MINUTES OF THE
SENATE Committee on Finance
Seventy-First Session
June 4, 2001
The Senate Committee on Financewas called to order by Vice Chairman Raymond D. Rawson at 8:32 a.m., on Monday, June 4, 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
Larry L. Peri, Senior Program Analyst
Jennifer Ruedy, Committee Secretary
GUEST LEGISLATORS PRESENT:
Assemblywoman Barbara E. Buckley, Clark County Assembly District Number 8
Assemblywoman Kathryn A. McClain, Clark County Assembly District Number 15
OTHERS PRESENT:
The Honorable Charles M. McGee, Second Judicial District Court
Katy Singlaub, Manager, County Manager’s Office, Washoe County
Michael Capello, Director, Department of Social Services, Washoe County
Michael R. Alastuey, Assistant Manager, Clark County
Charlotte Crawford, Director, Department of Human Resources
Paula Berkley, Lobbyist, Educare, Community Living Corporation
Daniel G. Miles, Vice Chancellor, Finance and Administration, University and Community College System of Nevada
John P. Comeaux, Director, Department of Administration
R. Michael Turnipseed, P.E., Director, State Department of Conservation and Natural Resources
Ame Hellman, State Director, Nature Conservancy
Pamela B. Wilcox, Administrator and State Land Registrar, Division of State Lands, Department of Conservation and Natural Resources
Wayne R. Perock, Administrator, Division of State Parks, Department of Conservation and Natural Resources
Kenneth Rohrs, Administrator, Division of Museums and History, Department of Museums, Library and Arts
Morgan R. Baumgartner, Lobbyist, Nevada Resort Association
F. Alex Ortiz, Lobbyist, Clark County
Al Bellister, Lobbyist, Nevada State Education Association (NSEA)
Tom Stephens, Director, Nevada Department of Transportation
Dr. Jane A. Nichols, Chancellor, University and Community College System of Nevada
The Honorable Gene T. Porter, Eighth Judicial District Court
James J. Spinello, Assistant Director, Administrative Services, Clark County
Robert S. Hadfield, Lobbyist, Nevada Association of Counties (NACO)
Don Hataway, Deputy Director, Budget Division, Department of Administration
May S. Shelton, Lobbyist, Washoe County
Senator Rawson opened the hearing on A.B. 343.
ASSEMBLY BILL 343: Provides for integration of state and local child welfare services. (BDR 11-325)
Assemblywoman Barbara E. Buckley, Clark County Assembly District Number 8, pointed out she was the chairperson of the 1999 to 2000 legislative interim committee, Integration of State and Local Child Welfare System. She stated her remarks would be brief as two members of the Senate Committee on Finance were also part of the interim committee, and she opined all the committee members are well informed regarding A.B. 343. She said she believes Nevada’s child welfare system is “broken.” She noted many dedicated individuals work very hard to help the children in the welfare system, but the system is failing despite their best efforts.
Ms. Buckley stated that recently a new state standard and federal law was enacted “to try to have every child reach permanency, or a loving home, within twelve months.” She noted the interim committee learned that the average stay in foster care is over 3 years. She acknowledged every effort is made to reunite children with their parents, but in the event permanent reunions are not possible, children should not languish in foster care. She said it is important every child finds a loving home as soon as possible to prevent negative consequences throughout the remainder of his or her life.
Ms. Buckley pointed out Nevada’s system is bifurcated. She explained the county has initial responsibility for responding to all abuse and neglect calls. She noted if the claim is substantiated, the child is taken into the custody of the county, at least in Washoe and Clark Counties. She said Clark County allows the child to stay at Child Haven for up to 6 months before transferring the child to the state’s custody. She noted the child might be placed in a temporary home if Child Haven is full or there is another placement. She explained when the case is transferred to the state, the child is moved again because homes under the Washoe and Clark County Systems are not in the state system. The state did not pay enough, she added. She commented the children endure multiple moves, which means they are treated by several therapists.
Ms. Buckley stated both political parties and both legislative “houses” seemed to conclude unanimously at the first hearing the children endure multiple transfers because the current system is not seamless. She noted it has been difficult to determine how to integrate the two systems. She said the interim committee listened to testimony provided by experts from the state, Washoe County, and Clark County before deciding to proceed with a consensus model. She articulated the interim committee believed the integration of the state and county child welfare systems would not be possible without 100 percent agreement from both state and county representatives. She said it was unanimously decided that the best way to serve the children was to move the initial responsibility from the state to the county level because the county is closest to the children. She said the decision was based on the fact the state could not assume responsibility for children immediately upon every call of abuse or neglect, 24 hours a day, 7 days a week.
Ms. Buckley pointed out the committee spent a great deal of time trying to accomplish the transfer. She noted there is a published report of the interim study’s findings on file at the Research Library as Bulletin No. 01-15, Integration of State and Local Child Welfare Systems. She highlighted some of the findings included in the report. She stated every state employee would be guaranteed a job with the county, and county workers would be ensured fairness. She said the interim committee believes they accomplished that with this plan because there is no opposition at the state or county level.
Ms. Buckley pointed out the interim committee’s recommendation to increase the reimbursement rate for foster care has already been approved by the Senate. She said the increase moved Nevada from “the bottom third to the top third” for reimbursement rates paid to foster parents, which is a significant accomplishment. She said the passage of this final measure would mean the Legislature has “done much to serve our children.” She said Larry L. Peri, Senior Program Analyst, Fiscal Analysis Division, Legislative Counsel Bureau, and this committee have worked through a great deal of information regarding the financing logistics. She provided an updated breakdown of the financing (Exhibit C).
Senator Rawson stated permanent funding was not sufficiently addressed by the interim committee, and a number of people expressed concern regarding the source of permanent funding for the child welfare system. He noted the state recognized that schools need local input, and he believes the child welfare system should be treated similarly. He said ultimately the responsibility for the child welfare system will probably shift to the counties, and the state will likely give taxing authority to the counties to provide the funding. He noted the counties would not support the additional responsibility if it involved only a transfer of costs.
Ms. Buckley stated future funding of the child welfare system is a very important issue. She explained she participated in many discussions with representatives from the Office of the Governor, Senator Rawson, the Assembly Committee on Ways and Means, and the relevant joint subcommittees regarding permanent funding. She stated she believes all the involved parties have agreed to transfer to the county the necessary funding to serve these children based upon the previously agreed upon realistic caseload standard. She added the state would also commit to maintenance of efforts. She pointed out counties would be reluctant to commit to new responsibilities without a funding commitment from the state. She noted the state is committed to maintenance of efforts in this proposed legislation.
Ms. Buckley stated she and her colleagues believe that if the counties are able to implement best practices they will not need additional money from the state. She explained:
We can’t, at this point, expect the counties to accept there will be no caseload growth, so what we committed to is, there are absolutely no guarantees of growth money. However, we expect the counties to use best practices, and we expect the best practices will pay for growth. But to the extent that the county doesn’t even have the opportunity to start best practices because the shift doesn’t happen until 2003, then we will negotiate in good faith and include the amounts that they need to continue their work in the next budget.
Ms. Buckley stated that in discussions with the Governor a couple of months ago, the Governor agreed the state cannot expect the counties to assume the additional responsibility without guaranteed funding, but on the other hand, he agreed the counties should assume the existing caseload and growth. She noted it is difficult to determine the growth and the caseload at this point. She discussed the current situation in Clark County. She said Child Haven costs $153 per day per child, and the county currently does not receive any federal reimbursement for Child Haven costs.
Ms. Buckley said the interim committee discussed ways to increase federal reimbursement in the range of $6 million to $7 million by more effectively using Child Haven. She commented that Adrian Cox, Clark County Family and Youth Services Director, presented a proposal in which Clark County would use Child Haven whenever the county required extra time to locate an appropriate foster home for children to avoid separation of siblings or to place a special needs child. She articulated her desire for $6 million or $7 million to be reinvested in the system to accommodate growth and to improve services. She noted the costs of the current system are very high because the bifurcated system results in children remaining in the system for longer periods of time. She said she believes the integrated system will result in savings through efficiencies, but at this time that is speculative. She said the state should negotiate in good faith with the counties at this point and then review this issue again during the interim. She noted that would enable legislators to return to the next Legislature with recommendations that are worked out on a consensus basis and with the benefit of time and experience.
Senator Rawson asked whether the state pays any of the costs for maintaining a child at the Child Haven facility.
Ms. Buckley responded the state is responsible for the $153 per-day rate for any child transferred to the custody of the state while residing at Child Haven. She said the county pays all of the costs for children to stay at Child Haven prior to their transfer into the state’s custody. She pointed out any federal funds that could be used in lieu of the county funds for Child Haven would free county funds already allocated for the child welfare system to be used to benefit the children in other ways.
Senator Rawson asked Ms. Buckley to discuss the phase-in of this program and the effect on the budget.
Ms. Buckley deferred to Mr. Peri to respond to Senator Rawson’s inquiry.
Mr. Peri directed attention to a one-page summary of the costs currently displayed in A.B. 343 (Exhibit C). He noted the format of the summary is similar to what the Senate Committee on Finance and the Assembly Committee on Ways and Means Joint Subcommittee on Human Resources has seen many times during the numerous revisions of this particular bill. He said the two bills associated with the integration of the state and local child welfare systems are A.B. 343 and A.B. 512.
ASSEMBLY BILL 512: Makes appropriation to Department of Human Resources for costs associated with transfer of certain child welfare services to Clark County and Washoe County. (BDR S-1403)
Mr. Peri explained A.B. 512 contained a one-time appropriation related to the integration, but that funding has now been placed into A.B. 343. Therefore, A.B. 343 now has two portions for funding: ongoing and one-time. He reviewed the figures and written statement from Exhibit C.
Senator Neal inquired where the reductions from the funding of A.B. 343 would be used.
Mr. Peri responded the reductions were not allocated to any specific use. He said all General Fund savings are returned to the General Fund.
Senator Neal asked whether those General Fund savings could be used for other purposes. He inquired whether there is “a shift of funding” proposed that would provide a greater financial burden on the counties that assume this additional responsibility.
Senator Rawson responded the savings are not from “a shift of funding.” He said the savings result from a 6-month delay in beginning the integration process and phasing in the change.
Mr. Peri commented there is no shift of funding. He said the state General Fund would continue to provide financial support to the system.
Senator Neal asked whether the programs currently funded by the state would also be funded by the state after transferring the programs and their associated employees to the county.
Mr. Peri responded affirmatively.
Senator Coffin commended Ms. Buckley, the interim committee members, and their staff for a job well done.
Ms. Buckley pointed out the Governor played a significant role in the effort by identifying this issue in his State of the State address. She extended her gratitude to all of the interim committee members for their efforts.
Senator Raggio said if A.B. 343 is processed, the state’s continued funding of the system will need to be specifically addressed in the bill. He noted all those who object to the state continuing funding of the system after integration should make their objections known immediately.
The Honorable Charles M. McGee, Second Judicial District Court, pointed out the Honorable Deborah E. Schumacher, Family Division, Second Judicial District Court, had wished to speak on this bill also, but in the interest of time she returned to her work. He said state and federal initiatives are proposed to reduce the amount of time children languish in foster homes, which nationally averages over 3½ years. He stated most of the parents are “crank” addicts who require about one full year to get off “crank.” He said one agency should provide all the necessary child welfare services to avoid further damage to the natural bond created between parents and their children. He noted Nevada is the only state that still has a bifurcated child welfare system, and he believes the system should be integrated.
Judge McGee stated Washoe County pays three times the rate provided by the state to foster parents, but the overall expenditure per capita is approximately the same because of efficiencies in the Washoe County system. He pointed out the state has a lot of those children in higher-level care and institutions, and Washoe County has specially trained family foster homes that administer similar care at less expense to the county. He said it is impossible to predict future costs with any exactness because the impact of the efficiencies is unknown at this time. He stated it is important to maintain children in their communities to allow programs to include their families. He said Senator Rawson’s suggestion to review the methods utilized by the distributive school account merit further examination. He commented that he is unaware whether the counties would be willing to absorb all future growth in the system, and he believes a “stalemate” currently exists between the counties and the state.
Senator Raggio pointed out A.B. 343 is extremely important and deserves a great deal of attention. However, he added, the bill reached the Senate Committee on Finance on the very last day of the Legislature along with more than one hundred other issues that require attention. He asked the supporters of the bill to understand the time constraints placed on the committee by the late arrival of this bill.
Katy Singlaub, Manager, Washoe County, voiced “whole-hearted support for A.B. 343 in its present form.” She stated Washoe County is committed to base funding and to partnering with the state to look at possible efficiencies. She pointed out Washoe County has done a tremendous job to develop better, less expensive means to serve children in the welfare system.
Senator Raggio pointed out that if the bill were processed in its current form, it would provide for the state to continue funding at the present level. Ms. Singlaub responded that Washoe County is aware of that.
Michael Capello, Director, Department of Social Services, Washoe County, said Washoe County participated in developing the current amendments, which the county supports.
Senator Raggio reminded Mr. Capello there would be one additional amendment to A.B. 343, which has been discussed.
Senator Coffin questioned whether the Budget Division had clearly stated this amendment should be added.
Senator Raggio responded both the Budget Division and testimony from the joint subcommittee hearing indicated anticipation of larger participation on behalf of the state.
Ms. Buckley commented greater participation on behalf of the state has already been included on page 2 of the bill.
Senator Raggio thanked her for pointing that out, and noted increased participation on behalf of the state has been very important to many of the people testifying on this bill. He said the language of the bill may be “tightened up,” but he does not want to impair the bill in any way.
Michael R. Alastuey, Assistant Manager, Clark County, stated his support of the Third Reprint of A.B. 343. He added that Clark County invested “thousands of hours of staff time in developing the level of detail necessary to put the proposed transfer together.” He said he would watch for any further amendments to the bill.
Senator Raggio closed the hearing on A.B. 343. He opened the hearing on S.B. 584.
SENATE BILL 584: Authorizes and provides funding for certain projects of capital improvement. (BDR 28-1576)
Senator Raggio inquired whether there were any further requests or comments regarding S.B. 584 other than what has been discussed previously. There were none. He indicated he would accept a motion to process the bill.
SENATOR RAWSON MOVED TO DO PASS S.B. 584.
SENATOR MATHEWS SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
*****
SENATE BILL 585: Apportions state distributive school account in state general fund for 2001-2003 biennium. (BDR S-1575)
Senator Raggio stated S.B. 585 is dependent on processing of bills that fund this appropriation such as S.B. 577. He indicated he would accept a motion to process the bill based on condition that S.B. 577 passes to provide the necessary funding.
SENATOR RAWSON MOVED TO DO PASS S.B. 585.
SENATOR O’DONNELL SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
*****
SENATE BILL 586: Authorizes expenditures by agencies of state government. (BDR S-1579)
Senator Raggio stated S.B. 586 had been discussed during the committee meeting the previous day.
SENATOR MATHEWS MOVED TO DO PASS S.B. 586.
SENATOR NEAL SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
*****
ASSEMBLY BILL 340: Requires allocation of money from account for low-income housing for model demonstration project to provide assisted living center for senior citizens in Clark County. (BDR S-1143)
Ms. Buckley stated A.B. 340 allocates funds from the low-income housing trust fund to the discretionary portion of the administrator’s funds for low-income housing projects. She explained the bill proposes to take an allocation from the next 2 fiscal years to create a model assisted living project in Clark County. She noted that assisted living is one of the most critical needs of senior citizens. To date, Nevada has not developed many innovative ways to serve senior citizens on fixed incomes that cannot afford the cost of assisted living, she added. She noted Medicaid pays for nursing homes, so those on fixed incomes have their care paid for if they have to go into a nursing home. She pointed out, Medicaid will not pay for assistance for senior citizens who do not want to go into a nursing home because they prefer a home-based setting.
Ms. Buckley articulated the high cost of assisted living. She said the average rate for assisted living is $3,000 to $4,000 per month. She noted many senior citizens who receive less than $1,000 from Social Security each month would be left without options. She said many states are pursuing the idea of non-profit assisted living centers and subsidizing the cost of the facilities to enable individuals to pay on a sliding fee scale. She noted this option would offer individuals on fixed incomes an alternative to being forced into nursing homes. She said, during the interim, U.S. Senator Harry Reid committed to securing a parcel of land for a pilot project from the Bureau of Land Management (BLM), which, if he were successful, would provide free land. She noted he is currently negotiating with the BLM for the land.
Ms. Buckley stated the original bill requested a $6 million appropriation to build the project from the ground up, but because of budgetary constraints the appropriation was eliminated. She said instead the bill has been amended to allow for an allocation from the existing housing trust fund. She added that since the introduction of the bill, Harrah’s learned about the proposal and offered to be a partner with the state in the construction of a model non-profit assisted living center. She noted “Harrah’s” has committed $840,000 toward this project. She said “Harrah’s testified on the Assembly side.”
Senator Raggio inquired whether it was Harrah’s Corporation or another entity that made this financial commitment.
Ms. Buckley responded, “Harrah’s Corporation, Harrah’s Gaming.” She said Harrah’s Corporation decided to dedicate some of its philanthropy funds to senior citizens, and this project appeals to them. She noted she was surprised to receive the phone call from Harrah’s Corporation indicating its intention to make this generous offer. She said she believes Harrah’s Corporation recognizes assisted living is currently in a crisis situation.
Senator Neal commented, “That is in lieu of taxes.”
Ms. Buckley continued there would still be a shortfall despite the potential of receiving free land from the BLM, this money if it is approved by the committee, and the Harrah’s Corporation contribution. She said nonprofit organizations, the Housing Division, and she would appeal to the counties and the private sector to raise the remaining funds necessary.
Senator Raggio questioned which nonprofit organizations have offered to assist in this effort.
Ms. Buckley responded she and her colleagues would do “a request for interest, a selection with the Housing Division or Clark County.” She said it would be an open process to locate an organization with resources and experience that would complement the project.
Senator Raggio questioned whether the model project would actually be a demonstration project. He requested specific information regarding the use of funds and the number of people the housing facility would accommodate.
Ms. Buckley responded the money would all go to the building, “bricks and mortar,” and the project would accommodate 100 people in assisted living. She noted that was the original plan considered for the use of the $6 million.
Senator Raggio inquired whether there were any federal funds available for this project.
Ms. Buckley commented federal funds have not been fully explored at this stage, but she said she believes this project should qualify for federal funding. She explained she would prefer to have a commitment from the state before approaching other entities for financial commitments. She noted many other states are obtaining Medicaid waivers for assisted living, but there is not sufficient time remaining in this Legislature to explore that option at this point. She suggested Medicaid waivers for nonprofit assisted living centers should be explored to assist with the ongoing operation costs.
Senator Raggio closed the hearing on A.B. 340. He opened the hearing on A.B. 513.
ASSEMBLY BILL 513: Makes appropriation to Department of Human Resources for development of long-term strategic plan concerning health care needs of citizens of Nevada. (BDR S-1407)
Charlotte Crawford, Director, Department of Human Resources, stated A.B. 513 provides an $800,000 one-shot appropriation to her department.
Senator Raggio requested further discussion of the bill because this is the first time it has appeared in this committee. He asked Ms. Crawford to explain specifically how the appropriation will “help the people of the State of Nevada.”
Ms. Crawford responded the first part of the bill provides for the development of a long-range strategic plan regarding a continuum of services that would be cost-effective and maximize the use of Medicaid funds for senior citizens. She said the plan would address health care needs while taking into consideration the independence of senior citizens.
Senator Raggio stated he has read the itemization of the appropriation within the bill, but he would like to know how the money would be utilized specifically. He requested clarification of how the reimbursement rates would be set. He pointed out a bill is pending that would establish a rate setting commission, but it is experiencing difficulty. He inquired how providers would be assured of some input during the establishment of reimbursement rates. He commented providers have indicated they feel ignored during the process of establishing reimbursement rates.
Ms. Crawford stated the problem is that there is no “sound methodology for establishing those rates and for increasing those rates.” Therefore, there is an ongoing debate about how to proceed, she added.
Senator Raggio clarified his question. He asked, “At the present time, what does your department do in preparing your budget to accommodate the concerns of the providers, as to the reimbursement rate?”
Ms. Crawford responded that it depends on the specific rate. She commented her department just completed a rate study for long-term care and hospital rates for Medicaid by contracting out the rate study and involving the provider community. She said the same action is being proposed in this bill. She said in many areas rates have evolved over the years without establishing what costs were included and an appropriate means for future adjustment of the rates. She stated this bill proposes to develop an inclusive methodology to establish these rates with the providers, affected individuals, and “the payers.”
Senator Raggio requested that someone step forward to address the issue of reimbursement rates on behalf of the providers. Paula Berkley, Lobbyist, Educare, Community Living Corporation, stepped forward to testify.
Senator Raggio instructed Ms. Berkley to please advise the committee how the concerns of the providers could be accommodated without establishing another commission.
Ms. Berkley stated the providers have historically felt excluded from the decision-making process to establish reimbursement rates. She said there is a quiet period without communication with the providers regarding rates after the budget process begins, which is about 1½ years before the Legislature convenes. Therefore, during the legislative session the providers and the department provide differing views regarding rates because there has been no communication, she added.
Senator Raggio asked Ms. Berkley to make a suggestion.
Ms. Berkley said she believes her suggestion has already been included in the bill, which is to involve providers in the process from the beginning to the end.
Senator Raggio read lines 20 and 21 from page 2 of the First Reprint of A.B. 513, which states the bill provides for “public hearings in a broad range of settings and locations in this state to ensure that it receives information from all interested parties.” He questioned whether that language satisfies Ms. Berkley and Ms. Crawford.
Ms. Berkley and Ms. Crawford both responded affirmatively.
Senator Raggio inquired whether Ms. Berkley believes that language would be sufficient in the event the committee does not process the other bill to create a commission. He asked whether she would like a Letter of Intent from the Legislature to ensure all involved parties receive the message for inclusion.
Ms. Berkley responded she believes the providers would find a Letter of Intent helpful.
Senator Raggio instructed Ms. Berkley and Ms. Crawford to draft a Letter of Intent that would satisfy both of their concerns. He said next session the Legislature would determine whether this approach has been successful and adhered to by the involved parties.
Ms. Berkley and Ms. Crawford agreed to comply with Senator Raggio’s instruction.
Senator Raggio closed the hearing on A.B. 513. He indicated the committee would review four bills that have been amended by the Assembly.
SENATE BILL 137: Increases number of district judges in second and eighth judicial districts. (BDR 1-521)
Senator Raggio directed attention to Assembly Amendment Number 1215 to S.B. 137.
Mr. Ghiggeri stated the amendment combines the provisions of another assembly bill into S.B. 137 by adding the eighth judicial district judges.
Senator Raggio questioned whether staff had verified the amounts included in the amendment for the salaries.
Mr. Ghiggeri responded he had not personally checked the amounts, but he said he assumes the same amounts were used.
Senator Raggio stated under the amendment, the terms of the judges expire January 5, 2009. He pointed out Section 4 of the bill provides the salary for the additional second judicial district judge, which will be effective January 1, 2003.
Senator Neal asked staff to explain the unfunded mandate requested by this amendment.
Mr. Ghiggeri responded he believes the unfunded mandate is the costs the local governments would incur for the support costs of the judges as well as the costs of additional courtrooms.
Senator Raggio explained the state pays the salaries, and the local governments are required to pay for the remaining costs including courtroom facilities and equipment. He noted both Washoe County and Clark County requested the unfunded mandate be included in the bill.
SENATOR COFFIN MOVED TO CONCUR WITH AMENDMENT NUMBER 1215 TO S.B. 137.
SENATOR NEAL SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
*****
Senator Raggio indicated staff should return the amendment.
SENATE BILL 143: Makes appropriations to certain judicial districts for continuation or establishment of programs of treatment for abuse of alcohol or controlled substances. (BDR S-178)
Senator Raggio directed attention to Assembly Amendment Number 1195 to S.B. 143. He noted Assembly Amendment Number 1195 provides a $300,000 appropriation for the drug court in rural districts, but there are no other changes to the bill. He said presently an unfunded drug court exists in the rural districts, and this amendment would provide funding to the existing program.
SENATOR NEAL MOVED TO CONCUR WITH AMENDMENT NUMBER 1195 TO S.B. 143.
SENATOR RAWSON SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
*****
SENATE BILL 491: Makes appropriation to Opportunity Village Foundation for revitalization of thrift stores that are operated by Opportunity Village Foundation. (BDR S-1354)
Senator Raggio stated the bill originally appropriated $250,000 to Opportunity Village Foundation, and Assembly Amendment Number 1190 reduces the appropriation to $200,000 for Opportunity Village Foundation and $50,000 for Washoe Association for Retarded Citizens (WARC). He pointed out Opportunity Village Foundation and WARC are similar associations. He noted the appropriation for WARC is designated for creation of a pilot program to develop supportive employment and reimbursement models to assist clients.
Senator Coffin stated he disagrees with the amendment because he believes it “shortchanges one nonprofit at the expense of another.” He stated there are sufficient funds available to provide the full $250,000 to Opportunity Village Foundation and to provide an appropriation to WARC.
SENATOR RAWSON MOVED TO CONCUR WITH AMENDMENT NUMBER 1190 TO S.B. 491.
SENATOR O’DONNELL SECONDED THE MOTION.
THE MOTION CARRIED. (SENATOR COFFIN VOTED NO.)
*****
Senator Coffin commented WARC would benefit from additional funding also.
SENATE BILL 496: Authorizes issuance of revenue bonds to finance certain buildings at Great Basin College. (BDR S-1226)
Senator Raggio stated Assembly Amendment Number 1212 deletes Section 2 of S.B. 496.
Mr. Ghiggeri explained the amendment deletes the portions of S.B. 496 that pertain to University of Nevada, Reno (UNR), and University of Nevada, Las Vegas (UNLV), because those portions are included in the Capital Improvement Program bill. He pointed out the amendment leaves the revenue bond authority for Great Basin College as was approved by the Senate Committee on Finance.
SENATOR RAWSON MOVED TO CONCUR WITH AMENDMENT NUMBER 1212 TO S.B. 496.
SENATOR MATHEWS SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
*****
Senator Raggio stated the committee would likely receive additional assembly amendments today, which the committee might process during floor meetings or during committee meetings later in the day in the committee room.
Senator Rawson inquired when the committee would hear A.B. 615.
Senator Raggio stated A.B. 615 would be on the next agenda for the committee meeting, which would convene immediately after recess of the floor session. He stated A.B. 615, A.B. 669, and A.B. 424 are among the bills to be heard upon reconvening the Senate Committee on Finance.
ASSEMBLY BILL 615: Requires submission to voters of proposal to issue general obligation bonds to protect, preserve and obtain benefits of property and natural resources of state. (BDR S-1463)
ASSEMBLY BILL 669: Revises provisions governing liquor. (BDR 32-1550)
ASSEMBLY BILL 424: Directs Department of Transportation, Clark County and City of Las Vegas to conduct certain assessments concerning need for abatement of traffic noise. (BDR S-875)
Senator Coffin commented many people have traveled to Carson City to testify on A.B. 615. Senator Raggio stated A.B. 615 would be heard immediately following recess of the floor session.
BILL DRAFT REQUEST S-1583: Makes appropriation to Interim Finance Committee to assist school districts in paying for health insurance for employees. (Later introduced as Senate Bill 587.)
SENATOR RAWSON MOVED TO INTRODUCE BDR S-1583.
SENATOR JACOBSEN SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
*****
ASSEMBLY BILL 378: Makes appropriation to support certain loan program for nursing students and requires development of plan to increase capacity of programs of nursing within the University and Community College System of Nevada. (BDR S-852)
Senator Raggio stated the Senate Committee on Finance voted to amend and do pass A.B. 378 the previous day. He urged the committee to review Senate Amendment Number 1237 to A.B. 378 to ensure it accomplishes what the committee intended.
Mr. Ghiggeri pointed out a slight change in the amendment, which provides the appropriation directly to the Interim Finance Committee (IFC) for distribution to the University and Community College System of Nevada (UCCSN) contingent upon development of regulations to operate the loan program, in lieu of providing the appropriation directly to UCCSN. He explained the Legal Division of the Legislative Counsel Bureau expressed concern the funding should not be provided to UCCSN until the procedures are developed to implement the loan program.
Senator Raggio noted Daniel G. Miles, Vice Chancellor, Finance and Administration, University and Community College System of Nevada, is present, and he believes Mr. Miles is aware of the amendment. Senator Raggio said the amount of the appropriation would be limited to 25 percent of available interest earned on the Trust Fund for Public Health as determined on July 1, 2001, or the sum of $250,000, whichever is less. He asked whether Mr. Miles had perused the amendment.
Mr. Miles responded he did not have a copy of the amendment. Staff provided a copy of the amendment to Mr. Miles.
Senator Raggio added he believes the amendment reflects the conversation from the hearing the previous day regarding A.B. 378.
ASSEMBLY BILL 564: Makes various changes relating to public employees’ benefits program. (BDR 23-1346)
Senator Raggio stated Senate Amendment Number 1228 to A.B. 564 resolves a conflict with S.B. 298. He said the amendment also provides the following clarifying language: “The rates set forth in the contract are based on the commingled claims experience of active and retired state officers and employees and their dependents.”
Senator Coffin stated his support for the amendment and inquired about the vacant executive officer position for the Board of the Public Employees’ Benefits Program. He asked whether John P. Comeaux, Director, Department of Administration, could comment whether the position had been filled.
Mr. Comeaux indicated he believes the position presently remains vacant.
Senator Coffin said he is concerned about the potential consequences of mismanagement or lack of attention to the Public Employees’ Benefits Program.
ASSEMBLY BILL 515: Makes appropriation to Department of Human Resources for assistance in operation of HIV/AIDS clinics in Reno and Las Vegas. (BDR S‑1411)
Senator Raggio stated A.B. 515 was heard by the committee on June 3, 2001. He indicated he would accept a motion to process the First Reprint of A.B. 515, if there were no objection from the committee.
SENATOR RAWSON MOVED TO DO PASS A.B. 515.
SENATOR O’DONNELL SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
*****
Senator Raggio explained most of the bills containing appropriations not included in the budget have not been processed yet because it is uncertain, at this point, whether any funding will be available.
SENATE BILL 476: Makes appropriation to Department of Motor Vehicles and Public Safety for wiring and modular furniture for Las Vegas Highway Patrol facility. (BDR S-1416)
Senator Raggio said testimony heard by the committee on April 4, 2001, indicated the appropriation in S.B. 476 was needed this biennium.
SENATOR NEAL MOVED TO DO PASS S.B. 476.
SENATOR JACOBSEN SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
*****
ASSEMBLY BILL 513: Makes appropriation to Department of Human Resources for development of long-term strategic plan concerning health care needs of citizens of Nevada. (BDR S-1407)
Senator Raggio suggested A.B. 513 be processed with a Letter of Intent, which the committee has requested to be drafted, that would indicate a procedure for input from providers affected by the reimbursement rates.
SENATOR NEAL MOVED TO DO PASS A.B. 513 INCLUDING A LETTER OF INTENT PROVIDING A PROCEDURE FOR INPUT FROM PROVIDERS AFFECTED BY THE REIMBURSEMENT RATES.
SENATOR O’DONNELL SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
*****
ASSEMBLY BILL 378: Makes appropriation to support certain loan program for nursing students and requires development of plan to increase capacity of programs of nursing within the University and Community College System of Nevada. (BDR S-852)
Senator Raggio inquired whether Mr. Miles had any objections to Senate Amendment Number 1237 to A.B. 378. Mr. Miles indicated he had no objections.
Senator Raggio stated A.B. 378 would be processed with the amendment. He recessed the meeting at 9:37 a.m. to be reconvened immediately following the floor session.
Senator Raggio reconvened the meeting at 2:35 p.m.
ASSEMBLY BILL 615: Requires submission to voters of proposal to issue general obligation bonds to protect, preserve and obtain benefits of property and natural resources of state. (BDR S-1463)
R. Michael Turnipseed, P.E., Director, State Department of Conservation and Natural Resources, stated A.B. 615 is similar to legislation approved during the 1989 Legislature, which became known as Question 5. He explained Question 5 was a $47.2 million parks and wildlife bond issue. He said A.B. 615, if approved, would similarly go before the voters in 2002 for a $200 million bond issue to be divided between local government and state government. He noted the Division of State Parks and the Division of Wildlife primarily would use the funds provided to the state.
Mr. Turnipseed directed attention to the funding allocations breakdown included in his handout (Exhibit D). He noted $27 million would be distributed to the Division of State Parks, which would be entirely matched by federal land and water conservation funds. He said $27.5 million would be distributed to the Division of Wildlife, which would be partially matched depending on the new rules in the land and water conservation fund. He stated the remaining funds would be allocated in the following amounts: $25 million to Clark County for the Las Vegas Springs Preserve; $10 million to Clark County for the “Las Vegas Wash;” $35 million for the Department of Museums to move the State Museum of Southern Nevada to the Las Vegas Springs Preserve; $10 million to Washoe County for the Truckee River Corridor; and $65.5 million to Department of Conservation and Natural Resources for distribution to local governments for a myriad of purposes including open space planning and acquisition, habitat conservation plans, and urban parks. He added the department would allocate $5 million to nonprofit organizations to perform open space planning for local governments.
Mr. Turnipseed introduced the two major architects of the bill, Ame Hellman, State Director, Nature Conservancy, and Pamela B. Wilcox, Administrator, Division of State Lands, State Land Use Planning Advisory Council Executive Council, Department of Conservation and Natural Resources.
Ms. Hellman stated this bill represents a culmination of nearly 2 years worth of work by a broad-based statewide coalition. She stated the coalition includes the numerous state agencies, the Department of Museums, Library, and Arts, the Las Vegas Water District, the Las Vegas Springs Preserve, the Nature Conservancy, the Nevada Land Conservancy, and the parks and recreation departments of many local governments, specifically Clark County, Washoe County, Douglas County and Carson City. She commented the coalition addressed a broad range of interests.
Ms. Hellman noted, as Mr. Turnipseed had mentioned, that Question 5 generated almost $50 million for the state in 1990, but those funds have been completely expended. She said opportunities to match local state monies with land, water, and conservation fund monies are lost every day. She added the coalition has have increased efforts to leverage private funds as funding sources become more competitive. She commented almost 50 percent of the funds that would be awarded would need to be leveraged by private sources if both the Legislature and the voters approve this measure. She stated the coalition was sensitive to the financial limitation of the rural communities and provided that counties with populations under 100,000 would be required to leverage funds by 25 percent, and counties with populations over 100,000 would need to leverage funds by 50 percent. She stated Nevada is the fastest growing state in the nation, and this bill is a landmark environmental measure to protect the state’s natural resources.
Ms. Wilcox pointed out A.B. 615 would cause the total ad valorem tax levy for all public purposes to exceed the limit of $3.64 as established by NRS 361.453, so the decision to pay for this measure is entirely up to the voters. She referred the committee to Section 6 of the bill for clarification. She commented that John O. Swendseid, bond counsel is present to respond to the committee’s questions.
Senator Rawson disclosed he is a member of the Board of Directors of the Las Vegas Springs Preserve.
Senator Raggio stated the bill has been changed from its original form. He said he believes if the Legislature authorizes $200 million, it should be for statewide purposes. He pointed out A.B. 615 was introduced on March 26, 2001, and it just arrived at the Senate Finance Committee today, the last day of the session. He requested detailed information regarding the use of the funds.
Wayne R. Perock, Administrator, Division of State Parks, Department of Conservation and Natural Resources, provided a position statement regarding A.B. 615 (Exhibit E). He stated the position statement includes a detailed breakdown of the proposed projects to be funded by the bonds. He indicated his willingness to respond to any questions. He commented that Ms. Hellman had mentioned the Land and Water Conservation Fund. He noted the President’s budget for 2002 is currently before Congress, but it proposes full funding for the state side of the Land and Water Conservation Fund. He said Nevada would receive about $6.9 million of the $450 million allocation to the states. He commented that if the Land and Water Conservation Fund were continually funded at that rate, Nevada could receive approximately $70 million over the next 10 years.
Mr. Perock pointed out it is very important for the state to be able to leverage those funds. He said many of the programs listed in the bill would be eligible for Land and Water Conservation Fund dollars on a 50 percent match basis. He noted this bond initiative would be essential in generating a significant portion of the required 50 percent match for both state agencies and the political subdivisions if the voters approve the measure. He added there are many federal and private grants that could be leveraged through this bond initiative in addition to the Land and Water Conservation Fund.
Senator Raggio inquired how the $27.5 million designated for the Division of Wildlife would be used. He questioned whether the “decrepit conditions of hatcheries throughout the state” would be addressed with any of those funds.
Mr. Turnipseed responded there is a separate bill directed toward the hatchery refurbishment program that would be bonded and repaid by an increase in the trout stamp.
Senator Raggio commented he is aware of that approach, but it did not raise a significant amount of money in consideration of the total cost to repair the hatcheries. He inquired whether a portion of the $27.5 million designated for the Division of Wildlife in A.B. 615 could be used to repair the hatcheries.
Mr. Turnipseed responded a portion of the funds would be used in the third year for “hatchery renovation, to purchase water rights and minimum pools.” He said the funds would also be used for ranch conservation easements and purchases yet to be determined. He said the use of the proposed funds would be similar to the past use of the Question 5 funds, which included the purchase of water rights for the Carson Lake Pasture and the purchase of the 3C Ranch in White Pine County for the recent creation of a new wildlife area.
Senator Raggio asked how much money, under the bonding, would be allocated to the Las Vegas Springs Preserve and Clark County combined.
Mr. Turnipseed responded, “$25 million.”
Senator Raggio inquired about the purpose of the $35 million allocated to the Department of Museums, Library and Arts.
Mr. Turnipseed stated the $35 million would be used to move the State Museum of Southern Nevada to the Las Vegas Springs Preserve.
Senator Raggio stated, therefore, a total of $60 million is allocated for the Las Vegas Springs Preserve. Mr. Turnipseed agreed.
Senator Raggio requested additional explanation of the $65.5 million allocated to the Department of Conservation and Natural Resources to be administered by the Division of State Lands.
Mr. Turnipseed responded that the $65.5 million allocation would be distributed by the department to the local governments.
Senator Raggio questioned whether the entire $65.5 million is intended for use by local governments. Mr. Turnipseed responded affirmatively.
Senator Raggio asked what happened to the $7 million allocation for regional parks in Washoe County that was included in the original bill.
Mr. Turnipseed stated the allocation has been increased to $10 million and specifically designated to restore and enhance the Truckee River Corridor.
Senator Raggio inquired who had advocated those changes. Mr. Turnipseed responded Washoe County had advocated the changes.
Ms. Hellman stated the original version of the bill was criticized for “being lopsided.” She explained the original version identified specific projects in southern Nevada but not in northern Nevada. Therefore, she said, the coalition tried to identify specific projects that would benefit the individual counties. She noted Washoe County recently passed the Washoe County Parks bond. She commented this bill focuses on the Truckee River Corridor, and will eventually include some trail restoration and augmentation of the Washoe County Parks bond money. She noted in Douglas County, Churchill County, Lyon County, and Carson City the focus is to protect the Carson River Corridor and the flood plain associated with the Carson River. She explained the First Reprint of A.B. 615 provides more specific details regarding the use of funds than the original version of the bill had provided.
Senator Raggio asked whether any match is required for the establishment of the museum at the Las Vegas Springs Preserve.
Ms. Hellman responded she believes a match is required for the allocation to the Las Vegas Springs Preserve but not for the allocation to the museum. She deferred the question to Kenneth Rohrs, Administrator, Division of Museums and History, Department of Museums, Library and Arts.
Mr. Rohrs stated the inclusion of the museum in the project at the Las Vegas Springs Preserve was partially based on the findings of past studies regarding the location of the museum. He said it is a beautiful setting and very difficult to access. He stated many people believe the museum should improve accessibility by schools and the general public to increase the number of visitors. He added that the move to the Las Vegas Springs Preserve would allow the museum to focus on the history, pre-history, and natural history of southern Nevada more extensively than it has done in the past.
Senator Raggio stated $35 million is a substantial amount to establish the museum at the Las Vegas Springs Preserve and he questioned how the figure was derived.
Mr. Rohrs responded the figure was based upon the square footage and the estimate from the State Public Works Board pertaining to the cost of building a new museum.
Senator Rawson explained the Las Vegas Springs Preserve is a very large project that has numerous phases. He commented that in all likelihood the match will ultimately be closer to five or six to one because this project will require hundreds of millions of dollars. He said, community-wide, a great deal of the necessary funds have already been committed and received, so an existing match is there. He said many people felt the requirement of an additional match for the museum would complicate the matter unnecessarily.
Senator Raggio questioned why a 50 percent match is required for the Truckee River Corridor allocation.
Ms. Hellman responded the match requirement is incorporated to try to encourage local governments to take the same course of action Washoe County has taken regarding pursuing local stable funding sources for conservation. In addition, she noted, the match is intended to encourage nonprofit organizations such as The Nature Conservancy or The Nevada Land Conservancy to work with local governments to identify private sources of funding. For example, in Douglas County a private individual recently donated over $2.5 million to acquire a ranch in the Carson Valley and also donated the easements, she added.
Ms. Hellman stated there is a great deal of potential to leverage the existing state funds with private funds. She noted the Las Vegas Springs Preserve project is an excellent example because it has generated a lot of private funding.
Senator Rawson commented the intent of A.B. 615 is to stimulate additional funding from other sources, not to impede it.
Senator Raggio closed the hearing on A.B. 615 and opened the hearing on A.B. 669.
ASSEMBLY BILL 669: Revises provisions governing liquor. (BDR 32-1550)
Morgan R. Baumgartner, Lobbyist, Nevada Resort Association, stated A.B. 669 would allow non-restricted gaming license holders, who are affiliated entities, to transfer liquor only, not beer, from one casino property to a sister casino property. She said, according to the bill, the casinos may only transfer within the same marketing area as the wholesaler from whom they purchased the liquor, and all transfers and previous purchases must be in compliance with stated laws in Chapter 369 of Nevada Revised Statutes (NRS). She said the bill also provides authorization for the Department of Taxation to fine non-restricted gaming license holders $1,000 each if they are found to be in violation of any provisions of this act.
Senator Raggio commented it appears this bill was directed to the Senate Committee on Finance because it originally contained an appropriation, but the appropriation has been eliminated in its current form.
Ms. Baumgartner responded the Assembly Committee on Ways and Means amended the bill by eliminating the provisions that would require the Department of Taxation to enforce all the provisions of Chapter 369 of the NRS, thereby eliminating the need for the appropriation.
Senator Raggio questioned whether anyone had any objections to A.B. 669. There was no indication of objection from the people present at the meeting.
Senator Raggio closed the hearing on A.B. 669 and opened the hearing on A.B. 424.
ASSEMBLY BILL 424: Directs Department of Transportation, Clark County and City of Las Vegas to conduct certain assessments concerning need for abatement of traffic noise. (BDR S-875)
Senator Raggio questioned why A.B. 424 is arriving at the Senate Committee on Finance on the last day of session after being introduced in the Assembly on March 19, 2001.
Assemblywoman Kathryn A. McClain, Clark County Assembly District Number 15, explained the original bill had a fiscal note of approximately $20 million. She said the Assembly Committee on Transportation reduced the fiscal note to $400,000. She noted the Second Reprint of A.B. 424 is a request for a study of the abatement of traffic noise in Clark County. She stated limited sound walls on the east side of Clark County on U.S. Interstate No. 515 have been constructed, but noise levels in excess of 77 decibels remain in many of the areas. She said this study would determine where sound walls are needed.
Senator Raggio asked whether any members of the Nevada Department of Transportation (NDOT) were present to comment on the bill. He explained this bill would mandate NDOT conduct a study both in the county and the city.
Ms. McClain stated no member of NDOT is present to testify on the bill, and she commented that NDOT’s testimony before the Assembly Committee on Transportation indicated its objection to the cost of the study.
Senator Raggio commented the study would obviously cost something. He asked Ms. McClain to communicate NDOT’s testimony regarding the cost to the best of her recollection. Ms. McClain responded, “As I recall, there was no major opposition against it.”
Senator Raggio asked, “Was there any opposition?” Ms. McClain replied, “Only the money part.”
Senator Raggio commented the Second Reprint of A.B. 424 still mandates the study; therefore, he would like to be better informed of any opposition NDOT may have. He pointed out the bill also mandates that local governments cooperate in conducting the study. He asked whether the bill constitutes an unfunded mandate to the city and the county.
Ms. McClain indicated a representative from Clark County is present to respond to Senator Raggio’s question.
Senator Raggio inquired whether the representative would discuss any concerns regarding this matter.
F. Alex Ortiz, Lobbyist, Clark County, stated Clark County is willing to work with NDOT to create a sound wall plan.
Senator Raggio asked whether Clark County is willing to assume all costs of this study.
Mr. Ortiz responded he is unable to comment whether Clark County would be willing to assume the costs of the study, but it is willing to “work with NDOT.”
Senator Raggio instructed Mr. Ortiz to telephone NDOT and the City of Las Vegas to determine whether Clark County, the City of Las Vegas, and NDOT have any concerns regarding the costs of this study because this is an unfunded mandate.
Mr. Ortiz responded he would do as Senator Raggio had instructed.
Senator Raggio stated he did not want to approve an unfunded mandate without the approval of all parties involved. He asked Ms. McClain to assist Mr. Ortiz in contacting the appropriate representatives of all involved parties.
Ms. McClain agreed to do so.
Senator Raggio directed attention to S.B. 587.
SENATE BILL 587: Makes appropriation to Interim Finance Committee to assist school districts in paying for health insurance for employees. (BDR S-1583)
Senator Raggio stated S.B. 587 provides a $13 million appropriation to assist school districts for unexpected expenses related to providing health insurance for their employees during the 2001 to 2003 biennium. He noted this is a one-time appropriation. He said the Fiscal Analysis Division of the Legislative Counsel Bureau and the Budget Division will review all requests to the Interim Finance Committee to access the appropriated funds. He said the State Board of Examiners shall adopt policies, procedures, and criteria for the review of requests for allocations relating to unexpected expenses for health insurance. He asked whether all interested parties had read the measure and agreed with the content.
Senator Raggio noted that representatives from Clark County School District, Washoe County School District, and the Nevada State Teachers’ Association nodded their heads in agreement, as did Don Hataway and John P. Comeaux of the Budget Division.
Al Bellister, Lobbyist, Nevada State Education Association (NSEA), stated his association’s appreciation of the $13 million appropriation for this purpose. He said he would like to see “intent” addressed during the committee’s deliberations regarding an equitable distribution of the fund to allow all school districts a share of the funds. He stated he believes all the school districts are in a similar situation of having unexpected expenses related to health insurance because of “tremendous rate increases.”
Senator Raggio directed Mr. Bellister’s attention to Section 2 of the bill, which states the State Board of Examiners shall adopt the criteria for the review of requests for allocations. He said one would imagine the needs for this type of assistance are similar throughout the state, and the State Board of Examiners would duly consider all requests.
Mr. Bellister commented his association had hoped there would be a distribution formula within the bill, but it appears to be more like “a competitive grant process.”
Senator Raggio responded this is a one-time appropriation that should be available to all of the school districts even though they may not all need the assistance. He said the appropriation is intended to meet a critical need if it occurs.
Mr. Bellister noted that time is of the essence in this matter because school districts are currently in the process of negotiating their rate increases for the upcoming school year. He said he would like to see an expression of intent that this measure would take effect as quickly as possible.
Senator Raggio commented he believes the State Board of Examiners is aware of the urgency of this matter. He noted John P. Comeaux, who is also a member of the State Board of Examiners, is present.
SENATOR RAWSON MOVED TO DO PASS S.B. 587.
SENATOR JACOBSEN SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
*****
SENATE BILL 588: Makes appropriation to Interim Finance Committee to provide assistance to certain educational programs. (BDR S-1582)
Senator Raggio stated S.B. 588 is part of a plan developed in the event new funding becomes available. He said this bill provides $5 million for allocations to existing educational programs that are at risk of termination because of a lack of funding. He noted the State Board of Examiners would adopt policies, procedures and criteria for the review of allocation requests. He added upon approval of the policies, procedures and criteria by the State Board of Examiners, the Interim Finance Committee must then approve them before transmitting a copy of them to the Department of Education. He stated that, if any administrator at any school believes an existing educational program is at risk of termination because of a lack of funding, then the school district, through its administrator, would submit a request for an allocation.
Senator Raggio indicated S.B. 588 is just part of a new plan providing additional funding for education. He asked all interested parties attending the meeting whether any of them anticipated terminating any educational programs because of a lack of funding before the next Legislature convenes in 2 years. He commented legislators have been very responsive, despite the budgetary limitations, to the needs of the educational system, and they do not want to hear commentary from the press indicating the contrary.
There were no objections or comments from any member of the audience regarding Senator Raggio’s remarks.
SENATOR COFFIN MOVED TO DO PASS S.B. 588.
SENATOR RAWSON SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
*****
ASSEMBLY BILL 424: Directs Department of Transportation, Clark County and City of Las Vegas to conduct certain assessments concerning need for abatement of traffic noise. (BDR S-875)
Senator Raggio asked Tom Stephens, Director, Nevada Department of Transportation (NDOT), to comment on the unfunded mandate provided by A.B. 424.
Mr. Stephens stated he believes the study for traffic noise abatement along U.S. Highway 515 between Henderson and Las Vegas would require modest funding because much of the study has already been completed.
Senator Raggio questioned whether Mr. Stephens supports A.B. 424 in its current form. Mr. Stephens responded he does not object to the bill in its current form, and he believes NDOT would be able to accomplish the study within its existing means.
Senator Raggio thanked Mr. Stephens for responding to his questions in person.
SENATOR COFFIN MOVED TO DO PASS A.B. 424.
SENATOR O’DONNELL SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
*****
Senator Raggio directed attention to A.B. 669.
ASSEMBLY BILL 669: Revises provisions governing liquor. (BDR 32-1550)
SENATOR RAWSON MOVED TO DO PASS A.B. 669.
SENATOR O’DONNELL SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
*****
ASSEMBLY BILL 615: Requires submission to voters of proposal to issue general obligation bonds to protect, preserve and obtain benefits of property and natural resources of state. (BDR S-1463)
Senator Raggio indicated A.B. 615 would be held until the committee reconvenes later in the day to allow further review of the proposed allocations and any changes made between the first and second readings of the bill.
ASSEMBLY BILL 613: Requires transfers of money from fund for school improvement to provide scholarships for students pursuing degrees in teaching. (BDR S-434)
Daniel G. Miles, Vice Chancellor, Finance and Administration, University and Community College System of Nevada (UCCSN), stated the amounts for teacher scholarships were changed when the Assembly amended the bill. He explained UCCSN requested $230,680 for FY 2002, which was later reduced to $180,000. He stated the reduction was appropriate because Nevada State College, which would receive scholarships under this bill, would not be operating during the first year. He pointed out UCCSN also requested $230,680 for FY 2003, but the amount was reduced to $205,000. He said the effective date for Section 12 of the First Reprint of the bill is now July 1, 2001, but it was originally to become effective upon passage and approval because it contains a supplemental appropriation for the current fiscal year. Therefore, he questioned whether Section 12 of the bill should have the effective date changed back to “upon passage and approval” or to another date prior to July 1, 2001.
Senator Raggio stated he would like to postpone action on A.B. 613 until later in the day to allow further review by the committee and staff.
Senator Coffin inquired whether the amendment to A.B. 343 has been received. Senator Raggio responded the amendment has been requested, but it has not been received at this point.
Senator Raggio, Senator Rawson, Mr. Ghiggeri, and Mr. Hataway briefly discussed whether any other bills were ready to be processed at this time.
ASSEMBLY BILL 122: Revises provisions relating to payment for sick leave of state employees. (BDR 23-691)
Senator Raggio directed attention to the Second Reprint of A.B. 122, which the committee heard on May 29, 2001.
SENATOR RAWSON MOVED TO DO PASS A.B. 122.
SENATOR O’DONNELL SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
*****
Senator Neal requested further discussion of Section 1 of the Second Reprint of A.B. 122.
Senator Raggio stated Section 1 is from A.B. 386. He explained that the proponents of A.B. 386 support utilizing A.B. 122 as a vehicle to accomplish their purpose.
ASSEMBLY BILL 386: Makes various changes concerning public employees. (BDR 23-621)
SENATE BILL 388: Requires establishment of program to distribute donated books to certain pupils enrolled in preschool programs and elementary schools. (BDR 34-1100)
Senator Raggio stated the committee heard S.B. 388 on May 4, 2001. He said Senator Jon C. Porter, Sr., Clark County Senatorial District Number 1, proposed amending the bill to eliminate the appropriation from the General Fund and to provide $60,000 from the Forfeiture Account fund instead, which was established pursuant to NRS 179.1187.
Senator Raggio indicated he would accept a motion to amend S.B. 388 as suggested by Senator Porter and to process the bill as amended.
SENATOR O’DONNELL MOVED TO AMEND S.B. 388 TO REPLACE ALL GENERAL FUNDS WITH FORFEITURE ACCOUNT FUNDS AND TO DO PASS AS AMENDED.
SENATOR MATHEWS SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
*****
ASSEMBLY BILL 26: Requires legislative auditor to conduct audit of University and Community College System of Nevada and Board of Regents of University of Nevada. (BDR S-370)
Senator Raggio indicated A.B. 26 was heard by the committee on May 26, 2001. He stated representatives from UCCSN requested the phrase “without limitation,” be deleted from the language of the bill addressing the scope of the proposed audit. He asked Dr. Jane A. Nichols, Chancellor, University and Community College System of Nevada, whether the amendment currently under consideration sufficiently addresses her concerns.
Dr. Nichols responded the amendment is sufficient. She added she would prefer that UCCSN not be financially responsible for the cost of the audit, but the current amendment is sufficient.
SENATOR O’DONNELL MOVED TO AMEND A.B. 26 AS INDICATED IN SENATE AMENDMENT NUMBER 1283 AND TO DO PASS AS AMENDED.
SENATOR JACOBSEN SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
*****
ASSEMBLY BILL 613: Requires transfers of money from fund for school improvement to provide scholarships for students pursuing degrees in teaching. (BDR S-434)
Senator Raggio indicated A.B. 613 was heard by the committee on May 30, 2001. He said the first eleven sections of the bill were added, and they are associated with a loan proposal that requires General Funds. He noted sufficient General Funds are not available for those sections. He pointed out Mr. Hataway indicated Section 12 needs to be processed to facilitate the transfer of funds from the fund for school improvement to UCCSN for certain scholarships.
Mr. Ghiggeri stated Senate Amendment Number 1271 deletes Sections 1 to 11 and renumbers Sections 12 to 14 as Sections 1 to 3. He added a representative from UCCSN requested that line 20 on page 6 of the First Reprint of A.B. 613 be amended to provide $230,680, as originally requested, instead of $205,000. He noted the UCCSN representative also requested the effective date of Section 12 of the First Reprint of A.B. 613 be amended to become effective “upon passage and approval.”
Senator Raggio stated he would accept a motion to amend the bill as indicated in Senate Amendment Number 1271, if there are no objections.
SENATOR O’DONNELL MOVED TO AMEND A.B. 613 AS INDICATED IN SENATE AMENDMENT NUMBER 1271 AND TO DO PASS AS AMENDED.
SENATOR JACOBSEN SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
*****
ASSEMBLY BILL 615: Requires submission to voters of proposal to issue general obligation bonds to protect, preserve and obtain benefits of property and natural resources of state. (BDR S-1463)
Senator Coffin stated the committee received a breakdown of funds for A.B. 615.
Senator Raggio responded the committee has not had sufficient time to review the breakdown. He recessed the meeting 3:34 p.m. to be reconvened at the call of the Chairman.
Senator Raggio reconvened the meeting at 9:24 p.m.
ASSEMBLY BILL 673: Increases salaries of certain public employees. (BDR S‑1580)
Senator Raggio stated A.B. 673 provides the maximum salaries for some classified state employees in addition to the unclassified employees. He asked all of the members to thoroughly review the bill.
Mr. Ghiggeri pointed out line 36 on page 9 of A.B. 673, which contains the following text: “Deputy Supervisory Staff Attorney for the Supreme Court” should be followed by the word “each.” He suggested a “starred copy” should be processed to reflect this one change.
Senator Raggio asked staff whether the “back language” contained any changes.
Mr. Ghiggeri stated the “back language” begins in Section 18 on page 16 with the language concerning the projection amounts that would “trigger” a salary increase from the General Fund to the state distributive school account.
Senator Raggio stated the “trigger mechanism” for a cost of living adjustment (COLA) of up to 2 percent for school district personnel is in Section 18 of A.B. 673. He noted that if the combined projection by the State Board of Examiners of the General Fund and the state distributive school account were between $154 million and $194 million, it would effect a salary increase of approximately 1 percent from the General Fund to the state distributive school account.
Mr. Ghiggeri stated a 1 percent increase would be $17,330,920.
SENATOR COFFIN MOVED TO DO PASS THE STARRED COPY OF A.B. 673.
SENATOR RAWSON SECONDED THE MOTION.
THE MOTION CARRIED. (SENATOR NEAL WAS ABSENT FOR THE VOTE.)
*****
ASSEMBLY BILL 615: Requires submission to voters of proposal to issue general obligation bonds to protect, preserve and obtain benefits of property and natural resources of state. (BDR S-1463)
Senator Raggio directed attention to A.B. 615.
SENATOR RAWSON MOVED TO DO PASS A.B. 615.
SENATOR COFFIN SECONDED THE MOTION.
THE MOTION CARRIED. (SENATOR NEAL WAS ABSENT FOR THE VOTE.)
*****
Senator O’Donnell commented the $200 million in A.B. 615 “is a lot of money.”
Senator Raggio noted the bill provides the authority to issue the bonds either all at the same time or “from time to time.”
ASSEMBLY BILL 606: Makes various changes regarding compensation of certain public officers. (BDR 1-1435)
Senator Raggio pointed out that A.B. 606 was introduced in the Assembly on March 26, 2001, and has just now been received by this committee. He requested a summary of the bill.
The Honorable Gene T. Porter, Eighth Judicial District Court, provided a brief overview of the Second Reprint of A.B. 606. He stated the bill contains 14 recommendations from the Governor’s Salary Compensation Task Force, which was submitted to the Legislature on January 12, 2001. He said salaries for district court judges, Supreme Court justices, state legislators, and elected county officials are included in the bill. He said the bill also addresses pay equity, which was adopted earlier in S.B. 184. He pointed out Section 10 provides that legislative compensation would be increased from $130 per day to $175 per day pursuant to the Governor’s recommendation. He commented there is a provision that allows rural counties or other counties that are unable to afford the increased salaries for the elected county officials to “opt out.” He said he is not particularly familiar with the area regarding elected county officials and would decline further testimony in that area.
SENATE BILL 184: Adjusts prospective salary of supreme court justices and district court judges. (BDR 1-517)
Senator Raggio stated the Senate Committee on Finance should note the specific provisions that are a departure from common practice. He said, in reference to the Supreme Court justices, this committee previously approved adjusting the base salaries of the justices to $140,000, which was based on the same percentage increase included in the bill for district judges that was $140,000. He said A.B. 606 changes the salaries back to the amounts originally proposed. He noted there is a provision that the base salary be subjected to cumulative indexing based on average industrial hourly wages. He questioned whether that applies to district judges’ salaries and asked who proposed that measure.
Judge Porter responded the cumulative indexing applies to district judges’ salaries and was proposed by Knight Allen, who testified before the Governor’s Salary Compensation Task Force. He said it is indexed to the average increase in private sector wages. He explained the Governor’s Salary Compensation Task Force rejected the Consumer Price Index because it was deemed an unreliable mechanism. He said the Governor’s Salary Compensation Task Force then recommended utilizing this formula, which is maintained by the Employment Security Division of the Department of Employment, Training, and Rehabilitation. He stated it is an indexing of private sector wages from all aspects of the economy.
Senator Raggio pointed out there are only 2 hours remaining in the legislative session, so it is difficult to adequately review A.B. 606 within that timeframe. He commented that if this measure is approved for Supreme Court justices, district court judges, and elected county officials, it would raise the question why automatic COLA increases would not be approved for school district employees, state employees, and others.
Judge Porter commented he would respond for the judicial branch but not for the elected county officials. He said the Senate Committee on Finance adopted a concept known as pay equity earlier this session. He pointed out indexing would alleviate the necessity to revisit the pay equity concept every 6 years because indexing allows all justices and judges to reach the same level upon re-election.
Senator Rawson said the public policy issue here is to provide people who may be able to act on their own salary a “dispassionate method that does not put them in that spot every time salary issues are considered.” Commissions and indexing offer that advantage, he added. He noted it may be difficult to find the proper formula, but it would accomplish the public purpose by removing potential conflict from the situation.
Senator Raggio asked whether any county representatives were present to address this issue.
Jim Spinello, Assistant Director, Administrative Services, Clark County, stated the amount reflected in A.B. 606 for an increase for county commissioners and other elected county officials, exclusive of the district attorney and sheriff, represents an approximate increase of 27 percent. He said the 27 percent increase applied over the past 6 years is the same increase recommended for legislators. He explained the Governor’s task force derived the calculation from the Consumer Price Index and calculation of private sector wage increases during that same period. He pointed out because the Legislature is responsible for adjustments for elected county officials, the adjustment has typically occurred every 6 years, so this increase would essentially allow the elected county officials to accomplish parity with the private sector.
Senator Raggio inquired when the last increase for elected county officials was implemented.
Mr. Spinello responded the last increase occurred in 1995.
Senator Raggio asked who would be responsible for establishing the salaries of county commissioners under A.B. 606.
Mr. Spinello stated the bill provides for the Legislature to set salaries for county commissioners, and the increases would be calculated pursuant to the formula generated by the Employment Security Division of the Department of Employment, Training, and Rehabilitation for private sector wages.
Senator Raggio stated county commissioners’ salaries would be automatically determined upon implementation of the provisions of A.B. 606 in accordance with all other elected county officials.
Mr. Spinello endorsed the concept.
Michael R. Alastuey, Assistant Manager, Clark County, voiced his agreement with Mr. Spinello’s remarks.
Robert S. Hadfield, Lobbyist, Nevada Association of Counties (NACO), stated his organization worked closely with the Governor’s Salary Compensation Task Force. He also agreed with Mr. Spinello’s remarks.
Senator Raggio inquired whether anyone wished to speak in opposition to the bill; there was no response. He requested discussion from the committee members.
Senator Coffin stated he believes in “a well-paid body of elected officials.” He said he believes high pay encourages independence from people seeking favors, which is especially important for elected officials.
Senator Raggio pointed out Section 10 would raise legislators’ compensation from $130 per day to $175 per day. He asked who had proposed that increase.
Senator Coffin responded the Governor’s Salary Compensation Task Force proposed the increase for legislators’ compensation.
Don Hataway, Deputy Director, Budget Division, Department of Administration, stated that the Governor’s Salary Compensation Task Force proposed all of the recommendations in A.B. 606. He added there is no indexing proposed for legislators’ salaries.
Senator Raggio inquired whether the Governor’s Salary Compensation Task Force recommended indexing for legislators’ salaries. Senator Mathews responded affirmatively. Mr. Hataway stated he did not specifically recall that detail.
Judge Porter stated the Governor’s Salary Compensation Task Force recommended indexing for elected county officials, justices, judges, and legislators. He noted the Assembly eliminated the indexing for legislators.
Senator Raggio reiterated this matter warrants more time to adequately analyze it, but the sine die deadline is quickly approaching. He stated he believes indexing should be provided to everyone in the public sector, if it is offered to some of the members of the public sector. He acknowledged it is awkward for people to set their own salaries. He noted state legislators in Nevada have not received a salary increase since 1985. He said he believes legislators are reluctant to increase their own salaries, which he called an “erroneous rationale.” He pointed out a salary increase would affect legislators elected to the term following the approval of the increase, not those in service at the time the increase is approved. He said he has no objection to salary increases, but he believes indexing should be applied to all public sector officials or none of the public sector officials.
Senator Rawson stated he would not support the legislative salary increase if it were not included with salary increases for the other elected officials. He noted time constraints limit the committee’s ability to amend the bill. He commented he had promised his constituency not to vote for raises for himself. He added, “As long as I’m serving, I won’t use that money. My approach is to see that it is donated to a community organization.” He stated his support for the other measures in the bill.
Senator O’Donnell indicated an anomaly exists in the Constitution of the State of Nevada that allows legislators to raise taxes, spend money, and set salaries for all state employees including themselves. He pointed out Assemblywoman Kathy A. Von Tobel, Clark County Assembly District Number 20 sponsored Assembly Joint Resolution (A.J.R.) 14, which he believes would solve the existing problem by amending the Constitution of the State of Nevada. He said A.J.R. 14 provides for a “binding commission” to determine the salaries of legislators instead of the legislators setting their own salaries, as is the current practice. He stated his opposition to A.B. 606 because of the inclusion of the legislators’ pay increase.
ASSEMBLY JOINT RESOLUTION 14: Proposes to amend Nevada Constitution to revise certain provisions relating to system of county and township government and compensation of certain elected officers. (BDR C-1526).
Senator Coffin stated legislators are only paid for 60 days, and it is better for them to be dependent on their own income than “on the income and largesse of a lobbyist.” He commented he has served in the Legislature since 1983, and he has received one pay raise during that time. He stated his support for A.B. 606, including the pay raise for future legislators.
Senator Jacobsen commented he has served as a state legislator longer than anyone in the history of the Legislature. He said:
Nobody will ever know the amount of time and effort you spend unless you actually hold a position. I always remind myself that no one forces you to take this job. You do it on your own. I wish I would have catalogued all the hours that I volunteered, and I know that, with the old Stewart agency alone, I catalogued those hours, and I spent 5,000 hours of my own time, furnished my own equipment, my own gasoline, and worked right along with the inmates. I don’t know how many of you has ever done that. I think it [the pay raise] is warranted and long overdue.
Senator Mathews expressed the importance of A.B. 606. She suggested, in acknowledgment of her colleagues’ complaints, that the legislators’ pay raise be eliminated from the bill to facilitate approval of the other important measures included in A.B. 606.
Senator Raggio stated he supports the salary increase for legislators, as “it is long overdue.” He noted that in the past legislators have been reluctant to approve salary increases for legislators because of political pressure, which he said is foolhardy. He said the public wants good people to serve in the Legislature, and waiting 16 years for a pay raise that is received for only 60 days of a 120-day session does not warrant criticism. He expressed support for salary increases for the Supreme Court justices and district judges. He stated his support of the pay equity mechanism, intended to avoid future disparity, as long as it is constitutionally justified. He voiced support for salary increases for constitutional officers and county officials.
Senator Raggio pointed out he has consistently stated to everyone who has approached him concerning this bill that, despite the recommendation of the Governor’s Salary Compensation Task Force, he cannot support the automatic COLAs, indexing. He said he especially could not support indexing to a standard with which he is personally unfamiliar, though he understands their argument. He stated he would support the bill with the raises and the pay equity for judges. He added he would not support the bill with the indexing “unless we are going to talk about something like that in the future for others.”
Senator Coffin asked whether Senator Raggio believes sufficient time remains for A.B. 606 to be amended. Senator Raggio replied affirmatively.
Senator Coffin suggested he would like a guarantee the amendment would be accomplished within the limited timeframe.
Senator Rawson noted it appears the bill, in its current form, does not have sufficient support from the committee members to be approved without amendment. He indicated he would move to add indexing for legislators’ salaries, but he would not personally accept any salary increase.
Senator Raggio stated he is opposed to indexing for all of the positions in the bill. Senator Mathew suggested indexing should not be added to the legislators’ salaries.
SENATOR COFFIN MOVED TO DO PASS A.B. 606.
SENATOR MATHEWS SECONDED THE MOTION.
Senator Raggio interrupted to report staff indicated the increase from $140,000 to $150,000 in the bill might not be adequately reflected in the amount of the appropriation. He communicated to Senator Neal, who arrived at the meeting, the committee is in the midst of voting on A.B. 606. He offered Senator Neal the opportunity to comment on the bill.
Senator Neal stated, “I have no comment.”
SENATOR JACOBSEN MOVED TO AMEND A.B. 606 TO DELETE THE INDEXING FROM THE ENTIRE BILL AND TO DO PASS AS AMENDED.
SENATOR O’DONNELL SECONDED THE MOTION.
Senator Raggio indicated Mr. Hadfield would like to address the committee.
Mr. Hadfield pointed out the current version of A.B. 606 eliminates the current longevity provision for elected county officials.
Senator Raggio inquired whether Senator Jacobsen would like to include the restoration of the longevity provision for elected county officials in his motion to amend A.B. 606. Senator Jacobsen responded affirmatively.
Senator Raggio asked those committee members in favor of the amended motion to amend the bill, thereby granting the salaries, including the pay equity provision for the Judicial Branch, and restoring the longevity provision for the elected county officials, to indicate “Aye.”
THE MOTION CARRIED. (SENATOR COFFIN VOTED NO.)
*****
Senator Raggio asked staff to process the amendment as quickly as possible.
ASSEMBLY BILL 232: Establishes judicial retirement system for certain justices of the supreme court and district court judges. (BDR 1-208)
Senator Raggio pointed out this bill was introduced by the Assembly Committee on Ways and Means on February 26, 2001, and was just received by the Senate Committee on Finance. He asked Judge Porter to address the committee regarding A.B. 232.
Judge Porter articulated A.B. 232 is the result of the interim study, Pension Plan for Certain Justices and Judges, which was chaired by Assemblyman Lynn C. Hettrick, Assembly District Number 39. He pointed out both Senator Neal and Senator O’Donnell of this committee were also members of the interim study. He said the purpose of the bill is to create an actuarially-funded retirement system for those judicial officers who are not currently in the Public Employees’ Retirement System (PERS).
Senator Raggio inquired whether the appropriation amount has been amended.
Judge Porter stated the First Reprint of A.B. 232, which is the version currently under consideration, includes a $5 million appropriation.
Senator Raggio asked whether the $5 million appropriation is included in The Executive Budget. He said he remembers a different amount was previously discussed.
Mr. Hataway responded, “In the Governor’s suggested list, we said it should be reduced to an amount that could still make it viable.” He said the amount was subsequently reduced to $5 million.
Senator Raggio inquired whether Assembly Amendment Number 1132 to A.B. 232 reduced the appropriation amount, as it is the only amendment to the bill. Mr. Hataway responded affirmatively.
Senator Raggio stated the appropriation amount currently under consideration is $5 million. He said he understands the $5 million would allow the retirement plan to be phased in over time. Mr. Hataway stated Senator Raggio’s understanding is correct and an additional appropriation would be necessary next legislative session.
Senator Raggio commented the committee has copies of the bill but not Assembly Amendment Number 1132, so the committee members will have to trust the presentations by Judge Porter and Mr. Hataway regarding the contents of the amendment. He inquired about the precise appropriation amount.
Judge Porter and Mr. Hataway both responded the amended appropriation amount is exactly $5 million.
SENATOR NEAL MOVED TO DO PASS A.B. 232.
SENATOR JACOBSEN SECONDED THE MOTION.
THE MOTION CARRIED. (SENATOR O’DONNELL WAS ABSENT FOR THE VOTE.)
*****
ASSEMBLY BILL 343: Provides for integration of state and local child welfare services. (BDR 11-325)
Senator Raggio commented the Senate Committee on Finance and the Assembly Committee on Ways and Means Joint Subcommittee on Human Resources has heard a great deal of testimony regarding A.B. 343. He said the joint subcommittee expressed concern regarding the effect of the integration on child welfare services, and the extent of the state’s financial commitment on integration. He stated some testimony indicated an expectation for the state to provide 55 percent of the increased costs upon turning the program over to the counties. All of the committee members should understand the process involved in the potential integration because there have been numerous hearings regarding this bill, he added.
Senator Raggio said many legislators had thought the counties would accommodate the increased costs along with accepting the additional responsibilities. He indicated Senate Amendment Number 1259 to the Third Reprint of A.B. 343 provides language “to establish base amounts for the federal and nonfederal contributions for the provision of child welfare services in this state.” He noted the base amounts would be based on a full fiscal year. He said the amendment disallows “any increase in the maintenance of effort by the Division of Child and Family Services” for child welfare services in counties that have a population of 100,000 or more, currently only Washoe and Clark Counties, after the establishment of the base amounts. He added the amendment includes language to ensure counties that have a population over 100,000 are responsible for paying the increases in the costs of providing child welfare services.
Senator Raggio read the preamble clause proposed in the amendment:
Whereas, after the base amounts required for the federal and nonfederal contributions for providing child welfare services in this state for a full fiscal year have been established, the maintenance of effort by the Division of Child and Family Services for funding the costs of providing child welfare services in counties whose population is 100,000 or more must not be increased and those larger counties must be responsible for any future increases in the costs of providing child welfare services in those counties.
Senator Raggio indicated he would accept a motion to amend the bill and do pass as amended.
Senator Neal asked, “Does this mean that if there is any additional money coming to the state for these programs that they would not be able to get it?”
Senator Raggio responded the child welfare system currently receives the majority of its funds from the federal government, and the federal funds would transfer to the counties. He said the amendment is concerning the “base amount” the state would continue to provide to the counties for the child welfare system.
SENATOR RAWSON MOVED TO AMEND AND DO PASS AS AMENDED A.B. 343 WITH AMENDMENT NUMBER 1259.
SENATOR MATHEWS SECONDED THE MOTION.
Senator Raggio recognized Mr. Alastuey who indicated he would like to address the committee.
Mr. Alastuey stated:
We believe that the existing preamble does not bind the state to increases in the future. And so we believe, along with that and the references to good faith negotiation for the future, once again, any expectation that the state would have to step in and pay for increases is not specifically included in the bill as now written, the Third Reprint, that we testified in favor of this morning. We also contemplated . . .
Senator Raggio interjected, “Wait a minute, you didn’t testify in favor of that. You did that, but we also had a discussion here that made it clear that any increases were not going to be the state’s responsibility over and above the base amount.”
Mr. Alastuey responded that earlier this morning he had indicated his desire to peruse any proposed amendments.
Senator Raggio asked whether Mr. Alastuey objects to Amendment Number 1259.
Mr. Alastuey said he believes the amendment is unnecessary because the existing bill does not bind the state to pay for any future increase in child welfare costs.
Senator Raggio responded this is a very important bill, and he would prefer to have the intent as clear as possible.
May S. Shelton, Lobbyist, Washoe County, stated her agreement with Mr. Alastuey’s remarks. She said she believes the counties and state intended to negotiate in good faith to cover future costs. She indicated she must discuss the proposed amendment with the Washoe County Commissioners because “our intention to enter into this partnership was that we would be partners into the future.” She said she could support Amendment Number 1259 without first seeking the approval of the Washoe County Commissioners.
Senator Raggio stated Ms. Shelton’s position is contrary to the recent discussion involving Assemblywoman Barbara E. Buckley and other interested parties. He said the amendment evolved from that discussion. He said the counties still may negotiate with the state, but the amendment clarifies the language regarding the establishment of the base amounts for state funding. He noted he is certain the Governor shares his understanding of the amendment. He directed attention to the open motion and asked whether any committee member objected to the motion. No objection was indicated.
THE MOTION CARRIED UNANIMOUSLY.
*****
ASSEMBLY BILL 606: Makes various changes regarding compensation of certain public officers. (BDR 1-1435)
Mr. Ghiggeri pointed out the amount appropriated from the state general fund to the Supreme Court should be amended to increase the amount from $97,538, currently, to $143,869. He noted this amount occurs in Section 21 on page 10.
Senator Raggio commented the increase would accommodate the salary increase from $140,000 to $150,000. He asked whether the committee had any objection to including the increased appropriation in the previously requested amendment. All of the committee members indicated their approval.
SENATE BILL 434: Makes appropriation to Department of Museums, Library and Arts for participation of Nevada Museum and Historical Society in Las Vegas, in planning for Las Vegas Springs Preserve Project. (BDR S-1365)
Senator Rawson indicated S.B. 434 had previously been heard by the Senate Committee on Finance. He said the appropriation in the bill is included in The Executive Budget, and bonds, pending approval by the voters, would fund the measure.
SENATOR RAWSON MOVED TO DO PASS S.B. 434.
SENATOR JACOBSEN SECONDED THE MOTION.
THE MOTION CARRIED. (SENATOR O’DONNELL WAS ABSENT FOR THE VOTE.)
*****
Senator Raggio stated the committee was asked to report back on several funding requests from the committee and other legislators. He noted the total amount of the funding requests could not exceed $2 million because that is the limited amount available for appropriations not included in The Executive Budget. He indicated he would inform the committee of the funding requests selected for inclusion in a final bill to ensure everyone is aware of the matters to be included. He said it would be more expeditious to include all of the different appropriations in a new bill than to amend each separate bill. He commented many of the appropriations have been proposed in other bills, which he would identify, and there are additional newly proposed appropriations.
SENATE BILL 12: Makes appropriation to ALS Association Nevada Chapter. (BDR S-289)
Senator Raggio stated this appropriation would be increased from $100,000 to $150,000, of which $75,000 would be designated for the Amyotrophic Lateral Sclerosis (ALS) Association of Nevada and $75,000 for chronic fatigue syndrome.
SENATE BILL 41: Makes appropriation to Carson City Fire Department for enhancement of Northern Nevada Regional Fire Training Facility. (BDR S‑687)
Senator Raggio stated this appropriation would be decreased to $263,000 and designated for the enhancement of the Northern Nevada Regional Fire Training Facility.
SENATE BILL 79: Makes appropriation to Economic Opportunity Board of Clark County for purchase of buses. (BDR S-899)
Senator Raggio indicated $250,000 would be provided for this appropriation request.
SENATE BILL 296: Makes appropriation to establish program for obtaining electronic fingerprints and digital photographs for use in transferring and releasing prisoners. (BDR S-967)
S.B. 296 would appropriate $149,750 to develop a system for obtaining and storing electronic fingerprints and digital photographs.
Senator O’Donnell commented there was a recent bomb scare in Las Vegas in which a robot was utilized to investigate the bomb. He noted the Police Department had requested this measure.
SENATE BILL 331: Makes appropriation to Nevada Interscholastic Activities Association for repromulgation of regulations governing disputes. (BDR S‑776)
Senator Raggio stated $15,000 would be included for the appropriation request in S.B. 331.
SENATE BILL 332: Makes appropriations for historical facility in Virginia City and for preservation of cemeteries within Virginia City National Historic Landmark District. (BDR S-947)
Senator Raggio commented $150,000 would be provided for the appropriation request in S.B. 332.
SENATE BILL 335: Enacts provisions pertaining to problem gambling. (BDR 41‑1105)
Senator Raggio indicated $75,000 would be included in the bill for the appropriation request in S.B. 335.
SENATE BILL 403: Enacts Frontier and Rural Health Care Improvement Act of 2001. (BDR S-942)
Senator Raggio stated $70,000 would be included from the appropriation request in S.B. 403 for the Carlin Clinic.
SENATE BILL 434: Makes appropriation to Department of Museums, Library and Arts for participation of Nevada Museum and Historical Society in Las Vegas, in planning for Las Vegas Springs Preserve Project. (BDR S-1365)
Senator Raggio indicated $150,000 would be included from the appropriation request in S.B. 434 for Nevada Historical Society in Las Vegas for the acquisition of historical records.
SENATE BILL 493: Revises provisions governing retention and expenditure of appropriations made from state general fund for support of institutions of University and Community College System of Nevada. (BDR 31-432)
Senator Raggio indicated $150,000 would be included from the appropriation request in S.B. 493 for Ralph J. Roberts Research on Economic Geology and $100,000 for advance planning on the expansion or relocation of the Fallon campus of Western Nevada Community College.
Senator Raggio indicated several other newly proposed appropriations would be included in the new bill including:
Senator Raggio stated the appropriations he mentioned equal approximately $2 million. He asked whether the committee is willing to accommodate all of those appropriations in one bill.
SENATOR O’DONNELL MOVED TO REQUEST A BILL DRAFT TO INCLUDE ALL OF THE APPROPRIATIONS JUST INDICATED BY SENATOR RAGGIO AND TO DO PASS THE BILL AS DRAFTED.
SENATOR JACOBSEN SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
*****
The meeting was adjourned at 10:23 p.m.
RESPECTFULLY SUBMITTED:
Jennifer Ruedy
Committee Secretary
APPROVED BY:
Senator William J. Raggio, Chairman
DATE: