MINUTES OF THE
JOINT Subcommittee on
Public Safety/ Natural Resources/Transportation
of the
Senate Committee on Finance
AND THE
Assembly Committee on Ways and Means
Seventy-second Session
April 4, 2003
The Joint Subcommittee on Public Safety/Natural Resources/Transportation of the Senate Committee on Finance and the Assembly Committee on Ways and Means was called to order by Chairman Dean A. Rhoads at 8:13 a.m. on Friday, April 4, 2003, 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.
Senate COMMITTEE MEMBERS PRESENT:
Senator Dean A. Rhoads, Chairman
Senator Sandra J. Tiffany
Senator Bob Coffin
Assembly COMMITTEE MEMBERS PRESENT:
Mr. David R. Parks, Chairman
Ms. Christina R. Giunchigliani
Mr. Joshua B. Griffin
Ms. Sheila Leslie
Mr. John W. Marvel
Mr. Richard D. Perkins
STAFF MEMBERS PRESENT:
Gary L. Ghiggeri, Senate Fiscal Analyst
Steven J. Abba, Principal Deputy Fiscal Analyst
Mark Krmpotic, Senior Program Analyst
Pamela Carter, Committee Secretary
OTHERS PRESENT:
Virginia Lewis, Director, Department of Motor Vehicles
Dennis Colling, Chief, Administrative Services Division, Department of Motor Vehicles
Russ Benzler, Administrator, Compliance Enforcement Division, Department of Motor Vehicles
Clay Thomas, Administrator, Field Services Division, Department of Motor Vehicles
Martha Barnes, Administrator, Central Services and Records Division, Department of Motor Vehicles
Jim Parsons, Administrator, Management Services and Programs Division, Department of Motor Vehicles
Chuck Conner, Data Processing Manager, Motor Vehicles Information Technology Division, Department of Motor Vehicles
DEPARTMENT OF MOTOR VEHICLES - OVERVIEW
Mark Krmpotic, Senior Program Analyst, Legislative Counsel Bureau, said the 22 percent cap limitation on Highway Fund appropriations is $58.5 million in fiscal year (FY) 2003-2004 and $63.2 million in FY 2004-2005, resulting in appropriations exceeding the cap by $10.6 million in FY 2003-2004 and $13.8 million in FY 2004-2005. He said Assembly Bill (A.B.) 463 increases the cap from 22 percent to 29 percent.
Assembly Bill 463: Increases percentage of proceeds of certain fees and taxes relating to motor vehicles that may be used for costs of administration. (BDR 35-1258)
He noted reductions in appropriations exceeding the cap have occurred based on a revision by the Governor to the recommended staffing increase in major metropolitan field offices. He indicated the revision reduces appropriations by $625,843 in FY 2003-2004 and $1,100,000 in FY 2004-2005.
Mr. Krmpotic said staff has prepared a worksheet (Exhibit C) revealing the fiscal impact of revenue increases for vehicle registration and driver’s license fees based on $1 and $5 increases. He emphasized the worksheet is a working document for subcommittee use and does not reflect staff recommendations. He noted the 32 percent increase reflects an inflationary increase and an increase in the consumer price index from 1991 through 2002. Mr. Krmpotic pointed out a fee increase would generate additional Department of Motor Vehicles (DMV) revenues, increasing the dollar amount of the 22 percent cap. He indicated a $1 increase in vehicle registration and various driver’s license fees generates approximately $2.9 million in FY 2004, based on DMV’s projected growth in transactions, and $3 million in FY 2005. He said a $5 fee increase generates approximately $14.5 million in FY 2004 and $15 million in FY 2005.
Mr. Krmpotic noted a 32 percent inflationary increase generates approximately $28.7 million in FY 2004 and $29.5 million in FY 2005. He said the worksheet reflects financial impact on revenues if registration fees are doubled, tripled, and quadrupled. He indicated $19.6 million would be generated in FY 2004 if vehicle registration fees doubled, and $39.2 million would be generated if registration fees were tripled. He added $1.7 million would be generated in FY 2004 if driver’s license fees were doubled, and $3.4 million would be generated if driver’s license fees were tripled.
Mr. Krmpotic commented if fee increases are implemented, DMV programmers would need approximately 3 months to incorporate fee increases into computer systems.
Senator Coffin stated DMV needs every highway dollar it can get. He said while DMV needs staffing and funding, highway and road construction monies should not be depleted.
Virginia Lewis, Director, Department of Motor Vehicles (DMV), replied the Executive Budget indicates an increase in highway funds for DMV budgets. She said the Governor’s office is prepared to look at subcommittee recommendations, including fee increases.
Senator Rhoads asked Mr. Krmpotic to explain expenditure reductions.
Mr. Krmpotic replied a brief summary of enhancements for Highway Fund appropriations (Exhibit D) has been recommended by the Governor and prepared by staff. He said major enhancements exclude replacing equipment and purchasing new equipment, position reclassifications, and expense transfers. He noted major enhancements include staffing increases, the kiosk pilot project, and a number of technology improvements in field services. He indicated DMV enhancements total $7.5 million in FY 2004 and $11.4 million in FY 2005. He explained annual salaries for new positions in field services account for the nearly $4 million increase in total enhancements between FY 2004 and FY 2005.
Mr. Krmpotic said the enhancements would achieve expenditure reductions, keeping DMV below the 22 percent cap. He commented a funding change in the records search account would also keep DMV below the 22 percent cap. He explained DMV receives revenue from the sale of records for driver’s licenses, vehicle registrations, and vehicle titles. He noted $6.7 million in records revenue for FY 2001-2002 was deposited in the records search account for salaries and operating expenses totaling $1.1 million, and the balance was reverted to the Highway Fund at the end of the year. He indicated DMV projects $6.2 million in records search reversions for FY 2003-2004 and $6.5 million in FY 2004-2005. He emphasized a portion of the projected reversion could be transferred to central services to fund expenditures, reducing Highway Fund appropriations subject to the 22 percent cap.
Senator Rhoads asked whether DMV would fall below the 22 percent cap if records search reversions and fee enhancements were used. Mr. Krmpotic replied fee enhancements would need to increase revenues by $27 million in the first year of the biennium and $38 million in the second year of the biennium.
Ms. Lewis said proposals by staff are logical. She indicated records search reversions and fee enhancements will likely bring the Highway Fund below the 22 percent cap.
Assemblywoman Giunchigliani stated there is an Assembly bill being considered requiring employers to verify employee driver’s licenses and vehicle registrations.
Mr. Krmpotic noted Assembly Bill (A.B.) 30 reduces the refunds on registrations and government service taxes. He pointed out A.B. 30 has passed the Assembly.
ASSEMBLY BILL 30: Revises provisions regarding registration of motor vehicles. (BDR 46-67)
He said in FY 2002 DMV refunded approximately $1.2 million in registration fees. He indicated the dollar amount of refunds would significantly reduce if A.B. 30 passes the Senate and is enacted into law.
DMV, DIRECTOR’S OFFICE Budget Page DMV-1 (Volume 3)
Budget Account 201-4744
Mr. Krmpotic said the Executive Budget recommends $100,000 in Highway Fund appropriations for each year of the next biennium be used to fund a public awareness campaign to increase use of alternative technologies by residents renewing driver’s licenses and registering vehicles.
Senator Rhoads asked whether Internet use has increased over the past 2 years for license renewals and vehicle registrations. Ms. Lewis replied Internet use has continued to climb at a steady rate. Senator Rhoads asked whether the public awareness program is working. Ms. Lewis replied yes, it is.
DMV, ADMINISTRATIVE SERVICES Budget Page DMV-9 (Volume 3)
Budget Account 201-4745
Mr. Krmpotic said the Executive Budget recommends $82,071 from the Highway Fund in FY 2003-2004 and $92,131 in FY 2004-2005 be used to fund a chief accountant position. He noted the chief accountant will assist administrative services in fiscal operation. He added duties include supervising and managing the revenue and bad debt sections; maintaining and monitoring compliance for various revenue systems within DMV ensuring necessary documentation exists for all revenue transactions; preparing periodic fiscal reports for federal, state, and local use; reconciling the motor vehicle fund; providing forecasts of revenue collected by administrative services; and ensuring the department’s receivables are maintained, collected, and written-off in a timely and coherent manner. Mr. Krmpotic emphasized the duties of reconciling the motor vehicle fund, maintenance of the department’s receivables, and in‑‑depth projections and monitoring of revenues collected by the department are currently not being performed.
Ms. Lewis replied DMV provides self-insurance for taxicabs and accepts financial statements from them. She said the addition of a chief accountant would benefit DMV revenue accounting and collection efforts.
Dennis Colling, Chief, Administrative Services Division, Department of Motor Vehicles, said the chief accountant position is vital to the department because DMV revenue has tripled in the past decade. He noted DMV is nearly a $1 billion operation, and it is important public monies are tracked and recorded.
Mr. Krmpotic said the Executive Budget recommends $48,847 in FY 2003-2004 and $54,288 in FY 2004-2005 to fund a personnel analyst position. He explained the personnel analyst is responsible for processing all requests for reclassification in the department, establishing a system of tracking and ensuring completion of employee evaluations, overseeing employee satisfaction surveys, and developing and providing reports on equal employment opportunity and labor force comparisons.
Ms. Lewis replied the personnel analyst is a critical DMV position.
Senator Rhoads asked whether five new accounting assistant positions are being requested.
Mr. Krmpotic replied the recommendation for five new accounting assistant positions is tied to an increase in field staffing. He said the staff increase would provide three accounting assistant positions in each major metropolitan field office to reconcile transactions to cash received at the end of each day and provide change to technicians.
DMV, COMPLIANCE ENFORCEMENT Budget Page DMV-21 (Volume 3)
Budget Account 201-4740
Mr. Krmpotic indicated additional DMV staff is required in compliance enforcement to form a fraud unit for enforcing instances of title, odometer, and identification fraud. He explained Highway Funds in the amount of $413,872 in FY 2003-2004 and $530,317 in FY 2004-2005 would be used to add five new compliance enforcement investigators, one supervising compliance enforcement investigator, and two program officers. He said DMV has indicated the investigative positions would conduct lower level administrative investigations currently being conducted by other investigative staff. Mr. Krmpotic pointed out fraud cases are projected to increase from 124 cases in FY 2003 to 1070 in FY 2004 and 1092 in FY 2005, based on population growth and actual monthly experience in processing fraud cases.
Russ Benzler, Administrator, Compliance Enforcement Division, Department of Motor Vehicles, replied the majority of fraud increases are identification fraud. He said projected numbers are based on actual monthly experience.
Mr. Krmpotic noted the vehicle crimes investigative staff within the Department of Public Safety has developed several investigations concerning the fraudulent production and sale of documents relating to vehicle sales, ownership, and identity fraud. He asked DMV to address potential overlap of investigations between the Department of Public Safety and the Division of Investigations.
Mr. Benzler replied DMV would look at all investigations being conducted. He said when fraud occurs DMV wants to get it stopped. Mr. Krmpotic stated DMV should address cooperation and collaborative efforts with the Division of Investigations. Mr. Benzler replied there is cooperation with the Division of Investigations because cases not falling within DMV authority are referred to the Division of Investigations.
Assemblyman Parks asked why there is such a high increase in fraud cases. Mr. Benzler replied DMV used current prevalence of actual fraud cases to calculate projected increases.
Ms. Lewis noted training has been offered to DMV staff in the identification of fraudulent documents, and staff is verifying more incidences of fraud. Mr. Krmpotic said staff would work with DMV to ensure that proposed staffing requirements are accurate.
Mr. Krmpotic indicated the Executive Budget recommends a reduction in Highway Fund appropriations with an offsetting increase in authorized revenue of $228,172 in FY 2003-2004 and $284,348 in FY 2004-2005 to support fingerprint expenses paid by compliance enforcement to the criminal history repository. He noted the present statute states applicants seeking licenses to transport, manufacture, distribute, deal, or rebuild automobiles shall pay the fingerprint fee in addition to the license application fee. He said staff will seek a legal opinion to determine whether additional changes in the statute are required to accomplish the funding change.
DMV, FIELD SERVICES Budget Page DMV-29 (Volume 3)
Budget Account 201-4735
Mr. Krmpotic said the Executive Budget recommends funding of $59,577 in FY 2003-2004 and $43,527 in FY 2004-2005 for a vehicle appraiser position in the Reno field office, complying with Nevada Revised Statutes (NRS) 487.240 requiring a vehicle appraisal within 10 business days after receipt of a written request. He indicated a major concern of staff is there are already five appraiser positions in the Reno field office.
Ms. Lewis replied the proposed vehicle appraiser position for the Reno field office is necessary.
Mr. Krmpotic said the Executive Budget recommends funding of $29,902 in FY 2003-2004 and $43,452 in FY 2004-2005 for a new position at the Fallon field office to conduct driving examinations for residents seeking driver’s licenses. He indicated the Fallon office has experienced a 19 percent increase in the number of transactions processed from calendar year 2000 to 2001, and current actual demand requires 18 driving tests be conducted each day. He noted the Fallon office had averaged 11 driving tests each day between calendar year 1998 and 1999.
Senator Rhoads asked whether the Fallon office is open on Saturdays. Ms. Lewis replied the Fallon office is not open on Saturdays.
Mr. Krmpotic said the Governor recommends funding of $50,000 in FY 2003-2004 to continue the kiosk pilot program and $2,000,000 in FY 2004-2005 to expand the project. He noted DMV has not yet developed milestones to measure success of the kiosk pilot program for expansion in the second year of the biennium. He added DMV indicates milestones would be developed as part of the kiosk contract and contract negotiations. He emphasized DMV entered into a contract on February 11, 2003, to operate the kiosk pilot program. He said DMV should identify milestones used to measure success of the program for expansion of the program in the second year of the biennium.
Ms. Lewis replied quantified milestones have not yet been determined. She said when milestones are determined she would look at kiosk uptime, customer response to the kiosk, and the number of renewals made at the kiosk per day.
Senator Rhoads asked whether the kiosk was operational. Ms. Lewis replied DMV is looking at May 2003 for implementation of the pilot program at the Carey Avenue office in Las Vegas.
Senator Rhoads asked where the pilot program is going to be located. Ms. Lewis replied the pilot program will be located at the Carey Avenue office in Las Vegas because it generates more cash transactions than any metropolitan office. She added the kiosk will be provided with English and Spanish instructions, thus assisting every customer.
Senator Tiffany said she likes the idea of a kiosk pilot program. She asked where the Carey Avenue office is located. Mr. Lewis replied the Carey Avenue office is located in North Las Vegas. Senator Tiffany asked how DMV plans to increase awareness of kiosk availability at the Carey office. Ms. Lewis replied public information announcements and brochures would be used to increase awareness of kiosk availability at the Carey office. She explained technicians will guide customers through the kiosk process. Senator Tiffany asked whether the kiosk will accept credit cards. Ms. Lewis replied yes, it will.
Senator Tiffany asked whether transaction fees will be assessed on the kiosk. Mr. Colling replied since DMV does not own the kiosk, a per-transaction fee will be added. Senator Tiffany asked why there is a fiscal note on the kiosk. Mr. Colling replied DMV is paying for anticipated transactions. He said to date, DMV has not paid the vendor. He added the vendor will be paid as transactions occur. Senator Tiffany asked for an explanation of the proposed $50,000 and $2,000,000 in funding. Mr. Colling replied monies will be used to pay for the transactions as they occur.
Mr. Parks said he recommends transferring the requested $2 million to the director’s office and placing it in a reserve with the stipulation DMV report back to the Interim Finance Committee on the pilot program.
Ms. Lewis asked whether the $2 million could be placed in reserve during the first year of the biennium because the pilot program will end the first half of the first year of the biennium. Mr. Krmpotic replied the subcommittee should add language to the appropriations act providing DMV with the authority to transfer the $2 million between fiscal years in the biennium.
Mr. Krmpotic said the Executive Budget recommends $3.8 million of Highway Fund appropriations in FY 2003-2004, and $7.4 million in FY 2004-2005 be used to add 179 new positions at the five major metropolitan field offices in Las Vegas and Reno. He noted the positions will provide 100 percent DMV window staffing at the major metropolitan field offices and provide for vehicle registrations and driver’s licensing services in the Carson City office on Saturdays. Mr. Krmpotic emphasized the Governor approved a reduction to DMV’s staffing formula and a reduction in Highway Fund appropriations by $625,843 for a total of $3,100,000 in FY 2003-2004. He added the $1.1 million reduction of Highway Fund appropriations in FY 2004-2005 nets $6.3 million to DMV.
Mr. Krmpotic indicated 144 hours of annual training time was used to calculate the number of productive hours needed to staff a window utilizing new and “seasoned” employees. He said hours were determined based on window transactions such as registrations, driver’s licenses, titles, reinstatements, and insurance verifications.
Mr. Krmpotic pointed out many transactions can be performed away from a field office window using alternative technology. He said a customer count revealed 1.4 million customers visited the five major metropolitan field offices in FY 2001-2002. He noted a monthly average of 44,950 customers currently visit field offices for vehicle registration renewals. Mr. Krmpotic reiterated significant proposed efforts to conduct transactions away from a field office window were not taken into consideration in the staffing proposal. He said technical adjustments should be made to utilize alternative technology for many transactions.
Mr. Krmpotic stated the Governor recommends 11 additional positions be added to provide vehicle registration and driver’s license services to customers on Saturdays in the Carson City office. He noted approximately 344 Carson City residents utilize the Reno office to conduct transactions on Saturdays. He explained estimates reveal, based on a 1.45 percent average of Washoe County residents utilizing the Reno office on Saturdays, approximately 1981 Carson City, Douglas County, Lyon County, and Storey County residents would utilize the Carson City office on Saturdays.
Senator Rhoads asked whether there are many Washoe County residents utilizing the Douglas County office for driver’s licenses and vehicle registrations.
Clay Thomas, Administrator, Field Services Division, Department of Motor Vehicles, replied many Washoe County residents evade emissions inspections by applying for driver’s licenses and vehicle registrations in Douglas County. Mr. Benzler added the Reno office handles approximately 10 to 12 evaders per month.
Mr. Parks asked whether there would be a decline in utilization of the Reno office on Saturdays if the Carson City office opens on Saturdays. Mr. Thomas replied there would be a decrease in utilization at the Reno office on Saturdays. Mr. Parks asked whether staffing would be reduced in the Reno office on Saturdays. Mr. Thomas replied yes, staffing would be reduced in the Reno office.
Mr. Krmpotic referred to DMV’s staffing priorities (Exhibit E) saying the Carson City office ranks 19 out of 19 priorities for staffing, and the Reno office ranks 17 out of 19 in staffing priority. He pointed out the Sahara office in Las Vegas is ranked 3 out of 19 in staffing priority.
DMV, CENTRAL SERVICES Budget Page DMV-46 (Volume 3)
Budget Account 201-4741
Mr. Krmpotic said the Executive Budget recommends funding of $77,676 in FY 2003-2004 and $84,445 in FY 2004-2005 to continue two driver/warehouse positions assigned to the license plate factory, which was previously funded through a one-shot appropriation to assist with reissuing the sunset license plates. He explained the positions would comply with a federal occupational safety and health administration (OSHA) standard requiring the presence of two staff members when people are working on high voltage and heavy equipment in license plate factories.
Senator Rhoads asked whether DMV has information on OSHA requirements.
Martha Barnes, Administrator, Central Services and Records Division, Department of Motor Vehicles, replied the OSHA standard is correct in requiring two staff present when working on high-voltage and heavy equipment in license plate factories. She said federal standards and guidelines were received from OSHA and are available for staff.
Mr. Krmpotic said the Governor is recommending funding in the amount of $79,026 in FY 2003-2004 and $98,377 in FY 2004-2005 for 2.51 full-time equivalencies (FTE) to assist central services in achieving its goal of processing title requests within 14 working days. He explained DMV indicated title processing time increased to 30 days in FY 2001-2002, requiring employee overtime and utilization of staff from other divisions. Mr. Krmpotic asked whether overtime could be reduced if 2.51 FTEs were added.
Ms. Lewis replied DMV has struggled to achieve a 14-day turnaround for title processing. She said 2.51 additional FTE positions would assist DMV achieve a 14-day turnaround for title processing.
Mr. Krmpotic explained the Executive Budget recommends the addition of two positions and the purchase of document-imaging equipment to comply with NRS 353.250 requiring all monies received in excess of and including $10,000 be deposited no later than the following working day. He said the two positions would generate a receipt log for monies received and provide an audit trail to ensure payment was received for each transaction. He added the Executive Budget recommends $192,141 in FY 2003-2004 and $15,400 in FY 2004-2005 to purchase document-imaging equipment to scan checks received by mail, store check images for subsequent retrieval, and assist staff in recording each payment received. Mr. Krmpotic asked whether existing staff could record payments in a more cost-effective manner, either manually or on a computer.
Ms. Barnes replied the two positions provide internal control for receiving and recording payments. She said staff has tried to manually record payments, and DMV was unable to reduce turnaround time.
Mr. Krmpotic said staff understands DMV’s belief the document-imaging equipment represents the ultimate solution. He explained the recording of payments could be performed in a spreadsheet program on a computer.
Mr. Parks suggested DMV substantiate spending $192,141 on the document-imaging equipment.
Mr. Krmpotic continued, saying the Executive Budget recommends Highway Fund appropriations of $400,960 in FY 2003-2004 and $70,368 in FY 2004-2005 to purchase document-imaging equipment and replace existing optical character recognition (OCR) equipment used for archiving documents as required by DMV’s record retention policy. He said DMV currently meets record retention requirements by transferring records to microfilm. He noted existing OCR machines are obsolete and are subject to approximately 20 hours of downtime each month resulting in a loss of production. Mr. Krmpotic asked whether staffing requirements for the document-imaging equipment are consistent with staffing for OCR machines.
Ms. Barnes replied DMV would like to go forward with the document-imaging equipment. She said staffing would be maintained through the next biennium.
Mr. Parks asked for a long-term, cost-effective solution to meet DMV staffing and equipment needs. Ms. Lewis replied one solution is to have document imaging at every window to increase the speed of transactions.
Mr. Krmpotic said the Executive Budget recommends Highway Fund appropriations of $350,900 each year of the 2003-2005 biennium to acquire equipment for the production of license plate decals and data mailers. He said DMV currently purchases license plate decals and data mailers through an outside vendor. He asked DMV to identify savings resulting from purchasing the equipment.
Ms. Barnes replied poor product quality associated with vendors is a major reason DMV is requesting the equipment. She said DMV would like to control product quality.
Senator Rhoads asked whether DMV experiences any product waste when purchases are made with vendors. Ms. Barnes replied yes, since DMV has to purchase products 1 year in advance, there is product waste between projected product use and actual product use.
Mr. Parks asked whether the proposed technology to produce license plate decals and data mailers is being used in other states. Ms. Barnes replied yes, the technology is being used in other states.
DMV, MANAGEMENT SERVICES Budget Page DMV-58 (Volume 3)
Budget Account 201-4742
Mr. Krmpotic said the Governor recommends Highway Fund appropriations of $386,461 in FY 2003-2004 and $415,499 in FY 2004-2005 for the addition of six program officer positions for departmental training. He noted four positions would be used to provide employee training and two positions would conduct workshops to inform customers of DMV policy and procedure changes and updates. He asked DMV for an explanation of the critical need to inform customers of policy and procedure changes and updates.
Jim Parsons, Administrator, Management Services and Programs Division, Department of Motor Vehicles, replied DMV has provided workshop training to new and used car dealers on title processing, and requests are now being made by Sierra Pacific Power Company and the Welfare Division for training in the recognition of fraudulent documents. He said training eliminates many errors associated with fraudulent documents.
DMV, MOTOR CARRIER Budget Page DMV-65 (Volume 3)
Budget Account 201-4717
Mr. Krmpotic said the Executive Budget recommends funding of $43,808 in FY 2003-2004 and $54,892 in FY 2004-2005 for the addition of one management analyst position to provide a detailed analysis of revenue and program information, develop new statistical reports, and provide recommendations for program improvements to managers.
Mr. Benzler responded the management analyst position directs resource spending and provides managers with cohesive information on spending.
DMV, POLLUTION CONTROL Budget Page DMV-83 (Volume 3)
Budget Account 101-4722
Mr. Krmpotic said the Executive Budget recommends $400,000 each year in the next biennium to fund a 3400 square foot addition to the U.S. Department of Agriculture’s petroleum laboratory in Reno. He noted the addition is included in the Governor’s recommended 2003 Capital Improvement Program (CIP) at a cost of $1.1 million. He explained $800,000 would be available during the biennium to fund construction of the petroleum laboratory addition, based on the Governor’s recommendation. Mr. Krmpotic indicated the projected cash flow reflects expenditure of all funds to complete laboratory construction by the end of FY 2004-2005. He stated staff recommends matching projected cash outflows from the pollution control account to cash needed for the project.
Ms. Lewis responded DMV budgets would be synchronized with the capital improvement projects.
Mr. Krmpotic said the Executive Budget recommends $400,000 each year in the next biennium to fund construction of a new DMV emissions laboratory in Las Vegas. He noted this project was not included in the Governor’s recommended 2003 CIP. He added staff recommends forwarding the balance of the $400,000 in funding to the second year of the biennium.
Ms. Lewis interjected DMV wants to obligate funds for a new emissions laboratory in Las Vegas. She said she agrees with the staff recommendation.
Mr. Krmpotic explained NRS 445B.830 allows for grants to local government agencies from the balance of pollution control monies in excess of $500,000. He asked how DMV determined reserve level if a separate reserve was established for the emissions laboratory in Las Vegas.
Ms. Lewis replied this project was placed in the budget as a separate line item. She said DMV tried to forecast reserves in future biennia. She said she realizes this project is not an authorized expenditure.
Mr. Krmpotic said the Executive Budget recommends an increase in smog certificate fees from $5 to $7 beginning July 1, 2003, with the passage of SENATE BILL (S.B.) 419.
SENATE BILL 419: Makes various changes to provisions governing Pollution Control Account administered by Department of Motor Vehicles. (BDR 40-1266)
He pointed out the fee increase would result in $2.5 million of additional revenue in FY 2003-2004 and $2.6 million in FY 2004-2005. He added S.B. 419 modifies Nevada statute by increasing the distribution to local government from one-fifth of the amount received for each form to $2 for each form issued.
Mr. Krmpotic said the Executive Budget recommends the addition of one compliance enforcement investigator to expand the heavy-duty diesel enforcement program to Washoe County. He explained Clark County currently has two investigators enforcing heavy-duty diesel emissions in Las Vegas. He noted DMV indicates this recommendation is included at the request of Washoe County to address pollutants emitted from heavy-duty vehicles.
Mr. Benzler responded this recommendation is correct.
Senator Rhoads asked what penalty amount is assessed for pollutant violation. Mr. Benzler replied the penalty is $800 for the first offense. He explained the penalty is waived if the vehicle is repaired within 45 days.
DMV, AUTOMATION Budget Page DMV-94 (Volume 3)
Budget Account 201-4715
Mr. Krmpotic said the Executive Budget recommends Highway Fund appropriations of $1,009,200 in FY 2003-2004 and $1,048,408 in FY 2004-2005 to continue 14 positions approved by the 2001 Legislature to address problems associated with the original design and development of DMV’s computer system, the Genesis system.
Senator Rhoads asked whether the 14 positions are currently filled. Ms. Lewis replied, yes they are. She said the information technology staff is the very core of DMV.
Chuck Conner, Data Processing Manager, Motor Vehicles Information Technology Division (DoIT), Department of Motor Vehicles, pointed out DMV has 1300 change requests. He said the change requests will utilize between 75,000 and 150,000 man-hours, and the continuation of the 14 positions is essential.
Mr. Krmpotic said the Governor recommends funding of $402,821 to purchase a storage area network (SAN). He explained the tape backup and the central storage device would allow DMV to consolidate data from multiple areas within the department into one central location and improve access time. He noted DMV cites improved customer service as one of the benefits of a SAN. He pointed out technicians must periodically leave their workstations in field offices to look up historical information on microfilm. He said SAN would allow for online access by technicians in field offices. Mr. Krmpotic asked DMV staff to report the potential impact on information technology changes if this recommendation is implemented.
Mr. Krmpotic said the Governor recommends Highway Fund appropriations of $341,771 in FY 2003-2004 and $34,194 in FY 2004-2005 to upgrade the existing telephone call center system, the interactive voice response (IVR) systems, and to purchase a second IVR system. He pointed out DMV indicates approximately 240,000 telephone calls are received annually at the call center. He added approximately 110,000 calls, or 46 percent of total calls, are abandoned. He explained improvements to the call center include a voice response giving anticipated wait time and an option of leaving a message for a return call to the customer. He noted the system would also communicate questions in English and Spanish. He said DMV indicates the IVR upgrade is necessary because the vendor is ceasing support of the current software and hardware. Mr. Krmpotic asked DMV to identify DoIT’s reduction in charges if this recommendation is approved.
Ms. Lewis replied DMV will work with staff on recommendations.
There being no further questions or comments, the chairman adjourned the meeting at 9:58 a.m.
RESPECTFULLY SUBMITTED:
Pamela Carter,
Committee Secretary
APPROVED BY:
Senator Dean A. Rhoads, Chairman
DATE:
Assemblyman David R. Parks, Chairman
DATE: