MINUTES OF THE
SENATE Committee on Finance
Seventy-second Session
March 31, 2003
The Senate Committee on Finance was called to order by Chairman William J. Raggio, at 8:11 a.m., on Monday, March 31, 2003, in Room 2134 of the Legislative Building, Carson City, Nevada. The meeting was videoconferenced to the Grant Sawyer State Office Building, Room 4406, 555 East Washington Avenue, Las Vegas, 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 Dean A. Rhoads
Senator Barbara K. Cegavske
Senator Sandra J. Tiffany
Senator Bob Coffin
Senator Bernice Mathews
GUEST LEGISLATORS PRESENT:
Senator Dennis Nolan, Clark County Senatorial District No. 9
STAFF MEMBERS PRESENT:
Gary L. Ghiggeri, Senate Fiscal Analyst
Bob Guernsey, Principal Deputy Fiscal Analyst
Donald O. Williams, Chief Principal Research Analyst
Jeffrey A. Ferguson, Program Analyst
Michael J. Chapman, Program Analyst
Julie Walker, Committee Secretary
OTHERS PRESENT:
John P. Comeaux, Director, Department of Administration
Michael J. Franzoia, Mayor, City of Elko
Mike Nannini, Elko County Commissioner, Elko County
Kelly Buckner, Vice Chairman, Elko County Fair Board
Kim D. Peterson, Director, Winnemucca Convention and Visitors Authority
Barbara Owen
Jim J. Avance
Carlos Brandenburg, Ph,.D., Administrator, Division of Mental Health and Developmental Services, Department of Human Resources
Mary Liveratti, Deputy Director, Department of Human Resources
Lawrence Jacobsen, Lobbyist, City of Carson City, Douglas County, Lyon County
Lynn Carrigan, Administrator, Nevada Public Health Foundation
Janine Hansen, Lobbyist, Nevada Families Education Foundation, Nevada Eagle Forum
Peggy Clark, Administrative Services Officer, Rural Clinics, Division of Mental Health and Developmental Services, Department of Human Resources
Dennis Colling, Chief, Administrative Services Division, Department of Motor Vehicles
Martha Barnes, Administrator, Central Services and Records Division, Department of Motor Vehicles
John Madole, Lobbyist, Associated General Contractors, Nevada Chapter
Ron Cuzze
Raymond C. McAllister, Lobbyist, Professional Firefighters of Nevada
Danny Coyle, Lobbyist, SNEA/AFSCME (State of Nevada Employees Association #4041)
Dana Bilyeu, Operations Officer, Public Employees’ Retirement Board, Public Employees’ Retirement System
I would like a progress report of the committee on budgets from staff.
Gary L. Ghiggeri, Senate Fiscal Analyst, Fiscal Analysis Division, Legislative Counsel Bureau:
After tomorrow subcommittees, committees, and staff will have reviewed 408 budgets within the Executive Budget. Tomorrow the subcommittee on capital improvement projects (CIPs) is scheduled to review an additional 38 CIPs. Approximately 50 percent of all CIPs will have been reviewed. Ninety bills have been referred to the Senate Finance Committee. Two bills have been processed, 51 have been heard, and 11 are scheduled to be heard this week. Cumulative totals of budget revisions reflect an addition of approximately $9.8 million General Fund dollars in fiscal year (FY) 2004 and approximately $9.9 million in FY 2005. Supplemental totals have increased by approximately $3.2 million in FY 2003.
Senator Raggio:
We will begin closing budgets today. You have a schedule (Exhibit C) of the closing list.
Senate Bill (S.B.) 381 is Senator Rhoads’ bill. I would like to have comments from the budget office on this measure. The fiscal note indicates that it has significant impact because reversions would not occur and, if the bill is approved, the funding source would go away from some of the reversions that are utilized in preparing the budget. Reversions would also be committed twice. Please indicate any updated comment on this bill.
SENATE BILL 381: Authorizes state agencies to retain certain cost savings and use savings for training and equipment purchases. (BDR 31-936)
John P. Comeaux, Director, Department of Administration:
The intent of this bill is to provide an incentive to State agencies to produce savings in their operations, then be allowed to use one-half of the savings to purchase equipment and provide training to employees. The other one-half of the savings would go into the Fund to Stabilize the Operation of State Government. If it worked that way, it would be a good idea, but there is an elaborate procedure for identifying savings. There are certain kinds of reversions that would not be allowed as savings nor be allowed to be treated this way, such as holding a position vacant or deferring the purchase of some piece of capital equipment. I fear, from a practical standpoint, things that were not new savings would appear to be new savings. The result would be that reversions not available to the administration and the Legislature for use to fund programs and other needs reviewed and approved for funding would no longer be available. In the Executive Budget, the funds represented by reversions for both years of the biennium are essentially committed twice. In the first year of the biennium that amount is 2 percent of appropriations. In the second year of the biennium it is 4 percent to 6 percent. I fear this predetermination or “earmarking” of how these funds would be spent could cost some flexibility.
Senator Rhoads:
Do you have suggestions on language?
Mr. Comeaux:
I will be glad to work on correcting the language.
Senator Raggio:
I think the savings incentive expressed by Senator Rhoads makes use of the tendency for agencies near the end of the budget-year cycle to feel they have to spend something or they will not be properly funded the next session. I think that is the motivation behind this.
Senator Rawson:
Another approach would be to select an agency and define the pilot program with that agency to see whether it works. That does not put the whole budget at risk and details can be worked out.
Senator Raggio:
Can you work on that idea to see if there is something the committee could review?
Senator Coffin:
I think all of the committees worried about the projection of reversions for this current year based on the last budget when we had double the expected amount of reversions built into the second year of the budget. Where will we stand on those zero reversions because of lack of program money?
Mr. Comeaux:
Aside from the reserves that we specifically required the agencies to make for purposes of eliminating certain expenditures such as the 3 percent budget cuts and one-time funding, we are still anticipating reversions in the 2 percent of appropriation range. This may be optimistic, but it was originally estimated more than twice that amount for this year. In an ordinary year it is seen because of unused one-time reversions. It is difficult to manage certain parts of the budget closely enough not to revert and, historically, the amount agencies cannot spend runs about 2 percent. That is generally in the operating and personnel categories.
Senator Coffin:
Was the projection too optimistic? We felt it was out of the ordinary, and staff felt it was considerably higher than normal.
