MINUTES OF THE meeting
of the
ASSEMBLY Committee on Ways and Means
Seventy-First Session
June 4, 2001
The Committee on Ways and Meanswas called to order at 4:15 p.m. on Monday, June 4, 2001. 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. Joseph Dini, Jr.
Mr. David Goldwater
Mr. Lynn Hettrick
Ms. Sheila Leslie
Mr. John Marvel
Mr. David Parks
Ms. Sandra Tiffany
COMMITTEE MEMBERS ABSENT:
Mr. Richard D. Perkins
STAFF MEMBERS PRESENT:
Mark Stevens, Fiscal Analyst
Steve Abba, Principal Deputy Fiscal Analyst
Carol Thomsen, Committee Secretary
Andrea Carothers, Committee Secretary
Linda Smith, Committee Secretary
Chairman Arberry announced the committee would review the following bills for possible action.
Senate Bill 584: Authorizes and provides funding for certain projects of capital improvement. (BDR 28-1576)
Don Hataway, Deputy Director, Budget Division, Department of Administration, explained that S.B. 584 would implement the Capital Improvement Programs (CIPs) for FY2001-03, per the recommendation of the Joint Subcommittee.
MR. MARVEL MOVED TO DO PASS S.B. 584.
MR. DINI SECONDED THE MOTION.
THE MOTION CARRIED. (Mrs. Cegavske, Ms. Giunchigliani, Mr. Goldwater, Mr. Hettrick, Ms. Leslie, and Mr. Perkins were not present for the vote.)
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Senate Bill 585: Apportions state distributive school account in state general fund for 2001-2003 biennium. (BDR S-1575)
Mr. Hataway stated the bill would implement the Distributive School Account (DSA), per the closing action of the Joint Subcommittee.
MRS. CHOWNING MOVED TO DO PASS S.B. 585.
MR. PARKS SECONDED THE MOTION.
THE MOTION CARRIED. (Mrs. Cegavske, Ms. Giunchigliani, Mr. Goldwater, Mr. Hettrick, Ms. Leslie, and Mr. Perkins were not present for the vote.)
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Senate Bill 586: Authorizes expenditures by agencies of state government. (BDR S-1579)
Mr. Hataway stated S.B. 586 was the companion to the appropriations bill, and would authorize expenditures not included in that bill.
MR. MARVEL MOVED TO DO PASS S.B. 586.
MRS. de BRAGA SECONDED THE MOTION.
THE MOTION CARRIED. (Mrs. Cegavske, Ms. Giunchigliani, Mr. Goldwater, Mr. Hettrick, Ms. Leslie, and Mr. Perkins were not present for the vote.)
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Assembly Bill 673: Increases salaries of certain public employees. (BDR S‑1580)
Mr. Stevens indicated A.B. 673 was the pay bill, and combined the unclassified pay bill, which historically had been drafted as a separate bill, and the classified pay bill. It would provide both the Highway Fund and General Fund appropriations necessary for state employees to receive: (1) a 4 percent salary increase in each year of the biennium effective July 1, 2001, and July 1, 2002; (2) an extra step in the pay scale effective July 1, 2002; (3) classified medical salaries for those agencies that employed such personnel; (4) a one grade increase for correctional officers, parole and probation officers, and youth parole counselors; and, (5) a two grade increase for engineers.
Per Mr. Stevens, through action of the Joint Subcommittee on CIPs, there was also an increase in Public Works Board inspectors, which were authorized revenues not contained within A.B. 673, as the bill only addressed appropriated dollars. The bill would also provide funding for the Tahoe Regional Planning Association (TRPA), based on a 4 percent increase; the agency would receive that funding providing the state of California matched the appropriation on a 2:1 basis. If California failed to provide that match, the funds would be utilized as a one-time salary bonus.
Continuing, Mr. Stevens noted that A.B. 673 also included the salary trigger for salaries within the DSA, and set the trigger balance at $154 million for the first 1 percent, and $194 million as the second year trigger. The Board of Examiners, by May 31, 2002, would project the fund balance as of June 30, 2002, and if those thresholds were met, amounts would be contingently appropriated for a 1 or 2 percent increase. Mr. Stevens stated if both triggers were not met, based on the May 31, 2002, projection, the actual amount of fund balance would be determined by the Board of Examiners on October 31, 2002; there would be another opportunity to activate the trigger effective January 1, 2003.
MR. PARKS MOVED TO DO PASS A.B. 673.
MR. DINI SECONDED THE MOTION.
THE MOTION CARRIED. (Ms. Giunchigliani, Mr. Goldwater, Ms. Leslie, and Mr. Perkins were not present for the vote.)
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Senate Bill 148: Makes various changes regarding education and educational personnel. (BDR 34-219)
Mr. Stevens explained that the committee had reviewed the bill during the hearing earlier in the day, and it contained a number of provisions related to education and regional training programs.
MR. MARVEL MOVED TO DO PASS S.B. 148.
MR. HETTRICK SECONDED THE MOTION.
THE MOTION CARRIED. (Ms. Giunchigliani, Mr. Goldwater, Ms. Leslie, and Mr. Perkins were not present for the vote.)
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Senate Bill 451: Makes appropriation to Lifeline Family Education Center for continuation of its nonprofit pregnancy assistance, educational and vocational training programs. (BDR S-1401)
Mr. Stevens explained the appropriation of $200,000 was included in The Executive Budget. The committee held action on S.B. 451 pending further clarification.
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Senate Bill 170: Creates Nevada cultural fund and revises powers and duties of state arts council. (BDR 18-133)
Mr. Arberry informed the committee that he had spoken to Senator Michael Schneider, one of the sponsors of the bill, to alert him regarding the limitations on available funding. Senator Schneider suggested that the committee amend the appropriation out of the bill, and take appropriate action.
Mr. Stevens indicated that the bill did not appear to contain any General Fund appropriations, although it would provide for expenditure of legislative appropriations; he advised the committee that the bill could be moved without an amendment.
MS. TIFFANY MOVED TO DO PASS S.B. 170.
MRS. CEGAVSKE SECONDED THE MOTION.
THE MOTION CARRIED. (Ms. Giunchigliani, Mr. Goldwater, Ms. Leslie, and Mr. Perkins were not present for the vote.)
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Assembly Bill 346: Provides for establishment of pilot program in southern Nevada for provision of program of intensive and integrated community services to adults who are seriously mentally ill and homeless. (BDR S‑990)
Ms. Tiffany explained that she was the sponsor of the bill, and would request that the General Fund appropriation be removed from the bill, and the date for release of the Request For Proposal (RFP) be amended to January of 2002, in order to allow approximately 18 months for implementation of the program. Ms. Tiffany stated that the Joint Subcommittee had closed the Department of Human Resources (DHR) budget with the stipulation that MAXIMUS funding in the amount of $250,000 in each year of the biennium be provided for the pilot program. Ms. Tiffany noted that there was also a section in the proposed amendment that would allow the program to receive gifts and grants, which meant the program could approach Clark County and the City of Las Vegas as possible funding sources.
Mr. Stevens also suggested that the language of the bill which stipulated, . . . the division shall. . . ,” be amended to, “. . .the division may. . . .” That amendment would allow execution of the funding as it became available during the biennium. Ms. Tiffany concurred with that change in language.
MRS. CEGAVSKE MOVED TO AMEND AND DO PASS A.B. 346.
MR. HETTRICK SECONDED THE MOTION.
THE MOTION CARRIED. (Mr. Dini voted no on the motion, and Ms. Giunchigliani, Mr. Goldwater, Ms. Leslie, and Mr. Perkins were not present for the vote.)
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Assembly Bill 403: Requires State Department of Conservation and Natural Resources to continue to take action to develop standards for water quality for Walker Lake. (BDR S-802)
Mr. Stevens indicated an amendment for A.B. 403 had been proposed, which would eliminate the funding completely, and still provide language that would request the Division of Environmental Protection to continue development of water quality standards for Walker Lake.
Mr. Dini felt it was necessary to pass the bill in the amended format, because of the continued battle between the upstream and downstream users on the Walker River. The standards also needed to be established because of a pending lawsuit by an environmental group in Oregon.
Mrs. de Braga informed the committee that the Indian tribe at Schurz, Nevada, vigorously opposed A.B. 403. Mr. Dini advised that the amended version of the bill contained completely new language. Mrs. de Braga stated the concern was with stabilization of the channel, which apparently created the wetlands at Schurz. Mr. Dini reiterated that language relative to the channel would be removed from the bill via the proposed amendment.
MR. MARVEL MOVED TO AMEND AND DO PASS A.B. 403.
MR. DINI SECONDED THE MOTION.
THE MOTION CARRIED. (Ms. Giunchigliani, Mr. Goldwater, Ms. Leslie, and Mr. Perkins were not present for the vote.)
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Senate Bill 583: Establishes grant program for development of projects relating to tourism. (BDR 18-1562)
Mr. Stevens indicated the committee had heard testimony regarding S.B. 583 at the hearing earlier in the day, and explained the bill would establish a committee and procedure for the Commission on Tourism to utilize funding that would accumulate in the reserve category at the end of the fiscal year. The funding would be limited to $200,000 and utilization would require approval by the Interim Finance Committee (IFC).
MR. MARVEL MOVED TO DO PASS S.B. 583.
MR. HETTRICK SECONDED THE MOTION.
THE MOTION CARRIED. (Ms. Giunchigliani, Mr. Goldwater, Ms. Leslie, and Mr. Perkins were not present for the vote.)
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Senate Bill 582: Revises provisions governing certain appropriations for public lands and China Spring Youth Camp. (BDR S-1566)
Mr. Arberry asked Mr. Hettrick whether he had assessed the situation regarding S.B. 582. Mr. Hettrick indicated he had contacted the China Spring Youth Camp, and the money had been appropriated by the 1999 legislature for improvement and expansion of the facility. The question was whether the money could be allocated in advance, because neither Douglas County nor the facility had the ability to pay the contractor and then wait for the IFC to reimburse the money. The camp would attempt to draw on the allocation from 1999, and then present the paperwork to the IFC. Mr. Hettrick explained that he was not familiar with the portion of the bill which dealt with public lands.
Mr. Beers noted that there had been discussion about requiring the China Spring Youth Camp to approach the IFC for approval of a schedule of payments. He felt that making the facility wait to approach the IFC or allocating a lump sum appropriation was equally restrictive, and perhaps the committee could arrive at a “middle ground” regarding payments. Mr. Hettrick reiterated that the money had been appropriated, and he would agree with a modified payment schedule.
Chairman Arberry stated the committee would hold S.B. 582 for further consideration.
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Assembly Bill 449: Reserves portion of certain gaming license fees from off- track pari-mutuel wagering to augment purses for horse racing in certain counties. (BDR 41-657)
Chairman Arberry asked for clarification regarding the fiscal impact of A.B. 449.
Dennis Neilander, Chairman, State Gaming Control Board, stated it was his understanding that the bill, as written, would take one twenty-fifth of the money realized from pari-mutuel licensing fees, and add that amount to prizes for rural horse races. There was a fiscal note on the bill which simply indicated that one twenty-fifth of the amount currently placed in the General Fund would be set aside for those prizes for the racetracks. Mr. Neilander believed the amount was approximately $200,000.
Mr. Marvel stated that the $200,000 figure was simply a guess, because the actual figures were unknown. If the counties were able to increase the purses, it would generate more interest and more betting on the races, which would eventually raise more money. Mr. Neilander stated the Gaming Control Board had reviewed the amount of fees received over the past year in order to arrive at the approximate figure of $200,000. If, as suggested by Mr. Marvel, the fees had the effect of bringing in more patrons and generating more pari-mutuel revenue, that might offset the fiscal note.
Mr. Arberry announced the committee would hold A.B. 449 for further consideration.
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Chairman Arberry asked Ms. Leslie to clarify her request for issuance of a Letter of Intent to the Aging Services Division.
Ms. Leslie asked that Jon Sasser, Washoe Legal Services, Inc., address the committee. Mr. Sasser explained that the proposed Letter of Intent would direct the Aging Services Division of the DHR to review the tobacco settlement monies allocated for senior independent grants and utilize $100,000, if approved via the normal process, to develop an assisted living program for seniors. The letter would instruct the division to review the feasibility and develop the infrastructure of matching Medicaid service dollars, along with possible “bricks and mortar” dollars which might be available from the U.S. Department of Housing and Urban Development (HUD) or other affordable housing sources. Mr. Sasser noted the action was recommended by the Interim Study Committee created by S.C.R. 4 of the Seventieth Session to study Long-term Care in Nevada, which was chaired by Senator Mike McGinness. According to Mr. Sasser, the allocation had originally been drafted as a bill for General Fund appropriation, however, because of budget constraints, the Letter of Intent would direct the use of tobacco settlement monies for development of the aforementioned program.
MS. LESLIE MOVED TO ISSUE A LETTER OF INTENT TO THE AGING SERVICES DIVISION OF THE DHR TO UTILIZE $100,000 IN TOBACCO SETTLEMENT MONIES TO REVIEW THE FEASIBILITY AND BUILD THE INFRASTRUCTURE FOR AN ASSISTED LIVING PROGRAM FOR SENIORS.
MS. GIUNCHIGLIANI SECONDED THE MOTION.
THE MOTION CARRIED. (Mr. Goldwater, Mr. Hettrick, and Mr. Perkins were not present for the vote.)
Assembly Bill 69: Imposes fee each time employer withholds income for payment of support for child. (BDR 3-110)
Ms. Giunchigliani recommended that a Letter of Intent be issued to allow the Welfare Division to approach the IFC if it experienced a shortfall. According to Ms. Giunchigliani, the Governor’s Office would concur with such action. Mr. Stevens did not feel such action would be possible, because the division was not allocated General Fund dollars, and in order to approach the IFC for a Contingency Fund allocation, it was required that the budget account include a General Fund appropriation.
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Assembly Bill 230: Makes various changes relating to protection of cultural resources. (BDR 33-600)
According to Ms. Giunchigliani, the proposed amendment to the bill would create the stewardship program and remove all appropriations; the amendment would also allow the acceptance of gifts and grants.
MS. GIUNCHIGLIANI MOVED TO AMEND AND DO PASS A.B. 230.
MS. LESLIE SECONDED THE MOTION.
THE MOTION CARRIED. (Mr. Goldwater, Mr. Hettrick, and Mr. Perkins were not present for the vote.)
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The meeting was recessed at 4:38 p.m., and due to time constraints, was not reconvened.
RESPECTFULLY SUBMITTED:
Carol Thomsen
Committee Secretary
APPROVED BY:
Assemblyman Morse Arberry Jr., Chairman
DATE: