MINUTES OF THE meeting

of the

ASSEMBLY Committee on Ways and Means

 

Seventy-Second Session

May 12, 2003

 

 

The Committee on Ways and Meanswas called to order at 4:23 p.m., on Monday, May 12, 2003.  Chairman Morse Arberry Jr. presided in Room 3137 of the Legislative Building, Carson City, Nevada.  Exhibit A is the Agenda.  Exhibit B is the Guest List.  All exhibits are available and on file at the Research Library of the Legislative Counsel Bureau.

 

 

COMMITTEE MEMBERS PRESENT:

 

Mr. Morse Arberry Jr., Chairman

Ms. Chris Giunchigliani, Vice Chairwoman

Mr. Walter Andonov

Mr. Bob Beers

Mrs. Vonne Chowning

Mrs. Dawn Gibbons

Mr. David Goldwater

Mr. Josh Griffin

Mr. Lynn Hettrick

Ms. Sheila Leslie

Mr. John Marvel

Ms. Kathy McClain

Mr. David Parks

Mr. Richard Perkins

 

COMMITTEE MEMBERS ABSENT:

 

None

 

STAFF MEMBERS PRESENT:

 

Mark Stevens, Assembly Fiscal Analyst

Steve Abba, Principal Deputy Fiscal Analyst

Mark Krmpotic, Senior Program Analyst

Linda Smith, Committee Secretary

Connie Davis, Committee Secretary

 

 

Chairman Arberry asked Mark Stevens, Assembly Fiscal Analyst, Fiscal Analysis Division, Legislative Counsel Bureau (LCB), to provide the Committee with an update on the current fiscal status resulting from passage of bills and budget closings.

 

Mr. Stevens said as of May 9, 2003, the Assembly Committee on Ways and Means had closed approximately 92 percent of the budgets either in subcommittee or full committee.  Many of the budgets were closed in subcommittee, and when subcommittee reports were finalized the budgets could be closed in full committee.  Mr. Stevens said the closing actions of both subcommittee and full committee resulted in $31.7 million added to The Executive Budget in FY2004 and $107.6 million added in FY2005.  There were 88 Assembly bills and 16 Senate bills still in committee and 33 of the bills had not been heard.  The only major fiscal impact of the bills that had been passed was the change in the effective date for the Interim Finance Committee’s (IFC) Contingency Fund appropriation to restore the balance, which resulted in a decrease in appropriations in FY2003 of $8 million and an increase in FY2004 of $8 million.  Mr. Stevens indicated he would be happy to answer any questions the members might have.

 

In response to a question posed by Assemblywoman Chowning related to the closing actions, Mr. Stevens explained there was not a General Fund savings but rather a General Fund increase of $31.7 million in the first year and $107.6 million in the second year.

 

DEPARTMENT OF MOTOR VEHICLES

 

FIELD SERVICES (201-4735)

BUDGET PAGE DMV-29

 

Mark Krmpotic, Senior Program Analyst, Fiscal Analysis Division, Legislative Counsel Bureau, said there were two outstanding issues related to the Field Services account that required full committee action.  The first related to the recommendation by the Governor to add positions to field offices in Las Vegas and Reno.  The Governor recommended the addition of 179 new positions primarily to major metropolitan field offices in Las Vegas and Reno and the addition of 11 technician positions to the Carson City office to initiate Saturday operations.  The Budget Office had submitted an amendment, number 122, which reduced funding by approximately $600,000 in FY2004 and $1.1 million in FY2005, resulting in a reduction in the number of positions from 179 to 154.  Staff had reduced the funding further by approximately $250,000 in FY2004 and $339,000 in FY2005, which reduced the number of positions from 154 to 147.  The reductions were based on responses from the Department regarding the number of hours available by position for certain office functions.  In deciding the number of field office staff to approve, the Committee might wish to consider the following:

 

• The Department had proposed 24 hours of customer service training in their “relief factor” each year.  Sixteen hours of customer service training was provided to new employees upon initial training in the Field Services Division.  Once customer service training was provided to new employees it was not clear why ongoing customer service training was necessary.  Removal of 24 hours of ongoing customer service training from the relief factor each year would result in a reduction of 7 positions from the staffing recommendation.

 

• Elimination of 11 positions recommended for the Carson City office for Saturday operations.  Mr. Krmpotic noted the Subcommittee had recommended elimination of the 11 positions.

 

• The staffing formula took into account the average period of time office staff conducted transactions beyond 5:00 p.m. each weekday.  In the Las Vegas offices the time averaged one and one-half hours each weekday, total time in the Reno office averaged one-half hour.  The Executive Budget included approximately $300,000 for each fiscal year, which was based on expenses related to overtime required to conduct transactions beyond 5 p.m.  If the Committee approved the increase in staffing, a reduction of $300,000 for each fiscal year should be considered.

 

• Wait time statistics for the Reno office reflected an average wait time consistently below one hour each day.  The Governor recommended the new positions be implemented beginning in June 2004.  Mr. Krmpotic said the Committee might wish to place funding for the positions in reserve and have the Department return to the IFC to justify the use of the funds.

 

Mr. Krmpotic said considerable discussion had occurred at the committee level with respect to the 22 percent “cap” on the amount of funding that could be used for the costs of administration of the Highway Fund, which the Department was subject to pursuant to Nevada Revised Statutes (NRS) 408.235.  Based on the recommendations made by the Committee and the technical adjustments recommended by staff, the Department’s budgets exceeded the 22 percent cap by approximately $600,000 in FY2004 and $3.2 million in FY2005.  The adjustments identified by staff for the Committee, with respect to the new positions in the field offices, were factors in bringing the Department within the 22 percent cap each year of the 2003‑2005 biennium.  Mr. Krmpotic said the other item that was identified was the establishment of a fee for dealer report of sale for both new sales and third party sales of vehicles, which would generate approximately $3.2 million in each year of the biennium.  Staff had prorated that amount in the first year to provide the Department an opportunity to implement the fee in the first three months of the fiscal year.  The overtime that staff recommended for elimination, the elimination of the seven positions, and the establishment of a dealer report of sale fee would bring the Department under the cap by $2.2 million the first year of the biennium and approximately $600,000 in the second year of the biennium, which resulted in percentages of 21 percent in the first year and 21.7 percent in the second year.

 

Mr. Krmpotic said the Governor recommended continuation of the kiosk pilot project in FY2004 at a cost of $50,000 and an expansion of the project in FY2005 at a cost of $2 million.  The Department received approval at the September 2002 meeting of the IFC to spend $50,000 for implementation of the project.  The Department had requested use of the $2 million in the first year of the biennium.  To accommodate the Department’s request, staff recommended maintaining the appropriation in FY2005 and the inclusion of language in the General Appropriations Act to allow the Department to transfer funding to FY2004 if needed.  Mr. Krmpotic recommended the placement of funding recommended in each year in the director’s office budget account with the transfer of funding in FY2005 to reserve, which would allow the Department to report on the results of the pilot and request use of funding through the IFC.

 

Assemblywoman Giunchigliani thought it was time to reserve some positions and have the Department appear before the IFC, but she also thought there needed to be a review of the system.  She suggested expansion of the kiosk, eliminating the pilot, and using some of the revenue for the expansion.  She also suggested charging an additional amount for first time registration within the state as recommended by Senator Coffin in an earlier meeting and requesting that the Department begin looking at providing more travel teams to assist employers by performing much of the work off-site.  Ms. Giunchigliani thought the 24-hour training factor and the 11 positions for the Saturday session should be eliminated.  Ms. Giunchigliani felt any new positions should not be used to cover additional windows, but should be used for existing windows in order to reduce the long lines.  She recognized the addition of the kiosks might also result in shorter lines and shorter wait periods.

 

Assemblyman Griffin said he personally had a concern about adding “this level of infrastructure” because there might be alternative methods available.  Mr. Griffin stressed he was not opposed to the suggestions, but he was not certain “he was there yet.”

 

Assemblywoman McClain asked for an explanation of the proposal recommended by Ms. Giunchigliani for charging an additional fee for first time registration within the state.

 

Assemblyman Parks said there had been a recommendation that the first time individuals from out of state registered a vehicle in Nevada there would be an additional charge to process the reregistration of their vehicles.  Mr. Parks indicated he did not know if a specific dollar amount had been determined but he thought the amount was $5.00.  He indicated there was a problem in determining if an individual was registering a car for the first time in Nevada, or had been in Nevada for 25 years and just purchased a new car.  Mr. Parks felt the kiosk pilot project was viable, but he emphasized the kiosks would not replace all the individuals requested in the budget to provide 100 percent full window coverage.  Ms. McClain said passage of A.B. 30 would probably generate millions of dollars in new revenue because individuals would not be able to wait for months and months to buy their license plates so the DMV would be getting the money upfront.  Mr. Parks said there was a presumption that the new vehicle registration requirement for individuals from out of state would create an additional workload and the additional fee would cover the costs of the services. 

 

Assemblyman Beers thought the impact of the legislation being discussed would just be a “one-time bubble.”  Ms. McClain said when an individual moved into the state and received a Nevada driver’s license there would be a record and tracking would be easier.  A notice would be sent that stated, “You have 10 days left to get your license plate.”  It would be more difficult to locate an individual that had been in the state for a long period of time and had not properly registered his vehicle, and Ms. McClain felt that issue could be addressed during the 2005 Legislative Session.  Mr. Beers said the majority of revenue raised would not go to the state, but rather to the local school districts and local governments.  The registration fee would go to the state. 

 

In response to a request made by Mrs. Chowning that the subject of the discussion be restated, Ms. Giunchigliani said she was suggesting eliminating the 24 hours of ongoing customer service training and eliminating the 11 positions for Saturday operations at the Carson City office.  Ms. Giunchigliani said the Committee still needed to determine the number of staff needed.  She agreed with staff on the wait time for statistics, the number of staff the Committee recommended, placing the funding for those positions in reserve, and having the Department return to the IFC with actual justification for the positions.

 

Ms. Giunchigliani said in Subcommittee there had been discussions of expanding the kiosks and not having a pilot project and perhaps splitting the difference, $1 million in FY2004 and $1 million in FY2005, in order to get more kiosks operational. 

 

Chairman Arberry and Ms. Giunchigliani both felt a study of the kiosks was not required.

 

Ginny Lewis, Director, Department of Motor Vehicles, said the kiosks should go online in June 2003.  There would be one kiosk located in the Carey Avenue office.  Ms. Lewis said the members needed to understand that the kiosk would address multiple areas in addition to giving the customer the ability to use cash to complete a transaction.  The Department of Motor Vehicles had not used kiosks in the past and there were no other states that used kiosks for the same purpose.  The kiosk that would be used by the DMV was a new concept that accepted cash and would generate decals and renewal notices.  The plan was to initiate and evaluate the pilot.  Ms. Lewis thought a few months would be needed to “work through any bugs” and another few months would be needed to evaluate customer response.  The DMV needed to have some data in order to determine how many transactions the kiosk could produce and compare that number to the time required for a technician to produce the same number of transactions.  The Department would then go forward with the plan to locate four kiosks in the metropolitan offices of the DMV, using the $2 million recommended in FY2005.  Ms. Leslie said she hoped the Department could be very aggressive in the pilot phase, and if the pilot proved to be a successful concept, the DMV could then approach the IFC as soon as possible to request the $2 million for phase 2 of the kiosk pilot program.

 

In response to a question asked by Chairman Arberry related to the length of the study, Ms. Lewis said the budget was based on a study of the project for a full year—the last half of FY2003 and the first half of FY2004.

 

Mr. Griffin said he had always been concerned that a study of the pilot program might indicate the kiosks were a phenomenal success and the Legislature would have approved a large budget increase with an additional 100 positions that might not be needed.  He did not want to add positions and infrastructure if it was not necessary.

 

Chairman Arberry voiced his concern with the kiosk being a new process that had not been tried in other states.  Ms. Lewis said the DMV had submitted a Request for Proposal (RFP) and had a vendor who was working with the Department.  She indicated the concept was logical and addressed the cash customers, which seemed to be a large problem in the Las Vegas offices.  The DMV wanted to address those customers who had no other choice than coming to a field office.  Ms. Lewis said she did not see any obstacles to the kiosk not working.  Chairman Arberry noted Southwest Airlines had a kiosk system that generated boarding passes and other flight information.  The number of kiosks had increased but Southwest Airlines continued to have long lines and still had counter service.  The Chairman then asked for the Committee’s preference.

 

Ms. Giunchigliani suggested placing the initial kiosks at the metropolitan offices, one at each location, reserve funding for the positions, and allow the DMV to return to the IFC.  The Committee could then decide whether to add more funding to kiosks, more to travel teams, or more to windows.  Mr. Griffin asked what staffing levels the Committee would be asked to approve.  Ms. Giunchigliani said that was still her concern.  The number of positions had been reduced to 147 positions.  Ms. Lewis interjected that it was important that the Committee understand that the Department had looked at staffing levels by office and there were two very critical offices, the Sahara Avenue office and the Carey Avenue office.  Ms. Lewis requested that those two offices be funded for staffing.  It was incumbent to staff those offices in order to reduce the wait times.  She reiterated that the Reno office wait time was well under one hour.  The Flamingo Road office and the Henderson office were bordering on wait times of one hour. 

 

Mr. Griffin asked how many positions were needed for the Sahara Avenue and Carey Avenue offices.  Mr. Krmpotic said at this point the staffing increase at the Carey Avenue office would be 31 positions and the Sahara Avenue office would include 19 positions.  Mr. Griffin said he would be much more comfortable with the 50 positions rather than the 147 positions.

 

Assemblyman Andonov asked what the waiting times were at the Sahara Avenue and Carey Avenue offices. 

 

Clay Thomas, Administrator Field Services Division, DMV, said the wait time at the Sahara Avenue office was averaging over 80 minutes and the Carey Avenue office was averaging over 90 minutes.

 

Mr. Andonov asked if there was any indication there would be higher growth in the Sahara Avenue and Carey Avenue offices when compared to other DMV locations.  He stressed the importance of measuring both current waiting times and future growth.  Mr. Andonov thought Henderson had the highest growth rate.  Mr. Thomas said the average wait time at the Henderson office was approximately 66 minutes.  The average wait time for southern Nevada offices was 76 minutes.  Mr. Andonov again asked if there were any projections for where the caseload growth would be in the future.  Mr. Thomas said the DMV had not projected growth strictly in Henderson.  Mr. Andonov asked if the DMV tracked the increase in wait times.  If the DMV was requesting more positions it was important to look at future growth.  Mr. Thomas said Mr. Andonov was correct and that was why the Department had requested the staffing formula that it had in anticipating future growth in the Las Vegas and eventually in the Reno area.

 

ASSEMBLYWOMAN GIUNCHIGLIANI MOVED TO: REMOVE THE 24 HOURS OF CUSTOMER SERVICE TRAINING, RESULTING IN A REDUCTION OF SEVEN POSITIONS FROM THE STAFFING RECOMMENDATION; ELIMINATE THE ELEVEN POSITIONS FOR SATURDAY OPERATIONS AT THE CARSON CITY OFFICE; ESTABLISH THE STAFFING FORMULA FOR THE CAREY AVENUE AND THE SAHARA AVENUE OFFICES FIRST AND RESERVE THE REMAINDER OF THE FUNDING FOR THE DMV TO RETURN TO THE IFC FOR ADDITIONAL POSITIONS; REQUIRE THAT THE KIOSK PROJECT BE EXPANDED IN THE FIRST YEAR TO THE METROPOLITAN AREAS; APPROVE A DRIVER EXAMINER POSITION IN THE FALLON OFFICE; APPROVE THE RECOMMENDATION TO ADD AN APPRAISER POSITION TO THE RENO OFFICE; APPROVE THE TRANSFERS OF SIX POSITIONS TO THE MOTOR CARRIER ACCOUNT AND EIGHTEEN POSITIONS TO THE COMPLIANCE ENFORCEMENT ACCOUNT; AND APPROVE OTHER CLOSING ITEMS AS NOTED BY STAFF.

 

ASSEMBLYMAN PARKS SECONDED THE MOTION.

 

THE MOTION CARRIED UNANIMOUSLY.

 

Mr. Krmpotic asked if the motion included the ability to transfer the kiosk appropriation between fiscal years, and Ms. Giunchigliani indicated that was the intent.

 

Mr. Parks thought the intent was to expand the use of kiosks as quickly as possible, but for demonstration purposes it might be wise to have the first kiosk located at the Carey Avenue office and then expand to the Sahara Avenue office, rather than trying to run four experiments.

 

Ms. Giunchigliani suggested introducing the kiosks in three-month segments.  She thought the metropolitan offices needed to be the target and suggested starting with the Carey Avenue office.  If a problem occurred with the kiosks there would still be time to address the problem.

 

Ms. Lewis said the recommendation made by Ms. Giunchigliani would work.  She noted the Department had a contract for one kiosk, and that contract would have to be renegotiated.  Ms. Lewis then asked about the suggestion of placing funding for staff in reserve.  If the kiosk worked very well, could the Department return to the IFC and, in lieu of hiring staff, request additional kiosks outside of the $2 million.  Ms. Giunchigliani said that was the purpose of placing the funding in reserve. 

 

Chairman Arberry noted the kiosks could not replace staff because some individuals could not deal with machines.

 

********

 

MOTOR VEHICLE POLLUTION CONTROL (101-4722)

BUDGET PAGE DMV-83

 

Mr. Krmpotic said staff had recently learned that revenue projections for FY2003 and recommended for each year of the 2003-2005 biennium were overstated by approximately $400,000 per year.  Based on information provided by the Department, revenue projections resulted from a revenue accounting error in FY2002, which overstated revenues by $323,115.  Staff had reflected the repayment of overstated revenue to the Motor Vehicle Fund and had revised revenue projections in FY2003.  The modifications reduced the beginning cash balance in FY2004 from the recommended level of $2.2 million to $1.4 million.  Staff also included revised revenue projections from the Department in each year of the 2003-2005 biennium with corresponding reductions in the one-fifth portion of the certificate revenue distributed to the counties per NRS 445B.830. 

 

Mr. Krmpotic made the following recommendations:

 

• An increase in the transfer to the Public Works Board for the Department of Agriculture’s Petroleum Laboratory in Reno from $800,000 to $1.1 million.

 

• Elimination of $800,000 set aside over the biennium for a projected DMV Emission’s Lab in Las Vegas.  Mr. Krmpotic noted the funding was not being considered as a Capital Improvement Program (CIP) project.

 

• Removal of increased revenues of approximately $2.6 million in each year and corresponding distributions to Clark and Washoe Counties of $1.3 million each year based on the failure of S.B. 419 to reach a constitutional majority for passage from the Senate.  S.B. 419 called for a $2 increase in the Pollution Control fee and increase in the distribution to the counties from $1 to $2.

 

• Adjustments in distributions to the Division of Environmental Protection and the Department of Agriculture based on Subcommittee closing actions approved for those agencies.

 

• Adjustments to computer software and hardware costs.

 

Mr. Krmpotic said based on the adjustments, the Pollution Control account was projected to have a negative reserve of approximately $300,000 at the end of the biennium.  The Committee needed to consider one of the following options to close the Pollution Control account with a positive reserve balance at the end of the 2003-2005 biennium:

 

• Option 1—Approval of an increase of the existing $5 certificate fee by $1, which would generate approximately $1.2 million per fiscal year.  The increase would generate a projected reserve of $2.1 million.  If approved, the Committee should consider the change in distribution level to the counties from one-fifth to one-sixth of the fee for each certificate sold to maintain existing distribution levels.

 

• Option 2—Elimination of the transfer of funding for the Department of Agriculture’s Petroleum Laboratory addition totaling $1.1 million, which would result in a reserve at the end of the biennium of approximately $800,000.

 

• Option 3—Reconsider increased transfers to the Division of Environmental Protection (DEP), Bureau of Air Quality, of $1.3 million over the biennium to add six positions to address new Environmental Protection Agency (EPA) rules.

 

• Option 4—Removal of decision unit E-500 from the Pollution Control account, which added a Compliance Enforcement Investigator position to expand the Heavy-Duty Diesel Enforcement program to Washoe County totaling $143,839 over the biennium.  Mr. Krmpotic said the removal of the decision unit alone would not resolve the negative reserve problem.

 

Mr. Krmpotic concluded his presentation on BA 4722, and requested authority to revise cost allocations paid to the Director’s Office and Administrative Services accounts based on final approval of all budget accounts for the DMV.

 

Mr. Parks thought it would be best to review each of the options and incorporate them into a recommendation.  He noted that the beginning balance had been reduced in BA 4722.

 

Mr. Krmpotic restated the options.  He indicated if the Committee recommended one of the first three options, the members might wish to approve or not approve the last option.  There would still be sufficient funding in the reserve at the end of the biennium to fund the Heavy-Duty Diesel Enforcement program expansion to Washoe County.

 

Mr. Hettrick said he did not understand all the options and asked for an explanation of the third option, which would reconsider increased transfers to the Division of Environmental Protection.  Mr. Krmpotic explained that the $1.3 million transfer was an increase over the current level that was being transferred to the DEP and currently funding was transferred from this account to DEP to fund the Air Quality program.  The Governor recommended an addition of six positions in the DEP account, requiring increased funding transfers from the Pollution Control account.  If the recommendation was considered by the Committee, the Air Quality account would have to be reopened to consider the reduction in the number of positions recommended over the biennium in that account.  Mr. Hettrick asked if the $1.3 million would cover more than the cost of salaries for the six positions.  Mr. Krmpotic thought the funding would cover more, but indicated he did not handle the Air Quality account.  Mr. Hettrick then asked if the positions would perform the same duties in the Motor Vehicle Pollution Control account as in the Air Quality account.  Mr. Krmpotic said the positions were new positions recommended in the Air Quality account and the transfer would only be a transfer of funding.  Mr. Hettrick indicated option 3 would probably be his choice.

 

Assemblyman Parks began a motion to include the first three options outlined by Mr. Krmpotic, and Mr. Stevens interjected that the Committee could select any one of the options and maintain a positive reserve balance.  Selecting the first option would result in a projected reserve balance at the end of the biennium of $2.1 million; the second option would result in a projected reserve balance of $800,000; and the third option would result in a projected reserve balance of approximately $1 million.  He stated the Committee could choose to adopt all three options, but choosing all three options would result in a large reserve balance.

 

Mr. Hettrick pointed out that part of the funding for the six positions would be used for contract services and the contracts had not been written.  He said Steve Abba, Principal Deputy Fiscal Analyst, Fiscal Analysis Division, LCB, was checking to see if the state was obligated to issue the contracts.  Mr. Hettrick opined that the Committee did not need to approve all three options.

 

Chairman Arberry stated that the Pollution Control budget would be held open until Mr. Hettrick received a response from Mr. Abba on the contract issue.

 

DEPARTMENT OF PUBLIC SAFETY

 

DIGNITARY PROTECTION (101-4738)

BUDGET PAGE PS-49

 

Mr. Krmpotic said the primary changes in the Dignitary Protection budget account included two budget amendments submitted by the Governor.  The first amendment would reclassify four Highway Patrol Trooper positions to Capitol Police Officers, resulting in a General Fund savings of $55,382 in FY2004 and $53,410 in FY2005.  The second amendment recommended the addition of one Capitol Police Officer.  The two amendments combined would result in a reduction of General Fund dollars over the biennium in excess of $3,000.  The Capitol Police Officers would provide roving security at the Governor’s Mansion.  Mr. Krmpotic said the budget account would continue to have a Highway Patrol Sergeant and two Highway Patrol Troopers to provide personal security to the Governor and the Governor’s family. 

 

ASSEMBLYMAN PARKS MOVED TO CLOSE BA 4738 WITH THE RECLASSIFICATION OF THE FOUR HIGHWAY PATROL TROOPER POSITIONS TO CAPITOL POLICE OFFICERS AND THE ADDITION OF THE ONE ADDITIONAL CAPITOL POLICE OFFICER AND OTHER STAFF RECOMMENDATIONS AND TECHNICAL ADJUSTMENTS.

 

ASSEMBLYWOMAN LESLIE SECONDED THE MOTION.

 

THE MOTION CARRIED WITH MRS. GIBBONS VOTING NO.

(Mr. Perkins was not present for the vote.)

 

********

HIGHWAY PATROL (201-4713)

BUDGET PAGE PS-55

 

Mr. Krmpotic said there were seven issues related to BA 4713.

 

• High-band Radio System—The Governor recommended Highway Funds of $800,000 in FY2004 to address problems experienced with the high‑band radio system in southern Nevada.  The Department reported that under the new radio system design, extenders were not built into the vehicle radios; therefore, handheld radios communicated through mountaintop antennas that resulted in problems in the use and clarity of the handheld radios.  The Department had testified before the Committee indicating a report and an audit of the radio system was being conducted and, as a result of that audit, the Department requested that the $800,000 in funding for radio coverage improvement be removed from the Highway Patrol budget.  Mr. Krmpotic advised the Committee that the LCB had recently learned that the problem with the radio system was not solely limited to the problems with the handheld radios.  The Department learned recently that they did not own any frequency channels to operate the radio system.  The Department was looking at an intermediate solution of converting to a conventional system and purchasing approximately 50 frequency channels statewide to operate the system.  Over the long term the Department could potentially replace the entire system and migrate to the 800-megahertz system utilized by the Department of Transportation.  Preliminary amounts were provided by the Executive Branch that totaled approximately $50 million in Highway Funds and $1.8 million in General Fund dollars to address the long-term solution with the radio system. 

 

Chairman Arberry noted the radio system for the Highway Patrol had been under discussion for many years.

 

Mr. Hettrick said he knew of an individual who was familiar with the problems of the Highway Patrol radio system and that individual would be happy to provide testimony to the Committee.  Mr. Hettrick thought it was important to get more information on the radio system before the Committee made any kind of decision.

 

Mr. Stevens said the issue before the Committee during the current meeting was consideration of removing the $800,000 included in the Governor’s budget.  The long-range issue of the amount of funding that would be required to fix the radio system would have to be addressed before the end of the 2003 Legislative Session.

 

Mr. Krmpotic continued his presentation and referred to the remaining issues:

 

• Dispatch Positions—The recommendation would add ten dispatchers in Las Vegas to address increased workload by staffing a fifth console to provide relief to dispatchers staffing existing consoles.  The recommendation also included five “call takers” to answer telephone calls.  Mr. Krmpotic said the calculations used by the Department appeared reasonable.  He said the Department indicated dispatch services were provided to various state and local agencies not funded from the Highway Fund.  Providing services to non-Highway Funded agencies through positions financed 100 percent from the Highway Fund violated Article 9, Section 5 of the Nevada Constitution.  The Department did not have information that would allow staff to equitably allocate the costs for dispatch services to other agencies.  Mr. Krmpotic suggested the Committee might want to approve the funding for the ten dispatcher positions and consider a Letter of Intent to direct the Department to identify expenses related to dispatch services and submit a plan for funding expenses related to dispatch services in the 2005-2007 biennial budget.

 

• Budget Reductions—The Governor recommended elimination of eight Trooper positions vacant for longer than six months.  The ratio of Sergeants to Troopers was one to seven.  The Department indicated that two Sergeant positions were lost through reclassifications to Lieutenants and there were at least two Sergeant positions allocated outside the Department that supervised non-Highway Patrol personnel.  Staff recommended the elimination of one Sergeant position if the Committee approved the reduction of the eight Trooper positions.

 

Chairman Arberry was concerned with the recommendation to eliminate eight Trooper positions and asked if there was anyone present from the Highway Patrol who could testify.

 

Colonel David S. Hosmer, Chief, Nevada Highway Patrol, Department of Public Safety, said all eight of the positions recommended for elimination were designated as “double dip” positions in Las Vegas.  Las Vegas was currently carrying a 30 percent vacancy rate.  Colonel Hosmer said it would take probably two years, running back-to‑back academies, to get where “I need those positions back.”  Colonel Hosmer said he did not have a problem with the Governor’s recommendation or staff’s recommendation to eliminate the positions.  Chairman Arberry asked if the Colonel meant that because of the growth it would not be possible to fill the positions.  Colonel Hosmer said that was correct.  Chairman Arberry said he understood there was a waiting list for individuals who wanted to be Highway Patrolmen.  Colonel Hosmer said there was a waiting list but the slowdown had been within the Department and the Division due to reengineering of the training academy, the background investigation process, and other areas.  The reengineering had been completed.  Colonel Hosmer said in order to fill the 60 vacancies and at the same time have natural attrition through retirement, or individuals moving to other positions, there would always be some vacancy rate.  Therefore, Colonel Hosmer did not think losing the positions would be detrimental.  Colonel Hosmer said he might be returning to the 2005 Legislature requesting the positions.  He stressed that under the current administration, the Department was doing more with less. 

 

Mr. Krmpotic continued his presentation.

 

• Equipment Request—There was an issue related to the transfer of surplus vehicles to the Storey County Sheriff’s Office and other local government agencies.  Legal staff provided an opinion that indicated motor vehicles purchased with money from the state Highway Fund were to be given, without consideration equal to the market value of the vehicle, to a local government or any other entity that would not use the vehicle exclusively for the construction, maintenance, and repair of public highways or the administrative expenses related thereto was prohibited by Section 5, Article 9 of the Nevada Constitution.  Staff suggested a Letter of Intent directed to the Department of Administration and the Department of Public Safety that indicated a surplus vehicle originally purchased with Highway Funds could not be given to any entity that would not use the vehicle exclusively for the construction, maintenance, and repair of the public highways or the administrative expenses related thereto without consideration equal to the market value of the vehicle.

 

• Position Reclassifications—The Department received approval at the November 2002 IFC meeting to reclassify two Trooper positions to Information System Specialists.  The IFC moved that the position reclassifications be reconsidered by the 2003 Legislature.  Mr. Krmpotic said the recommendation to continue the Information System Specialist positions appeared reasonable to staff.

 

• Dyed Fuel Program—Funding of $81,499 was recommended in each year of the 2003-2005 biennium for ongoing support of the dyed fuel program.  Currently the Department received funding from the Nevada Department of Transportation (NDOT) via inter-local agreements to fund the dyed fuel program.  A.B. 521, under consideration by the Assembly Committee on Ways and Means, would expand responsibilities of enforcement of matters related to special fuel to the DMV.  Mr. Krmpotic said the recommendation appeared reasonable to staff.

 

• Budget Analyst Position—The Department and the Governor recommended a new Budget Analyst position because of additional duties and responsibilities of the Highway Patrol Division associated with the Integrated Financial System.  Staff recently learned that the Division had received approval to reclassify a Program Officer position to an Administrative Services Officer to provide additional administrative and fiscal support.  Because of the recent reclassification and the existence of two Management Analyst positions, staff felt the addition of a Budget Analyst position did not appear reasonable. 

 

Mr. Krmpotic said decision unit E-278 recommended funding of approximately $1 million in FY2004 for furniture, equipment, and additional network and telecommunication wiring for the new Highway Patrol building in Las Vegas.  The original project cost estimate for the building reflected a total of $55,214 for furniture and $88,200 for data and telecommunication wiring.  Staff recently received an amendment to the budget to add $300,000 of funding to the project to provide for a telephone system and “data drop lines.”  Staff recommended the removal of the funding from the budget and inclusion of recommended funding in an appropriations bill to enable the Department to spend the funding over the biennium

 

Mrs. Chowning asked for additional information on the $81,499 recommended for the dyed fuel program, decision unit E-225.  Mr. Krmpotic said the funding included in the budget for the dyed fuel enforcement would remain in the Highway Patrol account and would provide equipment for Highway Patrol troopers dealing with commercial carriers to perform dyed fuel tests “on the road.”  Some of the funding would be used for travel to attend conferences.

 

Colonel Hosmer said the Department would be happy to review all of the recommended funding again to make certain it was appropriately placed within the Department of Public Safety, and if there was equipment that the DMV needed perhaps the equipment could be transferred to the DMV with the approval of the IFC.  He stressed that the Department of Public Safety wanted to work in concert with the DMV to make certain both agencies had the proper equipment.

 

Mr. Stevens explained that the IFC did not have authority, unless specifically provided by the Committee, to transfer Highway Funds between agencies.  Mrs. Chowning said the issue related to the dyed fuel program, decision unit E‑225, needed to be resolved and she suggested a Letter of Intent be issued.  Mr. Stevens said authority would have to be provided in the General Appropriations Act or the DMV could approach the IFC to request an allocation from the Contingency Fund, which had a reserve of $1 million in Highway Fund dollars for emergencies within Highway-Funded agencies.  Mrs. Chowning noted that A.B. 521 had not been passed out of the Assembly Committee on Ways and Means and the issues could be resolved and included in the bill.

 

Mr. Stevens recommended that the Committee remove the $800,000 included in the Highway Patrol budget for the high-band radio system, which would allow closure of the budget.  He indicated the radio issue was much larger than what the Committee needed to address during the current meeting.  Mr. Stevens recommended the Committee address the radio issue separately prior to the end of the 2003 Legislative Session and decide whether to appropriate additional funds for that purpose. 

 

ASSEMBLYMAN PARKS MOVED TO CLOSE BA 4713 BY DELETING THE $800,000 FOR THE RADIO PROGRAM; ADDING THE TEN DISPATCHER POSITIONS; ELIMINATING THE EIGHT TROOPER POSITIONS AND ONE SERGEANT POSITION; REQUESTING A LETTER OF INTENT DIRECTED TO THE DEPARTMENT INDICATING ALL SURPLUS VEHICLES WOULD BE HANDLED APPROPRIATELY; RECLASSIFY TWO OF THE TROOPER POSITIONS TO INFORMATION SYSTEMS SPECIALISTS; FUND THE $81,499 IN THE DYED FUEL PROGRAM; DENY THE INCLUSION OF THE BUDGET ANALYST POSITION; AND APPROVING OTHER BUDGET CLOSING ITEMS AS RECOMMENDED BY STAFF INCLUDING TECHNICAL ADJUSTMENTS.

 

ASSEMBLYMAN PERKINS SECONDED THE MOTION.

 

THE MOTION CARRIED UNANIMOUSLY.

 

********

 

PEACE OFFICERS STANDARDS AND

TRAINING COMMISSION

 

PEACE OFFICERS STANDARDS & TRAINING COMMISSION (101-3774)

BUDGET PAGE POST-5

 

Mr. Krmpotic said the base budget for the Peace Officers Standards and Training Commission (POST) was reduced by four positions and operating expenses totaling approximately $460,000 in each year of the 2003‑2005 biennium.  The expenses represented the cost to operate the Basic Training Bureau.  Information provided by the Budget Office indicated the reductions were made due to insufficient Administrative Court Assessments at the current service level.  Mr. Krmpotic noted that decision unit E-125 anticipated an increase in Administrative Court Assessments based on A.B. 29, which provided an additional administrative assessment of $10, 49 percent of which would be eligible for distribution to Executive Branch functions identified in NRS 176.059.

 

Mr. Krmpotic said the Governor also recommended, through decision unit E‑125, increases of approximately $170,000 in FY2004 and $120,000 in FY2005 to provide for relocation of the Training Academy.  The POST resided in the Department of Public Safety and was located in a donated building at the Stewart Facility in Carson City.  Due to the growing needs of the Department of Public Safety, the POST Commission would have to find an alternative location to provide training.  Mr. Krmpotic said staff had decreased the funding in the decision unit by $39,067 in FY2004 and $726 in FY2005 to reflect increases in registration fees and corresponding reductions in administrative assessments for projected academy training. 

 

Mr. Krmpotic said another closing issue was a facilities manager position.  The recommended Program Officer would be responsible for maintenance of facilities and vehicles and scheduling of the firing range, dormitory, and classroom.  Mr. Krmpotic said staff was not certain the duties warranted a full‑time position.  The Committee might want to approve a one-half time position versus a full‑time position.

 

Mr. Krmpotic said decision unit E-501 recommended the addition of an Administrative Aid position and funding for contract services of $45,000 in FY2004 to microfilm Peace Officer records presently maintained in paper form.  The Executive Budget also recommended $46,570 in FY2004 to purchase an off-the-shelf software program to track Peace Officer training records throughout the state.  The recommendation appeared reasonable.

 

ASSEMBLYMAN PARKS MOVED TO CLOSE BA 3774 WITH APPROVAL OF DECISION UNIT E-125 TO RESTORE FUNDING FOR THE BASIC TRAINING BUREAU SUBJECT TO THE PASSAGE OF A.B. 29; APPROVAL OF A HALF-TIME PROGRAM OFFICER POSITION FOR FACILITIES MANAGEMENT; APPROVAL OF DECISION UNIT E-501 TO ADD ONE ADMINISTRATIVE AID POSITION; PROVIDING FUNDING FOR CONTRACT SERVICES TO MICROFILM PEACE OFFICER RECORDS, AND APPROVAL OF OTHER STAFF RECOMMENDATIONS.

 

ASSEMBLYWOMAN McCLAIN SECONDED THE MOTION.

 

THE MOTION CARRIED.  (Mr. Beers, Ms. Leslie, and Mr. Marvel were not present for the vote.)

 

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Assembly Bill 471:  Makes supplemental appropriations to the Division of Health Care Financing and Policy of Department of Human Resources for shortfalls in budgeting in Fiscal Year 2002-2003 for Nevada Check Up Program and for Medicaid caseload and county-match requirements. (BDR S-1227)

 

Mr. Stevens said a $510,000 supplemental appropriation was included in subsection 1 of Section 1 of A.B. 471 for the Nevada Check Up program.  Based on approval of a work program by the Interim Finance Committee during their May 8, 2003, meeting, the supplemental appropriation was no longer needed and could be deleted.  Mr. Stevens said subsection 2 included a supplemental appropriation of $9,053,621 for the Medicaid program.  The Department of Human Resources (DHR) was processing payments in anticipation of implementing their Medicaid Management Information System (MMIS).  The claims were being processed faster than expected, which would result in additional costs in FY2003, but would reduce costs in FY2004.  In order to fulfill monetary obligations, the DHR indicated the supplemental appropriation needed to be increased to $11,678,558.  Mr. Stevens said staff had reviewed the increased amount and agreed the amount was needed.

 

ASSEMBLYMAN MARVEL MOVED TO AMEND AND DO PASS ASSEMBLY BILL 471.

 

ASSEMBLYWOMAN LESLIE SECONDED THE MOTION.

 

THE MOTION CARRIED.  (Mr. Beers was not present for the vote.)

 

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Assembly Bill 490 (1st Reprint):  Revises provisions governing mortgage brokers and mortgage agents. (BDR 54-998)

 

Mr. Stevens thought there should be some discussion on A.B. 490.  He noted that the bill included two fees, the first was an application fee set by the Commissioner of Mortgage Lending for not more than $185; that money would be placed in the Investigative Fund.  The second fee was a renewal fee of not more than $170 and that money would be deposited into the state General Fund.  Mr. Stevens stated there would be a large increase immediately in the number of applications for mortgage brokers and agents if A.B. 490 passed; all of those funds would go to the Investigative Fund.  If the renewal fees were placed into the state General Fund, there was no provision for a General Fund appropriation to pay for the costs related to the legislation.  The costs projected by the agency were approximately $178,000 for the new commission plus $15,000 in board costs.  The Attorney General indicated two Deputy Attorney General positions would be required, resulting in a total cost of $351,000, which would be a General Fund appropriation, but there was no provision for the appropriation.  Mr. Stevens said the additional revenues projected by the agency for the renewal fees would be $39,000 in FY2004 and $185,000 in FY2005.  Mr. Stevens said there were mechanical problems that needed to be addressed outside of the policy issue of whether the commission was a good thing to set up and regulate.

 

Assemblyman Goldwater said when he drafted A.B. 490 his vision was to have the new commission or new agency set the fee structure that would go into a new account and the commission or agency would be self-funded out of the new account.  The new agency or commission would set the fee, appear before the IFC with the budget and receive approval of the budget for a self-funded agency.

 

Chairman Arberry asked if Mr. Goldwater’s recommendation was feasible.  Mr. Stevens indicated the recommendation could be done, but there were a couple of items that needed to be decided.  First, the initial application fee currently went to the Investigative Fund and without that money it did not appear there would be sufficient funding to self-fund the operation, at least at the levels the agency and the Attorney General’s Office felt was necessary, unless the renewal fee was increased dramatically.  Mr. Stevens said the renewal fee could go to the new commission and unless a portion of the application fee money was diverted to that purpose there would not be sufficient revenue to self-fund the agency.  He said the self-funding made sense because of a bill processed through the Assembly Committee on Ways and Means that would make the Division of Financial Institutions a self-funded agency.

 

Mr. Goldwater said he wanted the self-funding to work.  He felt the fiscal note that had been presented to the Committee was aggressive and prohibitive.  Mr. Goldwater thought the cost of the investigations needed to be covered and the Investigations account needed to be funded.

 

Chairman Arberry asked Mr. Goldwater to work with LCB staff on revising A.B. 490.

 

Chairman Arberry closed the hearing on A.B. 490 and adjourned the meeting at 5:51 p.m.

 

RESPECTFULLY SUBMITTED:

 

 

 

Linda Smith

Committee Secretary

 

 

APPROVED BY:

 

 

 

                       

Assemblyman Morse Arberry Jr., Chairman

 

 

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