MINUTES OF THE

SENATE Committee on Finance

 

Seventy-First Session

May 3, 2001

 

 

The Senate Committee on Financewas called to order by Chairman William J. Raggio at 4:06 p.m., on Thursday, May 3, 2001, in Room 2134 of the Legislative Building, Carson City, Nevada.  Exhibit A is the Agenda.  Exhibit B is the Attendance Roster.  All exhibits are available and on file at the Research Library of the Legislative Counsel Bureau.

 

COMMITTEE MEMBERS PRESENT:

 

Senator William J. Raggio, Chairman

Senator Raymond D. Rawson, Vice Chairman

Senator Lawrence E. Jacobsen

Senator William R. O’Donnell

Senator Joseph M. Neal Jr.

Senator Bob Coffin

Senator Bernice Mathews

 

STAFF MEMBERS PRESENT:

 

Gary L. Ghiggeri, Senate Fiscal Analyst

Bob Guernsey, Principal Deputy Fiscal Analyst

Michael J. Chapman, Program Analyst

Bob Atkinson, Program Analyst

Jennifer Ruedy, Committee Secretary

 

GUEST LEGISLATORS PRESENT:

Senator Valerie Wiener, Clark County Senatorial District No. 3

Senator Dean A. Rhoads, Northern Nevada Senatorial District

 

OTHERS PRESENT:

 

Steve Robinson, State Forester Firewarden, Division of Forestry, Department of Conservation and Natural Resources

Pete Anderson, Deputy State Forester, Division of Forestry, Department of Conservation and Natural Resources

Robert E. Stewart, Information Specialist, Nevada State Office, Bureau of Land Management, U.S. Department of the Interior

Andrew A. List, Lobbyist, Nevada Association of Counties

Michelle Gamble, Engineering Intern, Resource Concepts, Inc.

Fred L. Hillerby, Lobbyist, Nevada Association of Health Plans

Alice A. Molasky-Arman, Commissioner, Division of Insurance, Department of Business and Industry

John Berkich, City Manager, Carson City

Dan Shirey, Battalion Chief/Training, Carson City Fire Department

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

 

 

Senator Raggio directed attention to Senate Bill (S.B.) 367.  He noted the committee heard this bill on April 13, 2001.

 

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

 

Senator Valerie Wiener, Clark County Senatorial District No. 3, presented Amendment Number (No.) 648 to the committee.  She explained that the amendment resolves the concerns voiced by the committee and other individuals at the April 13, 2001 meeting.  She noted she had met with Lucille Lusk, Lobbyist, Nevada Concerned Citizens, Janine Hansen, Lobbyist, Nevada Eagle Forum, and Alex Haartz, Deputy Administrator, Health Division, Department of Human Resources, to produce the amendment presented. 

 

Senator Raggio commented Michael J. Willden, Administrator, Welfare Division, Department of Human Resources, had stated at the April 13, 2001, meeting that this was part of the Temporary Assistance for Needy Families (TANF) budget.  He indicated he would accept a motion to amend S.B. 367 as provided in Amendment Number 648 and do pass as amended.

 

SENATOR RAWSON MOVED TO AMEND AND DO PASS AS AMENDED S.B. 367 WITH AMENDMENT NO. 648.

 

SENATOR MATHEWS SECONDED THE MOTION.

 

THE MOTION CARRIED.  (SENATORS COFFIN AND NEAL WERE ABSENT FOR THE VOTE.)

 

*****

 

Senator Raggio opened the hearing on S.B. 160.

 

SENATE BILL 160: Creates position of seed bank coordinator within division of forestry of state department of conservation and natural resources. (BDR 47‑725)

 

Senator Dean A. Rhoads, Northern Nevada Senatorial District, stated this bill provides for a new seed bank coordinator position within the Division of Forestry, Department of Conservation and Natural Resources.  He commented the Nevada Legislature’s Committee on Public Lands, of which he is the Chairman, requested the bill following numerous hearings regarding the 1999 and 2000 fire seasons and the rapid spread of noxious weeds throughout Nevada’s public lands.  He provided a written copy of his statement (Exhibit C). 

 

Senator Rhoads explained the Nevada Legislature’s Committee on Public Lands became aware, at a meeting held last August in Eureka, that the Division of Forestry does not have an employee solely dedicated to handle the operations of the seed bank.  Instead the division utilizes various staff members, as their other responsibilities permit, to assist in the operations of the seed bank, he noted.  He stated the continued spread of tall white top, cheat grass, and other invasive weed species throughout Nevada necessitates a staff person specifically designated for the operations of the seed bank.  He pointed out the state weed plan was recently completed indicating the state seed bank as a primary resource for addressing noxious weeds and invasive species.  He noted the severe fire season anticipated in 2001 further justifies the need for a permanent full-time seed bank coordinator.

 

Senator Rhoads explained S.B. 160 provides for the appointment of a seed bank coordinator as an unclassified position and details the anticipated duties the new staff would perform.  He noted the bill appropriates $76,482 in fiscal year (FY) 2002 and $55,848 in FY 2003 for this position.  He articulated to the committee that there is an unprecedented need for a well-staffed, fully-prepared state seed bank.  He said several severe fire seasons, combined with the encroachment of noxious weeds, is reducing “the resource values of agricultural rangeland, forests, critical watersheds, wetlands, and wildlife habitats.”  He noted this reduction in resource values is accompanied by increasing economic burden for the protection and restoration of the affected land.  He indicated Steve Robinson, State Forester Firewarden, Division of Forestry, Department of Conservation and Natural Resources, is present to respond to any questions the committee might have on this topic.

 

Senator Rhoads commented there are acres of land in Montana, Wyoming and some other western states that have been removed from the tax roll because of unmanageable infestations of noxious weeds.  He cautioned this might happen in Nevada without proactive measures being taken immediately.  He stated the Truckee River and Humboldt River are two excellent examples of areas heavily infested with noxious weeds such as white top and leafy spurge.

 

Senator Raggio questioned whether the seed bank coordinator would be responsible for planting in fire-damaged areas in addition to the control of invasive weeds.

 

Steve Robinson, State Forester Firewarden, Division of Forestry, Department of Conservation and Natural Resources, deferred the question to his colleague Pete Anderson, Deputy State Forester, Division of Forestry, Department of Conservation and Natural Resources.

 

Mr. Anderson stated the coordinator would be responsible for planting.  He said the division has been working to replant numerous shrub communities, which have been lost, resulting in a significant decrease in the number of sage grouse in the state.

 

Senator Raggio inquired about the severity of the noxious weed problem.  Mr. Anderson responded that noxious weeds are a serious problem in Nevada. 

 

Mr. Anderson stated two noxious weeds prevalent in Nevada, in addition to white top, are yellow star thistle and leafy spurge.  He noted yellow star thistle is spreading throughout the Sierra Nevada Mountain Range. 

 

Senator Raggio asked what the process is to control the spread of those weeds. 

 

Mr. Anderson responded that it is very difficult.  He explained that fires cause vegetation disturbances, which allow invasive weeds to take root.  He said it is critical to reseed disturbed areas immediately to avoid the growth of invasive weeds.  He noted invasive weeds are very aggressive and deep-rooted, and they will quickly overtake other native vegetation.  He pointed out that prevention is critical to controlling the spread of the weeds.

 

Robert E. Stewart, Information Specialist, Nevada State Office, Bureau of Land Management (BLM), U.S. Department of the Interior, stated the BLM is taking a neutral position in regard to S.B. 160 because it has not been included in The Executive Budget.  He added that the native seed program is very important.  He said the BLM is providing more than $200,000 to the University of Nevada and the Cooperative Extension Service during the current fiscal year to provide for the development of sources for native seed.  He noted “hundreds of thousands of tons of seed” were dumped onto the public rangelands by the BLM in response to the devastating fires Senator Rhoads mentioned.  He said the seed used was rarely native seed because it is not readily available.  For this reason the BLM would like to encourage efforts at the University of Nevada to develop native seeds, he added.  He stated the BLM would encourage any native seed program that would develop native seed sources and make native seed available for purchase to public and private organizations.

 

Senator Raggio questioned what the BLM does regarding noxious weeds.  Mr. Stewart responded the BLM works closely with the Division of Forestry.  He said past efforts include using inmate work crews to physically extricate the weeds, spraying, and pulverizing.  He noted spraying is not always effective as most weeds are spray-resistant.  He commented that tamarisk, which is an invasive weed that consumes large quantities of water, is pulverized because it is resistant to all other methods of removal.

 

Mr. Stewart pointed out the fire trucks used by the BLM have specially designed wash racks, which are thoroughly cleaned after every dispatch to avoid spreading seed from one location to another.

 

Andrew A. List, Lobbyist, Nevada Association of Counties, stated his support of S.B. 160.  He pointed out the 1987 Legislature passed S.B. 584 of the Sixty-fourth Session, which directed the Nevada Association of Counties to conduct a comprehensive study of programs concerning prevention and suppression of wildfires.  He provided a copy of S.B. 584 of the Sixty-fourth Session (Exhibit D) for the perusal of the committee.  He also provided a three-page excerpt from the 1988 NACO Wildfire Management Report (Exhibit E) that resulted from S.B. 584 of the Sixty-fourth Session.

 

Mr. List discussed the excerpt from the report.  He said the most frequently described problems with rehabilitation programs on the federal level are seed supply, seed cost, and seed quality.  He said the second most frequently described problem is the bureaucratic process to acquire seed purchase contracts.  These problems are stated on the first page of the excerpt of the report that he provided, which is page 95 of the report.  He noted on the next page of the excerpt it is stated “Relative to timely rehabilitation implementation, establishment of a seed bank was ranked as the highest rehabilitation program objective.”  He noted this was the top objective given both existing and theoretical unlimited funding scenarios at the time of the report in 1988.  He urged support of this bill to provide a seed bank coordinator position that has been needed for the past 13 years.

 

Michelle Gamble, Engineering Intern, Resource Concepts, Inc., explained that Resource Concepts, Inc. has been involved in wildfire management and the development of a seed bank in Nevada since 1987 when the Nevada Association of Counties was commissioned to do the wildfire study.  She explained she helped organize the Governor’s Fire Summit on May 31 and June 1 of 2000.  She provided an excerpt, from the report produced from that summit (Exhibit F).  She noted the summit recognized a need to expand the current seed bank to meet post-fire rehabilitation needs in Nevada and to make native seeds available to private land owners on a timely basis at a reduced cost to encourage private participation in the rehabilitation efforts. 

 

Ms. Gamble said it was difficult to get private lands rehabilitated in Nevada after the 1999 wildfire season, despite working with the various federal agencies, local land owners, local government, and state government on various rehabilitation efforts.  She stated she believes the funding of a seed bank coordinator position would help facilitate rehabilitation of private lands.  She commented the coordinator could “get greenbelting put in and prevent noxious weeds on the stream banks” that the state controls.

 

Senator Raggio inquired how Resource Concepts, Inc. is funded.  Ms. Gamble responded it is a private company that responds to the needs of its clients. 

 

Ms. Gamble explained Resource Concepts, Inc., has been involved in numerous projects with Nevada Association of Counties, various county governments, and private landowners.  She said the projects have included rehabilitation plans and resource management plans.  She articulated that the proposed seed bank coordinator would benefit the state a great deal by preserving its natural resources.

 

Senator Raggio directed attention to S.B. 320.  He indicated he would like to allow Fred L. Hillerby, Lobbyist, Nevada Association of Health Plans, to present an amendment (Exhibit G) to S.B. 320, which was previously discussed at a committee meeting.

 

SENATE BILL 320: Requires managed care organizations to establish system for independent review of final adverse determinations concerning allocations of health care resources and services. (BDR 57-676)

 

Mr. Hillerby stated S.B. 320 establishes a process for external review of decisions made by health plans primarily regarding medical necessity.  He explained the external review organizations would have to register and be certified with the Division of Insurance.  He noted another process that was considered would allow the health care providers to submit plans that provided for independent reviews.  He commented that the division was concerned the fees originally included in the bill were insufficient in both cases.  Therefore, he proposed an amendment to Section 6 of the bill that would delete the application fee of $250 and include language allowing fee assessment based on the individual costs associated with issuing and renewing the certificate to perform external reviews.  The language he proposed also provides the authority for the insurance commissioner to conduct examinations of the independent review organizations at the cost of the independent review organizations.  These amendments are all proposed for Section 6 of the bill.

 

Mr. Hillerby proposed amendments (Exhibit G) to Section 24.5 of S.B. 320.  He clarified it is the responsibility of the health plans to guarantee the independence of the review organizations in their contracting.  He pointed out the process that health plans would follow for submittal of a potential review organization to the insurance commissioner for approval is outlined in Section 24.5.  He added that subsection 4 of Section 24.5 would require health plans to submit a one-time $50 fee to file the standards in Section 24.5(1).  He commented that in discussing these amendments with Alice A. Molasky-Arman, Commissioner, Division of Insurance, Department of Business and Industry, they both felt the amendments would eliminate General Fund requirements.

 

Senator Raggio inquired whether the proposed amendments would delete the fiscal note to the bill.  Mr. Hillerby responded affirmatively.

 

Senator Raggio asked Ms. Molasky-Arman to provide comment for the record.  Ms. Molasky-Arman stated the Division of Insurance fully endorses the concept of independent medical reviews of decisions of medical necessity.  She provided a letter (Exhibit H) that explains the necessity for the fiscal note as a consequence of the original bill and the first amendment.  She noted the amendments Mr. Hillerby presented would completely eliminate the need for the fiscal note the division had previously prepared.  She explained the division typically recovers the cost of examinations from the examinee, and the proposed amendments would allow that practice.  Therefore, she said she believes the bill with these amendments would not require any General Funds.

 

Senator Raggio inquired whether she endorses the bill with the amendments.  Ms. Molasky-Arman responded, “We endorse the bill.”

 

Senator Raggio said he believes it is unnecessary to have Senator Ann O’Connell present to address this bill because it appears the areas of concern have been resolved.  Mr. Hillerby stated Senator O’Connell is cognizant of and supportive of their proposed amendments to S.B. 320.

 

Senator Raggio responded the committee could then amend and do pass the bill.

 

SENATOR COFFIN MOVED TO AMEND AND DO PASS AS AMENDED S.B. 320 WITH AMENDMENT NO. 669.

 

SENATOR RAWSON SECONDED THE MOTION.

 

THE MOTION CARRIED.  (SENATOR O’DONNELL WAS ABSENT FOR THE VOTE.)

 

*****

 

Senator Raggio opened the hearing on S.B. 41.

 

SENATE BILL 41: Makes appropriation to Carson City Fire Department for enhancement of Northern Nevada Regional Fire Training Facility. (BDR S‑687)

 

John Berkich, City Manager, Carson City, stated Carson City received a federal grant in 1979 to construct a regional fire training facility.  He noted approximately 16 agencies from 7 different counties for a total of nearly 2,000 students have regularly trained at the facility since its construction.  He commented that Senator Jacobsen sponsored legislation during the 1999 session that appropriated $660,000 to expand and improve the training facility.  He explained that the appropriation from 1999 provided for the construction of an expanded facility and the present funding request is to equip the facility.

 

Senator Raggio inquired the location of the facility.  Mr. Berkich responded the facility is located on Carson City property adjacent to the Carson City Airport.

 

Dan Shirey, Battalion Chief/Training, Carson City Fire Department, commented numerous groups train at the Carson City facility.  He provided a handout with detailed information regarding the proposed improvements and associated costs (Exhibit I).  He said the present request for funding is to renovate some of the existing props at the facility, such as propane gas emergencies and additional props for the hazardous materials training.  He said the asphalt at the site is approximately 24 years old and has never been patched or resurfaced during that time.  Therefore, he proposes to utilize a portion of the requested funds for asphalt overlay.  He noted the increase in terrorist activities throughout the nation warrants an additional focus on heavy rescue capabilities from collapsed buildings. 

 

In order to accomplish the heavy rescue training, Mr. Shirey indicated he would like to renovate the old existing burn building into a collapse void simulator.  He explained that a collapse void simulator involves several floors worth of collapsed structure being placed inside a two-story building and then asking the trainees to descend from the top to the bottom searching for victims.  He stated he has mentioned only a few of the projects the Carson City Fire Department would like to complete.  He said he anticipates approaching the Legislature in the future to request funding for additional projects.

 

Senator Raggio asked how the operation of the facility is funded.  Mr. Shirey responded that Carson City provides basic janitorial services and electricity, but there is also a user fee charged to all organizations training at the facility. 

 

Senator Raggio inquired about the annual revenue generated from user fees.

 

Mr. Shirey responded the department projects user fee revenue of approximately $15,000 a year assuming all the users pay the associated fees.  He explained $5,000 would be used for basic costs such as janitorial and electricity.  He said that would allow about $10,000 to be used for capital improvements each year.

 

Senator Raggio questioned whether there were other uses for this facility.  Mr. Shirey replied that the facility could be used by any emergency service agency within the state.

 

Senator Rawson commented:

 

In two sessions now, we have tried to set up the ability for certain interest money to go from the budget stabilization account to an emergency fund, a disaster fund, and I think it is administered by SERC [State Emergency Response Commission].  It seems to me that it was to replace hazmat [hazardous materials] supplies.  But there is also a component in there for training and equipment, and I’m wondering if you can access that fund at all.

 

Mr. Shirey responded the department is able to access those funds for the Quad-County Hazmat Team, which includes Carson, Douglas, Storey, and Lyon Counties.  He noted other agencies that utilize the facility for hazmat training could access those funds for payment of the user fee.

 

Senator Rawson inquired who owns the facility. 

 

Mr. Berkich replied he believes the facility is owned by Carson City.  He pointed out that Carson City is in the process of creating a regional governing board to oversee the operation and maintenance of the facility.

 

Senator Rawson commented funding is very limited this session, and he would like to discover a source of funds other than a General Fund appropriation.

 

Mr. Shirey responded the Carson City Fire Department has tried to access Nevada SERC funds to no avail.  He noted the funds were not available to the extent needed for the large projects proposed, but the funds could provide certain specific props aimed toward hazmat training.

 

Senator Rawson urged the department to develop another source of funding in light of the current budgetary constraints.  He questioned whether there is any cooperative efforts on behalf of the Carson City Fire Department and “the Fire Academy.” 

 

Mr. Shirey explained the Truckee Meadows Community College Fire Academy utilizes the Carson City training facility on a regular basis for its final skills testing. 

 

Senator Rawson questioned whether Truckee Meadows Community College Fire Academy pays any user fees for the use of the facility.  Mr. Shirey responded that it currently does not.

 

Mr. Shirey explained the gas fire burner in the burn room needs to be installed and 100 percent operational before there will be charges for the use of the facility.  He said he anticipates implementing a fee schedule as of July 1, 2001, and all agencies currently using the facility are aware of the new user fees.

 

Senator Raggio noted the largest portion of the requested appropriation is for the repaving.  He questioned whether the facility could survive another two years without repaving in the hope the budget for the next biennium could better accommodate the appropriation.

 

Mr. Shirey responded the facility can survive without repaving, but it will increase the costs for the paving work two years from now.

 

Senator Coffin commented the Senate recently passed a bill to allow multiple counties with a joint need to raise property taxes up to 5 cents in each county for joint ventures similar to this facility.  He added he was uncertain of whether the Assembly had taken any action on the bill, but it could be a potential means of financing the improvements.  He said he does feel some obligation to the Carson City Fire Department because he believes the Legislature does not pay any property taxes on the legislative buildings, which means the Carson City Fire Department receives no property tax revenue from the legislative buildings.  However, he pointed out, the Legislature would require the services of the Carson City Fire Department in the event of a fire.

 

Mr. Berkich thanked Senator Coffin for acknowledging the service the department provides.  He stated the facility is used by other counties in the region, and he pointed out he is speaking on behalf of Lyon and Douglas Counties also.  He added representatives from those counties were unable to attend the meeting today.

 

Senator Jacobsen commented he is a senior member of the volunteer fire department in Douglas County, and he has been a member for 55 years.  He noted 11 of the 14 fire departments in Douglas County are comprised of volunteers who perform a valuable service without pay or receipt of any other benefit, with the exception of industrial insurance coverage effective for injuries or death occurring at the scene.  He said volunteer fire departments are accustomed to having to “scrounge” for the limited equipment they have. 

 

Senator Jacobsen noted all training exercises are available on a voluntary basis to volunteer firefighters in this area with the exception of a training academy in Emmitsburg, Maryland.  He said the only firefighters who attend training in Emmitsburg are those sent by the county, and funding does not permit many to attend this training.  He noted hazmat and eventually maybe high-level nuclear waste are two areas that volunteers should receive sufficient training in.  He said that ideally the volunteers would provide the labor and the counties would provide the equipment.  He added that the volunteer firefighters built a firehouse in Douglas County.  He commented there are three firefighter-training facilities in Clark County all located within close proximity, but northern Nevada does not have one comparable facility.  He added that Clark County firefighters are paid, unlike the majority of the county firefighters in the northern counties.  He encouraged the committee to provide the necessary equipment to continue the spirit of volunteerism in northern Nevada.

 

Senator Raggio closed the hearing on S.B. 41. 

 

SENATE BILL 230:  Makes various changes relating to juveniles.  (BDR 16-575).

 

Senator Raggio directed attention to S.B. 230 pursuant to a letter from Senator Valerie Wiener indicating the bill could be withdrawn from consideration.

 

SENATOR RAWSON MOVED TO INDEFINITELY POSTPONE S.B. 230.

 

SENATOR MATHEWS SECONDED THE MOTION.

 

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

 

*****

 

SENATE BILL 560:  Makes various changes to provisions relating to employment practices and prevailing wages for public works. (BDR 28-559)

 

Senator Raggio pointed out S.B. 560 was heard at the committee meeting on May 2, 2001.  He directed the committee’s attention to an opinion (Exhibit J) provided by the Legal Division of the Legislative Counsel Bureau (LCB) regarding S.B. 560. 

 

Mr. Ghiggeri read an excerpt from the opinion found on page 3:

 

The literal duty to enforce the provisions of the prevailing wage law of this state is imposed upon the labor commissioner . . . .  However, it is the further opinion of this office that NRS [Nevada Revised Statutes] 338.020, 338.060, and 338.070 require a public body which is a party to a contract for a public work to take certain actions that are inherently related to ensuring that the mechanics and workmen who are employed pursuant to such a contract are paid the applicable prevailing wage.

 

Mr. Ghiggeri stated that the discussion that ensued during the hearing of S.B. 560 was regarding Section 9 of the bill.  He explained testimony indicated there was concern that Section 9 of the bill changed the intent of the statute.  He said he has been told the opinion (Exhibit J) clarifies Section 9 and the duties of public bodies to investigate possible violations.

 

Senator Raggio stated that, after a brief perusal of the opinion, he is uncertain whether it addresses the concerns of the committee.  He said the issue was whether or not S.B. 560 shifted the burden of investigation from the labor commissioner to the public body awarding the contract.  He commented it appears the opinion does not directly answer that question.  He asked staff to provide this opinion, combined with a letter recently received from the labor commissioner on this issue, to the Legal Division of LCB to request another opinion.  He clarified the question is “whether or not changing this law shifts the burden of the initial investigation from the labor commissioner to the public body.”  He pointed out the present language in Section 9 states “a public body shall take cognizance of complaints of violations . . . no sum may be withheld or otherwise forfeited without a full investigation being made by the awarding body.”  He said testimony provided at the hearing on the bill indicated sufficient concern to warrant an opinion directly addressing this concern.

 

Senator Raggio inquired whether there were any other bills that could be processed today.

 

SENATE BILL 8:  Directs Legislative Commission to appoint subcommittee to continue study of long-term care in this state. (BDR S-300)

 

Senator Rawson stated it is probably not worthwhile to duplicate the study provided by S.B. 8 until the Legislature is able to proceed with some of the existing recommendations of the prior study. 

 

Senator Raggio questioned whether Senator Mike McGinness who was the Chairman of the interim study had directed that S.B. 8 be indefinitely postponed.  Senator Rawson responded he was unsure what Senator McGinness’ instructions were for the bill, so he opted to wait on action for the bill.

 

SENATE BILL 66:  Makes appropriation to Division of Museums and History of Department of Museums, Library and Arts for development and construction of state museum in Southern Nevada. (BDR S-973)

 

Senator Rawson stated S.B. 66 provides a $2.5 million appropriation for development and construction of a state museum in southern Nevada.  He said the budgetary constraints would prevent any opportunity to fund this bill, so it makes sense to indefinitely postpone the bill.

 

SENATOR RAWSON MOVED TO INDEFINITELY POSTPONE S.B. 66.

 

SENATOR O’DONNELL SECONDED THE MOTION.

 

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

 

*****

 

SENATE BILL 293:  Makes appropriation to Department of Motor Vehicles and Public Safety to create centralized database for dental records within Central Repository for Nevada Records of Criminal History.  (BDR S-816)

 

Senator Rawson stated S.B. 293 includes a $500,000 appropriation.  He stated he believes it is a worthwhile effort, but the funding is beyond the available budgetary resources this session.

 

SENATOR RAWSON MOVED TO INDEFINITELY POSTPONE S.B. 293.

 

SENATOR O’DONNELL SECONDED THE MOTION.

 

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

 

*****

 

Senator Raggio proceeded with the Senate Committee on Finance Closing List Number 11 (Exhibit K).

 

Gaming Commission - Page GAMING-7 (Volume 2)

Budget Account 101-4067

 

Michael J. Chapman, Program Analyst, Fiscal Analysis Division, Legislative Counsel Bureau, stated this budget was initially discussed for closing on May 2, 2001, but the committee had decided to wait for additional information prior to final closing of the budget.  He indicated he had discussed the new Senior Research Analyst position and the gaming laboratory with the chief administrator of the Gaming Control Board. 

 

E-175 Increase Non-Gaming Business – GAMING-7

 

Mr. Chapman noted there are currently 2 Senior Research Analysts in the Gaming Control Board budget account 101-4061, and the 1 proposed Senior Research Analyst position would be dedicated solely to work with the Gaming Commission.  The 1 new Senior Research Analyst would research policy issues on behalf of the Gaming Commission and would primarily focus on Internet gaming at this point, he added.  He said the new position would evaluate the computer and software technology involved in Internet gaming.

 

Senator Raggio stated it appears the Gaming Commission provided justification for the new position.

 

SENATOR RAWSON MOVED TO CLOSE THE BUDGET AS THE GOVERNOR RECOMMENDED.

 

SENATOR MATHEWS SECONDED THE MOTION.

 

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

 

*****

 

Gov, Office of Consumer Health Assistance - Page ELECTED-13 (Volume 1)

Budget Account 101-1003

 

Bob Atkinson, Program Analyst, Fiscal Analysis Division, Legislative Counsel Bureau, addressed technical adjustments staff recommends to this budget.  He stated the portion of the funding originally received from Industrial Relations that had not been spent was not reverted at the close of FY 2000, so he recommends carrying that balance forward to FY 2002 and decreasing the General Fund transfer accordingly.  He pointed out the budget did not include funding for the Governor’s recommended 9 percent and 4 percent salary increases for all unclassified positions, so the budget has been adjusted to include those increases.

 

Mr. Atkinson discussed closing issues for this budget.  He said he believes there was some confusion when the budget was originally discussed concerning the director because the director was often referred to as the ombudsman.  He clarified there is 1 director and 3 ombudsman positions within this budget account.  He pointed out the ombudsman positions were established at $64,810, yet two of the ombudsman positions were hired at $60,000.  He noted the third ombudsman was hired at $64,810 and is a Supervising Ombudsman/Deputy Director.  He said the agency proposes to maintain the 2 ombudsman positions at $60,000 and increase the Supervising Ombudsman to $70,000.  He provided a table in Exhibit K illustrating the 9 percent and 4 percent increases recommended by the Governor for the 3 ombudsman positions and the 1 Director.

 

ASSEMBLY BILL 559:  Transfers office for hospital patients from department of business and industry to office of the governor.  (BDR 18-1440)

 

Mr. Atkinson stated Assembly Bill (A.B.) 559 was introduced to consolidate this office with the Office for Hospital Patients.  He explained that the Office for Hospital Patients budget account was approved with that consolidation contingent upon passage of A.B. 559.  That bill did not come out of committee, he added.  He commented that the Budget Division has indicated they intend to pursue the consolidation of the two offices.  He pointed out the Assembly Committee on Ways and Mean did not approve the consolidation of the two offices.  He noted the committee should be aware of decision unit E-225, which modifies the consolidation pending its approval.  Decision unit E-225 would change the administrator position of the Office for Hospital Patients into another ombudsman position at the $60,000 pay level and provide for additional travel, operating supplies, printing, and office rent in Las Vegas. 

 

Mr. Atkinson noted the committee should be aware that if the consolidation is not approved, the Budget Division would like to modify the office arrangements in Las Vegas.  He explained that currently, the Governor’s Office of Consumer Health Assistance is operating with 3 people out of a small conference room in the Governor’s Office in the Grant Sawyer State Office Building.

 

Senator Raggio asked Don Hataway, Deputy Director, Budget Division, Department of Administration, whether the Governor continues to support consolidation of the two offices in question.

 

Mr. Hataway responded affirmatively.  He noted the Governor’s Office of Consumer Health Assistance was created during the latter stages of the Employees Insurance Company of Nevada (EICON) privatization bill during the 1999 Legislature.  In fact the Budget Division had about 2 days to create the budget for the newly created office upon notification from the LCB, he added.  He said the Budget Division questioned at that time whether the Office for Hospital Patients did not play a similar role.  He noted the Legislature responded to the Budget Division’s question by stating there was too little time to revisit the issue, and it would be addressed in the future.  He explained that during the fundamental review process the Budget Division compared the services emerging from the Governor’s Office of Consumer Health Assistance to those offered by the Office for Hospital Patients.  He acknowledged there are a few differences.  He said the Budget Division continues to believe the merger of the two offices makes sense to accomplish the common goal of servicing the consumers of the state.

 

Senator Rawson inquired whether Laurie England is the director of the Governor’s Office of Consumer Health Assistance.  Mr. Hataway responded affirmatively.

 

Senator Rawson asked whether the position of administrator for the Office for Hospital Patients is currently filled.

 

Mr. Hataway responded there is currently an administrator for the Office for Hospital Patients, but the budget office recommends changing the administrator to another ombudsman position if the two offices are consolidated.

 

Senator Rawson questioned whether a position could be eliminated with the consolidation.  Mr. Hataway said he is unaware of the qualifications of the incumbent in the administrator position, but the possibility could be explored.

 

Senator Rawson said his goal is not “to fire anybody.”  He questioned whether any cost savings would accompany the proposed consolidation.  Mr. Hataway responded there would be an initial expense for building rent to operate an office in both northern and southern Nevada, but he said he hopes there will be savings in the future.  Mr. Hataway stated the important result is there will be a common address for consumers and other people involved in the health care area to contact.

 

Senator Rawson commented he understands the importance of the common address because legislators receive numerous inquiries from constituents that could be referred to one office for assistance.

 

Senator Raggio indicated he would accept a motion to close the budget as recommended by the Governor including the consolidation and the technical adjustments recommended for the revenue adjustment and unclassified pay increases.

 

SENATOR RAWSON MOVED TO CLOSE THE BUDGET AS THE GOVERNOR RECOMMENDED WITH STAFF ADJUSTMENTS.

 

SENATOR O’DONNELL SECONDED THE MOTION.

 

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

 

*****

 

The meeting was adjourned at 5:13 p.m.

 

 

RESPECTFULLY SUBMITTED:

 

 

 

Jennifer Ruedy

Committee Secretary

 

 

APPROVED BY:

 

 

 

                       

Senator William J. Raggio, Chairman

 

 

DATE: