MINUTES OF THE

SENATE Committee on Finance

 

Seventy-First Session

April 13, 2001

 

 

The Senate Committee on Financewas called to order by Chairman William J. Raggio at 7:28 a.m., on Friday, April 13, 2001, in Room 2134 of the Legislative Building, Carson City, Nevada.  The meeting was videoconferenced to the Grant Sawyer Office Building, Room 4401, Las Vegas, Nevada.  Exhibit A is the Agenda.  Exhibit B is the Attendance Roster.  All exhibits are available and on file at the Research Library of the Legislative Counsel Bureau.

 

COMMITTEE MEMBERS PRESENT:

 

Senator William J. Raggio, Chairman

Senator Raymond D. Rawson, Vice Chairman

Senator Lawrence E. Jacobsen

Senator William R. O’Donnell

Senator Joseph M. Neal Jr.

Senator Bob Coffin

Senator Bernice Mathews

 

GUEST LEGISLATORS PRESENT:

 

Senator Valerie Wiener, Clark Senatorial District No. 3

 

STAFF MEMBERS PRESENT:

 

Gary L. Ghiggeri, Senate Fiscal Analyst

Bob Guernsey, Principal Deputy Fiscal Analyst

Jim Rodriguez, Program Analyst

Rick Combs, Program Analyst

Jennifer Ruedy, Committee Secretary

 

OTHERS PRESENT:

 

John P. Comeaux, Director, Department of Administration

George Pyne, Executive Officer, Public Employees’ Retirement System

Richard R. Ziser, Lobbyist, Coalition for the Protection of Marriage and Nevada Concerned Citizens

Sandra Jolley, Assistant Director, Life Line Family Education Center

Lynn Richmond-Morris, Executive Director, Life Line Family Education Center

Frank Mitchell, Volunteer, Life Line Family Education Center

Janet L. Gilbert, Lobbyist, Progressive Leadership Alliance of Nevada and Northern Nevada Consortium for Cooperative Purchasing

Frank J. Krukoski, Administrator, Transportation Division, Economic Opportunity Board of Clark County

Charles W. Fulkerson, Executive Director, Office of Veterans’ Services

Alex Haartz, Deputy Administrator, Health Division, Department of Human Resources

Judith Wright, Chief, Bureau of Family Health Services, Health Division, Department of Human Resources

Vickie Huchmala, Director of Program Services, March of Dimes Foundation, Nevada Chapter

Lawrence P. Matheis, Executive Director, Nevada State Medical Association

Sylvia Hackethorn, Private Citizen

Helen A. Foley, Lobbyist, Clark County Health District

Michael J. Willden, Administrator, Welfare Division, Department of Human Resources

R. Alexis Miller, Lobbyist, Planned Parenthood Mar Monte and Planned Parenthood of Southern Nevada

Lucille Lusk, Lobbyist, Nevada Concerned Citizens

Janine Hansen, Lobbyist, Nevada Eagle Forum

Joseph P. Tyler, Vice President, Nevada Alliance for the Mentally Ill and President of Northern Nevada Alliance for the Mentally Ill

Norma Brownell, Secretary, Nevada Alliance for the Mentally Ill

Donna Shibovich, Official Greeter, Nevada Alliance for the Mentally Ill

Joan Stevens, President, Southern Nevada Alliance for the Mentally Ill

Catherine Davis, Private Citizen

Linda Nielson, Private Citizen

Ruth Paxton, President, Nevada Alliance for the Mentally Ill, Carson City

Donna Plasier, Private Citizen

Hugh Ricci, P.E., State Engineer, Division of Water Resources, State Department of Conservation and Natural Resources

Don Hataway, Deputy Director, Budget Division, Department of Administration

R. Michael Turnipseed, P.E., Director, State Department of Conservation and Natural Resources

 

Senator Raggio stated budget closings would be heard before proceeding to hearings on bills.  He proceeded with the Senate Committee on Finance Closing List Number 6 (Exhibit C)

 

ELECTED OFFICIALS

 

High Level Nuclear Waste - Page ELECTED-8 (Volume 1)

Budget Account 101-1005

 

Jim Rodriguez, Program Analyst, addressed the closing adjustments, beginning on page 1 of Exhibit C.  He explained the first technical adjustment realigns some revenue and expenditure categories in the area of Nevada Department of Transportation (NDOT) contracts and State General Fund.  He indicated he had reduced General Fund by $14,496 in each year of the biennium and increased, correspondingly, the revenue in General Ledger (GL) 4704, Transfer from NDOT.

 

Mr. Rodriguez explained that during the adjusted base process, this transfer revenue was reduced for Fiscal Year (FY) 2002 and FY 2003.  However, NDOT has indicated that it is making available to the Nuclear Waste Project Office the same full amount of authority that they had in FY 2000, which was $400,000.

 

Senator Raggio asked whether this is a transfer from the Nevada Department of Transportation.  Mr. Rodriguez responded, “Correct.”

 

Senator Raggio questioned the reason for the transfer.  Mr. Rodriguez responded, “The agency does transportation of nuclear waste studies.”

 

Senator Raggio commented the transfer is requested for studies.  Mr. Rodriguez added, “They didn’t allow them to use federal funds to do transportation studies, so this is extra funding for that effort.”

 

Senator Raggio inquired whether the federal funds come through the Nevada Department of Transportation.  Mr. Rodriguez replied that the federal funds come through the Division of Emergency Management.

 

E-710 Replacement Equipment – ELECTED-10

 

Mr. Rodriguez pointed out a standard adjustment for personal computer prices.  He indicated information regarding the agency’s computer requests led to one of the closing issues.  He said it appears the agency had completely refurbished its computer inventory near the end of FY 2000.  He said the Budget Division agrees there is not sufficient justification to purchase the equipment the agency requested because it is less than a year and a half old.

 

Senator Raggio questioned whether Mr. Rodriguez proposes to delete the entire decision unit.  Mr. Rodriguez responded that staff recommends the deletion of everything except some license fees for their server, a couple of printers, and some other miscellaneous equipment.

 

Senator Raggio clarified what staff recommends leaving in this decision unit.  He inquired whether the decision unit would include only three printers at a total cost of $1,800 and license fees at $700 per year.  Mr. Rodriguez agreed.

 

Senator Raggio questioned whether there were other closing issues.

 

E-850 Special Projects – ELECTED-11

 

Mr. Rodriguez said this decision unit proposes to use $189,700 in General Funds.  Senator Raggio inquired whether the money is from the Western Governors’ Association.

 

Mr. Rodriguez stated there are two different funding sources here.  The first is the $189,700 from the General Fund and the other is the $124,687 from the Western Governors’ Association.  He said based on discussions with the Budget Division, committee staff concludes the majority of the funding in this decision unit is for legal fees.  He said he anticipates the $5 million one-shot appropriation will be approved and the Governor has indicated that legal fees are a major component of the $5 million in his recommended appropriation.

 

Senator Raggio clarified the $189,700 in State General Funds are for special studies and agency legal expenses that do not qualify for federal money.

 

Mr. Rodriguez responded, “Correct.”  He said $150,000 is for legal fees, and the rest is for miscellaneous studies.

 

Senator Raggio stated, “Your suggestion is that we delete this contingent on approval of the other appropriation.”  Mr. Rodriguez responded, “That is correct.”

 

Senator Raggio commented the committee could also leave it in the budget and then reduce the other appropriation by whatever amount is appropriate.  He explained that if the committee leaves it in here, when the one-time appropriation is considered, the committee could diminish it by that amount.  Mr. Rodriguez acknowledged that was a possibility.

 

Mr. Rodriguez added, “The Director of the Nuclear Waste was going to make a case for not deleting $150,000 in legal fees.”

Mr. Rodriguez stated staff recommends two Letters of Intent.  He said the first would request a complete reconciliation of the agency’s contract expenditures.  He explained there was an issue during the interim and during the previous biennium regarding federal reimbursement of funds that the Interim Finance Committee (IFC) had allocated to the agency. 

 

Senator Raggio interrupted to invite John P. Comeaux, Director, Department of Administration, to join Mr. Rodriguez at the table to testify.

 

Senator Raggio stated the first Letter of Intent is to provide quarterly program performance reports.  Mr. Rodriguez responded, “Correct.”

 

Senator Raggio inquired whether that is consistent with the current practice.  Mr. Rodriguez responded it is not.  Mr. Rodriguez said that during this budget process, the Budget Division segregated the agency’s contracts into three categories:  state contracts, federal contracts, and transportation contracts.  He indicated the quarterly program performance reports would alleviate past problems tracking the funding.  He stated this practice would assist both the Budget Division and the Legislative Counsel Bureau in tracking the funding for those contracts.

 

Senator Raggio inquired about the next issue.

 

Mr. Rodriguez recommended a second Letter of Intent directing the agency to do a reconciliation of its 1999 to 2000 contract expenditures to ensure that every reimbursable expense has been examined, if there are any.  He commented that the executive director has indicated the $2.5 million in federal funding that was reinstated cannot be used to reimburse any of the IFC Contingency Funds that were allocated during the 1999 interim.

 

Senator Raggio inquired whether Mr. Rodriguez is suggesting there may be some federal money available for reimbursement.

 

Mr. Rodriguez responded that the audit of the agency identified approximately $50,000 in reimbursable funds.  Senator Raggio questioned whether that was for expenses for which the agency did not request federal reimbursement.

 

Mr. Rodriguez responded affirmatively.  He suggested the contracts and expenditures be fully reconciled to identify other possible expenses that could be reimbursed.

 

Senator Raggio requested clarification that the Letter of Intent would request the agency perform a detailed reconciliation of expenditures and revenues from July 1, 1999.  Mr. Rodriguez responded, “Correct.”

 

Senator Raggio added the reconciliation would be provided to the IFC.  Mr. Rodriguez agreed.

 

Senator Raggio indicated:

 

The chair would entertain a motion to approve the budget with the technical adjustments, deleting the items that were referenced in E‑710, and with reference to E-850 that we delete the General Fund portion of that unit contingent on approval of the one-shot appropriation, which this committee will consider at a later time.  Also to issue the two Letters of Intent, requesting quarterly program performance reports to the Interim Finance Committee (IFC) and also requesting the agency perform a detailed reconciliation of contract expenditures and agency revenues and present those results to the Interim Finance Committee.

 

SENATOR NEAL MOVED TO CLOSE BUDGET ACCOUNT 101-1005 AS RECOMMENDED BY STAFF.

 

SENATOR JACOBSEN SECONDED THE MOTION.

 

THE MOTION CARRIED.  (SENATOR COFFIN WAS ABSENT FOR THE VOTE.)

 

* * * * *

 

Lieutenant Governor - Page ELECTED-22 (Volume 1)

Budget Account 101-1020

 

Gary L. Ghiggeri, Senate Fiscal Analyst, Fiscal Analysis Division, Legislative Counsel Bureau, stated staff recommends closing this budget as recommended.  He discussed two closing issues.

 

M-200 Demographics/Caseload Changes – Page ELECTED-23

 

Mr. Ghiggeri stated this decision unit includes $8,865 in each year of the biennium for additional printing and postage costs related to the newsletter produced by the Lieutenant Governor’s office.

 

E-275 Working Environment & Wage – Page ELECTED-24

 

Mr. Ghiggeri explained this decision unit proposes to transfer the six staff within this office from unclassified to non-classified status.  He said the transfer is contingent upon passage of Senate Bill (S.B.) 146.

 

SENATE BILL 146:  Revises provisions governing employees of office of lieutenant governor.  (BDR 18-120)

 

Senator Raggio stated he would prefer to address the classification change of the six positions in the unclassified salary bill in lieu of deciding on that decision unit at today’s committee meeting.

 

SENATOR RAWSON MOVED TO CLOSE BUDGET ACCOUNT 101-1020 AS RECOMMENDED BY THE GOVERNOR.

 

SENATOR O’DONNELL SECONDED THE MOTION.

 

THE MOTION CARRIED UNANIMOUSLY. 

 

*****

 

Attorney General Special Fund - Page ELECTED-34 (Volume 1)

Budget Account 101-1031

 

Rick Combs, Program Analyst, stated this fund provides for a General Fund appropriation for the cost of depositions, independent medical examinations, expert witnesses, and any litigation costs related to the nuclear waste repository at Yucca Mountain.  He said staff recommends closing as the Governor recommends, a status quo budget.

 

Senator Raggio pointed out this fund receives an appropriation from the General Fund in the amount of $102,192 each year of the biennium.

 

SENATOR RAWSON MOVED TO CLOSE BUDGET ACCOUNT 101-1031 AS RECOMMENDED BY THE GOVERNOR.

 

SENATOR MATHEWS SECONDED THE MOTION.

 

THE MOTION CARRIED UNANIMOUSLY. 

 

*****

 

AG Office of Consumer Protection - Page ELECTED-50 (Volume 1)

Budget Account 330-1038

 

Mr. Combs stated the 1997 Legislature formed this office by combining the Utility Consumer’s Advocate Office with the Telemarketing and Consumer Fraud Unit and the Criminal Securities Unit.  He pointed out the account is funded through a combination of General Funds and a utility mill assessment.  He clarified the activities of the Utility Consumer’s Advocate Unit of the Bureau of Consumer Protection are funded through the utility mill assessment, while the telemarketing, consumer fraud, and criminal securities functions of the bureau are funded through an appropriation from the General Fund.

 

Mr. Combs discussed the closing issues of this budget.  He noted that at the February 8, 2001, meeting, IFC approved the Attorney General’s request to increase a Deputy Attorney General to a Senior Deputy Attorney General.  Mr. Combs indicated staff has adjusted the budget to include the increased salary for the approved position.

 

E-350 Service at Level Closest to People – Page ELECTED-53

 

Mr. Combs stated this decision unit recommends $25,000 in each year of the 2001 to 2003 biennium for the cost of conducting consumer education activities regarding the deregulation of Nevada’s electricity industry.  He clarified this appropriation was approved by the 1999 Legislature, but no funds were expended because of the delay in opening the market to competition.  He said staff recommends transferring the funds back to the budgets’ reserve due to the uncertainty of deregulation. 

 

Senator Raggio noted the office could appeal to IFC in the event they would need these funds during the next biennium.  John P. Comeaux, Director, Department of Administration indicated his agreement.

 

E-710 Replacement Equipment – Page ELECTED-53

 

Senator Raggio stated staff is authorized to adjust equipment pricing pursuant to the updated pricing information provided by the Purchasing Division without further discussion of the matter in each budget.

E-720 New Equipment – Page ELECTED-54

 

Mr. Combs stated this decision unit provides for a small conference table and four chairs.

 

Mr. Combs commented the mill assessment rate for the Consumer’s Advocate is set at 0.75 mills.  He said the reserve in this account is expected to be $586,000 at the end of FY 2002 and $792,000 at the end of FY 2003.  He said the Attorney General’s Office indicated to him they do not want to lower the mill assessment rate at this time.  He said a reserve of $400,000 to $500,000 is sufficient, but it appears the reserve may be too high by the end of FY 2003 at the current mill assessment rate.

 

Senator Raggio stated page 55 of The Executive Budget indicates a reserve balance of $764,710 by the end of FY 2003.  Mr. Combs responded his figures reflect the staff adjustments recommended for this budget.

 

Mr. Combs noted the mill assessment rate and reserve would be reviewed in May.  He said the IFC would have the authority to recommend the mill assessment rate be lowered at a later date if the reserve continues to grow as projected.

 

Senator Raggio stated staff should issue a Letter of Intent indicating the Bureau of Consumer Protection should report to the first meeting of IFC following their review of the mill assessment rate and reserve in May.  He inquired whether IFC has the authority to request a reduction in the mill assessment rate.

 

Mr. Combs responded the Consumer’s Advocate has the authority to set the mill assessment rate, but IFC can set the revenue authority for the office to collect the revenues.

 

Senator Raggio directed Mr. Combs to send a Letter of Intent to Timothy Hay, Chief Deputy Attorney General, Bureau of Consumer Protection, Office of the Attorney General that would indicate the committee’s concern regarding the reserve level.

 

Mr. Combs articulated another issue of concern is building rent.  He noted the Capital Improvement Project (CIP) subcommittee is currently considering providing additional funds for the old Carson City courthouse.  He stated there would be 17 positions moving from this account into that building if that project were approved.  He added the positions are funded from both General Fund and mill assessment funds.  He said the rent would be reduced in this budget upon transfer into that building, but he has not adjusted the budget at this time.  He requested authority to adjust the budget accordingly if the additional funds are provided for the old Carson City courthouse.

 

SENATOR RAWSON MOVED TO CLOSE BUDGET ACCOUNT 330-1038 AS RECOMMENDED BY STAFF INCLUDING THE ISSUANCE OF A LETTER OF INTENT REGARDING THE RESERVE LEVEL AND INCLUDING THE AUTHORITY FOR STAFF TO ADJUST THE RENT.

 

SENATOR O’DONNELL SECONDED THE MOTION.

 

THE MOTION CARRIED.  (SENATOR COFFIN WAS ABSENT FOR THE VOTE.)

 

*****

 

AG Crime Prevention - Page ELECTED-56 (Volume 1)

Budget Account 101-1036

 

Mr. Combs stated this account includes funding for the Nevada Missing Children Clearinghouse and Crime Prevention Unit of the Office of the Attorney General.  He said the unit assists in locating missing children and protecting children from exploitation.  He said the unit also works with law enforcement agencies to provide education and training for crime prevention.  He noted this budget account is funded entirely through an appropriation from the General Fund.

 

E-475 Effectiveness of Family Services – Page ELECTED-58

 

Mr. Combs indicated this decision unit includes $2,000 for the production of a quarterly newsletter regarding the activities of the Nevada Missing Children Clearinghouse and issues facing children.  The cost of the newsletter would be paid from the revenue generated by a special license plate for the support of missing or exploited children, he added.  He stated Nevada Revised Statutes (NRS) mandates the fees generated from the license plates be used to find and protect missing and exploited children. 

 

Mr. Combs noted the Office of the Attorney General began receiving revenue from the license plate sales in FY 2001, and they had received $7,725 as of March 30, 2001.  He said the Office of the Attorney General indicated the revenue from the license plates would be used for the newsletter, pamphlets, training, travel, and the normal operations of the division.  He said staff recommends increasing the authority to collect license plate revenue in the account without reducing the General Fund appropriation.  He noted the renewal fee for the license plate is $10, one-third less than the fee for the original issuance of the plate, $15, so he proposes to reduce the FY 2001 projected revenue amount by one-third in each year of the 2001 to 2003 biennium.  He stated staff recommends the issuance of a Letter of Intent directing the Office of the Attorney General to explain how they propose to expend the license plate revenue.

 

Senator Rawson asked Mr. Combs to define “fines and forfeitures,” which is included in the budget at a very low amount.  He suggested that might be an area that could be increased.  Mr. Combs responded he did not recommend increasing that line item at the actual amount from FY 2000 to avoid encouraging the funding of their budget through increased fines.  Mr. Combs said he believes this line item primarily includes reimbursement of legal costs.

 

SENATOR RAWSON MOVED TO CLOSE BUDGET ACCOUNT 101-1036 AS RECOMMENDED BY STAFF INCLUDING THE ISSUANCE OF A LETTER OF INTENT REGARDING LICENSE PLATE REVENUE.

 

SENATOR JACOBSEN SECONDED THE MOTION.

 

THE MOTION CARRIED.  (SENATOR COFFIN WAS ABSENT FOR THE VOTE.)

*****

 

AG Extradition Coordinator - Page ELECTED-64 (Volume 1)

Budget Account 101-1002

 

Mr. Combs stated the Extradition Coordinator is responsible for returning to Nevada fugitives who have fled to other states and foreign countries.  He said the budget account is funded with General Funds and recoveries of costs for returning fugitives to the state.  He explained performance indicator number 10 in The Executive Budget indicates recoveries of costs for returning fugitives will increase to $100,823 in FY 2002 and $110,906 in FY 2003, but The Executive Budget only includes $88,835 in recovery revenue for each year of the 2001 to 2003 biennium.  He noted the extradition coordinator provided revised performance indicators attached to Closing List Number 6 (Exhibit C), which indicate a reduction in projected recovery revenue to $97,891 in FY 2002 and $102,785 in FY 2003.  He said staff recommends increasing the recovery revenues to the amounts projected in the revised performance indicators.

 

E-710 Replacement Equipment – Page ELECTED-66

 

Mr. Combs pointed out this decision unit provides for the replacement of a personal desktop computer.

 

E-710 New Equipment – Page ELECTED-66

 

Mr. Combs said this decision unit provides for the purchase of a new scanner to reproduce photographs of fugitives to be included in Nevada’s extradition requests to other states.

 

SENATOR RAWSON MOVED TO CLOSE BUDGET ACCOUNT 101-1002 AS RECOMMENDED BY STAFF, INCLUDING THE INCREASE IN RECOVERY REVENUE.

 

SENATOR O’DONNELL SECONDED THE MOTION.

 

THE MOTION CARRIED.  (SENATOR COFFIN WAS ABSENT FOR THE VOTE.)

 

*****

 

AG Council for Prosecuting Attorneys - Page ELECTED-68 (Volume 1)

Budget Account 101-1041

 

Mr. Combs stated this account was created by the 1997 Legislature.  The seven‑member Advisory Council for Prosecuting Attorneys appoints an executive director who is the sole unclassified employee in this budget account, he added.  He said the council is responsible for developing a program for training and assisting state and local prosecutors in conducting prosecutions. 

 

Mr. Combs explained the Governor recommends eliminating all General Fund revenue for the account except for $1,765 in FY 2002 and $1,880 in FY 2003.  He said the General Fund revenue would be replaced with justice court assessment revenue.  He indicated Assembly Bill (A.B.) 548 would need to be enacted in order to implement the legislatively approved budget relying on justice court assessment revenue.

ASSEMBLY BILL 548:  Revises provisions governing agencies eligible to receive distribution of proceeds of administrative assessments.  (BDR 14-1438)

 

Mr. Combs said that Don Hataway, Deputy Director, Budget Division, in testimony before the “money committees,” had indicated it was the intent of the Governor to replace all General Fund appropriations for this account with the justice court assessments.  He said the Budget Division believes there is sufficient projected court assessment revenue to eliminate the General Fund appropriation for this account, and he stated committee staff agrees.  Therefore, he recommended eliminating all General Funds from this account and increasing the court assessment revenue by $1,765 in FY 2002 and $1,880 in FY 2003.  He noted there is special statutory provision that allows the council to carry General Funds forward.

 

Mr. Combs said the executive director position has been vacant for a significant portion of FY 2001, which will result in a large balance of General Funds in the account at the end of FY 2001. 

 

Senator Raggio stated Mike McCormick, the former executive director, vacated the position to take another position.  He said he believes the council is very important and he wants to be assured the assessment revenue will be sufficient to replace General Fund support.

 

Mr. Combs responded there is no balance forward projected for the second year of the biennium; however, due to the vacancy in the sole position in the budget, he believes funds would be available to balance forward. 

 

Senator Raggio questioned whether there is a means to provide assistance if the court assessments prove to be insufficient.  Mr. Combs stated the unused General Fund balance can be carried forward in the reserve category.

 

Senator Raggio inquired about the amount of the balance forward in the second year.  Mr. Combs responded it is difficult to determine.  Mr. Combs said the current balance is approximately $60,000, but some of that amount would be utilized upon hiring a new executive director.

 

Mr. Comeaux said carrying forward the reserve balance in the General Fund would provide the council access to the Contingency Fund if the assessment proves to be insufficient.

 

Senator Raggio said he would like to know that for certain.  Mr. Ghiggeri said he would refer the question to the Legal Division because he is concerned that, without an appropriation, the council could not access the Contingency Fund at a later date.

 

Senator Raggio suggested the committee provide a $100 General Fund appropriation for each year of the biennium to enable the council potential access to the Contingency Fund.  He stated the committee should request a Letter of Intent that indicates the council is authorized to request a Contingency Fund appropriation from IFC in the event the reserve and the assessments are insufficient.

 

Senator Rawson stated there should be a contingency allowing the replacement of the General Fund reserve with assessment revenue, should the assessment revenue exceed expectations.

Senator Raggio said he thought that would be included to restrict access to the General Fund reserve in the event the assessment revenue is sufficient.

 

Senator Rawson said he would like to recover the General Fund reserve if possible.  Senator Raggio responded that he believes the recovery of the General Funds would require a special act amending NRS.

 

Senator Raggio commented he would prefer to wait until next session to consider recovering the General Fund reserve balance.

 

SENATOR RAWSON MOVED TO CLOSE BUDGET ACCOUNT 101-1041 AS RECOMMENDED BY STAFF INCLUDING THE ISSUANCE OF A LETTER OF INTENT REGARDING AUTHORIZATION TO REQUEST A CONTINGENCY FUND APPROPRIATION.

 

SENATOR O’DONNELL SECONDED THE MOTION.

 

THE MOTION CARRIED UNANIMOUSLY. 

 

*****

 

Controller’s Office - Page ELECTED-76 (Volume 1)

Budget Account 101-1130

 

Mr. Ghiggeri discussed the decision units within this budget.

 

M-201 Demographics Caseload Changes – Page ELECTED-77

 

Mr. Ghiggeri stated this decision unit provides funding for five positions that are currently funded through a one-shot appropriation for the Integrated Financial System (IFS) project.  He noted the Controller has indicated the project should be completed in 2003.  He said the Controller has agreed that, in the event the five positions are necessary beyond the close of FY 2003, they will be separately justified to the 2003 Legislature.  He noted the five positions account for $341,331 in FY 2002 and $363,488 in FY 2003.

 

Mr. Ghiggeri noted the Budget Division submitted a budget revision for the Controller’s office recommending a new Management Assistant I position, which would provide clerical support and assistance in debt collection.

 

E-806 Unclassified Pay Changes – Page ELECTED-79

 

Mr. Ghiggeri stated this decision unit provides for the transfer of six positions from classified to unclassified service.  He noted this request is included in S.B. 228, which has been amended by the Senate.

 

SENATE BILL 228:  authorizes state controller to appoint persons to certain positions in unclassified service of state.  (BDR 18-663)

 

Mr. Ghiggeri noted the amended bill would allow the State Controller to appoint an Assistant Controller, a Manager for operations in southern Nevada and an Executive Assistant, which would all be unclassified in addition to the Chief Deputy Controller.

 

Senator Raggio said that was approved by the Senate Committee on Government Affairs.  He said he believes the other positions that are requested for non‑classified status should be denied for further review under the unclassified pay bill. 

 

Mr. Ghiggeri stated the State Controller has requested salary increases for some of the positions that are above the level reflected in The Executive Budget.  Senator Raggio asked staff to note the committee would like to review these positions and those discussed in the Lieutenant Governor’s budget account in the unclassified pay bill.

 

Mr. Ghiggeri noted the State Controller submitted a letter dated March 23, 2001, requesting an additional $5,000 in FY 2002 and $1,000 in FY 2003.  He noted $1,000 of this additional request for each year is for an increase in dues to the National Association of State Auditors, Comptrollers and Treasurers.  The remaining $4,000 requested in FY 2002 is to purchase additional check stock, he added.  He said the State Controller justified the purchase of additional check stock as a result of a significant increase in the number of refund checks issued for cancelled vehicle registrations effective January 1, 2001, as a result of legislation passed during the 1997 Session.

 

E-710 Replacement Equipment – Page ELECTED-78

 

Mr. Ghiggeri noted the State Controller has requested faster computers with more memory than the standard established by the Purchasing Division and the standards by which other budgets have been closed.  He discussed the specific costs of their requests, which are detailed in Closing List Number 6 (Exhibit C).  He indicated the Assembly Committee on Ways and Means approved the requested file server at an increased cost of $13,528 and other requested items, while selectively excluding some of the requested items from the budget.

 

Mr. Ghiggeri pointed out the State Controller’s office may be relocated to the Employees Insurance Company of Nevada (EICON) building if the CIP for the Capitol Building is approved.  He said the State Controller is concerned fiber optic cable for the capitol complex would not be available at the EICON building, but the State Public Works Board indicated funding from a 1999 CIP could be used to extend the cable to the EICON building.

 

Senator Raggio inquired whether there would be any additional cost involved in the extension of the cable to the EICON building.  Mr. Ghiggeri said the cost was included in the CIPs, so there would be no additional costs.

 

Senator Rawson noted the State Public Works Board had stated in previous testimony that access is in a junction box located just outside the building, so it would not be difficult to do.

 

Senator Raggio returned attention to decision unit M-201.  Mr. Ghiggeri stated funding for those five positions is just a continuation of existing positions currently working on the IFS project.  Senator Raggio responded that should be approved.

 

Senator Raggio asked about the Management Assistant I position.  Mr. Ghiggeri explained this is a new position not included in The Executive Budget at a cost of $22,813 in FY 2002 and $31,169 in FY 2003.  Senator Raggio said it seems the position should be approved.

 

Senator Raggio stated the transfer of six positions from classified status to unclassified service in decision unit E-806 should be addressed when considering the unclassified pay bill.

 

Senator Raggio indicated the committee should approve the increased funding for an increase in dues to the National Association of State Auditors, Comptrollers, and Treasurers and the purchase of additional check stock.

 

Senator Raggio proposed the committee concur with the action of the Assembly Committee on Ways and Means regarding decision unit E-710.

 

Senator Raggio indicated the fiber optic cable for the EICON building should be approved to proceed as necessary.

 

SENATOR O’DONNELL MOVED TO CLOSE BUDGET ACCOUNT 101-1130 AS RECOMMENDED WITH STAFF ADJUSTMENTS.

 

SENATOR RAWSON SECONDED THE MOTION.

 

THE MOTION CARRIED UNANIMOUSLY. 

 

*****

 

DEPARTMENT OF EMPLOYMENT TRAINING & REHABILITATION

 

DETR, Research & Analysis - Page DETR-17 (Volume 2)

Budget Account 101-3273

 

Jim Rodriguez stated the Research and Analysis Division provides the Department of Employment, Training and Rehabilitation (DETR) with labor market and economic information.  He noted the division also operates the Nevada Career Information System (NCIS), which provides a comprehensive source of occupational and career information to school districts and service providers.  He said the Governor has not recommended any program expansions for this budget, but there are some initiatives included.

 

E-350 Service at Level Closest to People – Page DETR-20

 

Mr. Rodriguez stated this decision unit recommends $10,000 in FY 2002 and $8,000 in FY 2003 to expand Internet access to NCIS and to expand their services available by Internet.

 

E-710 Replacement Equipment – Page DETR-21

 

Mr. Rodriguez said this enhancement recommends $47,138 in FY 2002 and $52,414 in FY 2003 to fund replacement computer equipment.

 

E-720 New Equipment – Page DETR-21

 

Mr. Rodriguez stated this decision unit provides $4,800 in FY 2002 and $4,500 in FY 2003 to fund new computer equipment.

 

M-200 Demographics/Caseload Changes – Page DETR-18

 

Mr. Rodriguez noted 1 new Economist II position is requested in this decision unit to meet the demand for additional support of the state and local workforce investment boards in the development of Nevada’s workforce system.  He added this position would be funded through the Employment Security Division (ESD).  He said the request is for $50,465 in FY 2002 and $61,271 in FY 2003.

 

Senator Raggio inquired whether the ESD budget account would be adjusted accordingly.  Mr. Rodriguez replied there is a corresponding adjustment for the ESD budget account.

 

SENATOR RAWSON MOVED TO CLOSE BUDGET ACCOUNT 101-3273 AS RECOMMENDED BY STAFF INCLUDING THE NEW ECONOMIST II POSITION IN M-200.

 

SENATOR COFFIN SECONDED THE MOTION.

 

THE MOTION CARRIED UNANIMOUSLY. 

 

*****

 

DETR, One-Stop Career Centers - Page DETR-49 (Volume 2)

Budget Account 101-4772

 

Mr. Rodriguez explained this budget account was established with the implementation of the Workforce Investment Act of 1998.  He pointed out the one‑stop system was created as a three-year project; therefore, this budget account will be eliminated after June 30, 2001.  He noted the one position in this account, a Computer Network Technician, would transfer to DETR’s Information Development and Processing budget account at the close of this budget.

 

SENATOR RAWSON MOVED TO CLOSE BUDGET ACCOUNT 101-4772 AS RECOMMENDED BY THE GOVERNOR.

 

SENATOR O’DONNELL SECONDED THE MOTION.

 

THE MOTION CARRIED UNANIMOUSLY. 

 

*****

 

DETR, Blind Business Enterprise Program - Page DETR-90 (Volume 2)

Budget Account 101-3253

 

Mr. Rodriguez stated the Governor has not recommended any changes to this budget nor does staff.  He noted the revenues generated by the vendors fund this budget account.

 

SENATOR RAWSON MOVED TO CLOSE BUDGET ACCOUNT 101-3253 AS RECOMMENDED BY THE GOVERNOR.

 

SENATOR O’DONNELL SECONDED THE MOTION.

 

THE MOTION CARRIED UNANIMOUSLY. 

 

*****

 

Mr. Ghiggeri presented a list of bills in Senate Finance Committee (Exhibit D).  He pointed out the following bills are still in committee and are not exempt: 

 

SENATE BILL 136:  Eliminates exclusion of certain employees from provisions requiring additional compensation for overtime. (BDR 53-306)

 

SENATE BILL 141:  Directs Legislative Commission to conduct interim study concerning State Fire Marshal Division of Department of Motor Vehicles and Public Safety. (BDR S-404)

 

SENATE BILL 146:  Revises provisions governing employees of office of lieutenant governor.  (BDR 18-120)

 

SENATE BILL 294:  Revises provisions governing calculation of basic support. (BDR 34-1161)

 

SENATE BILL 367:  Provides for administration of certain activities to prevent or delay early sexual activity and reduce rate of pregnancies among unmarried teenage girls in Nevada. (BDR S-26)

 

SENATE BILL 391:  Creates Western Interstate Commission for Higher Education scholarship trust fund (BDR 34-282)

 

SENATE BILL 519:  Provides for establishment of programs for re-entry into community of certain prisoners and parolees and revises provisions regarding sealing of records. (BDR 16-1477)

 

Senator Raggio directed the committee’s attention to S.B. 146.  He suggested a motion to indefinitely postpone the bill.

 

SENATE BILL 146:  Revises provisions governing employees of office of lieutenant governor.  (BDR 18-120)

 

SENATOR O’DONNELL MOVED TO INDEFINITELY POSTPONE S.B. 146.

 

SENATOR NEAL SECONDED THE MOTION.

 

THE MOTION CARRIED UNANIMOUSLY. 

 

*****

 

SENATE BILL 141:  Makes various changes concerning state fire marshal division of department of motor vehicles and public safety.  (BDR 42‑404)

 

Senator Raggio commented the testimony provided during the committee hearing on S.B. 141 indicated various organizations supporting this bill were interested in an interim study.  He suggested amending the bill to propose an interim study.  He added there is no guarantee that it will qualify for an interim study even if the committee recommends such action.

 

Senator O’Donnell stated there are many issues handled during the interim that could be sufficiently addressed with one or two meetings.  He proposed the establishment of an interim study committee to handle those types of issues in lieu of numerous interim study committees handling these issues.

 

Senator Raggio said that his suggestion is feasible.  He stated he would like to focus on amending the current bill to provide for an interim study to get it processed and referred to Senate Committee on Legislative Affairs and Operations.

 

SENATOR JACOBSEN MOVED TO AMEND S.B. 141 AND RE-REFER TO THE SENATE COMMITTEE ON LEGISLATIVE AFFAIRS AND OPERATIONS.

 

SENATOR O’DONNELL SECONDED THE MOTION.

 

THE MOTION CARRIED UNANIMOUSLY. 

 

*****

 

Senator Coffin noted there were problems with the State Fire Marshall Division during the construction of the Lied Library at the University of Nevada, Las Vegas, and those could be addressed during the interim study.  He suggested further study might smooth the process for future construction projects.  He added training is very important in the rural areas and should be included in the study.

 

Senator Raggio asked Senator Coffin and Senator Jacobsen to assist in the language for the interim study.

 

SENATE BILL 294:  Revises provisions governing calculation of basic support.  (BDR 34-1161)

 

Senator Rawson suggested S.B. 294 should be indefinitely postponed.  He explained the bill is no longer deemed necessary and none of the school districts support it.

 

SENATOR RAWSON MOVED TO INDEFINITELY POSTPONE S.B. 294.

 

SENATOR O’DONNELL SECONDED THE MOTION.

 

THE MOTION CARRIED UNANIMOUSLY. 

 

*****

 

SENATE BILL 349:  Makes various changes regarding public employees’ retirement system.  (BDR 23-752)

 

Senator Raggio stated a draft reprint of S.B. 349 with the proposed amendment (Exhibit E) is now available for review by Mr. George Pyne, Executive Officer, Public Employees’ Retirement System (PERS).

 

Mr. Pyne stated the term “survivor benefits” was originally located next to the term “spouse,” but Sections one through six have been amended to separate those two terms.

 

Senator Raggio said someone at a committee hearing specifically requested the separation of those two terms.

 

Senator Rawson questioned the current language, “If an unmarried member dies prior to eligibility for retirement, his nominated beneficiary is entitled to receive an allowance.”

Senator Raggio inquired whether replacing “survivor benefits” with “nominated beneficiary” is an appropriate change.  He further questioned whether unmarried members always nominate beneficiaries or whether that is the problem.

 

Mr. Pyne stated Richard R. Ziser, Lobbyist, Coalition for the Protection of Marriage and Nevada Concerned Citizens, had previously expressed concern regarding “survivor” being immediately next to “spouse” in the original language.  He stated the reprint relocated the terms further apart.  He indicated Mr. Ziser is in the audience, and he could comment on the reprint.

 

Senator Raggio said he would like to take action on the bill today.  He asked Mr. Ziser whether he had any objections to the reprint.

 

Mr. Ziser responded that he had no objections to the reprint.

 

Mr. Pyne noted Section 7 includes the “25 and out” provision for members who are police officers and firemen.  He said Section 8 includes the higher multiplier at 2.67 for determining monthly retirement allowance for all future service beginning July 1, 2001.  Section 13 confirms vesting will remain at 5 years instead of 3, he added.  He commented the sections at the end of the bill pertain to judges and mirror the changes regarding the beneficiary provision in the first several sections of the bill.

 

Senator Neal questioned the effect of the deleted portion of Section 13.  Mr. Pyne responded that language was determined to be extraneous during the bill drafting process.

 

Senator Neal said, “So, a person who has not drawn down their retirement, they can receive a benefit once they reach the age at which benefits are given.”

 

Senator Raggio disclosed he is a recipient of PERS benefits as a former county employee.

 

SENATOR NEAL MOVED TO AMEND AND DO PASS S.B. 349.

 

SENATOR RAWSON SECONDED THE MOTION.

 

THE MOTION CARRIED UNANIMOUSLY. 

 

*****

 

Senator Raggio opened the hearing on S.B. 78.  He asked Senator Neal to begin discussion of the bill because he had introduced the bill.  Senator Neal deferred to representatives from Life Line Family Education Center.

 

SENATE BILL 78:  Makes appropriation to Life Line Family Education Center for continuation of its nonprofit pregnancy assistance, educational and vocational training programs. (BDR S-840)

 

Sandra Jolley, Assistant Director, Life Line Family Education Center, invited the legislators to visit her organization’s facility to witness firsthand the benefits of the program.  She said the not-for-profit agency was established in 1974 as a vocational education program for pregnant and parenting adolescents who required on-site child care to complete their high school educations.  She provided an overview of the agency and its programs (Exhibit F).  She stated the agency needs this appropriation “to keep their doors open.”

 

Senator Raggio stated the committee is familiar with the agency and its programs, and they appropriated $200,000 last session to Lifeline Family Education Center.  He said he would like to address S.B. 78 and S.B. 451 jointly in the interest of expediting the process.  To which Ms. Jolley did not object.

 

SENATE BILL 451:  Makes appropriation to Life Line Family Education Center. (BDR S-1401)

 

Senator Raggio stated S.B. 78 provides for an appropriation in the amount of $800,000 and S.B. 451 provides another $200,000.  Therefore, he noted, these bills cumulatively propose appropriations $800,000 in excess of what was appropriated during the last session.  He cautioned Ms. Jolley that funding is exceptionally tight this session.

 

Lynn Richmond-Morris, Executive Director, Life Line Family Education Center, stated the agency is United Way accredited.  She identified other funding sources:  $50,000 from United Way, $11,000 from the city of Las Vegas, $75,000 from “437 funds” and some private donations.  She said their total budget is $1.4 million, but they have never been fully funded.  She noted her limited staff works very hard to keep the program operating.

 

Senator Raggio inquired about the amount of the agency’s operating budget.  Ms. Richmond-Morris responded it is $620,000. 

 

Senator Raggio stated the agency receives $100,000 each year from appropriations from the General Fund.  Ms. Richmond-Morris agreed.

 

Frank Mitchell, Volunteer, Life Line Family Education Center, said he is an independent counselor for the Clark County School District.  He said his role as a volunteer at the agency is to help the kids stay in school however possible.  He said the Clark County School District is anticipating budget cuts, which would force even more adolescents to rely on Life Line Family Education Center for their educational opportunities.  He added he has spent his entire career working in alternative education, and he believes the adolescent population that relies on alternative education is rapidly growing.

 

Senator Raggio inquired whether the school district provides any funding to the agency.  Ms. Richmond-Morris responded, “No.” 

 

Ms. Richmond-Morris commented the agency served over 27,000 adolescents last year.  She noted Las Vegas has approximately 3,000 teenagers sleeping on the streets, and they access the services of her agency.  She said the agency is working closely with the adult and youth probation departments.  She said the agency is also collaborating with prisons to allow for early releases of female inmates willing to commit to a Life Line Family Education Center program.

 

Janet L. Gilbert, Lobbyist, stated she is representing Progressive Leadership Alliance of Nevada in this matter.  She said she is concerned the state does not exercise any means to hold the non-profit organizations that receive state financial support accountable for that funding.  She noted this is in sharp contrast to the accountability measures enforced for all state agencies.  She said she withholds judgment of any specific non-profit organizations, but she encourages the committee to require greater accountability of those that receive state funding.  She stated all bills proposing appropriations to non-profit organizations should include a line item requiring the organization to provide statements detailing how the appropriated funds were spent.

 

Ms. Gilbert noted Life Line Family Education Center has received two appropriations in the past from the Legislature, but she is unaware how those funds have been spent.  She said she is a Block Grant Commissioner, whose responsibility is to allocate money to non-profit agencies.  She said Social Services Block Grant (Title XX) staff in the Department of Human Resources receives requests for proposals, which are evaluated and subsequently monitored by the Block Grant Commissioners.  She noted Title XX submits 4 quarterly reports each year indicating how the funds have been spent and the unduplicated count of people served.  She clarified the unduplicated count of people served provides a much clearer picture of the number of people served by a program.  She said this measurement is crucial to determining the effectiveness of the funds spent.  She stated the current budget shortfall makes accountability even more important.

 

Ms. Gilbert provided a handout (Exhibit G) of information she found in the “Business In Las Vegas” publication addressing financial information of Las Vegas’ non-profit organizations.  She stressed the Block Grant Commission prefers to fund programming rather than just administration.  She said the figures in Exhibit G are Internal Revenue Service (IRS) figures, which the committee may find interesting.  She said she likes to see substantial community support of non-profit organizations not just governmental funding because government funding is diminishing.  Community support helps ensure the longevity of an organization, she added.

 

Senator Raggio noted Ms. Gilbert’s handout indicates Life Line Family Education Center only used 7.32 percent of total expenses for programming.  Ms. Gilbert said it is possible the Life Line Family Education Center completed the IRS form incorrectly, but these were the figures reported.

 

Senator Raggio stated Ms. Gilbert offered some worthwhile recommendations.  He said the committee should issue a Letter of Intent to all non-profit organizations that receive appropriations requesting an accounting of the funds spent.  He added the accounting of expenditures should be provided on a regular basis.

 

Senator Neal asked Ms. Gilbert whether she has ever visited Life Line Family Education Center.  She responded she had not been to the facility.  She added she was familiar with the organization only through a proposal submitted by Ms. Richmond-Morris approximately 4 years ago for Title XX funds.  She noted the competition for Title XX funding is fierce and Life Line Family Education Center was not granted funding at that time.

 

Senator Raggio inquired whether Life Line Family Education Center had ever received Title XX funding.  Ms. Gilbert responded that they have not received Title XX funding during the past five years that she has been a Block Grant Commissioner.

 

Ms. Richmond-Morris stated the organization could not have achieved its United Way accreditation with only 7 percent of funding going toward programming.  She said the organization has great community support.  She added, “Probably 75 percent of the staff there gives back half of what they earn to programming and to clients.”

 

Senator Raggio closed the hearing on S.B. 78 and S.B. 451.  He opened the hearing on S.B. 79.

 

SENATE BILL 79:  Makes appropriation to Economic Opportunity Board of Clark County for purchase of buses. (BDR S-899)

 

Frank J. Krukoski, Administrator, Transportation Division, Economic Opportunity Board (EOB) of Clark County, provided written copy of his testimony (Exhibit H).  Mr. Krukoski stated EOB Transportation has been providing transportation since 1974.  He said they average 4,500 rides per month satisfying agreements with the Nevada Medicaid Office, Southern Nevada Child and Adolescent Services, Nevada Children’s Center, and several senior housing complexes.  He said they serve 242 unduplicated passengers each month.

 

Mr. Krukoski indicated the seven new vehicles provided by the 1999 Legislature have saved the EOB approximately $2,500 each month in maintenance costs.  He said the EOB will save Medicaid $197,000 in transportation costs this year.

 

Senator Raggio inquired the total budget of the EOB Transportation Division and its sources of funding.  Mr. Krukoski replied Community Services Block Grant (CSBG) provides $127,000 annually. 

 

Senator Raggio inquired the total annual budget of the EOB Transportation Division and how much is for salaries.  Mr. Krukoski replied his annual operating budget is $850,800 of which $344,887 are for salaries. 

 

Senator Raggio asked Mr. Krukoski to provide the annual budget including all revenues and expenditures.  He asked Life Line Family Education Center to do the same.

 

Senator Raggio asked how the $250,000 provided by the 1999 Legislature was spent.  Mr. Krukoski replied 7 vehicles were purchased with those funds.  He agreed to provide the details of those expenditures to the committee at Senator Raggio’s request.

 

Senator Neal disclosed he is currently the Chairman of the Economic Opportunity Board of Clark County until his term ends September 2001.

 

Senator Raggio asked why the EOB is requesting $150,000 to purchase more vehicles after their purchase of 7 vehicles two years ago.  Mr. Krukoski said their transportation fleet consists of 10 vehicles, so they would like to replace the other three.  He said all three vehicles have a minimum of 250,000 miles.

 

Senator Raggio inquired whether EOB Transportation Division receives funding from other sources.  Mr. Krukoski replied it does not.

 

Senator Raggio closed the hearing on S.B. 79.  He opened the hearing on S.B. 135.

 

SENATE BILL 135:  Makes various changes concerning veterans’ homes. (BDR 37‑1032)

 

Charles W. Fulkerson, Executive Director, Office of Veterans’ Services, stated this bill proposes to change the name of the manager of the nursing home from director to administrator to alleviate confusion with the director of the agency.  He said the bill also proposes to create a gift account for gift money received by the nursing home.  He noted the gift account would enable them to utilize gift money over more than one year for miscellaneous quality-of-life items.

 

Mr. Fulkerson provided a written copy of an amendment (Exhibit I).  He proposed to delete lines 3 through 5 on page 3 and insert “pursuant to NRS 654.170” within S.B. 135.  He said this amendment would bring the licensing language in line with the licensing requirements for all other long-term care facilities within the state.

 

Senator Raggio said that would delete the provision in the bill allowing for a pending license.  Mr. Fulkerson agreed.  Mr. Fulkerson said $36,920 from the license plate proceeds would go into the newly established gift account to be used for various activities and would balance forward from year to year. 

 

Alex Haartz, Deputy Administrator, Health Division, Department of Human Resources, indicated the Health Division agrees with the proposed amendment.

 

Senator Raggio closed the hearing on S.B. 135 and opened the hearing on S.B. 277.  Senator Raggio commended Senator Valerie Wiener for responding to his letter that requested all Senators review their bills and suggest any that may be withdrawn.

 

SENATE BILL 277:  Requires posting of sign in food establishments in which alcoholic beverages are sold that warns of dangers of drinking such beverages during pregnancy. (BDR 40-24)

 

Senator Valerie Wiener, Clark Senatorial District Number 3, testified in support of S.B. 277.  She stated subsection 1 of Section 2 of the bill describes the size and verbiage requirements for the sign, which would be printed in both English and Spanish.  She pointed out subsection 2(a) of Section 2 indicates the sign must be posted in a conspicuous location in the women’s restroom of all food establishments that sell alcoholic beverages “by the drink for consumption on the premises.”  She noted subsection 2(b) of Section 2 requires all food establishments that sell alcoholic beverages in any other manner to post a sign in a conspicuous location at the point of sale of the alcoholic beverage.

 

She stated subsection 1 of Section 3 provides for a civil penalty of $500 for each violation of the requirement for posting of a sign.  She added subsection 2 of Section 3 allows the health authority within the district where the violation occurs to collect the civil penalty and commence a civil proceeding if necessary.  She explained the health authority is then required to deposit the fine with the State Treasurer for credit to the General Fund.

 

She noted Section 5 of the bill provides for a $100,000 appropriation to the Advisory Subcommittee on Fetal Alcohol Syndrome, Health Division, Department of Human Resources.  Because of the budgetary constraints this session, she proposed a reduction in the amount requested to $50,000 over the biennium.  She commented the 1999 Session appropriated $25,000 to the subcommittee.

 

Senator Raggio questioned what the appropriated funds would be used for.  Senator Wiener responded a significant portion would be used to enable someone to travel throughout Nevada to educate various health authorities, pregnant women, and young families regarding the concerns of drinking during pregnancy.

 

Senator Wiener proposed the appropriated funds be treated as a “loan” to the Advisory Subcommittee on Fetal Alcohol Syndrome to be repaid through fines collected for violations.  She said any fines collected in excess of the appropriated amounts would be allocated to the Advisory Subcommittee on Fetal Alcohol Syndrome.  She asked the committee to allow the bill to be processed without the appropriation if it is deemed impossible to appropriate funds this session.

 

Senator Raggio questioned who would pay for the signs.  Senator Wiener said the purchase of the signs would be the responsibility of the business establishments, and they would be allowed to use whatever materials they chose as long as the dimensions and verbiage were as specified. 

 

Senator Raggio inquired about the status of the Advisory Subcommittee on Fetal Alcohol Syndrome.  Senator Wiener responded the subcommittee is continuing its work.  She said they received an appropriation two years ago.  She commented Judith M. Wright, Chief, Bureau of Family Health Services, Health Division, Department of Human Resources, works with the subcommittee.  She pointed out Ms. Wright is attending the meeting today and would be better prepared to discuss the status of the subcommittee.

 

Senator Wiener stated the subcommittee had reserved the appropriated funds received last session to match March of Dimes funding, which did not materialize.

 

Senator Wiener reiterated her request to allow the bill to proceed with or without the appropriation.  She acknowledged the health authorities have expressed concern over the financial burden of administering civil penalties, so she indicated her support of any reasonable amendment to allow them to recover reasonable costs incurred.

 

Senator Raggio questioned the uniformity of the signs if the signs are left to the discretion of the business owners.  Senator Wiener stated it was decided many business owners would prefer to choose their own signs within the required size and verbiage guidelines.

 

Senator Raggio disagreed.  He said he believes most business owners will want to know where they can get the signs.  He questioned how the cost of the signs would be funded without an appropriation.

 

Senator Wiener responded the cost of the signs would be borne by the business establishments.  She pointed out the cost of the sign would be less than the $500 fine imposed for not having a sign.

 

Senator Raggio said he believes many business establishments will want to know where they can get the signs to comply with the new requirement.  Senator Wiener said she believes the March of Dimes would be a potential source of signs.

 

Senator Rawson commented a representative of the March of Dimes indicated to him they would provide the signs at no cost to the business establishments, but that would be the extent to which they could participate in the administration of this effort.

 

Senator Raggio asked where the business establishments would go to access the signs.  Senator Rawson responded he thought the March of Dimes would contact the businesses and offer to post them in their establishments.

 

Senator Raggio stated it would be difficult to write that process into the law and he doubts there will be sufficient General Funds available to provide an appropriation.

Judith Wright provided a written copy of her testimony (Exhibit J) to the committee.  She said the definition of food establishments includes grocery stores, markets, convenience stores, and bars. 

 

Senator Raggio questioned why the signs would be posted in restrooms of grocery stores when nobody can find the restrooms in them anyway.  He commented he thought the intent of the bill was to post the signs in bars or other establishments where alcohol is consumed.  Senator Wiener said the major concern is to post signs in sites where alcohol is consumed, and she would be amenable to initiating the program with only those locations at which consumption occurs.

 

Senator Raggio acknowledged that limiting the locations to premises where consumption occurs appears more practical.  Senator Wiener replied she would be happy to start with those premises.

 

Senator Raggio again questioned how this bill could proceed without any money.  Ms. Wright said the appropriated funds from the 1999 Legislature are currently being used to purchase some signage.  She commented a staff person funded by the 1995 Legislature is responsible for the distribution of the signs to the businesses serving alcoholic beverages. 

 

Senator Raggio suggested an amendment be proposed to limit the bill to establishments where alcohol is consumed on the premises.  He added it should be clearly defined who will provide the signs and where the signs can be accessed by the affected businesses.  Furthermore, he suggested the amendment include language stating the fines collected can be used to reimburse the cost of the signs or to support the subcommittee’s activities.  He said it would be more practical to amend the bill to be considered without an appropriation.

 

Senator Rawson stated an amendment could be drafted to address all of the issues raised by Senator Raggio.

 

Vickie Huchmala, Director of Program Services, March of Dimes Foundation, Nevada Chapter, provided written copy of her testimony (Exhibit K).  She explained the March of Dimes is a national voluntary health agency whose mission is to improve the health of babies by preventing birth defects and infant mortality.  She noted drinking alcohol during pregnancy or while nursing can cause physical and mental birth defects.  She said she supports S.B. 277 and believes the March of Dimes Foundation, in conjunction with other organizations, could fund the production and distribution of the warning signs.  She pointed out fetal alcohol syndrome is a serious condition and the only preventable birth defect.

 

Senator Raggio pointed out the distribution would have to be on a statewide basis.  Ms. Huchmala stated she is aware of the scope of the project.

 

Senator Raggio stated an amendment had been requested to include language allowing for the acceptance of money from outside sources to accommodate this bill.

Lawrence P. Matheis, Executive Director, Nevada State Medical Association, stated his support of S.B. 277.  He said he believes fetal alcohol syndrome is a growing problem throughout the nation and disproportionately so in Nevada.  He said his discussions with three of the largest obstetrician practices in Nevada indicated the doctors are seeing approximately 1 out of each 100 births with this syndrome, which is well above the national average.  He commented the doctors had indicated there are a significant number of fetal alcohol syndrome births among Medicaid patients.  He suggested Senator Rawson, as a member of the Legislative Committee on Health Care, could include fetal alcohol syndrome in the issues to be reviewed during the interim. 

 

Senator Raggio asked Senator Wiener to work with staff to draft an amendment for this bill.  She agreed to assist.

 

Sylvia Hackethorn testified as a concerned citizen from Las Vegas in support of requiring the posting of the signs in grocery stores.

 

Helen A. Foley, Lobbyist, Clark County Health District, stated her support of S.B. 277.

 

Senator Raggio closed the hearing on S.B. 277 and opened the hearing on S.B. 367. 

 

SENATE BILL 367:  Provides for administration of certain activities to reduce rate of pregnancies among unmarried teenage girls in Nevada. (BDR S‑26)

 

Senator Wiener commented this bill was heard by the Senate Committee on Human Resources and Facilities and came out of that committee with a “do pass.”  She noted Nevada had ranked first among all states for number of pregnancies among 15 to 19 year olds for about a decade until currently dropping to fourth.  She said statistics indicate more than half of Nevada’s high school students have engaged in sexual intercourse, while one in 15 have engaged in sexual activity before the age of 13.  More than one in four of sexually active students consumed alcoholic beverages or drugs before engaging in sexual intercourse the last time, she added.

 

Senator Wiener discussed the intent of the bill.  She said the bill would help facilitate a federal mandate that requires the reduction of the out-of-wedlock pregnancy rate in each state.  She noted this bill provides for the establishment of a statewide partnership to raise public awareness regarding pregnancies among unmarried teenage girls in our state.  She indicated the partnership would include:  the Health Division Administrator, Yvonne Sylva, and her appointees representing education, social work, juvenile justice, law enforcement, family court, health care, and parents.  She mentioned Ms. Sylva has indicated in testimony before the Senate Committee on Human Resources and Facilities that her two discretionary appointments will include representatives from the faith community and the Welfare Division.

 

Senator Wiener stated the partnership will promote efforts to reduce the rate of pregnancies among Nevada’s unmarried teenage girls in many ways:  to establish and promote Teen Pregnancy Prevention Month, to develop and carry out two social marketing campaigns to target the population with the highest rates of teenage pregnancy and to target adult and adolescent men.  She noted 70 percent of the fathers of babies born to teenage mothers in Nevada are over the age of 19.  Nationally, approximately 85 percent of the fathers are at least four and a half years older than the girls they impregnate, she added. 

 

Senator Wiener said the partnership would award grants to community-based agencies and organizations involved with youth and pregnancy prevention.  She commented Ms. Sylva has assured the Senate Committee on Human Resources and Facilities that she and the statewide partnership will evaluate all applications for grants to ensure equitable distribution of the grant money.  She said the bill provides for one grant to go to each of Clark County, Washoe County, and at least one other county in the state.

 

Senator Wiener noted Section 4 and Section 8 of the bill provide for an inter‑agency agreement between the Welfare Division and the Health Division.  She said the interagency agreement would enable the Welfare Division to transfer Temporary Assistance for Needy Families (TANF) funds to the Health Division.

 

Senator Raggio invited Michael J. Willden, Administrator, Welfare Division, Department of Human Resources, to comment on the issue.

 

Mr. Willden provided a written copy of his testimony (Exhibit L).  He stated decision unit E-476 of the HR, Welfare/TANF budget account 101-3230 includes $2 million for the express purpose of expanding services for TANF goals 3 and 4.  He stated the following are the four TANF goals:

 

• To keep children in the home of family members whenever possible
• Employment and training initiatives
• Out-of-wedlock birth and teen pregnancy initiative
• The family formation goal

 

Senator Raggio inquired whether the joint subcommittee had closed that budget yet.  Mr. Willden replied that he believes it is not closed yet.

 

Senator Raggio asked whether Mr. Willden thinks this bill is an appropriate measure to receive TANF funding.  Mr. Willden replied, “Absolutely.”

 

Senator Raggio inquired whether TANF funding would include administrative costs as well as programming and grants.  Mr. Willden responded affirmatively.

 

Senator Raggio asked what amount of grants is contemplated.  Mr. Willden stated he provided a fiscal note to Mr. Ghiggeri as of April 9, 2001, pursuant to a request by LCB staff.

 

Mr. Willden stated the fiscal note indicates the Welfare Division will have an interlocal agreement with the Health Division for this purpose for almost $500,000.  He noted $438,000 of those annual funds would be directed to the contracted services.  He added that $60,000 will be used for a media campaign and the few remaining funds will be used for administrative costs.

 

Senator Raggio inquired how much would be used for grants.  Mr. Willden clarified $438,000 each year would be directed toward grants.

 

Senator Raggio asked whether the grants to the three different counties were the only ones being considered at this time.  Mr. Willden responded the partnership is hoping to award 6 to 8 grants.

 

Senator Raggio asked Senator Wiener how the grants would be used.  She responded the grants would be used to raise public awareness of “the horrors of teen pregnancy, the cost to society, the cost to the girls and the family.”  The partnership would design the criteria for grants and have a strong reporting requirement, she added.

 

Mr. Willden directed the committee’s attention to the section of his handout (Exhibit L), which illustrates what other states are doing on TANF goals 3 and 4.  He commented some initiatives that have been successful in other states are listed on the last page of his handout and those may be helpful to establish programs in Nevada.  He said the partnership would look for proposals covering any and all of these initiatives.

 

R. Alexis Miller, Lobbyist, Planned Parenthood Mar Monte and Planned Parenthood of Southern Nevada, testified in support of S.B. 367.  She pointed out Planned Parenthood provides abstinence based sexuality programs for adolescents, but they also educate those who choose to become sexually active to enable them to make responsible decisions. 

 

Senator Rawson asked whether Planned Parenthood intends to compete for one of the grants this legislation would provide.  Ms. Miller responded affirmatively.

 

Lucille Lusk, Lobbyist, Nevada Concerned Citizens, provided a written copy of amendments (Exhibit M) she proposes for S.B. 367.  She proposed to include the language “preventing or delaying the onset of early sexual activity” at each reference to reducing the rate of pregnancies.  She stated the parent representative in the partnership should not be a state employee.  The third recommendation by Ms. Lusk is the state partnership should include members with differing points of view such as from adoption agencies and populations with a high rate of teen pregnancies.  Her final proposal was to indicate any activities in the schools must be in accordance with NRS 389.065, which governs sex education and parental consent for sex education in schools.

 

Senator Raggio asked whether anyone would like to respond to Ms. Lusk’s request for amendment.

 

Mr. Haartz stated no objection to the first proposed amendment, but commented he felt uncomfortable specifically designating state employees could not be a representative in the partnership.  He said many parents who happen to be state employees may wish to be a part of this partnership.  He said if that amendment is fundamental for passage of the bill, he would not object.  He said the third amendment is something they are planning to do, but if the partnership needs to expand the number of representatives to achieve greater diversity, he would not object.  He said he believes the fourth amendment is okay, but he would prefer to review the NRS citation before further comment.

 

Senator Raggio inquired whether Senator Wiener has any objections to the four amendments proposed by Ms. Lusk.  Senator Wiener said she does not anticipate any objections to the first three amendments, but she would like to review the NRS citation before comment on the fourth proposed amendment.  She stated she definitely wants to be in compliance with the law.

 

Senator Raggio suggested Senator Wiener work with Ms. Lusk to establish mutually agreeable language for amendments.

 

Senator O’Donnell questioned why a representative of the law enforcement community would be included in the partnership.  Senator Wiener commented the group of people collaborating on this bill felt the adolescent and adult male population this bill would be attempting to reach might have had previous interaction with law enforcement and the family court system.  For that reason, she said the group felt they could benefit from the expertise of someone in that area.

 

Senator O’Donnell stated he is a former law enforcement officer and he does not think they would be ideal representatives for this partnership.  Senator Wiener said she is willing to consider other options.

 

Janine Hansen, Lobbyist, Nevada Eagle Forum, stated she is in full support of Ms. Lusk’s proposed amendments.  She said she would like to see a focus on preventing sexual activity in adolescents and provided a handout (Exhibit N) She said the handout illustrates the merits of abstinence education.

 

Senator Raggio asked whether these amendments were presented to the Senate Committee on Human Resources and Facilities.  Senator Wiener said she does not believe the amendments proposed by Ms. Lusk were provided to that committee.

 

Senator Raggio suggested Ms. Hansen might want to be involved in discussion of the amendments with Senator Wiener and Ms. Lusk.  Senator Wiener replied they are attempting to arrange a convenient time for them to work together right now.

 

Senator Raggio closed the hearing on S.B. 367 and opened the hearing on S.B. 452. 

 

 

SENATE BILL 452:  Makes appropriation to Alliance for the Mentally Ill of Nevada. (BDR S-1402)

 

Joseph P. Tyler, Vice President, Nevada Alliance for the Mentally Ill (NAMI), and President of Northern Nevada Alliance for the Mentally Ill, stated the Northern Nevada Chapter of NAMI currently has over 70 members.  He said this appropriation would enable NAMI “to train professionals who seek to sensitize themselves to the family aspect of mental illnesses.”  He added they also propose to provide training for people who have sufficiently overcome their own mental illnesses to then counsel others still struggling with mental illness.  He noted there are waiting lists for all of NAMI’s programs.

 

Senator Raggio requested an accounting of the $75,000 appropriated last session, a current budget, and an action plan for the $75,000 appropriation requested in this bill.  He questioned whether past discord within the organization has been resolved.  Mr. Tyler stated it had.

 

Norma Brownell, Secretary, Nevada Alliance for the Mentally Ill, stated she is the mother of a 42-year-old son who is schizophrenic and bipolar.  She said there is no ending to mental illness, and she has benefited from the support of NAMI for the past 17 years.  She said NAMI used the appropriation received from the 1999 Legislature to implement the Family-to-Family Education Program in Nevada.  She explained the program is intended to help families cope with the loss of a loved one “to the agony of mental illness.”  She said the program is a 12 week course designed to provide a greater understanding of all aspects of mental illness and how to deal with the service providers to receive effective care for the mentally ill family member.  She said 28 teachers have graduated from this program.  The program is taught in Elko, Reno, Carson City, and Las Vegas, she added.  She commented they would like to extend teaching to Mesquite, Pahrump, Fallon, and Yerington.

 

Ms. Brownell stated NAMI would like to initiate a provider education program taught from the point of view of the patient and family members.  She said this new program, combined with the peer education program, would provide a well‑balanced approach to educating all members of the treatment team.  She urged support of S.B. 452 to assist in their programming efforts.  She said this program might prevent other mentally ill people from ending up on the streets, as her own son has.

 

Donna Shibovich, Official Greeter, Nevada Alliance for the Mentally Ill, stated she and her father have benefited tremendously from their affiliation with NAMI.  She said she believes she has learned a great deal from NAMI and is better prepared to help her peers.  She commented NAMI stresses the importance of following the strict medications prescribed and strives to educate families.  She said NAMI has given her a sense of “purpose, pride and dignity.”  She commended Mr. Tyler on his excellent efforts on behalf of the mentally ill.

 

Joan Stevens, President, Southern Nevada Alliance for the Mentally Ill, said stigma and a severe lack of information are primary concerns of the mentally ill and their families.  She urged support of S.B. 452.  She said the funding received from the 1999 Legislature enabled NAMI volunteers to graduate 14 teams, comprised of 2 teachers each, from their course.  She said the course includes 12 full weeks covering schizophrenia, major depression, bipolar disorder, borderline personality disorder, panic disorder, and obsessive-compulsive disorder.  She said education is the key to enabling people with mental disorders to live the most productive lives possible.

 

Catherine Davis testified in support of S.B. 452 as a concerned citizen.  She pointed out NAMI operates entirely by the efforts of volunteers.

 

Linda Nielson testified in support of S.B. 452 as a concerned citizen.  She stated her son and her sister both suffer from mental illness.  She attested to the invaluable support NAMI provides and the quality of the Family-to-Family course.

 

Ruth Paxton, President, Nevada Alliance for the Mentally Ill, Carson City, pointed out there is a toll free number for families throughout Nevada to contact NAMI.  She stated she and her sister are the only team of teachers in Carson City, and they have graduated two classes in Carson City.  She noted her daughter has bipolar disorder.  She said education is the best tool that can be provided to the families of the mentally ill to help them cope.  She added they also help families navigate through the Division of Mental Health and Developmental Services.

 

Donna Plasier testified as a concerned citizen who acts as a consumer representative of NAMI.  She said the peer counseling program is an excellent means of disseminating information to the mentally ill population.  She commented she was recently arrested and didn’t have any one to help her with the court process.  She said peer counselors are now being trained regarding judicial process to assist in these instances.  She added she will be able to get paid for her services as a peer counselor trained in the judicial process, which will enable her to be less of a burden on the state.

 

Senator Raggio reiterated his request for an accounting of the $75,000 appropriated last session, a current budget, and an action plan for the $75,000 appropriation requested in this bill.  Mr. Tyler nodded in agreement.

 

SENATE BILL 465:  Makes various changes concerning adjudication emergency account. (BDR 48-530)

 

Hugh Ricci, P.E., State Engineer, Division of Water Resources, State Department of Conservation and Natural Resources, testified in support of S.B. 465.  He stated Don Hataway, Deputy Director, Budget Division, Department of Administration, forwarded a memo dated March 9, 2001, to request the inclusion of this appropriation in The Executive Budget.

 

Senator Raggio asked Mr. Hataway to direct the committee to where this measure could be found in The Executive Budget.  Mr. Hataway explained it was not included in the budget, but it was included in a letter dated March 9, 2001, written by his office to the attention of Mr. Ghiggeri and Mr. Mark Stevens, Assembly Fiscal Analyst.  He noted the letter included a suggested list of amendments to The Executive Budget.

 

Mr. Ricci commented the 1925 Legislature passed legislation to allow for the Humboldt River adjudication.  He said the original NRS 532.200 was subsequently amended to include the adjudication of any stream system within Nevada.  He noted the Humboldt River adjudication was completed in the 1930s.  He said this bill requests an appropriation of $10,000 as outlined in Section 2 of the bill.  He explained the State Engineer’s Office has performed between 50 and 75 adjudications since 1925, and to his knowledge the office has never requested any additional funding for this account.  He pointed out he has been with the office for 20 years.

 

Senator Raggio questioned whether the intent of the bill is to include the appropriated funds in the budget.  Mr. Hataway agreed.  Mr. Hataway explained the fund balance is currently at $600, so they are requesting a restoration of the fund balance with an appropriation of $10,000.  Mr. Hataway indicated the Governor supports restoration of the fund balance.

 

Senator Raggio asked whether there are immediate plans for this money or whether it is primarily to ensure money will be available for future adjudications.  Mr. Ricci explained the fund is a revolving fund.  He said the costs associated with the adjudication process are billed to the responsible party, but those costs are not always recovered, thereby depleting the fund. 

 

Senator Raggio asked R. Michael Turnipseed, P.E., Director, State Department of Conservation and Natural Resources, whether he had any additional comments.

 

Mr. Turnipseed explained that when Idaho began the adjudication of the Snake River Basin, the Idaho Legislature appropriated $10 million intended to be a revolving fund. He provided additional legislative history.  He noted United States (U.S.) Senator Pat McCarran of Nevada sponsored legislation known as the McCarran Amendment that was enacted in 1952 that required federal agencies to enter into adjudication, waive their sovereign immunity and quantify their water rights.  He said there is some language in the McCarran Amendment that states each side will pay its share of the litigation.  He explained:

 

That was interpreted literally by the U.S. Supreme Court out of the Idaho adjudication and the U.S. Supreme Court stated that in the Idaho adjudication the U.S. agencies did not have to pay their proportionate share of the fees.  That was tried again in the Ninth Circuit in an Oregon adjudication on the Klamath.  Oregon statutes are nearly identical to ours, and they won on 5 of 6 points.  The one they lost on was the payment of the fees.  There is a bill presently in Congress that would require the U.S. agencies to pay their proportionate share of adjudication fees. A similar bill was introduced last session in Congress, but did not pass.  The Western States Water Council and other western states are supporting the bill in Congress to require the U.S. agencies to pay their filing fees as well as their proportionate share of transcript fees, transcribes and those kinds of things. 

 

Senator Raggio inquired whether this bill could be processed in its present form without any amendments.  Mr. Ricci agreed.

 

Senator Raggio closed the hearing on S.B. 465.  He stated staff had advised him the following bills need to be moved to be re-referred from general file to the Senate Finance Committee:  S.B. 175, S.B. 324, S.B. 335, S.B. 525 and S.B. 557.  Senator Raggio commented the Attorney General submitted a fiscal note for 1 new Deputy Attorney General and a .25 full-time equivalent (FTE) clerical position, which may need to be addressed by this committee. 

 

SENATE BILL 175:  Makes various changes to provisions relating to disabled persons.  (BDR 27-194)

 

SENATE BILL 324:  Requires that toilet facilities in public buildings and places of public accommodation be identified with signs discernible by blind and other visually impaired persons.  (BDR 28-78)

 

Senator Raggio explained S.B. 324 was amended.  He said a fiscal note submitted by the State Public Works Board indicates a cost of $15,000 to $30,000 for each new construction CIP and $200,000 to $500,000 for Fiscal Years 2004 and 2005 for statewide ADA (Americans with Disabilities Act) retrofitting.  The Department of Education advises the cost applicable for public schools would be $124,160, he added.  He noted the Department of Education has not seen the amended bill, so they do not know whether there is an impact with the amendment.

 

SENATE BILL 335:  Enacts provisions pertaining to problem gambling.  (BDR 41‑1105)

 

Senator Raggio pointed out S.B. 335 provides $250,000 for a revolving account that supports the prevention and treatment of problem gambling.

 

SENATE BILL 525:  Revises provisions governing issuance of replacement license plates.  (BDR S-1223)

 

Senator Raggio said S.B. 525 extends the reversion of State Highway Fund dollars for the issuance of the new license plates.  Senator O’Donnell pointed out the bill does not need to be re-referred.

 

SENATE BILL 557:  Makes various changes concerning distribution of certain revenue from tax on certain motor vehicle fuel.  (BDR 32-893)

 

Senator Raggio said a fiscal note might be needed for S.B. 557.

 

The meeting was adjourned at 10:10 a.m.

 

 

RESPECTFULLY SUBMITTED:

 

 

 

Jennifer Ruedy

Committee Secretary

 

 

APPROVED BY:

 

 

 

                       

Senator William J. Raggio, Chairman

 

 

DATE: