENT.

 

SENIOR CITIZENS PROPERTY TAX ASSISTANCE PROGRAM

 

THE JOINT SUBCOMMITTEE RECOMMENDED THAT THE SENIOR CITIZENS PROPERTY TAX ASSISTANCE PROGRAM BE TRANSFERRED FROM THE DEPARTMENT OF TAXATION TO THE AGING SERVICES DIVISION AS RECOMMENDED BY THE GOVERNOR.

 

THE SUBCOMMITTEE RECOMMENDED CLOSING THIS BUDGET AS RECOMMENDED BY THE GOVERNOR WITH TECHNICAL ADJUSTMENTS WITH THE EXCEPTION OF THE ENHANCED FUNDING RECOMMENDED TO EXPAND THE PROGRAM.  THE DECISION TO ELIMINATE THIS ENHANCEMENT WAS BASED ON DISCUSSIONS BETWEEN THE GOVERNOR AND LEADERSHIP OF THE LEGISLATURE ON POSSIBLE WAYS TO SAVE GENERAL FUND DOLLARS BASED ON THE ECONOMIC FORUM’S REVISED REVENUE OUTLOOK.

 

APPROVED ENHANCEMENTS INCLUDE INCREASED FUNDING TO PROVIDE ADEQUATE SUPPORT FOR DEMOGRAPHIC GROWTH OF THE CURRENT PROGRAM BASED ON REVISED INFORMATION PROVIDED BY THE DEPARTMENT OF TAXATION AND FUNDING FOR PHOTOCOPIER LEASE AND OFFICE SPACE RENTAL COSTS FOR THE AGING SERVICES DIVISION.

 

Ms. Giunchigliani advised that there had been many joint discussions regarding the issue of using tobacco settlement dollars, and felt that perhaps there might be an appetite for a franchise fee tax or car rental fee tax.  Ms. Giunchigliani emphasized that she would strongly urge the committee not to fund the Division of Aging Services’ budgets with tobacco settlement monies, but generate the dollars from the General Fund, if possible.

 

Chairman Arberry called for a motion from the committee.

 

MS. LESLIE MOVED TO APPROVE THE CLOSING REPORT FOR BUDGET ACCOUNTS WITHIN THE DIVISION OF AGING SERVICES.

 

MR. PARKS SECONDED THE MOTION.

 

THE MOTION CARRIED.  (Mrs. de Braga, Mrs. Cegavske, Mr. Dini, Mr. Goldwater, and Ms. Tiffany were not present for the vote.)

 

BUDGETS CLOSED.

 

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Assemblywoman Vonne Chowning, Chairwoman of the Assembly Ways and Means/Senate Finance Joint Subcommittee on General Government, read from the closing report of May 14, 2001, as follows:

 

DEPARTMENT OF ADMINISTRATION

 

THE JOINT SUBCOMMITTEE ON GENERAL GOVERNMENT DEVELOPED RECOMMENDATIONS FOR THE FOLLOWING BUDGETS OF THE DEPARTMENT OF ADMINISTRATION:  BUDGET AND PLANNING, INTERNAL AUDITS, PRINTING OFFICE, INSURANCE AND LOSS, MOTOR POOL, MOTOR POOL VEHICLE PURCHASE, PURCHASING, ADMINISTRATIVE SERVICES, HEARINGS AND APPEALS, AND VICTIMS OF CRIME.

 

FOR THE BUDGET AND PLANNING DIVISION, THE SUBCOMMITTEE RECOMMENDS APPROVAL OF A NEW BUDGET ANALYST IV POSITION, THE ELIMINATION OF A MANAGEMENT ANALYST III POSITION, AND THE RECLASSIFICATION OF ANOTHER MANAGEMENT ANALYST III POSITION TO A BUDGET ANALYST IV POSITION.  THE SUBCOMMITTEE RECOMMENDS DENIAL OF A PUBLIC SERVICE INTERN POSITION RECOMMENDED BY THE GOVERNOR.

 

THE SUBCOMMITTEE RECOMMENDS APPROVAL OF FUNDING FOR THE CONVERSION OF THE NEW EXECUTIVE BUDGET SYSTEM (NEBS) FROM THE STATE MAINFRAME TO A STAND-ALONE WINDOWS NET PLATFORM TO IMPROVE PROCESSING OF BUDGET DATA DIRECTLY INPUT BY STATE AGENCIES.  THE COST OF CONVERSION HAS BEEN REDUCED $157,230 DURING THE UPCOMING BIENNIUM.

 

THE SUBCOMMITTEE CONCURS WITH THE GOVERNOR’S RECOMMENDATION TO TRANSFER SIX PRE-AUDIT ACCOUNTING POSITIONS FROM THE BUDGET DIVISION TO THE DIVISION OF INTERNAL AUDITS TO FACILITATE A POST-AUDIT ENVIRONMENT AS ROLL-OUT OF THE INTEGRATED FINANCIAL SYSTEM (IFS) CONTINUES TO STATE AGENCIES.  SOURCE DOCUMENTATION SUPPORTING IFS TRANSACTIONS WILL BE LOCATED AT STATE AGENCIES REQUIRING ON-SITE AUDIT REVIEW FOR COMPLIANCE WITH STATE ACCOUNTING AND INTERNAL CONTROL POLICIES.

 

THE SUBCOMMITTEE RECOMMENDS APPROVING THE BUDGET FOR THE DIVISION OF INTERNAL AUDITS AS RECOMMENDED BY THE GOVERNOR REFLECTING THE TRANSFER OF THE PRE-AUDIT POSITIONS FROM THE BUDGET DIVISION.  THE SUBCOMMITTEE ALSO RECOMMENDS ADDITIONAL FUNDING FOR TRAINING THE PROFESSIONAL STAFF TO MAINTAIN PROFESSIONAL CERTIFICATION, AND FOR PEER REVIEW OF THE DIVISION IN ACCORDANCE WITH THE STANDARDS ESTABLISHED BY THE INSTITUTE OF INTERNAL AUDITORS.

 

FOR THE INSURANCE AND LOSS PREVENTION DIVISION (RISK MANAGEMENT), THE SUBCOMMITTEE CONCURS WITH THE GOVERNOR’S RECOMMENDATION TO DECREASE WORKERS’ COMPENSATION PREMIUM COSTS TO STATE AGENCIES REFLECTING A CHANGE FROM A RETROSPECTIVE RATING PLAN TO A LARGE DEDUCTIBLE PLAN WHERE CLAIMS ARE PAID AS INCURRED.  THE SUBCOMMITTEE ALSO RECOMMENDS APPROVAL OF FUNDING FOR INCREASED COMMERCIAL INSURANCE PREMIUM COSTS FOR PROPERTY AND CONTENTS INSURANCE.

 

IN THE STATE PRINTING OFFICE, THE SUBCOMMITTEE RECOMMENDS THE ISSUANCE OF A LETTER OF INTENT FOR REPAYMENT OF STATE FUNDS FOR HVAC AND EXTERIOR BUILDING IMPROVEMENTS IF THESE CAPITAL IMPROVEMENT PROJECTS ARE APPROVED BY THE 2001 LEGISLATURE.

 

THE SUBCOMMITTEE ALSO RECOMMENDS APPROVAL OF FUNDING AND EXPENDITURE AUTHORITY TO OPEN A QUICK PRINT OFFICE IN LAS VEGAS.  THE 1999 LEGISLATURE APPROVED THE OPENING OF A LAS VEGAS QUICK PRINT OFFICE, BUT THE PRINTING OFFICE ENCOUNTERED DIFFICULTIES WITH THE EQUIPMENT VENDOR.  THE PRINTING OFFICE INTENDS TO OPEN THIS OFFICE EARLY IN FY 2002 IN EITHER THE GRANT SAWYER BUILDING OR IN OFFICE SPACE LOCATED IN CLOSE PROXIMITY TO THE SAWYER BUILDING.

 

IN THE MOTOR POOL BUDGET, THE SUBCOMMITTEE RECOMMENDS APPROVAL OF FUNDING FOR THE OPERATION AND DEPRECIATION EXPENSE ASSOCIATED WITH THE PURCHASE OF 102 NEW VEHICLES REQUESTED IN ASSEMBLY BILL 523.  FISCAL STAFF WILL MAKE TECHNICAL ADJUSTMENTS TO THE MOTOR POOL ACCOUNT THAT MAY RESULT FROM CHANGES TO A. B. 523.  THE AMOUNT OF FUNDING RECOMMENDED FOR MOTOR POOL TO STUDY THE FEASIBILITY OF UTILIZING PRIVATE RENTAL VEHICLES IN LAS VEGAS AND RENO IS REDUCED FROM $50,000 TO $7,000.  THE DIVISION WILL CONDUCT THE STUDY IN-HOUSE UTILIZING SOFTWARE THAT WILL EVALUATE ITS CURRENT RATE STRUCTURE IN COMPARISON TO RATES ASSESSED BY PRIVATE RENTAL AGENCIES, AND AVAILABILITY OF VEHICLES FROM PRIVATE RENTAL AGENCIES DURING PEAK PERIODS.

 

THE GOVERNOR RECOMMENDS CIP 01-C4 UTILIZING STATE FUNDS TO CONSTRUCT A NEW MOTOR POOL FACILITY IN LAS VEGAS.  IF THIS PROJECT IS APPROVED, THE SUBCOMMITTEE RECOMMENDS ISSUING A LETTER OF INTENT REQUIRING MOTOR POOL TO INCLUDE A REPAYMENT SCHEDULE OF STATE FUNDS IN THE AGENCY’S FIRST BUDGET SUBMITTAL SUBSEQUENT TO COMPLETION OF THE NEW FACILITY.

 

FOR THE MOTOR POOL VEHICLE PURCHASE ACCOUNT, THE SUBCOMMITTEE CONCURS WITH THE GOVERNOR’S RECOMMENDATION TO REPLACE 59 VEHICLES IN FY 2002 AND 47 VEHICLES IN FY 2003.  THE TOTAL COST OF THE 106 VEHICLES IS APPROXIMATELY $1.9 MILLION FOR THE BIENNIUM.  THE VEHICLES WILL REPLACE EXISTING VEHICLES THAT WILL BE EIGHT YEARS OLD OR HAVE ACCUMULATED IN EXCESS OF 80,000 MILES.

 

THE SUBCOMMITTEE RECOMMENDS APPROVAL OF THE PURCHASING DIVISION ACCOUNT AS RECOMMENDED BY THE GOVERNOR WITH TECHNICAL ADJUSTMENTS.  THE SUBCOMMITTEE ALSO RECOMMENDS APPROVAL TO TRANSFER THE SURPLUS PROPERTY ACCOUNT TO THE PURCHASING ACCOUNT PENDING APPROVAL OF ASSEMBLY BILL 542.

 

THE SUBCOMMITTEE RECOMMENDS APPROVAL OF THE ADMINISTRATIVE SERVICES ACCOUNT WITH TECHNICAL ADJUSTMENTS.  A TOTAL OF EIGHT ACCOUNTING POSITIONS WITHIN THE PUBLIC WORKS BOARD AND THE VICTIMS OF CRIME DIVISION WILL BE TRANSFERRED TO ADMINISTRATIVE SERVICES TO COMPLETE THE CONSOLIDATION OF ALL ACCOUNTING POSITIONS WITHIN THE DEPARTMENT OF ADMINISTRATION.

 

IN THE HEARINGS DIVISION, THE SUBCOMMITTEE CONCURS WITH THE GOVERNOR’S RECOMMENDATION TO ELIMINATE THE SEPARATE WORKERS’ COMPENSATION HEARINGS RESERVE ACCOUNT AND TO ESTABLISH A RESERVE WITHIN THE HEARING DIVISION ACCOUNT FOR PURPOSES OF ADDRESSING INCREASES IN CASELOAD, NEW ASSIGNMENTS, OR OTHER FACTORS NECESSITATING THE HIRING OF ADDITIONAL STAFF.  THE SUBCOMMITTEE ALSO RECOMMENDS APPROVAL OF FUNDING TO REPLACE THE DIVISION’S COMPUTERS AND TO RECLASSIFY A HEARINGS OFFICER POSITION TO AN OPERATIONS OFFICER POSITION.

 

IN THE VICTIMS OF CRIME ACCOUNT, THE SUBCOMMITTEE RECOMMENDS ISSUING A LETTER OF INTENT TO IDENTIFY SOURCES AND AMOUNTS OF FUNDING THE DIVISION MAY HAVE AVAILABLE TO PROVIDE ASSISTANCE TO SUCH PROGRAMS AS THE ATTORNEY GENERAL’S DOMESTIC VIOLENCE COUNCIL AND THE NEVADA NETWORK AGAINST DOMESTIC VIOLENCE TO CONDUCT PUBLIC SERVICE ANNOUNCEMENTS TO RAISE AWARENESS REGARDING DOMESTIC VIOLENCE.  THE SUBCOMMITTEE ALSO RECOMMENDS HAVING THE VICTIMS OF CRIME DIVISION REPORT PERIODICALLY TO THE INTERIM FINANCE COMMITTEE ON THE DIVISION’S PROGRESS IN FUNDING PUBLIC SERVICE ANNOUNCEMENTS ADDRESSING DOMESTIC VIOLENCE.

 

WHILE MOST OF THE ACCOUNTS OF THE DEPARTMENT OF ADMINISTRATION ARE FUNDED THROUGH FEES OR ASSESSMENTS, THE SUBCOMMITTEE’S EFFORTS RESULTED IN GENERAL FUND SAVINGS OF $130,737 IN FY 2002 AND $97,999 IN FY 2003.

 

I WOULD LIKE TO THANK THE MEMBERS OF THE SUBCOMMITTEE FOR THEIR TIME AND ASSISTANCE IN DEVELOPING THESE RECOMMENDATIONS (MS. GIUNCHIGLIANI, MR. HETTRICK, MS. LESLIE, MR. PARKS, AND MR. BEERS).

 

Chairman Arberry called for a motion from the committee.

 

MR. HETTRICK MOVED TO APPROVE THE CLOSING REPORT FOR BUDGET ACCOUNTS WITHIN THE DEPARTMENT OF ADMINISTRATION.

 

MR. PARKS SECONDED THE MOTION.

 

THE MOTION CARRIED.  (Mrs. de Braga, Mr. Dini, Mr. Goldwater, and Ms. Tiffany were not present for the vote.)

 

BUDGETS CLOSED.

 

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With no further business to come before the committee, Chairman Arberry adjourned the hearing at 10:42 a.m.

 

RESPECTFULLY SUBMITTED:

 

 

 

Carol Thomsen

Committee Secretary

 

 

APPROVED BY:

 

 

 

 

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Assemblyman Morse Arberry Jr., Chairman

 

 

DATE:_______________________________________

 

 

 

 

 

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Assemblywoman Chris Giunchigliani,

Vice Chairwoman

 

 

DATE:________________________________________