Mr. Comeaux:
I think staff’s concern with our estimate 2 years ago was not that the amount would not show up because, historically, it does show up. Generally, in the first year of a biennium, the reversions are twice what they are in the second year. It is debatable whether that truly represents an ongoing source of revenue for the budget.
Senator Raggio:
We will move on in the agenda and defer Senate Bill 345 until Senator Nolan, one of the sponsors, arrives. Let us review S.B. 3.
SENATE BILL 3: Reserves portion of certain gaming license fees from off-track pari-mutuel wagering to augment purses for horse racing in certain counties. (BDR 41-41)
Senator Rhoads:
This bill has to do with horse racing and mule racing in the State of Nevada. Mule racing could be amended into this bill. I was a member of the Elko County Fair Board for 14 years. Elko County has had horse racing for over 75 years. It brings in thousands of people. It has become difficult to get large purses that are necessary to attract the type of races that bring crowds. There is a lot of competition from Wyoming, Oregon, Idaho, and Utah. The fair board believes that by getting a portion of the off-track pari-mutuel wagering in the State of Nevada, which is almost $.5 billion, it would favorably affect Ely, Winnemucca, and other communities with horse or mule racing.
Senator Raggio:
In the bill itself, the language in Section 1 would allocate 1/25th of a license fee among the counties in which there is on-track pari-mutuel wagering. As a result there is a fiscal note from the Gaming Control Board. Could you comment on that?
Senator Rhoads:
It is approximately $216,000 per year, which would be divided by racing days or pari-mutuel “handle.”
Senator Raggio:
Is the money used for stakes, purses, or rewards?
Senator Rhoads:
Yes, usually the fair board guarantees $500 of each purse. If a person or business wants to put a race on for $2000, the fair board would put up $500, and the person or business would put up $1500. This money would be used to augment some of those races.
Michael J. Franzoia, Mayor, City of Elko:
The city council supports this bill.
Mike Nannini, Elko County Commissioner, Elko County:
I will be reading from a handout (Exhibit D) on page 9. The Board of Elko County Commissioners has reviewed this bill and supports it. We are asking for “seed” money or a possible “investment,” as opposed to an expense or a cost. The money now raised for purses is contributed by local businesses and individuals. It is hard to get donations since the economic downturn. We have not been able to generate money for sizeable purses necessary to compete. The racehorse owners skip over our meets because the purse money is not attractive enough to make it worthwhile to stop and spend time at our meets.
The fiscal note amount of $216,762 is only a calculation, not the amount of money that would be needed at this time. The portion needed would be money added to local contributions to make up sizeable enough purses to encourage horse and mule owners to attend competitions for larger amounts.
Senator Tiffany:
How much of $216,000 available by the formula will you need?
Mr. Nannini:
We might be able to get by for $175,000 this year.
Senator Tiffany:
Would that be matched by the local businesses?
Kelly Buckner, Vice Chairman, Elko County Fair Board:
I have a handout for the committee in support of S.B. 3 (Exhibit E. Original is on file in the Research Library.). The purse structure last year was $188,000 in total purses. Those funds were provided and we set a minimum of $1500 per race as a purse. The funds are provided by local supporters and sponsorships. The Elko County Fair Board donates funds generated from concessions and admissions to supplement the purses. We have fallen short of totally covering those in the last several years.
Senator Tiffany:
Would you set the purse first, see what you could collect locally, and then supplement from this formula?
Mr. Buckner:
That is correct. Last year we had over 290 horses on the fairgrounds at our highest day. Of those horses, less than 20 were owned by Nevada residents. The majority came from other states and brought their money with them. That is the importance of the racing meet. We have implemented a program to attract some major stake races.
Kim D. Petersen, Director, Winnemucca Convention and Visitors Authority:
We have similar concerns. We have an annual mule show and races each year. We have had thoroughbred racing in the past but, because of the problems of insufficient funds for purses, we had to eliminate this major event from our community (Exhibit F). Special events are vital to the economic base and stability of Winnemucca and many of the other rural communities. Winnemucca has been hit hard by the mining downturn that began in 1997, and the events of September 11, 2001, have dramatically weakened our tourist economy.
For the past 16 years Winnemucca has had mule races. Those events generate considerable tourism dollars in our community. Unfortunately, our funds are generated through local donations from the business community. They have had a tough time coming up with the funds to help this event. S.B. 3 will allow the events to grow, make it possible to bring larger numbers of mules, possibly add our thoroughbred races again, and generate money in taxes and economic benefits for our community.
Senator Raggio:
Would you be requesting an amendment to add mule racing?
Mr. Petersen:
We would request adding mule racing.
Barbara Owen:
I am speaking as a 40-year resident of Nevada. My husband and I have the only racing mules in the state. We have been participating at Winnemucca for the last several years. There have been fewer participating animals every year. S.B. 3 would provide funding to bring competitors to the races, and they would bring money to the community for lodging and food.
Jim J. Avance :
I drive up from Las Vegas to frequent these events. Many people I know come for the races. Ely lost its races because of purses that were not large enough to generate interest.
Senator Raggio:
We will close the hearing on S.B. 3 and open the hearing on S.B. 49.
SENATE BILL 49: Creates Statewide Program for Suicide Prevention within Department of Human Resources. (BDR 40-288)
Donald O. Williams, Chief Principal Research Analyst, Research Division, Legislative Counsel Bureau:
I am appearing on behalf of Senator Ann O’Connell who chaired the Legislative Commission’s Subcommittee to Study Suicide Prevention during the past interim. A copy of the subcommittee’s report, “Bulletin 03-11, Study of Suicide Prevention” (Exhibit G. Original is on file in the Research Library.) has been distributed to you.
For many years, Nevada has consistently ranked first among the 50 states in the rate of suicides. Research has found that the majority of suicide victims are residents of Nevada, not tourists. The subcommittee adopted 19 recommendations, including 4 recommendations for bill draft requests. The interim subcommittee’s recommendations incorporate goals from the U.S. Surgeon General’s 2001 report. It is the subcommittee’s position that Nevada should establish a state program focused on the surgeon general’s goals relating to public awareness, building community networks, and implementing suicide prevention training programs for law enforcement, health care professionals, school employees, and others who are first contacts with those at risk for suicide. Senate Bill (S.B.) 49 creates a statewide suicide prevention program and is the primary legislation recommended by the interim subcommittee. The subcommittee recognized the need for a comprehensive and statewide approach to one of the state’s most serious public health problems. Last year Senator O’Connell worked with the staff of the Department of Human Resources in developing a proposal for creating the statewide suicide prevention program that would be based in the director’s office of the Department of Human Resources. On June 10, 2002, Senator O’Connell submitted a written request asking Governor Guinn to include funding for her proposal in his budget for the next biennium.
Senator Raggio:
Could you identify the number of positions in the bill required under the provisions?
Mr. Williams:
There are two positions proposed in the legislation. One is the statewide suicide prevention coordinator in the Carson City director’s office. The second position is a trainer and networking facilitator based in Clark County.
Senator Raggio:
Is the effort located solely in Clark County?
Mr. Williams:
The training and networking facilitator effort would be based in Clark County. Clark County has the greatest need to develop community networks in training of local first responders to suicide prevention. Other areas of the state, particularly Douglas and Washoe Counties, already have good networks in place.
Senator Raggio:
Is there a network in Clark County for this problem?
Mr. Williams:
An assessment on page 57 of Exhibit G of the services in Clark County shows there is a definite lack of services and coordination of services.
Senator Raggio:
What entities coordinate for this type of problem?
Mr. Williams:
In Clark County the entity taking the lead is the health district. In most areas it is usually the local private and public mental health agencies.
Senator Raggio:
Why is the need in Clark County more prevalent than other counties for the coordination of this problem?
Carlos Brandenburg, Ph.D., Administrator, Division of Mental Health and Developmental Services, Department of Human Resources:
The testimony received by Senator O’Connell indicated there is a statewide suicide hotline in Washoe County. There is also a nationally accredited suicide crisis call center there. In Clark County, even though there is a suicide crisis hotline, it has not been functional or active on a 24-hour-a-day, 7-day-a-week basis. There have been times in the evening when no one answers the hotline. We feel a concerted effort to develop this coordination in Las Vegas must be made to get a nationally accredited crisis call center that will interface with public and private entities. Since the bulk of the suicides in the state originate in Clark County, this effort is crucial.
Senator Raggio:
Do you wish to comment further on the fiscal impact of this bill?
Dr. Brandenburg:
Mr. Torvenin submitted a fiscal note indicating $142,910 is needed for the first year and $172,160 is needed for the second year, a total of $355,000 for the biennium. The amount is for the two positions and includes operating expenses and in-state travel and training for the staff.
Senator Raggio:
Where is the funding for the hotline?
Dr. Brandenburg:
The State provides some funding for the hotline. We provide 24-hour-a-day, 7‑day-a-week statewide crisis hotline funding. Two sessions ago, the Legislature and the Governor provided us $100,000 per year for that purpose. Most of the funding for the crisis hotline is funded through the United Way, public, and private partnerships.
Senator Raggio:
Are the funds required for this in the Executive Budget?
Dr. Brandenburg:
No, they are not.
Mary Liveratti, Deputy Director, Department of Human Resources:
Although this funding is not part of the Executive Budget, the department proposes to use revenue maximization funds through MAXIMUS to fund the beginning of this program. One of the duties of the coordinator would be to develop and submit proposals for funding from the federal government and non‑governmental organizations to provide ongoing support for the program.
Senator Raggio:
This is on the list of items on MAXIMUS funding, but the needs are $1.9 million for 2004 and $1.5 million in 2005. What is the likelihood of this amount being realized from the MAXIMUS effort during the next biennium?
Ms. Liveratti:
There are two things I would note on that list. One is that S.B. 137 will reduce the need assessments.
SENATE BILL 137: Establishes Legislative Committee on Persons with Disabilities. (BDR 17-700)
Senator Raggio:
Is that for the Olmstead Act compliance contractor?
Ms. Liveratti:
That was to provide the second neutral assessment.
Senator Raggio:
Is this the feasibility study of institutionalized persons feasibility?
Ms. Liveratti:
That is correct, and we have reduced that amount.
Senator Raggio:
Was it up to $472,000?
Ms. Liveratti:
That is correct. That fiscal note was based on 3100 people being assessed in nursing homes. We have reduced that to 125 people during the biennium.
Senator Raggio:
What is the likelihood there?
Ms. Liveratti:
We have come up with $37,000 of grant funds we will use this year and next year for that purpose.
Senator Raggio:
Can you take that amount off the list?
Ms. Liveratti:
Additionally, the Community Services Block Grant (CSBG) shortfall has come in less than expected, so instead of needing $450,000, it is a few thousand.
Senator Raggio:
My concern is if we process the bill, people rely on it, and then you are unable to fund the positions. We need to know the funding is real before we go ahead and authorize it. What priority on this list would you assign to the two positions under S.B. 49 if we process the bill? Do you have this list prioritized as far as the use of MAXIMUS?
Dr. Brandenburg:
In my conversations with Mr. Willden it is high on his priority list.
Senator Raggio:
We will need to have that assurance.
Dr. Brandenburg:
Absolutely.
Lawrence Jacobsen, Lobbyist, City of Carson City, Douglas County, Lyon County:
I am a native of Douglas County and I have been asked to indicate to this committee that Douglas and Lyon Counties and Carson City are in favor of the program. They feel it needs some statewide support. If there is guidance, answers can be found. I would ask you to support it because it is a worthwhile endeavor. If we can save one human life, it is certainly worth it.
Lynn Carrigan, Administrator, Nevada Public Health Foundation:
We are in support of S.B. 49 for two reasons. First, we support it because it will allow financial leverage to attract additional funding for suicide prevention to the State of Nevada. We are relying on outside sources for this money, primarily the federal government and private foundations at the national level. It is difficult to go before these organizations and to request funding to come into the State of Nevada when the people of Nevada have provided no funding for this issue and have not shown it to be a priority. The funding will provide a commitment by the State of Nevada that will demonstrate we intend to address suicide prevention seriously. It also shows potential to sustain a program once it gets in operation, and it provides us match money to attract funding from outside the state.
Our second reason for supporting this bill is that it is a cost-effective service plan. I have applied for a grant for $600,000 to coordinate and integrate services. It will provide no actual services, but will integrate services for six agencies in Carson City.
Janine Hansen, Nevada Families Education Foundation, Nevada Eagle Forum:
I have an amendment for the bill stating nothing in this legislation shall authorize the use of funds or resources of the Statewide Program for Suicide Prevention to undermine Article 1, Section 11, paragraph 1 of the Constitution of the State of Nevada. It contains wording for the right to keep and bear arms. Every citizen has the right to keep and bear arms for security and defense, for lawful hunting, recreational use, and for other lawful purposes. The reason I feel this is important is identified in a handbook (Exhibit H) entitled “National Strategy for Suicide Prevention: Goals and Objections for Action.”
Senator Raggio:
Where does this handbook come from?
Ms. Hansen:
It is from the office of the U. S. Surgeon General, David Satcher. It indicates that the suicide prevention program starts with the United Nations and goes to the Surgeon General. We are in favor of safety precautions, but we do not want this money to be used to promote such things as locks on firearms or other means which would diminish the right to keep and bear arms.
Senator Raggio:
Did you offer this amendment when the bill was heard in the Committee on Human Resources and Facilities?
Ms. Hansen:
No, but when I realized that some support was coming from people who testified they were in favor of limitation to the right to keep and bear arms, I became concerned. I went to Senators Rawson and O’Connell who agreed with my concerns. I have a copy of the letter I sent to Senator Rawson (Exhibit I).
Senator Raggio:
That will be entered into the record. The hearing is closed on S.B. 49 and the hearing on S.B. 407 will be opened.
SENATE BILL 407: Makes supplemental appropriation to Western Interstate Commission for Higher Education for unanticipated shortfall in money for FY 2002-2003 resulting from reclassification of position. (BDR S-1225)
Senator Raggio:
Mr. Comeaux, do you know anything about this? It is a request for $3800 for a shortfall in money for FY 2003. Apparently, it is a reclassification situation.
Mr. Comeaux:
It is for a small amount, and I know it has a very small budget. There was a position that was reclassified and the agency cannot absorb it. So that is the reason for the request.
Senator Raggio:
Staff, have you looked into this at all?
Mr. Ghiggeri:
We do not have any backup for this request.
Senator Raggio:
Senator Rawson, do you serve on the board?
Senator Rawson:
I have witnessed the development of this reclassification. After the budget was submitted, the reclassification was requested. There are three employees in that agency, and there have been salary studies for different years. This person has the responsibility, and the reclassification appears to be appropriate. Contact can be made with Ron Sparks.
Senator Raggio:
Staff, can you contact Mr. Sparks and get the pertinent information?
Mr. Ghiggeri:
Yes.
SENATE BILL 408: Makes supplemental appropriation to Division of Mental Health and Developmental Services of Department of Human Resources for unanticipated shortfall in Fiscal Year 2002-2003 for expenditures relating to psychiatric services and clinical hours at rural clinics. (BDR S‑1229)
Senator Raggio:
This bill asks for $613,557 for expenditures relating to psychiatric services and clinical hours at the rural clinics.
Peggy Clark, administrative services officer, rural clinics:
We are here to support S.B. 408 in order to continue providing mental health services to approximately 3000 individuals throughout the State of Nevada in 16 clinics. This includes severely mentally ill adults and severely emotionally disturbed youth. S.B. 408 requests $613,557 in additional funding to rural clinics to offset a shortfall in the amount of outside revenue to be collected. Subsequent to the development of S.B. 408, we have determined our budgetary shortfall to be $740,598. We request the funding be increased to that amount. The funds requested will be used to offset a revenue shortfall in the amount of $700,117. In addition, $40,481 is being requested to make sure that we are able to meet our contractual commitments with two psychiatrists who provide critical medication clinic services at eight of our locations. Rural clinics will be making cutbacks totaling $60,267 in several areas of the budget to help reduce the amount of the supplemental request.
The Senate Committee on Finance and the Assembly Committee on Ways and Means issued a Letter of Intent in 2001 stating that if increased revenues to be collected or vacancy savings were not realized, the division should consider approaching the Interim Finance Committee for additional funds to meet those budget deficits so services could be continued. A copy of page 3 of that Letter of Intent (Exhibit J), is provided.
Senator Raggio:
Mr. Comeaux, this is not on any list we have received. Does the Department of Administration support this increased request?
Mr. Comeaux:
We support the request.
Senator Raggio:
The amount would have to be amended if this is processed to $740,598. Does staff have backup for the requested increase?
Mr. Ghiggeri:
Yes.
Senator Raggio:
What is the reason the revenues have not come in as anticipated?
Ms. Clark:
A component of the shortfall is related to clinical vacancies, which have numbered approximately 13 over the past few years. If you have the vacancies, the revenue is not generated.
Senator Raggio:
We will close the hearing on S.B. 408 and open S.B. 410.
SENATE BILL 410: Makes supplemental appropriation to Department of Motor Vehicles for unanticipated shortfall in money for FY 2002-2003 resulting from increased postage rates and mailing requirements. (BDR S-1267)
Dennis Colling, Chief, Administrative Services Division, Department of Motor Vehicles:
The request was made when the bill was originally submitted in January 2003. Since then we have continually reviewed the status of the budget and have initiated savings or alternative programs where practical.
Senator Raggio:
You say you have initiated savings or alternative programs. Is the amount of $470,000 correct at the present time?
Mr. Colling:
Yes. Originally, the request was $600,000. Since then we have dropped it to $470,000.
Senator Raggio:
Is this for increased postage rates and mailing requirements?
Mr. Colling:
Yes, plus three other areas. Additional funds are needed to pay for professional services, and payment to American Association of Motor Vehicle Administrators Net, Inc. (AAMVANet). AAMVANet is for our contacts through our department to the national Commercial Driver License Information System (CDLIS).
Senator Raggio:
Based on the number of customer records, what professional services does this organization provide?
Martha Barnes, Administrator, Central Services and Records Division, Department of Motor Vehicles:
CDLIS is the commercial driver license information system.
Senator Raggio:
Do they charge you to participate in this?
Ms. Barnes:
Yes, there is a cost for every time we check a record.
Senator Raggio:
What else does this cover besides postage rates and mailing requirements?
Mr. Colling:
We have micrographic costs that have gone up because we have had an increase in volume. We added a second shift and we need an additional $24,296 for this item. Our micrographic costs have increased substantially.
Senator Raggio:
Is it also for a maintenance agreement?
Mr. Colling:
The third item is maintenance agreement costs. Those costs are associated with our microfilm cameras with the optical character recognition (OCR) capability. These cameras are old and we have requested to replace them as part of the budget package.
Senator Raggio:
Has staff reviewed these in the backup information?
Mr. Ghiggeri:
This has been reviewed preliminarily. I think additional review may be required.
Senator Coffin:
Are we waiting for you on the numbers to be derived from raising the initial registration and driver’s license fees, or are we waiting for staff to give us numbers?
Mr. Colling:
I believe that we supplied that information. A breakdown on the various fees we charge has been provided to staff.
Senator Coffin:
I saw that breakdown and it did not look complete, which means our staff has to interpret it and they are overburdened now. Has your staff been able to give us some suggestions based upon the data you sent us? We have seen it, but they are too busy now. If you want to raise some money for your agency to keep from invading the Highway Fund, you will have to come up with some constructive ideas on these new rates.
Mr. Colling:
We provided that information and answered the questions staff has asked. The numbers are there and show the various amounts. If you want to direct us, it is now in your hands.
Senator Coffin:
We need to know where we stand. It is useful to ask for your assistance, so I gave you a suggestion. Our staff will be able to work with those numbers. Right now they are trying to work on the rest of your budget. Could you get back to this committee this week with how much you think you need to raise the initial registration and driver’s license fees to balance it so you can save 22 percent?
Mr. Colling:
I will relay that to the director of the department.
Senator Tiffany:
During the subcommittee we talked about mailing costs. How much of the total of this bill is mailing?
Mr. Colling:
There is $351,000 in mailing costs.
Senator Tiffany:
What are you mailing?
Mr. Colling:
We mail a lot of things. We look at the increase in mailings as a success. There are some increases in postal costs. As alternative services go forward, the pressure on our field services offices is reduced, but the pressure on the mailing is increased.
Senator Tiffany:
Again, what are you mailing?
Mr. Colling:
We mail renewals.
Ms. Barnes:
We send post cards out as reminders to renew driver’s licenses, registration renewal notices, and insurance verification notices. We have to send address change stickers to those who move and apply over the Web.
Senator Tiffany:
Are you making an effort to change from mail to e-mail?
Ms. Barnes:
We are sending e-mail notices out for registrations to those people who have renewed over the Web, and we also follow that up with a renewal notice by mail because we are required to do so by law.
Senator Tiffany:
Does it say by law that you have to do it by paper?
Ms. Barnes:
I would have to check that to make sure.
Senator Tiffany:
With e-mails you can now get a notification back and save it. It is just like certified mail.
Ms. Barnes:
There are not as many people who want to renew by e-mail as want to do it by the old method of receiving notice in the mail.
Senator Tiffany:
I would encourage the use of e-mail.
John Madole, Lobbyist, Associated General Contractors, Nevada Chapter:
I am here to express concern that the integrity of the Highway Fund needs to be preserved. I applaud the department’s cost-savings efforts by pushing things to the internet, but I feel this bill should not be processed. The information that this committee has asked for will be forthcoming if the department does not feel there is additional money. The 22 percent to 29 percent increase, in my opinion, would seriously damage the integrity of the Highway Fund. I suggest that we do not process this bill. My amendment (Exhibit K) would say that the DMV would borrow this money and pay it back with interest while they are determining what the fees should be for these licenses. Some accommodation could be made for seniors and others who cannot afford it, and I think the driver’s licenses should be a revenue source that is supporting this department. I think it is inappropriate to raid the Highway Fund to get more money for the department of motor vehicles. I suggest the amendment I have submitted, which would be to have the DMV pay the money back within 12 months.
Senator Raggio:
Where would they pay it back from, General Fund, or revenues that would flow to the General Fund?
Mr. Madole:
If the cost of the driver’s licenses were increased, then I would see the money being paid back from those increased revenues.
Senator Raggio:
Mr. Comeaux, do you have any thoughts on this suggestion, that it be deemed a loan only, or not be processed?
Mr. Comeaux:
My concern would be similar to what you expressed and that is I do not know where they would get the money to repay the loan. I do know that the department is currently unable to pay the money owed to the state mail room for mailings already done and they need the money to do that. I think the bill needs to be processed, because they need the money.
Senator Coffin:
I have a question for Mr. Comeaux. How long would it take to implement if we make a change in the fees?
Mr. Comeaux:
I can talk to the department and get you an answer.
Senator Raggio:
We will defer S.B. 345 until Senator Nolan arrives this morning. We will go to budget closings. We will utilize closing list number 1 (Exhibit C).
AGRI, Nevada Junior Livestock Show Board - Budget Page AGRI-8 (Volume I)
Budget Account 101-4980
Jeffrey A. Ferguson, Program Analyst, Fiscal Analysis Division, Legislative counsel Bureau:
We have made one change to this budget.
Senator Raggio:
If there are no other changes recommended by staff and no questions by the committee, I will take a motion to close the budget utilizing staff recommendation.
SENATOR RHOADS MOVED TO CLOSE BUDGET ACCOUNT 101‑4980 AS RECOMMENDED BY STAFF.
SENATOR RAWSON SECONDED THE MOTION.
THE MOTION CARRIED. (SENATORS MATHEWS AND TIFFANY WERE ABSENT FOR THE VOTE.)
*****
AGRI Grade & ID of Agricultural Products - Budget Page AGRI-18 (Volume I)
Budget Account 101-4541
Mr. Ferguson:
We do not recommend changes to this budget other than the authority to make some technical adjustments for various cost-allocation issues, Department of Information Technology (DoIT) charges, and items that might change as a result of other actions taken by the Legislature.
Senator Raggio:
I will include the authority of the staff to make those kinds of technical adjustments so we do not have to repeat it every time, and it will be understood.
SENATOR RHOADS MOVED TO CLOSE BUDGET ACCOUNT 101‑4541 AS RECOMMENDED BY STAFF.
SENATOR COFFIN SECONDED THE MOTION.
THE MOTION CARRIED. (SENATORS MATHEWS AND TIFFANY WERE ABSENT FOR THE VOTE.)
*****
B&I, Captive Insurers - Budget Page B&I-45 (Volume II)
Budget Account 101-3818.
Mr. Ferguson:
Staff has no recommendation on this budget.
SENATOR COFFIN MOVED TO CLOSE BUDGET ACCOUNT 101‑3818 AS RECOMMENDED BY THE GOVERNOR.
SENATOR RHOADS SECONDED THE MOTION.
THE MOTION CARRIED. (SENATOR TIFFANY WAS ABSENT FOR THE VOTE.)
* * * * *
B&I, Insurance Recovery - Budget Page B&I-47, (Volume II)
Budget Account 101-3821
SENATOR RHOADS MOVED TO CLOSE BUDGET ACCOUNT 101‑3821 AS RECOMMENDED BY THE GOVERNOR.
SENATOR COFFIN SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
*****
B & I, Nat. Assoc. of Insurance Commissioners - Budget Page-56 (Volume II)
Budget Account 101-3828
Mr. Ferguson:
There is a decision unit, E-125, that would increase annual fees from $15 to $22; however, that is contained in Assembly Bill (A.B.) 453, which is the division’s omnibus insurance bill. We recommend removing that for the time being and we can reinstate it pending approval of A.B. 453.
ASSEMBLY BILL 453: makes various changes to provisions relating to insurance. (BDR 57-546)
Senator Raggio:
There is not a recommendation against our increasing the fees, but until the statutory authority is provided, will we have to revisit this?
Mr. Ferguson:
We can do it one of two ways. We can remove it and ask for authority to reinstate if the bill passes. The other thing we could do is leave it in, and if the bill does not pass, staff could remove it.
Senator Raggio:
I think the better procedure would be to close the budget without that increase and include in the motion the authority of the staff to increase the budget by the amount that is expected to be realized from any increase if A.B. 453 or similar legislation is finally approved.
SENATOR MATHEWS MOVED TO CLOSE BUDGET ACCOUNT 101-3828 WITHOUT THE REQUESTED INCREASE; AND WITH AUTHORITY FOR STAFF TO INCREASE THE BUDGET BY THE AMOUNT EXPECTED TO BE REALIZED FROM ANY INCREASE FROM APPROVED LEGISLATION.
SENATOR TIFFANY SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
*****
B & I, INSURANCE COST STABILIZATION - Budget Page B&I-59 (Volume II)
Budget Account 101-3833
Senator Raggio:
I will accept a motion to close budget account 101-3833.
SENATOR TIFFANY MOVED TO CLOSE BUDGET ACCOUNT 101‑3833 AS RECOMMENDED BY THE GOVERNOR.
SENATOR COFFIN SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
*****
HR, Southern Food Service - Budget Page MHDS-46 (Volume II)
Budget Account 101-3159
Michael J. Chapman, Program Analyst, Fiscal Analysis Division, Legislative Counsel Bureau:
There are a number of decision units in this account for the food service budget that rely on the decisions made by the Legislature in other budget accounts, namely, the Division of Child and Famiy Services (DCFS), Southern Nevada Adult Mental Health Services (SNAMHS), and the Desert Regional Center (DRC). Staff requests the authority to make technical adjustments based upon actions taken by the committees in those other budgets.
Senator Raggio:
What about the adjustments for insurance, DoIT, purchasing, and statewide cost-allocations?
Mr. Chapman:
Those are the same overall global adjustments that staff would make at the end of the session.
Senator Coffin:
You have two different kinds of people receiving care. Is the cost the same for both? Some require additional staffing costs when it comes to feeding certain people and yet the food cost might be the same.
Mr. Chapman:
Food costs can vary depending on the nutritional requirements of certain individuals. It does not net out the same, but when a meal is prepared there is a contracted price for the meal and adjustments must be made to that. Also in this budget you have raw food costs because there are independent cooking programs within some of the programs, so those food costs could vary.
Senator Rawson:
I guess this depends on the closure of the Desert Willows unit.
Mr. Chapman:
That is correct. There are decision units in this budget that correlate with other decision units, for instance, DCSF budgets. If those decision units are approved and they would eliminate or close those beds down, there would be a reduction of the number of meals served. That would activate the decision unit in this budget account. Conversely, if those beds are not eliminated and they are staffed, I would have to go into this budget account and remove the decision unit that reduced those meals so we could reinstate those meals back to those facilities.
Senator Rawson:
I am not positive the recommendation would be to close that unit. We are trying to struggle through that right now. We can close this and reopen it, or we can hold it.
Senator Raggio:
I think the same thing would apply. We could make the adjustments in the event that budget is approved.
Mr. Ghiggeri:
Depending on what is recommended by the human resources subcommittee, a technical adjustment would be made to this account to true up what is paid out of the account that you close to reflect the receipt of funds in this account.
Senator Rawson:
That would be fine. We could close it then.
Senator Raggio:
I will accept a motion to close the budget as recommended by the Governor with the authority of staff to make the technical adjustments for food service costs and for insurance, DoIT, purchasing, and statewide cost-allocation based upon closing action with respect to the other budgets.
SENATOR RAWSON MOVED TO CLOSE BUDGET ACCOUNT 101‑3159 AS RECOMMENDED BY THE GOVERNOR WITH AUTHORITY FOR TECHNICAL ADJUSTMENTS BY STAFF FOR FOOD SERVICE COSTS, INSURANCE, DOIT, PURCHASING AND STATEWIDE COST-ALLOCATION, BASED UPON CLOSING ACTION WITH RESPECT TO OTHER BUDGETS.
SENATOR RHOADS SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
*****
Nevada Tahoe Regional Planning Agency - Budget Page CNR-25 (Volume III)
Budget Account 101-4166
Mr. Chapman:
This budget provides funding for board and travel costs for the Nevada Tahoe Regional Planning Agency members to attend meetings.
Senator Raggio:
Where does the revenue come from for this?
Mr. Chapman:
The revenue comes from the General Fund in this account and it is budgeted for $474 per year. A.B. 305, introduced on March 13, would remove or withdraw Nevada from the Tahoe Regional Planning Compact; therefore, if that bill is approved by the 2003 Legislature, this budget would go away.
ASSEMBLY BILL 305: provides for withdrawal of State of Nevada from Tahoe Regional Planning Compact. (BDR 22-801)
Senator Raggio:
I will accept a motion to close this budget as recommended by the Governor with the understanding that with passage of A.B. 305, this budget will not exist.
SENATOR RHOADS MOVED TO CLOSE BUDGET ACCOUNT 101‑4166 AS RECOMMENDED BY THE GOVERNOR AND WITH THE UNDERSTANDING THAT WITH PASSAGE OF A.B. 305, THIS BUDGET WILL NOT EXIST.
SENATOR MATHEWS SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
*****
State Environmental Commission - Budget Page CNR-105 (Volume III)
Budget Account 101-4149
Senator Raggio:
With authority to make technical adjustments, I will accept a motion to close budget account 4149.
SENATOR RHOADS MOVED TO CLOSE BUDGET ACCOUNT 101‑4949 WITH AUTHORITY FOR STAFF TO MAKE TECHNICAL ADJUSTMENTS.
SENATOR COFFIN SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
*****
Forestry Nurseries - Budget Page CNR-134 (Volume III)
Budget Account 257-4235
Mr. Chapman:
Staff is recommending two technical adjustments. One is to remove the duplicate uniform allowance that was included in the base budget. The other is price adjustment for anti-virus software purchase and maintenance pricing revisions. Senate Bill 444 would provide for the transfer of Floyd Lamb State Park to the City of Las Vegas, and in Section 3 of that bill there is a provision to exclude the property where the Las Vegas nursery is located in the legal description. That would have no effect on this account, and staff would recommend closing this budget with technical adjustments.
SENATE BILL 444: Authorizes transfer of certain real property owned by State of Nevada to City of Las Vegas. (BDR S-517)
Senator Raggio:
If the bill is not passed to authorize the transfer, does that affect this budget?
Mr. Chapman:
No, it would not. I just wanted to point out that there is a bill that moves Floyd Lamb Park to the city, but it would not affect the Las Vegas nursery.
SENATOR RHOADS MOVED TO CLOSE BUDGET ACCOUNT 245‑4235 WITH THE TWO TECHNICAL ADJUSTMENTS RECOMMENDED BY STAFF.
SENATOR COFFIN SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
*****
DMV, Salvage Wreckers/Body Shops - Budget Page DMV-71 (Volume III)
Budget Account 101-4690
Mark Krmpotic, Senior Program Analyst, Fiscal Analysis Division, Legislative Counsel Bureau:
The staff recommends an adjustment in module E-934. That module transfers state-owned building rent from the field services account within the Department of Motor Vehicles account to the salvage wreckers/body shops account. Staff has made the adjustment based on the latest government rates for state-owned building rent. Staff has also made a corresponding adjustment in module E-500 to change the funding source from Highway Funds to fees, and an adjustment in the cost of a personal computer in E-710. Last, staff would ask to make changes in this budget based on final approval of the administrative services and director’s office budgets for the internal cost-allocation.
Senator Raggio:
I would accept a motion to close the budget with the adjustments recommended by staff.
SENATOR MATHEWS MOVED TO CLOSE BUDGET ACCOUNT 101-4690 WITH THE ADJUSTMENTS RECOMMENDED BY STAFF.
SENATOR TIFFANY SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
*****
Public Safety, Highway Safety Grants Account - Budget Page PS-68 (Volume III)
Budget Account 201-4721
Mr. Krmpotic:
Staff has made changes to the cost of computers and software to reflect recent price modifications transmitted to us from state purchasing division. Staff also seeks approval on this account to make changes in the internal agency cost-allocation based on final approval of the public safety technology division of the administrative services and director’s office budgets within the Department of Public Safety.
Senator Raggio:
I will take a motion to close the budget account 201-4721 as recommended by staff.
SENATOR COFFIN MOVED TO CLOSE BUDGET ACCOUNT 201‑4721 AS RECOMMENDED BY STAFF.
SENATOR TIFFANY SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
*****
Police Corps Program - Budget Page POST-1 (Volume III)
Budget Account 101-3772
Mr. Krmpotic:
Staff has made changes to this budget account to reflect the recent price decreases in computers. Staff seeks to make changes to module E-125, which provides for non-state-owned building rent. This decision unit is tied to the same module in the Peace Officer Standards and Training (P.O.S.T.) Commission budget account. Depending on how the committee closes the P.O.S.T. commission budget account, staff would make changes to this account to correspond to that. Staff would also seek approval to make any changes based on any actions taken by the committee on accounts supported by administrative assessments.
Senator Raggio:
I understand there is no General Fund in this program. Do they train recruits in Utah instead of here?
Mr. Krmpotic:
Last year the federal government established a regional academy in Utah. Nevada sends its recruits to Utah for basic academy training.
Senator Raggio:
How are they funded?
Mr. Krmpotic:
They are funded by federal funding and Department of Justice grants.
Senator Raggio:
I will accept a motion to approve with recommendations by staff.
SENATOR TIFFANY MOVED TO CLOSE BUDGET ACCOUNT 101 ‑3772 WITH RECOMMENDATIONS BY STAFF.
SENATOR MATHEWS SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
*****
SENATE BILL 345: Provides direction to Public Employees’ Retirement System regarding payment of certain benefits (BDR 23-88)
Senator Dennis Nolan, Clark County Senatorial District No. 9:
Apparently this State withholds taxes on disability payments made to individuals. The result is a withholding of income from them, which ultimately forces them to file these withholdings on their tax returns, and the federal law, through the Internal Revenue Service (IRS), provides these people a return of the money they paid.
The disability payment under the Public Employees’ Retirement System (PERS) must be taxed because of the definition of “disability.” The tax is then refunded to the individuals after they apply for the refund. The remedy would not have a fiscal note, but it is rather complicated. It would require us to do what many states do and redefine how we look at disability.
Ron Cuzze:
I am a disabled, retired law enforcement officer from the State of Nevada. After I started receiving my disability pay I noticed that PERS was deducting federal withholding tax from my disability payment. I thought that was odd, because I also receive a disability payment from the military, and that payment is tax-exempt. I learned from the IRS that disability is non-taxable if you are in a PERS system with less than 25 years service. The PERS committee told me disability is taxable. We went back to the IRS and after more information from the IRS, filed taxes individually, and now get the taxes back.
Although individuals can do this, it is difficult to identify all the disabled people in the PERS system, so we cannot go to them individually and tell them what to do. It is hard on the individual, because the income tax must be paid before it is given back. On the 1099 form from PERS, under the distribution code, it lists “item 3 in Block 7.” On the back of the 1099 it clearly states “item 3, disability.” The IRS codes state that disability is non-taxable. S.B. 345 would eliminate the PERS payments to disabled persons being taxed.
Raymond C. McAllister, Lobbyist, Professional Firefighters of Nevada:
We signed on this bill as neutral, although we are in support of the concept of what Mr. Cuzze is trying to do. I am not sure the legislation, the way it is written, will solve the problem. Even if you are a public employee and go on disability, Nevada has co-mingled the industrial insurance with the retirement system. If you have permanent total disability and depending on how many years you have in the system, part of the benefit will be paid from your PERS benefit, the other portion will come from industrial insurance. The PERS portion is taxed but the portion from industrial insurance is not taxed. If you are in the private sector and are on disability, the whole disability is tax-free or reported as non-taxable income.
Danny N. Coyle, Lobbyist, SNEA/AFSCME (State of Nevada Employees Assn. #4041):
I support S.B. 345 for another reason. Each year a person receiving a disability benefit from Nevada PERS is required to file a statement with the IRS that a disability benefit is being received and therefore excluded from being taxed. This bill will, hopefully, remove the reporting requirement to notify the IRS that this is a disability retirement benefit.
Dana Bilyeu, Operations Officer, Public Employees’ Retirement Board, Public Employees’ Retirement System:
At this time the retirement board has not taken a position with respect to Senate Bill 345. However, staff will be recommending a position in opposition to the bill. The bill arises out of a dispute with the retirement system as to how we report disability retirement income to the IRS. We disagree with some retirees that their disability is not subject to taxation as it is in the nature of a worker’s compensation award. By IRS regulation 1.104, the nature of our benefit is not in the nature of a worker’s compensation award. In order for our benefit to be exempt from taxation, it must not be tied to years of service and average compensation. Our benefit clearly is. The only difference between the disability retirement benefit and the regular retirement benefit is that we do not apply the early retirement reduction penalty that is normally associated with early retirement. Otherwise, it is calculated identically.
Senator Raggio:
Can the retirees apply and get their withheld taxes back?
Ms. Bilyeu:
I am not familiar with the individual’s ability to go back and seek that. We report in a uniform manner, so I would be very concerned, based upon our advice out of both Washington and our benefits consulting firm, were we to make a change.
Senator Raggio:
If this bill were processed and the IRS regulations indicate it cannot be classed as disability if it is tied to years of service and average compensation, then the bill would make no difference, is that correct?
Ms. Bilyeu:
That is correct. The other requirement for a benefit to be non-taxable under the IRS according to the advice we received, is that it be a “duty disability.” In our statute, the word “disability” is not tied to “duty disability.” People who are members of the retirement system may be injured off the job or come down with some type of illness, and as long as that impairment affects their ability in a total and permanent way from doing their jobs, we can find them to be disabled. Thus there is no link between employment and the reason for disability under our statute. That is another test under the IRS code that would prevent our benefit from being non-taxable. Both the attorney general’s office and our benefits consulting firm have concluded that we cannot report our disability retirement income as non-taxable due to both of the tests under the IRS code.
Senator Raggio:
Is it legal to change the statute?
Mr. Bilyeu:
If we were to change the disability statute to limit the benefit to a duty disability, it would also have to be in some fashion not tied to average compensation and years of service. It would have to be a “flat dollar-type” of award, which is a very different benefit than the benefit currently there. It would be a new program and we would want to cost out as to how it would be designed.
Senator Coffin:
How do other states address this problem?
Ms. Bilyeu:
Other states, typically in the public safety sector associated with both police and firemen, that have designed programs where there is a “flat dollar” benefit award that is not tied to years of service and average compensation. It is based not as a retirement benefit, but more in the nature of a worker’s compensation award where you are evaluated on a certain percentage award.
Senator Coffin:
Do you think it is feasible to adjust Nevada’s method to work with the IRS code?
Ms. Bilyeu:
The biggest concern for the retirement system is always the benefit design itself. You can design a benefit so it is cost neutral, but I am not sure how to do that to address all the concerns of the individuals who are objecting to how we currently do the disability program. In order to do that, you would have to limit the amount of the award for disability retirement. We currently have a very generous disability program because we offer disability to everyone in the State, regardless of whether it is a duty disability or not. We would be concerned how we would structure such a benefit.
Senator Coffin:
Would you have to net out the award based upon the fact that they are currently receiving a higher payment in anticipation of a refund?
Ms. Bilyeu:
By way of example, people in our system are vested with 5 years of service and are able to apply for disability benefit with 5 years of service. A 5-year benefit, however, only provides 2.5 or 2.67 times years of service, so you are at 12.5 percent of pay. If we were to set a threshold “flat dollar” benefit award of a percentage of pay tied to that, it would be one way of approaching a duty disability that would be in the nature of an award that may not be taxable. Anytime you tie it to average compensation of years of service, that will make it a taxable benefit, so the awards would have to be in some fashion tied to a percentage of pay.
For instance, when you set that award at 50 percent of pay or 25 percent of pay and people would only have 5 years of service, obviously they are being given a benefit that has not been earned or commensurate with their years of service in the system. It is a duty disability award, in essence. There would probably be a cost associated for the fund.
Mr. Cuzze:
One thing that the committee should know is regardless of the number of years service, and that is why the IRS puts a 25-year cap on a PERS, there are two ways for police and firemen to go out after they are injured. One is through the Heart and Lung Bill. With that they receive the number of years they put in PERS plus 66 2/3 percent from Employers Insurance Company of Nevada (EICON). What they get from EICON, because of their heart attack or lung condition, is a tax-free benefit. Because Nevada does not pay into the social security system, if there are other types of injuries, we draw PERS based on the number of years service we had, and then from the long-term disability carrier for the State, Unum Providence Insurance. Either way, two checks are distributed to the disabled person. We are asking that PERS do the same as EICON is already doing.
Senator Raggio:
This bill is not exempt, so it will have to be processed by April 11.
Senator Nolan:
If this bill were enacted the way it is written, it would force PERS to redefine the disability statutes. I believe there are 24 other states that do not withhold taxes.
Senator Raggio:
I think the issue is more complex. It would seem that in the states where it is recognized, there is a fixed amount. I am not sure that would be beneficial to some. Also, there would have to be differentiation between disability and otherwise. If there is a fixed amount, a duty-disabled person with long length of service might have to take less if there is a fixed disability. We can ask the Legal Division to look at this to see if some other language could be put in.
The meeting is adjourned at 10:30 a.m.
RESPECTFULLY SUBMITTED:
Julie Walker,
Committee Secretary
APPROVED BY:
Senator William J. Raggio, Chairman
DATE: