SENATE COMMITTEE ON FINANCE

MINUTES OF THE MEETING OF

SENATE Committee on Finance

Seventy-First Session

April 4, 2001

The Senate Committee on Financewas called to order by Chairman William J. Raggio at 8:09 a.m., on Wednesday, April 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

GUEST LEGISLATOR PRESENT:

Senator Jon C. Porter, Sr., Clark County Senatorial District No. 1

STAFF MEMBERS PRESENT:

Gary L. Ghiggeri, Senate Fiscal Analyst

Bob Guernsey, Principal Deputy Fiscal Analyst

Carla Watson, Program Analyst

Michael J. Chapman, Program Analyst

Bob Williston, Committee Secretary

OTHERS PRESENT:

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

John C. Morrow, Lobbyist, Chief Deputy, Washoe County Public Defender

Lee Derbyshire, Marriage and Family Therapist, Founder of the Grandparents Raising Grandchildren Support Group

John W. Jackson, Sr., President, Grandparents Raising Grandchildren

Joan Kerschner, Director, Henderson District Public Libraries

Mark Knudson, Educational Consultant, Human Resources and Technology, Department of Education

Stan Fuke, Library Administration, Clark County School District

Cynthia Montoya, Librarian, Green Valley High School, Clark County School District

Lee Gordon, Librarian, Eldorado High School, Clark County School District

Judith Winzeler, Executive Director, Nevada Humanities Committee

Alex Newman, Actress, Young Chautauqua, Great Basin Chautauqua

Rose E. McKinney-James, Member, Board of Directors, Nevada Humanities Committee

Ruth Hanusa, Member, Nevada Humanities Committee

Steve Weaver, Chief of Planning and Development, Division of State Parks, State Department of Conservation and Natural Resources

John P. Comeaux, Director, Budget Division, Department of Administration

Bruce Alder, Deputy Administrator, Division of Child and Family Services, Department of Human Resources

Karen Harbour, Administrative Services Officer, Southern Regional Services, Division of Child and Family Services, Department of Human Resources

Colonel Michael E. Hood, Chief, Nevada Highway Patrol Division, Department of Motor Vehicles and Public Safety

Carol English, Assistant Chief of Administration, Department of Motor Vehicles and Public Safety

Robert E. Shriver, Executive Director, Division of Economic Development, Commission on Economic Development

Karen G. Baggett, Deputy Director, Division of Economic Development, Commission on Economic Development

Senator Raggio asked the committee to give its attention to Senate Bill (S.B.) 517 and to the letter which deals with S.B. 517 (Exhibit C).

SENATE BILL 517: Makes appropriation to restore and increase balance in reserve for statutory contingency account. (BDR S-1512)

Senator Raggio stated that S.B. 517 was heard on April 2, 2001, and there is a letter from John P. Comeaux, Director, Department of Administration, (Exhibit C) indicating that expeditious action is requested. He explained that the current account balance is down to $9,342 and is not sufficient to pay court-ordered attorney’s fees.

SENATOR JACOBSEN MOVED TO DO PASS S.B. 517.

SENATOR COFFIN SECONDED THE MOTION.

THE MOTION CARRIED. (SENATORS RAWSON AND O’DONNELL WERE ABSENT FOR THE VOTE.)

* * * * *

SENATOR COFFIN MOVED TO PUT S.B. 517 ON THE CONSENT CALENDAR.

SENATOR JACOBSEN SECONDED THE MOTION.

Senator Neal questioned the wisdom of putting a $3 million bill on the consent calendar. Senator Raggio replied the only reason he suggested it is that it needs to be passed promptly.

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

* * * * *

Senator Raggio opened the hearing on S.B. 278.

SENATE BILL 278: Requires establishment of program to provide supportive assistance to certain persons who obtain legal guardianship of their grandchildren. (BDR 38-541)

Senator Mathews announced that this bill will have a fiscal note and it will be necessary to know how it will be funded.

Senator Mathews explained that S.B. 278 has an identical bill in the Assembly, that being A.B. 15.

ASSEMBLY BILL 15: Requires establishment of program to provide supportive assistance to certain persons who obtain legal guardianship of certain children. (BDR 38-368)

Senator Mathews said it is her intent, with this amended Assembly bill, that the two bills be combined and the heading would show the bill was cosponsored by Senator Mathews and Assemblywoman Christina R. Giunchigliani. She pointed out that they have both agreed to that.

Senator Mathews stated that she and Ms. Giunchigliani had been asked by two different groups, one in the North and one in the South, to sponsor this bill. She explained that since the bill was written it has been necessary to include others besides grandparents.

Senator Mathews stated that the intent of the bill is to assist grandparents and specific relatives in caring for children for at least 6 months, in obtaining legal guardianship of the children, and in preserving and reuniting the family by reasonable efforts. She pointed out that grandparents and relatives get children and, because of the way the laws are now written, they receive no monetary assistance for caring for them. The children, she explained, are left with relatives that are usually aged and do not have the means to buy the insurance or other things young children need. She said she believes that if those relatives could get some monetary assistance it would help to keep the families intact.

Senator Raggio pointed out that the bill speaks only to “grandparents.” Senator Mathews said that there is an amendment to change that to “relatives” (Exhibit D).

Senator Mathews asked the committee to look favorably on this bill and to support it. She pointed out that the people the bill is intended to benefit are usually people who find themselves in emergency situations. She invited Mr. Willden to give a summary of how this legislation could be funded.

Michael J. Willden, Administrator, Welfare Division, Department of Human Resources, stated that the Welfare Division has been working on a kinship care bill along with Senator Mathews and Assemblywoman Giunchigliani, with involvement from the Governor’s office, which supports the kinship care proposals being considered. Mr. Willden said it is proposed to fund the kinship care option through the Temporary Assistance for Needy Families (TANF) budget.

Senator Raggio remarked that there is no fiscal note on this bill. Mr. Willden replied that it is attached as the last three pages of the proposed revision (Exhibit D). Senator Raggio stated that he has two amendments, one from the public defender and one referred to in Exhibit D.

John C. Morrow, Lobbyist, Chief Deputy, Washoe County Public Defender, stated that he was unaware there has been an amendment proposed already. He said he believes the amendment he has proposed (Exhibit E) expands the assistance to relative placement beyond what is contained in the amendment from Senator Mathews. He said his proposal is to extend foster care payments to any relative who is taking charge of a child that has been removed from the home because of abuse or neglect.

Mr. Morrow noted that these children frequently are removed and the first option social services exercise is to place them with a relative. That placement, he said, can last for a year or more, depending on how the case progresses. He explained that the relative who takes such a child in is subjected in many cases to large expenses to care for the child. He pointed out that a payment is given to foster parents from the day they take a child in until the day the child is removed. That, he said, is what he is suggesting be done for all relative placements.

Senator Raggio asked how that proposal differs from the one Mr. Willden is discussing.

Mr. Willden referred again to Exhibit D, indicating that the 6 points of the amendment his division is proposing are listed on the first page, followed by the details. He said his first suggestion is to remove the reference to “grandparents” and use instead the term “specified relatives” as applied in the TANF program. He explained that is basically any relative within the third degree of consanguinity.

Senator Raggio asked whether that is defined in the code of federal regulations. Mr. Willden confirmed that to be the case, and explained that TANF funds may only be spent on that specific definition of relative. Senator Raggio expressed concern that the term “relative” by itself would be too broad.

Mr. Willden indicated that his division plans to provide this benefit to relatives within that defined statute, but an additional limiter would be added. He explained that as his division was working through the fiscal note, it was discovered that, if the benefit is provided to all relatives, the program would not be affordable with TANF money. He said an age limitation has been proposed so that the benefit can be most directed toward elderly individuals who are on fixed incomes caring for their grandchildren, nieces, or nephews. He proposed an age limitation of 62. He suggested that the department adopt regulations through the interim process so that, if that age limitation could be affordably lowered, it would be done.

Senator Raggio asked for clarification that the specified relative must be 62 or older. Mr. Willden confirmed that. Senator Raggio asked what is “magical” about that age. Mr. Willden explained that, of the 2,100 relatives presently in the system that would be eligible for these benefits, it was determined that the TANF budget could afford benefits to the number of relatives that are 62 years of age or older.

Senator Raggio asked Mr. Morrow whether he understands the budget restraints. Mr. Morrow said he did, and pointed out that if more funds are available in the future it would be appropriate to extend these benefits to all these families. He pointed out that many times it is sisters, aunts, uncles, and people who are much younger than 62 who need these benefits.

Mr. Willden stated that he also wanted the committee to understand there will be three programs that relatives can access when caring for grandchildren, nieces, or nephews. He pointed out that the Division of Child and Family Services (DCFS) has the foster care option, but many families do not want to access that system because of the court involvement and other related issues. The other program that is available, he said, is the Welfare Division’s non-needy caretaker program. But that program, he pointed out, pays significantly less than the foster care program.

Mr. Willden explained that S.B. 278 and A.B. 15 provide a third option, a kinship care program. With such a program, he pointed out, families would not need to access the child welfare system but would still be able to get the higher payment if they obtain guardianship of the child and meet the requirements within the bill. He stated that the heads of households that are under 62 years of age would still have the option to access the non-needy caretaker program administered by the Welfare Division or, if circumstances warrant, the foster care system.

Senator Raggio asked whether this program would cost more than $3 million if it were limited in this manner. Mr. Willden replied that $3.2 million is the current fiscal note limiting this to age 62 and above. Such a program could be funded 100 percent with TANF funds currently available within the Governor’s budget.

Senator Raggio remarked that subcommittees have been looking at a lot of budgets and have noted there is a lot of movement of TANF money. He asked, with all this movement of TANF money, whether this money would still be available.

Mr. Willden replied that it is. He also stated said that legislative staff have sent a letter to him asking for the division’s recommendations for budget closure, and it is a priority for the Governor to include the kinship care program when the budgets close.

Senator Mathews stated that she and Ms. Giunchigliani realized when the bills were introduced that they were considering all age groups. She pointed out that there are a lot of young grandparents who are caring for grandchildren. She said they would like all ages to be included, but in light of the budget restraints in this biennium, they would accept the 62-year age limitation.

Senator Raggio reiterated there are other options available for younger people. Senator Mathews agreed, but pointed out that for some of those programs one must qualify for welfare and the courts have to get involved in one of the programs. Sometimes, she stated, that is not the most advantageous way to go.

Mr. Willden suggested that all references in the amendment to the DCFS be removed. He pointed out that his division does not believe these families should first have to access the child welfare system and then come to this program. He said a number of recommendations have been made to delete these references and provide direct access to this program.

Senator Raggio said the information before the committee all pertains to A.B. 15.

Senator Mathews said that S.B. 278 and A.B. 15 are identical, and that she and Ms. Giunchigliani intend to adopt this amendment and have legal staff put both their names on the bill. Senator Raggio asked whether that is the understanding with Ms. Giunchigliani. Senator Mathews assured him that is the understanding of the other sponsor.

Senator Raggio asked whether the draft of the amendment before the committee accommodates and includes all of the issues presented today. Mr. Willden said it does.

Senator Raggio asked whether Mr. Morrow had read the amendment proposed by the Welfare Division. Mr. Morrow responded that he had not read it, but he stated that it appears to be a good amendment and one that his office “could certainly live with.”

Lee Derbyshire, Marriage and Family Therapist and founder of the Grandparents Raising Grandchildren Support Group in Northern Nevada, spoke in favor of S.B. 278. She said it is very important that grandparents are given recognition for the care they give in this society without any assistance. She said she had recently received a bulletin from the American Association of Retired Persons (AARP) stating that according to reports from 2,000 grandparents, 5 percent reported that they were raising their grandchildren. She pointed out that many grandparents do not report it because they are afraid of stigma. Some grandparents, she said, are embarrassed because of what this situation says about how they raised their children.

Ms. Derbyshire stated that she and three other professionals decided to start the Grandparents Raising Grandchildren Support Group 4.5 years ago and were quite amazed when over 100 grandparents attended the first meeting. She said the majority of them were under 62 years of age. She said she understands that “budgets are budgets,” but grandparents have to pay for housing, clothing, and medical bills. Many grandparents, she noted, do not go through the system and do not get legal guardianship, so they are not eligible for some benefits. She said some of that is because some people do not understand the system, and the Grandparents Raising Grandchildren Support Group helps people get through the system.

Ms. Derbyshire expressed hope that the committee would favor this bill, and eventually increase funding so the benefit could be given “across the board.”

Senator Raggio said that to change the age would mean that in a future session, if the funding were available, the bill could be revisited. He restated that there is not sufficient funding at this time to do more than what has been proposed.

Ms. Derbyshire said she appreciates that this effort is a start. She also expressed pleasure to learn that grandparents do not need to go through child protective services to get these benefits, recognizing that most grandparents have their grandchildren “left on their doorstep.”

John W. Jackson, Sr., President, Grandparents Raising Grandchildren, stated that he and his wife had been grandparents raising a grandchild. He said they had cared for their granddaughter for 11 years, and for half of that time they received no help whatsoever. He explained that their granddaughter had hearing problems, being over 50 percent deaf in one ear and over 30 percent deaf in the other ear. He added that they had been left with the bill for a hearing aid when the government agency involved did not come through with the expected coverage. He said that, had it not been for a Sertoma Club in Sparks that paid for the hearing aid, their granddaughter would not have had it to go to school.

Mr. Jackson pointed out that when he and his wife got their granddaughter to raise they were not 62 years old. He stated that it is younger grandparents who need the help. One reason, he said, is that insurance companies will not cover a grandchild unless the grandparent has legal guardianship. He said that when he approached government agencies for assistance he was most often told that they could not help him. He said he eventually had to borrow money to go to court and obtain legal guardianship for their grandchild so he could put her on his insurance. He reiterated that at some point there will need to be coverage for grandparents who are younger than 62.

Mr. Jackson said he understands TANF funds are federal funds that can be cancelled at any time. Senator Raggio pointed out that TANF funding has existed over many decades and assured him that it is not likely that will change. He commented that if everything were as certain as TANF funding, there would not be some of the problems that are now being faced.

Mr. Jackson claimed he and his wife are a success story. He said his granddaughter, now 13, is back with her mother who has been “clean” for 5 years.

Senator Raggio closed the hearing on S.B. 278.

Senator Raggio opened the hearing on S.B. 385.

SENATE BILL 385: Authorizes expenditures from state distributive school account for educational technology for school libraries. (BDR S-1216)

Senator Raggio pointed out that S.B. 385 indicates that the required funding is included in The Executive Budget. He announced that is an error. He explained that, although it says that in the bill, it is not included in The Executive Budget.

Senator Raggio said this bill would require $500,000 from the Distributive School Account (DSA) to grant money to school libraries.

Senator Jon C. Porter, Clark County Senatorial District No. 1, thanked Senator Raggio for his comments regarding the language of S.B. 385, and stated that he could help explain what the wording should be.

Senator Porter said this bill is asking for funding from the General Fund. Senator Raggio pointed out this bill provides authorization to spend from the DSA. Senator Porter said that is correct, but indicated he is asking that the language be changed so that the funds would come from the General Fund, not from the DSA, and that the appropriations be made to the Nevada State Library budget in support of both public libraries and public school libraries, statewide, under a licensing agreement. Alternately, he pointed out, he is asking that the appropriation be made to the State Department of Education.

Senator Raggio stated that there will need to be an amendment in writing submitted to the committee.

Senator Porter explained that the reason the funding in this bill is done at the state level is that it is far less expensive to do a statewide licensing agreement than to do it in each school district or each library. He said the funds would be used to renew the Nevada Educational Database project. Renewing the database, he explained, would allow the current service in school libraries and public libraries to continue. He said the database provides a high quality content to all 400 school libraries across the state and 80 public libraries. Not only does this help children receive information, he pointed out, but the community as a whole also benefits because public libraries also receive the system.

Senator Porter said this system also assists teachers by providing them with information to allow them to expand their curriculum into the classrooms. Children and library patrons that live in Elko, he noted, would have the same access to information children and library patrons have in Clark County. He said this is to give information to all citizens in Nevada and leave no one behind.

Senator Porter pointed out that this is a renewal of the Nevada Educational Database project and is a cooperative effort involving the Legislature, State Department of Education, and the Commission on Educational Technology.

Senator Raggio remarked that this represents an additional $500,000 not included in the budget, and stated that he would like to know how that figure was arrived at. He also asked whether any of the 480 libraries mentioned already had licenses to access research databases as proposed in the bill.

Joan Kerschner, Director, Henderson District Public Libraries, said she was appearing on behalf of public libraries. She stated that this is a project that began as a pilot project two sessions ago when $400,000 was given to the Commission on Educational Technology for public libraries to provide these databases to schools. At that time, she said, very few schools could actually deliver the databases. She added that, in the previous legislative session, $500,000 was given to school libraries because funds had been appropriated through the commission so that almost every school in the state could deliver the databases. At that time, she explained, the state library granted about $300,000 in addition so public libraries could also participate.

Ms. Kerschner said the $500,000 in the present bill was computed by combining the funds for public and school libraries and developing a project that lasted for two years. She said the funding is available to provide these databases in every public and school library until June 30, 2002 through the current contracts. This contract, she pointed out, will run out for all libraries in the state on July 1, 2002. The new funding requested in this bill, she explained, would be for both public and school libraries’ use through the second year of the biennium. She pointed out this is one of the most successful projects the Legislature has funded for libraries because it does touch every public and school library in the state.

Ms. Kerschner explained that her library cooperates with public schools that provide the databases through the day in the schools. The public library also distributes bookmarks explaining to the students how to access the same databases on-line from home through their local libraries.

Senator Raggio asked what the minimal amount is that would be helpful for this purpose at this time. He mentioned that the committee had already looked at S.B. 431.

SENATE BILL 431: Makes appropriation to Department of Museums, Library and Arts for grants for library collections and equipment requirements. (BDR S‑1362)

Senator Raggio said S.B. 431 grants $1 million to the Department of Museums, Library, and Arts for grants for library collections and equipment requirements. He suggested some of that funding can be utilized.

Ms. Kerschner pointed out that in the last biennium the public library had subsidized the school library money with federal funds. She stated that she cannot speak for the department any more, but she would be willing to talk to them about federal and state funds subsidizing the public library portion of the project. She said the $500,000 requested is exactly what is needed to keep the project running through the next biennium.

Senator Raggio said that with the limited funding it is a matter of deciding which of the requests has a priority and which might fit within available funding.

Ms. Kerschner noted that there are 80 public libraries and 400 school libraries in the state, so proportionally school libraries would need the majority of this money.

Senator Rawson suggested Ms. Kerschner discuss with the Governor the $20 million one-shot allocation to the “three T’s,” technology, teacher training, and textbooks. He said that funding is for the public schools, but some of that could support libraries.

Ms. Kerschner assured the committee that, whatever portion of the funding that could be found, she would work as hard as possible to make up the difference.

Senator Raggio stated the committee would need details as to how the funding would be used, and not just a lump sum. Ms. Kerschner said the cost of the licenses is for three database companies. One, she said, provides six encyclopedias, including a Spanish language one, an adult one, and different age levels. Another, she pointed out, provides thousands of magazines with full text that is appropriate for a variety of age levels. She said the third is strictly an education database with Social Studies, Science, and other such areas. She suggested the school library people in southern Nevada could provide information to the committee on how those databases have been used.

Ms. Kerschner said that if the libraries were to discontinue using these databases in the middle of the biennium and the individual libraries tried to buy them on their own, the price would increase radically. She pointed out the costs covered by the request are available because the companies have “bought out the state” and there is no other clientele in the state to market to. She also noted that a lot of money was spent in every library to get the benefit of this reduced cost. She stated that individual librarians would know the cost of purchasing these databases individually.

Senator Rawson clarified that this discussion is about the purchase of licenses. He asked whether it is possible to work with the university system that does the same thing with respect to licenses. Ms. Kerschner said during the pilot project she had worked with higher education, but found they are not, for the most part, interested in the same level of databases. She explained that the databases in question are provided for high school and elementary levels and for public libraries. She pointed out that the consortia from the first time around did not work as well as the consortia with the public libraries and the schools.

Senator Rawson asked whether the state is paying too much for these licenses. Ms. Kerschner replied that the state is paying a tremendously low fee. She said she believes that, if the contract were to be renegotiated, it would cost a lot more. What they are doing, she pointed out, is buying the copyright licenses of thousands of things and redistributing them to the libraries.

Senator Raggio noted that one of the library districts in southern Nevada participates in the allocation of revenue. Ms. Kerschner responded that all of the library districts do. Senator Raggio asked whether there is a new bond issue in Clark County. Ms. Kerschner replied that Henderson will be running a tax issue on the June 5 ballot and Boulder City passed a bond issue for a building, which is presently under construction. She pointed out that, in the case of Henderson, half the bond proceeds would be for capital construction and half would be for operating costs. She said Henderson has enough library service for about 40,000 people and the city now has about 200,000 people.

Mark Knudson, Educational Technology Consultant, Department of Education, stated that he was present on behalf of the state Commission on Educational Technology to provide a letter of support (Exhibit F). He pointed out that the commission unanimously supports S.B. 385. He explained that two of the databases were funded from S.B. 555 in 1999.

SENATE BILL 555 OF THE SEVENTIETH SESSION: makes appropriation to state distributive account. (BDR 34-1782)

Mr. Knudson said the funds for that project went through the Commission on Educational Technology. He explained that a committee of educators and librarians proposed and approved the databases and then the commission subsequently approved funding for that project. He said this project has gone a long way to bridging the gap of the digital divide, noting that the lowest socioeconomic and rural schools all have access to the same resources that any of the urban schools have.

Mr. Knudson said the commission would support this bill regardless of the agency that the funding went through. He stated it just happened to go through the commission with S.B. 555.

Stan Fuke, Library Administration, Clark County School District, spoke in support of S.B. 385. He stated it is an important bill for all public schools and public libraries, providing patrons with researchable electronic information from newspapers and periodicals published throughout the world. He said it would be cost effective for the state to purchase these informational data bases through a statewide consortium. He pointed out that if the Clark County School District were to subscribe to these databases, now being purchased by the state, it would cost the district over $1 million to maintain its annual subscription. Funding this subscription through the state’s General Fund, he explained, will save the taxpayers millions of dollars.

Cynthia Montoya, Librarian, Green Valley High School, Clark County School District, testified that her high school had a total of 3,100 students that have been aggressively educated in the use of the databases being discussed. She stated they have become dependant upon the use of the on-line services the library provides.

Ms. Montoya pointed out that, during the month of February, 6,161 articles were retrieved from one of the five databases her library has. She said she was unable to obtain the statistics from one system, but she assured the committee that it gets as much usage as the others. She said her school relies heavily on these databases, and added that her school also pays $8,600 for GaleNet, which gets very high use.

Ms. Montoya explained that Green Valley High School expects to lose enrollment to new area schools next year. She said this means the school loses money. She stated that at this point she is able to purchase their additional databases but she finds herself without funding for books. She thanked the committee for its current support and said if any more funding can be found to supplement this request, that would allow librarians to avoid having to make the decision between books and technology.

Lee Gordon, Librarian, Eldorado High School, Clark County School District, stated that her school has a student population of about 2,100. She said her high school is small by Clark County standards, and with fewer students they have a smaller budget. She said the databases provided to the school through the state are invaluable for research required in many subject areas. She explained that the students have access to these databases in the school library, the computer labs, and the classrooms. She said the students can e-mail articles home and access these programs at home. She noted that, for those who do not have computers, the articles can be accessed later at the public library when the school is closed.

Ms. Gordon said in the current state of affairs, without the state provided databases, she would have to make the decision to purchase either books or the on-line databases, because she is not able to do both. She stated that these state provided databases allow her to purchase both. She claimed the students at her school do not have computers at home. She noted there are many on-line resources her school simply cannot afford because it does not have the same level of funding that Green Valley High School has. She said the value of these databases was best summarized by one of her students who declared that, “These databases are too kicking!”

Senator Raggio closed the hearing on S.B. 385.

Senator Raggio opened the hearing on S.B. 428.

SENATE BILL 428: Makes appropriation to Nevada Humanities Committee. (BDR S‑1351)

Senator Raggio stated that this bill makes a request from the General Fund for the Nevada Humanities Committee for the sum of $200,000, which is included in The Executive Budget.

Judith Winzeler, Executive Director, Nevada Humanities Committee, asked the indulgence of the committee to allow a presentation by Alex Newman in the role of Queen Elizabeth of England.

Alex Newman, Actress, Young Chautauqua, Great Basin Chautauqua, stated that she is 17 years old and has been in the Young Chautauqua program since she was in fourth grade. She stated that Queen Elizabeth was her character for two years. As a declaration of support for the value of the arts, her performance included the declaration: “There is more to ruling than religion, negotiation, and warfare. Theater, music, dancing, and the arts are everlasting contributions to society. They enrich all the world and glorify humanity.”

Ms. Winzeler presented the committee with a write-up prepared by Ms. Newman (Exhibit G). She noted that Ms. Newman had been the recipient of the Growing Up Taller Award, a national award given by the President’s Commission on Arts and Humanities.

Ms. Winzeler recalled that she had been before the committee four years ago and received funding for the Las Vegas office of Great Basin Chautauqua. She added that two years ago the committee had also approved funding for the Las Vegas office. After that, she said, she had visited with the Governor to see whether it was possible to be included in The Executive Budget. She stated that the Governor asked that a statement be prepared for him, making a case for why the group should receive public funding. She stated that a copy of that report had been sent to Senator Raggio and to Bob Guernsey, Principal Deputy Fiscal Analyst, Fiscal Analysis Division, Legislative Counsel Bureau. Senator Raggio indicated that the other committee members had been given copies of that report.

Ms. Winzeler stated that there is much to be said about the value of the humanities, but she pointed out that the report addressed “value added.” She said it was the Governor’s concern when a group receives public money that the group can show there is “value added” in the state. She expressed confidence that had been effectively done in that report. She noted that they had described five of the groups projects in some detail and could show that, for the $500,000 they were receiving in state and federal funding, the group had raised three times that amount in in-kind support, foundation grants, and donations from corporations and individuals.

Ms. Winzeler noted that one of the programs discussed was Humanities of the Road. That program, she stated, during a three-year period, provided programs to 30 locations around Nevada. She explained this is a very expensive program to operate, but it provides programs and great resources throughout the state. She noted that the committee had been given copies of the catalogue (Exhibit H. Original is on file at the Research Library.) for this program.

Ms. Winzeler stated that she had also provided Senator Raggio and Mr. Guernsey, with copies of a self-assessment study that her group is currently preparing for the National Endowment for the Humanities. This, she stated, is in draft stage and was presented to the board of the Nevada Humanities Committee and approved with minor revisions. She pointed out that study states very clearly that the Las Vegas office is a high priority of the committee, and she said she sincerely hopes the committee will maintain the funding necessary to keep that office open.

Ms. Winzeler said she had presented the Governor with a document that says the Nevada Humanities Committee is an organization that can produce, and its funds are well spent. She noted that, since they had approached the Senate Committee on Finance the last time, they have published another book entitled Stories From the Sagebrush. She said they were able to procure all the funding from private sources for this book, and it has also generated some revenues for them.

In addition, Ms. Winzeler pointed out, they have published the book Into Her Own. This book, she explained, is based on the archives that Jean Ford was developing. She stated that this book is good for use in Nevada history classrooms, and has been selling very well.

Ms. Winzeler said the Nevada Humanities Committee is moving into a couple of new areas. She stated she was recently informally notified the $50,000 planning grant for the National Endowment for the Humanities to develop an on-line state encyclopedia has been funded. She said this will be one of her committee’s major projects during the next couple of years. She noted that testimony had just been heard about the importance of Internet resources for the public and for school children. She said her organization will actually be developing materials for the encyclopedia of Nevada History. She said her organization feels this is an incredibly significant project.

Ms. Winzeler also drew attention to a progress report (Exhibit I) that had been presented to the board of the Nevada Humanities Committee. She said it is an update of what is happening in their southern Nevada office. She noted that is where the funding received from the state in the past has been spent.

Rose E. McKinney-James, Member, Board of Directors, Nevada Humanities Committee, acknowledged that the Senate Committee on Finance has difficult decisions to make. She pointed out to the committee that the bill being discussed represents a quality-of-life issue. She noted that in the northern part of the state the Nevada Humanities Committee has done a wonderful job. She also stated that the Las Vegas office is very important as the population grows there. She explained that she is a product of a family that was devoted to the arts, theater, and humanities, and expressed her support for recognition by the Senate Committee on Finance of the need for the office in Las Vegas.

Ruth Hanusa, Member, Nevada Humanities Committee, extended an invitation to members of the Senate Committee on Finance to the Summer Chautauqua program. She stated that this summer they will be featuring the World War II generation. She explained it will be at Rancho San Rafael from July 16 through July 19. She said the speakers will be from the World War II generation. She requested support from the Senate Committee on Finance for S.B. 428.

Senator Raggio closed the hearing on S.B. 428.

Senator Raggio opened the hearing on S.B. 448.

SENATE BILL 448: Makes appropriation to State Department of Conservation and Natural Resources for improvement projects at state parks. (BDR S-1392)

Senator Raggio stated this is included in The Executive Budget. He noted the appropriation is for $1.5 million. He said there is backup on this bill in the supplemental documentation (Exhibit J. Original is on file in the Research Library.) provided to the committee.

Steve Weaver, Chief of Planning and Development, Division of State Parks, State Department of Conservation and Natural Resources, said his division is proposing 14 Capital Improvement Projects (CIP) that are outlined in his handout (Exhibit K). He stated they involve $1.5 million in General Fund money. He stated it is the division’s intention to utilize the money to leverage an additional $1.44 million of federal funds for 10 of the 14 projects.

Mr. Weaver pointed out that $100,000 in federal funds have already been approved for Priority 1, which is the Lahontan Water System Renovation project. He said they intend to use a combination of General Fund money and room tax money to make up the additional $149,000.

Senator Raggio noted the handout (Exhibit K) was revised on January 24, 2001. Mr. Weaver replied that is the most recent revision. Senator Raggio noted that it shows the project priorities and the funding sources. Mr. Weaver said that is so, and indicated that a summary of the funding sources is found on page 4 of that document. Senator Raggio suggested Mr. Weaver highlight the priorities for the committee.

Mr. Weaver stated the most important concern is the federal funding for the projects. He noted that ten of the projects are strictly renovation and repair projects. He said two projects are combinations of renovations and upgrades.

Senator Raggio asked what the division will be able to do with Priority 4, the Fort Churchill Stabilization project. He noted that the Fort Churchill structure has deteriorated greatly.

Mr. Weaver agreed that it has, especially during the seven recent years of above average precipitation. He explained that accelerated the deterioration of the fort. He said the tops of the walls have melted, and the division frequently has to rebuild the top 2 or 3 feet of those walls.

Senator Raggio recalled that when Cliff Young was a senator a project had been proposed to restore Fort Churchill. He said they were going to have prisoners make adobe bricks. It was then, he said, he had first learned about bureaucracy, noting that there were “110 reasons why it could not be done.” He remarked that this is a tragedy because it could have been a real showplace. He asked whether there is any plan for a restoration project at Fort Churchill, noting the Mormon Station and the Mormon Fort in Las Vegas have been restored to some extent.

Mr. Weaver stated that the situation at Fort Churchill is different. He said the division is attempting to maintain the structures in a state of arrested decay, utilizing the same types of materials. He explained the adobe bricks melt as it snows and rains on them, and must periodically be replaced. He pointed out that it is on the national historic register, and federal regulators deeply frown upon, if not prohibit, the use of cement and other materials that would prevent further erosion. This, he explained, is because it is important to maintain the historical integrity. He said the division is using the federal guidelines to maintain the state of arrested decay. He added that there are no plans to restore any of the structures at Fort Churchill to their original condition.

Mr. Weaver said the division did a complete re-creation of the original structure at the old Mormon Fort. He recalled there was nothing left of the original fort except the one 1855 structure, and noted that even that was only a portion of one wall of the original structure.

Senator Rawson asked whether the idea of prison labor could be revisited. Mr. Weaver said the division uses prison labor almost every year to make bricks. He also stated that $12,000 has been allocated for each of the next two years for this. He explained the division does that every year, but with the increased precipitation during the 1990s, the problem of decay got well ahead of them. As a result, they are falling behind, he added. He explained that a major influx of funds is now needed to get the walls restored to the condition they were in 10 or 15 years ago. He stated that the $12,000 now in the budget is not going to give the division any headway.

Senator Rawson asked, if the division had the resources, whether it is reasonable to structure a project for Fort Churchill around prison labor.

Senator Raggio explained that in previous attempts at restoration many problems had been faced. He indicated labor unions had been opposed. He added that there were people who said they did not want the ruins changed because they considered it a desecration of a historical structure. He said the objections to the projects were unbelievable. He asked whether Mr. Weaver could look into that situation.

Mr. Weaver pointed out that is already being done, and noted the division has an ongoing program using prison labor to manufacture bricks that are used in the restoration.

Mr. Weaver stated that the division will be putting the restroom for the Kershaw-Ryan State Park campground out to bid within the next 8 weeks. He said this will provide the rest of the campground with a facility, so it will be possible to open the campground up to the public next year.

Senator Rawson asked whether this is maintenance, progress, or a completion of the project. Mr. Weaver said the project as proposed in the handout (Exhibit K) will complete a single loop campground with 12 to 16 spaces. He noted that a couple of them are right at the base of a cliff and they are not sure they want to build 4 of the camp sites because of rocks that are located at the top of the cliff.

Senator Rawson noted that the last phase of the Mormon Fort in Las Vegas is not included in the projects. Mr. Weaver replied that the division had originally submitted 20 projects, the Mormon Fort being the twentieth. He stated they were directed to limit their requests to $1.5 million and that limited them to the 14 projects presented.

Senator Raggio suggested Mr. Weaver submit the remainder of the list, beyond what is in Exhibit K, so the committee can also look at the other priorities.

Mr. Weaver indicated that Exhibit K also includes a memorandum on carryover funding. He pointed out there are a number of projects the division needs to complete and needs to carry over funding for that purpose. He pointed out that the carryover funding will also contribute to some of the projects on the list of 14. He expressed concern that the division not lose money because some was left over. The bulk of that money, he explained, was for a project that was started four years ago at Spooner Lake. He said they had anticipated receiving federal Scenic Byways money and applied for that three years in a row and were turned down all three times. He said things are now shaping up with the Tahoe license plate grant of $190,000 and an additional request from the federal land and water grant program for $275,000. That, he explained, will give the funding necessary to complete that project.

Senator Raggio noted that the memorandum dated March 21, 2001, (Exhibit K) has five areas for carryover. Mr. Weaver agreed. Mr. Weaver pointed out that he wrote the proposal itself to be attached in a draft form to reference all the sections. Senator Raggio asked whether that covers the Kershaw-Ryan State Park. Mr. Weaver replied that it covers all five items included in the memorandum to the budget office.

Senator Raggio asked whether the budget office agrees with this request for carryover funding. John P. Comeaux, Director, Budget Division, Department of Administration, replied that it does agree with that request.

Senator Raggio closed the hearing on S.B. 448.

Senator Raggio opened the hearing on S.B. 456.

SENATE BILL 456: Makes appropriation to Division of Child and Family Services of Department of Human Resources for new and replacement equipment at Southern Nevada Child and Adolescent Services Juvenile Treatment Facility. (BDR S-1420)

Senator Raggio said this appropriation is for $178,458. He stated this is included in The Executive Budget.

Bruce Alder, Deputy Administrator, Division of Child and Family Services, Department of Human Resources, indicated that S.B. 456 is a one-shot appropriation. He said the allocation will be used to purchase new and replacement furnishings and equipment. He stated that most of the items in this request are for the on-campus treatment homes as well as items for the Desert Willow Treatment Center and early childhood services of the division.

Mr. Alder pointed out that concerns were raised last week at the subcommittee work session for the Department of Human Resources regarding the future use of the on-campus treatment homes. He said the division is presently working with the subcommittee, and at its request will be presenting several options for consideration, including the possibility for contracting for this service from a private provider. Mr. Alder said the items included in S.B. 456 may be impacted by the option selected by the subcommittee.

Karen Harbour, Administrative Services Officer, Southern Regional Services, Division of Child and Family Services, Department of Human Resources, stated that her office has put together a list of items that need to be replaced and new equipment. She said this is primarily for the on-campus treatment homes and for the Desert Willow Treatment Center. She stated the items listed for the on-campus treatment homes consist of things such as dining room tables and chairs, which have not been replaced in over 7 years. Other items, she added, are appliances, and sporting and recreation equipment. She stated that clients get a lot of use from these items because they are part of their therapy.

Ms. Harbour added that there are living room chairs, couches, desks, and cell phones for the vans. She explained that when the kids are out in the vans and the vans break down, the drivers have no way of contacting anyone for help, and cannot leave vans with children in them.

Ms. Harbour indicated that some computer replacements are also listed. She said one has been requested for each unit, to be used by the children under supervision. She pointed out this would allow them to do homework.

Ms. Harbour stated that additional appliances and some medical records items have been requested for the Desert Willow Treatment Center. She said the total for this is about $8,700. She explained they are required to keep certain files on the clients and have them at the immediate ready so they may be viewed at any time. She stated their current system is simply not adequate to provide that. She pointed out that they also do not have any way of getting records out of the hospital in time of an emergency. The requested funding, she stated, would provide them with portable records in time of an emergency.

Ms. Harbour noted that sporting and recreation equipment is requested for these clients, as well as sofas and chairs for some of the units. She added that computers have been requested to replace some of the older computers, allowing them to give the older computers to the staff at the Desert Willow Treatment Center who do not presently have computers.

Ms. Harbour said the division has also requested two computers for staff, one of them a dietician who does not have a computer, and presently shares a computer with others. The division wants two computers to relieve that situation, she added.

Ms. Harbour said requests for facilities other than the Desert Willow Treatment Center amount to $42,000. This, she stated, includes storage units for early childhood services and items for buildings and grounds. She added that this amount also includes a few more computers and some replacement tools for maintenance.

Senator Jacobsen indicated that the committee would appreciate it if the division would look at the prison industries for any hard equipment such as furniture. He pointed out they have quite a variety of materials. Ms. Harbour replied that the division does get equipment from the prison industries.

Senator Raggio drew attention to an ongoing expenditure for telephone service, and noted that it is an unusual expense to have included in a “one-shot” request. Mr. Comeaux replied that he was not specifically aware of that, and said he would look into that.

Senator Raggio closed the hearing on S.B. 456.

Senator Raggio opened the hearing on S.B. 476.

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)

Colonel Michael E. Hood, Chief, Nevada Highway Patrol Division, Department of Motor Vehicles and Public Safety, stated he is presenting a “one-shot” request for furniture and wiring for the building that was funded during the last session. He said the division has discussed this with the public works board and has been informed that that the wiring and furniture will be needed by April 2003.

Senator Raggio asked what the correct amount is for this request. Colonel Hood responded that it is $969,592.

Senator Raggio asked why he has a new memo dated April 28, 2000, that indicates an amount of $1,012,401.

Carol English, Assistant Chief, Administration Services Division, Department of Motor Vehicles and Public Safety, indicated that was an earlier version of the request that was prepared when they were first putting the one-shot request together. She explained that, as the request was “fine tuned,” the amount that was subsequently submitted was $969,592.

Senator Raggio asked whether the amount in the bill is the correct amount, and Ms. English replied that it is. Senator Raggio stated that the committee would need backup information on that amount, and Colonel Hood responded that he would provide that information right away.

Senator Rawson asked whether this request is “bonded” or General Fund. Colonel Hood replied that it is State Highway Fund. Senator Rawson noted that makes it much easier.

Senator Raggio asked for confirmation that this is for the building that is to be constructed. Colonel Hood replied that it is. He pointed out that it is in Las Vegas, and will be shared with the Nevada Department of Transportation (NDOT). He pointed out that the arrangement to share the building with NDOT will also save money.

Senator Raggio asked whether a definite site has been selected for this structure. Colonel Hood replied that it has just been approved by the transportation board, and a land swap with Clark County has been accomplished. He explained that the original appropriation was only $2 million for land, and the highway patrol had to cooperate with NDOT to obtain the site.

Senator Raggio asked whether this now involved a swap of land, or a cost for the land. Colonel Hood responded that both the swap and the $2 million allocation were required to secure the land for the facility. He explained that the land they are getting from Clark County is more valuable than what they are giving to Clark County. Senator Raggio asked whether there is a CIP for that, and Colonel Hood replied that there is.

Senator Raggio stated that the committee will need a full report on the acquisition of the land because the $2 million is slated to revert to the General Fund if it is not expended during this biennium. Colonel Hood replied that he understands that situation and indicated he will have a report delivered to the committee.

Senator Jacobsen asked whether the Nevada Highway Patrol Division looks for prison furniture, and Colonel Hood responded that they do.

Senator Raggio closed the hearing on S.B. 476.

BUDGET CLOSINGS - PRISONS

Senator Raggio directed attention to Closing List Number 4 (Exhibit L).

Prison Warehouse Fund – Budget Page PRISONS-26 (Volume 3)

Budget Account 101-3713

Carla Watson, Program Analyst, Fiscal Analysis Division, Legislative Counsel Bureau, reviewed the overview of this budget on page 2 of Closing List Number 4 (Exhibit L). She stated that legislative staff recommends two adjustments in revenues for this account, which also are outlined on page 2 of Exhibit L.

Senator Raggio asked whether it is likely that there will be an increase to purchasing assessments for Warehouse Sales. Ms. Watson said it is. She noted that this situation has not occurred before, and noted that the warehouse fund normally does not receive a General Fund appropriation. He said that had the budget division had time before the finalizing of the Governor’s recommended budget they would have allocated the purchasing assessment to the respective budgets.

Senator Raggio asked whether Mr. Comeaux agrees with that, and Mr. Comeaux replied that he does.

SENATOR RAWSON MOVED TO CLOSE BUDGET 101-3713 WITH ADJUSTMENTS RECOMMENDED BY THE STAFF.

SENATOR MATHEWS SECONDED THE MOTION.

THE MOTION CARRIED. (SENATORS COFFIN AND O’DONNELL WERE ABSENT FOR THE VOTE.)

* * * * *

Correctional Facilities – Budget Page PRISONS-157 (Volume 3)

Budget Account 101-3711

Ms. Watson discussed the proposal to consolidate accounts as outlined on pages 3 and 4 of Closing List Number 4 (Exhibit L).

Senator Raggio asked whether Mr. Comeaux has seen the proposed language prepared by committee staff that would allow transfers across Prison budget accounts. Mr. Comeaux said he has seen it. Senator Raggio asked whether he agrees with that language, and Mr. Comeaux responded that he does.

E-730 Maintenance of Bldgs & Grounds – Page PRISONS-157

Senator Raggio asked whether Mr. Comeaux has any objections to the adjustment that is recommended on E-730 in Closing List Number 4 (Exhibit L.) Mr. Comeaux stated that he does not.

Senator Raggio concluded the effect of this staff recommendation is the budgets will not be collapsed into one budget account, but rather will continue in the original form with the pre-consolidation status. Flexibility will be provided in the appropriations act as indicated. Additionally decision unit E-730 will be transferred to Budget Account 3710.

SENATOR RAWSON MOVED TO CLOSE BUDGET 101-3711 WITH ADJUSTMENTS RECOMMENDED BY STAFF.

SENATOR JACOBSEN SECONDED THE MOTION.

THE MOTION CARRIED. (SENATORS COFFIN AND O’DONNELL WERE ABSENT FOR THE VOTE.)

* * * * *

Senator Raggio stated that it is his understanding that the budgets of the penal institutions proposed for closure at this time involve facilities that have relatively fixed populations.

Ms. Watson responded that is correct. She stated that the camps being considered in this meeting are the rural camps that have been projected to be populated at their emergency threshold of 150 beds each.

Senator Raggio asked whether any adjustments are being recommended that are uniform to all of the conservation camps listed. Ms. Watson said there are.

Restitution Center-South – Budget Page PRISONS-94 (Volume 3)

Budget Account 101-3737

Ms. Watson read the overview of this budget included on page 7 of Closing List Number 4 (Exhibit L). She pointed out that the center was closed as of January 18, 2001, and the staff have been transferred to existing vacancies in other facilities.

Senator Raggio noted that legislative staff agrees with the closure. However, he asked for clarification that the Governor’s budget does not include costs of one month for 60 inmates, as well as clarification of the potential for some of the equipment from this facility being used for other budgets. Mr. Comeaux responded that is the case.

Senator Rawson expressed concern about where the 60 inmates are if the facility has already been closed. Ms. Watson explained this was part of the biennium plan submitted by the Department of Prisons (DOP), which included those 60 inmates. She said they had been provided for in the population projection, but the oversight was that the center closed early. Those 60 inmates are still included in the overall population and housing needs to be provided for them, she added.

Senator Raggio asked where those inmates are now. Ms. Watson testified that she had been advised by the DOP that they have been transferred to the Indian Springs Camp, and the ones that remain are being transported back and forth to their jobs. She said the DOP has also indicated that many of these inmates are up for parole.

Senator Rawson asked whether the committee needs to add approximately $900,000 to the budget to handle those 60 people. Ms. Watson responded that this is for one month only for 60 inmates, and it would have to be at a major institution because the camps are projected to be full. She said her calculations indicate approximately $6,000 is needed.

Senator Rawson noted that this problem does not involve taking people in a restitution camp and placing them back into a maximum-security facility. He suggested that all the committee needs is a figure.

Ms. Watson said she will work with the department to determine that amount, but assured the committee that camp inmates would not be moved into major institutions again. She explained that there is an overall plan that provides for 60 inmates to be housed at the restitution center, and the center is gone.

SENATOR RAWSON MOVED TO CLOSE BUDGET 101-3737 AND ACCEPT THE RECOMMENDATION OF CLOSURE OF THE RESTITUTION CENTER- SOUTH WITH THE UNDERSTANDING THAT STAFF WILL WORK WITH THE BUDGET DIVISION AND PRISON OFFICIALS TO MAKE ADJUSTMENTS NECESSARY FOR THE 60 INMATES FOR THAT MONTH, AND THE POTENTIAL SAVINGS OF USING THE EQUIPMENT FOR OTHER BUDGETS.

SENATOR JACOBSEN SECONDED THE MOTION.

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

* * * * *

Ms. Watson said the populations for the five rural camps at Wells, Humboldt, Ely, Carlin, and Tonopah are at the emergency threshold. She stated they require no adjustments for inmate populations.

Ms. Watson stated that The Executive Budget provides for an inflationary increase of 16 percent for electricity and 15 percent for natural gas. She said no increase is provided for propane, which is used by some of the camps.

Ms. Watson noted the Subcommittee on Public Safety/Natural Resources/Transportation requested the DOP provide projections for utility costs for the biennium. She said the results are provided in the closing documents as informational only, because legislative staff has not had the opportunity to analyze the projections provided by the DOP.

Ms. Watson said adjustments to the budgets of these camps include reducing room and board revenue to Fiscal Year 1998 levels because of the high fire season in the base year. General Fund revenue will be correspondingly increased, she added. She noted that reductions for equipment funded as a “one-shot” appropriation in S.B. 442 is also recommended.

SENATE BILL 442: Makes appropriation to Department of Prisons for replacement equipment. (BDR S-1378)

Ms. Watson stated that the NDOP also requested the legislative staff to create a separate category specifically for maintenance contracts to improve fiscal management.

Senator Raggio pointed out that these adjustments apply to all the camps to be discussed.

Wells Conservation Camp – Budget Page PRISONS-117 (Volume 3)

Budget Account 101-3739

Ms. Watson read the overview and reviewed the adjustments as outlined on page 8 of Closing List Number 4 (Exhibit L).

Senator Raggio asked whether Mr. Comeaux agrees with those adjustments, and Mr. Comeaux replied that he does.

SENATOR RAWSON MOVED TO CLOSE BUDGET 101-3739 WITH ADJUSTMENTS RECOMMENDED BY THE STAFF.

SENATOR JACOBSEN SECONDED THE MOTION.

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

* * * * *

Humboldt Conservation Camp – Budget Page PRISONS-123 (Volume 3)

Budget Account 101-3741

Ms. Watson reviewed the overview and adjustments outlined on page 10 of Closing List Number 4 (Exhibit L).

Senator Rawson asked whether the 800 megahertz radios could justifiably be charged to the DOT budget because they had built a whole system around them. Mr. Comeaux stated that he had not considered that. He said it is his understanding that the radios are for communication with the forestry personnel. He said he is not sure it would be appropriate to have them included in the other budget, but he will investigate that possibility.

SENATOR RAWSON MOVED TO CLOSE BUDGET 101-3741 WITH ADJUSTMENTS RECOMMENDED BY THE STAFF.

SENATOR JACOBSEN SECONDED THE MOTION.

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

* * * * *

Ely Conservation Camp – Budget Page PRISONS-129 (Volume 3)

Budget Account 101-3747

Ms. Watson read the overview and adjustments outlined on page 11 of Closing List Number 4 (Exhibit L).

SENATOR RAWSON MOVED TO CLOSE BUDGET 101-3747 WITH ADJUSTMENTS RECOMMENDED BY THE STAFF.

SENATOR JACOBSEN SECONDED THE MOTION.

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

* * * * *

Carlin Conservation Camp – Budget Page PRISONS-145 (Volume 3)

Budget Account 101-3752

Ms. Watson reviewed the overview and adjustments outlined on pages 12 and 13 in Closing List Number 4 (Exhibit L).

SENATOR RAWSON MOVED TO CLOSE BUDGET 101-3752 WITH ADJUSTMENTS RECOMMENDED BY THE STAFF.

SENATOR MATHEWS SECONDED THE MOTION.

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

* * * * *

Tonopah Conservation Camp – Budget Page PRISONS-151 (Volume 3)

Budget Account 101-3754

Ms. Watson read the overview and adjustments outlined on pages 14 and 15 of Closing List Number 4 (Exhibit L).

SENATOR RAWSON MOVED TO CLOSE BUDGET 101-3754 WITH ADJUSTMENTS RECOMMENDED BY THE STAFF.

SENATOR JACOBSEN SECONDED THE MOTION.

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

* * * * *

Destitute Prisoners’ Account – Budget Page PRISONS-208 (Volume 3)

Budget Account 660-3730

Ms. Watson read the overview and adjustments outlined on page 16 of Closing List Number 4 (Exhibit L). She said the staff makes no recommendations for this account, but she informed the committee that A.B. 580 eliminates provisions pertaining to contracts concerning sale or donation of blood or blood plasma by offenders.

ASSEMBLY BILL 580: Eliminates provisions pertaining to contracts concerning sale or donation of blood or blood plasma by offenders. (BDR 16-622)

Ms. Watson said this bill in effect repeals Nevada Revised Statutes (NRS) 209.383, which would eliminate this account. She stated that this bill has been referred to the Assembly Committee on Judiciary.

Ms. Watson said the staff recommends that transitory language be included in legislation to allow for the continuation of the account within the Inmate Welfare Account, which is budget 660-3763 as a separate category, should A.B. 580 be approved.

Senator Raggio said he did not believe the committee could act on that at this time. He pointed out that will happen if the committees process that measure. Otherwise, he stated, this budget should be closed as recommended.

SENATOR RAWSON MOVED TO CLOSE BUDGET 660-3730 AS RECOMMENDED BY THE GOVERNOR.

SENATOR MATHEWS SECONDED THE MOTION.

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

* * * * *

Senator Rawson stated he believed the sale of blood had been eliminated some time ago. Ms. Watson said that no longer occurs, and has not for several years.

Senator Rawson asked whether the money was just continuing in the account. Ms. Watson replied that there is approximately $13,000 in that account presently, and it just balances forward from year to year including any interest earned. She said the interest earned on the account is approximately $750 per year.

Senator Rawson suggested this money should be put in the welfare account regardless of what happens with A.B. 580. Ms. Watson replied that it is her understanding that this is carried as a separate account at this time because it has a specific purpose. She explained that, should there be a policy change, it could move into the inmate welfare account. The separation, she reiterated, was designed for the specific purpose of providing stipends to indigent inmates on death row.

Senator Rawson asked whether the welfare account could do that in any case. Ms. Watson replied that the welfare account could do that.

Senator Rawson asked Mr. Comeaux whether there is any reason to maintain this account. Mr. Comeaux responded that it is his opinion that it is not necessary to carry this separate account. Senator Rawson asked whether the committee could reconsider an action to eliminate this fund.

Gary Ghiggeri, Fiscal Analyst, Fiscal Analysis Division, Legislative Counsel Bureau, said he believed that would involve the introduction of legislation to provide for the transition of the funding.

BUDGET CLOSINGS – ECONOMIC DEVELOPMENT & TOURISM

Commission on Economic Development – Budget Page ECON DEV & TOURISM-1 (Volume 2) Budget Account 101-1526

Senator Raggio stated this budget account had been heard on February 9, 2001.

Michael J. Chapman, Program Analyst, Legislative Counsel Bureau, read the overview, technical adjustments, and decision items described on pages 17 and 18 of Closing List Number 4 (Exhibit L).

Senator Raggio asked what amount of export sales the agency believes would be realized. He noted that the indication is that, if this grant is successful, the environmental companies in this state may realize $2.5 million in export sales.

Robert E. Shriver, Executive Director, Division of Economic Development, Commission on Economic Development, replied the commission believes that is a conservative approximation of the amount of business Nevada-based companies in environmental technology can realize.

Senator Raggio asked what kind of products those companies would be selling. Mr. Shriver replied that it would be air quality monitoring equipment. He pointed out that the Asian countries targeted by this, including Thailand, the Philippines, and Indonesia, are very much interested in improving air quality standards. That, he explained, is why the Commission on Economic Development is partnering with the Desert Research Institute. He noted that the institute is world renowned in its quality efforts. He added that there are several companies, both in northern Nevada and southern Nevada, that make air quality monitoring equipment. He said this may eventually extend into water quality. He said the companies that make this very specific equipment are small, and this is a unique opportunity for them to realize export sales. He added that the commission is participating in a workshop on this subject later in the month.

Senator Raggio asked how certain the commission is of its ability to acquire the remaining money necessary for the match, if the committee were to authorize the $45,000 per year. Mr. Shriver replied that the commission asked its global trade director to make sure the commission will receive that funding before the state’s money is added. Mr. Shriver assured the committee that those commitments have been acquired. He pointed out that “the State Environmental Initiative (SEI) Grant is only $25,000; the additional $20,000 is for the website.”

Senator Raggio asked whether $25,000 is the amount necessary for the match, and Mr. Shriver responded that it is. Mr. Shriver explained that, as the division uses technology and money more effectively to market the state, the website is becoming more critical.

Senator Raggio asked, if the budget is closed as requested, whether it would be with the understanding that match money is available only for that purpose. Mr. Shriver assured him that is the case.

SENATOR RAWSON MOVED TO CLOSE BUDGET 101-1526 WITH ADJUSTMENTS RECOMMENDED BY THE STAFF.

SENATOR JACOBSEN SECONDED THE MOTION.

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

* * * * *

Motion Pictures – Budget Page ECON DEV & TOURISM-7 (Volume 2)

Budget Account 101-1527

Mr. Chapman read the overview, technical adjustments, and decision items outlined on page 19 of Closing List Number 4 (Exhibit L).

Senator Raggio asked whether the legislative staff has looked at the reasonableness of the amounts indicated for attendance at training seminars.

Mr. Chapman explained that these people go to training sessions in larger cities, which explains why the amounts appear to be somewhat high. He pointed out that the motion picture market is highly competitive, and this would allow division staff to receive additional training in putting together their publications.

Senator Coffin stated that he is concerned about the reduction in the in-state travel. He pointed out that is necessary and it will not become less expensive. He explained that people are needed on the scene to cut through “red tape,” and asked whether travel may be avoided by having someone on the scene in southern Nevada as well as in northern Nevada.

Karen G. Baggett, Deputy Director, Division of Economic Development, Commission on Economic Development, stated the reason for the reduced in-state travel amount is that the commission wants these reserves transferred from in-state travel to out-of-state travel. She explained that the commission believes the money would be spent much more effectively by being able to attract more people and more commercials, films, and television series if the commission were able to make contact with those people outside the state.

Ms. Baggett stated that they have not asked for any additional positions within the state. She declared the staff is very hard working, and pointed out that in the last year they have brought $125 million to the state.

Senator Coffin stated that he has no quarrel with the out-of-state travel increase because of the competition in attracting business. He said he is concerned that the commission is trying to maintain “no change” in the budget. He said it is his opinion the state will suffer if there are not better in-state communications as well as out-of-state communications.

Ms. Baggett pointed out that this request was not proposed by the budget office. She stated that it was the request of the commission’s director that Nevada be well represented at trade shows.

Senator Raggio pointed out that Senator Coffin’s question is strictly related to in‑state travel. He noted that it has been recommended that the previous budget of $15,000 be reduced to $10,700 in each year of the next biennium. He asked whether that will be adequate for the commission’s purposes.

Ms. Baggett stated the commission could always use more, but said it had stayed within their requirements and out-of-state travel is a higher priority.

Senator Coffin stated that he does not believe the commission’s travel has been wasted, noting it has brought hundreds of millions of dollars into the economy. He said he would not want to have to scratch out a few thousand dollars in in‑state travel in an agency that is trying to hustle business.

Senator Raggio asked whether the funding is adequate for the agency’s purposes. Ms. Baggett responded that it is.

SENATOR JACOBSEN MOVED TO CLOSE BUDGET 101-1527 WITH ADJUSTMENTS RECOMMENDED BY THE STAFF.

SENATOR RAWSON SECONDED THE MOTION.

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

* * * * *

Rural Community Development – Budget Page ECON DEV & TOURISM-12 (Volume 2) Budget Account 101-1528

Senator Raggio stated that a revised budget was presented on February 8, 2001.

Mr. Chapman said that is correct. He explained the budget division, in concert with the agency, submitted a revised budget for this account. He said this was done to realign the Revolving Loan Program, the General Fund money, and the Housing and Urban Development (HUD) grant into the proper decision units and to the proper amounts. He referred to the technical adjustments outlined on page 20 of Closing List Number 4 (Exhibit L), and pointed out that the technical adjustments reflect this revision.

SENATOR RAWSON MOVED TO CLOSE BUDGET 101-1528 WITH ADJUSTMENTS RECOMMENDED BY THE STAFF.

SENATOR JACOBSEN SECONDED THE MOTION.

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

* * * * *

Procurement Outreach Program – Budget Page ECON DEV & TOURISM-17 (Volume 2) Budget Account 101-4867

Senator Raggio stated this is also a revised budget as of March 5, 2001.

Mr. Chapman indicated this budget was revised by the Budget Division with the agency’s input. He stated that the adjustments outlined on pages 21 and 22 of Closing List Number 4 (Exhibit L) reflect those revisions.

Senator Raggio asked whether this is the budget that helps businesses compete for federal grants. Mr. Chapman replied that is correct.

SENATOR RAWSON MOVED TO CLOSE BUDGET 101-4867 WITH ADJUSTMENTS RECOMMENDED BY THE STAFF.

SENATOR JACOBSEN SECONDED THE MOTION.

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

* * * * *

Nevada Magazine – Budget Page ECON DEV & TOURISM-30 (Volume 2)

Budget Account 530-1530

Mr. Chapman stated that the legislative staff is not recommending any adjustments to this budget. He read the overview and decision units outlined on pages 23 and 24 of Closing List Number 4 (Exhibit L).

SENATOR COFFIN MOVED TO CLOSE THE BUDGET AS RECOMMENDED BY THE GOVERNOR.

SENATOR NEAL SECONDED THE MOTION.

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

* * * * *

There being no further business, the meeting adjourned at 10:28 a.m.

RESPECTFULLY SUBMITTED:

Bob Williston

Committee Secretary

APPROVED BY:

Senator William J. Raggio, Chairman

DATE: