MINUTES OF THE
SENATE Committee on Finance
Seventy-second Session
May 29, 2003
The Senate Committee on Finance was called to order by Chairman William J. Raggio at 8:55 a.m. on Thursday, May 29, 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.
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
STAFF MEMBERS PRESENT:
Gary L. Ghiggeri, Senate Fiscal Analyst
Judy Coolbaugh, Committee Secretary
OTHERS PRESENT:
Steve Weaver, Chief of Planning and Development, Division of State Parks, State Department of Conservation and Natural Resources
P. Forrest Thorne, Executive Officer, Board of the Public Employees’ Benefits Program
Senator Raggio:
We have some amendments for processing this morning. Staff will go over them.
Gary L. Ghiggeri, Senate Fiscal Analyst, Fiscal Analysis Division, Legislative Counsel Bureau:
The first, Amendment No. 946, amends Senate Bill (S.B.) 210. The amendment makes the statutory changes necessary to implement the program for the professional development and training of teachers and administrators.
SENATE BILL 210: Makes various changes governing education and makes related appropriations. (BDR 34-636)
Senator Raggio:
We are deleting Sections 1 and 2, Sections 9 through 16, and Sections 18 and 19. Is that correct?
Mr. Ghiggeri:
Yes, that is correct.
Senator Raggio:
I will accept a motion.
SENATOR COFFIN MOVED TO AMEND S.B. 210 WITH AMENDMENT NO. 946 AND DO PASS AS AMENDED.
SENATOR RHOADS SECONDED THE MOTION.
THE MOTION CARRIED. (SENATOR RAWSON AND SENATOR TIFFANY WERE ABSENT FOR THE VOTE.)
*****
Senator Raggio:
We will now consider Assembly Bill (A.B.) 249 (1st Reprint).
ASSEMBLY BILL 249 (1st Reprint): Makes various changes concerning Public Employees’ Benefits Program. (BDR 23-549)
The committee voted to amend and do pass this bill. The proposed amendment allows organizations with 100 members or more, or those that have been part of the program as of January 1, 2003, permission to have union dues withheld as a payroll deduction. Is that correct?
Mr. Ghiggeri:
Yes, that is correct. This legislation is the Public Employees’ Benefits Program key legislation and it does need to be approved this session. There are a number of other issues in addition to this Amendment No. 934.
Senator Raggio:
The committee has already made a motion to amend and do pass A.B. 249. If there are no objections, we will utilize Amendment No. 934.
Senator Coffin:
I want to make sure this bill and amendment is not tangled in with the legislation that refers to bargaining units of 100 members or more.
Mr. Ghiggeri:
To staff’s knowledge, this bill and amendment have nothing to do with bargaining. It is just to permit withholding of payroll deductions for groups with 100 or more members.
Senator Raggio:
We will next consider A.B. 257 (1st Reprint) and its Amendment No. 951.
ASSEMBLY BILL 257 (1st Reprint): Makes appropriations to restore balance in Contingency Fund. (BDR S-1235)
This amendment adds to the Contingency Fund the appropriation to the Interim Finance Committee (IFC) for the 2 percent additional funding for inflation for health care benefits for employees of school districts. The committee has already voted to amend and do pass. Are there any objections to utilizing Amendment No. 951? There are no objections, so we will utilize that amendment. It will make a $5.8 million additional General Fund appropriation to the IFC. The committee will next consider A.B. 395 (2nd Reprint).
ASSEMBLY BILL 395 (2nd Reprint): Provides for assessment of fee on certain facilities for intermediate care and on certain facilities for skilled nursing. (BDR 38-999)
Staff has brought to our attention the need for an amendment.
Mr. Ghiggeri:
The committee has approved this bill; however, an amendment is required to change the effective date from July 1, 2003, to June 30, 2003, to rollback the rate increase. The amended date is necessary because, at some future date, the assessments may become ineligible for matching Medicaid funds.
Senator Raggio:
Is there any objection to the amendment? If there are no objections, I will accept a motion.
SENATOR RHOADS MOVED TO AMEND A.B. 395 (2ND REPRINT) WITH AMENDMENT NO. 931 AND DO PASS AS AMENDED.
SENATOR COFFIN SECONDED THE MOTION.
THE MOTION CARRIED. (SENATOR RAWSON AND SENATOR TIFFANY WERE ABSENT FOR THE VOTE.)
*****
Senator Raggio:
The committee will next consider A.B. 549, which requires an amendment.
ASSEMBLY BILL 549: Revises provisions relating to uses of forfeited property or proceeds of forfeited property. (BDR 14-1354)
The local law enforcement agencies were concerned about the utilization of the forfeiture funds. It has been suggested that we add new language on page 2 to read, “money derived from the forfeiture of any property may be used to fund operating expenses of joint task forces funded through material grants or gifts.” Is that language acceptable to the committee? I will accept a motion.
SENATOR TIFFANY MOVED TO AMEND A.B. 549 BY ADDING LANGUAGE ON PAGE 2 TO READ, “MONEY DERIVED FROM THE FORFEITURE OF ANY PROPERTY MAY BE USED TO FUND OPERATING EXPENSES OF JOINT TASK FORCES FUNDED THROUGH MATERIAL GRANTS OR GIFTS,” AND DO PASS AS AMENDED.
SENATOR COFFIN SECONDED THE MOTION.
THE MOTION CARRIED. (SENATOR RAWSON WAS ABSENT FOR THE VOTE.)
*****
Senator Raggio:
The committee will consider S.B. 502.
SENATE BILL 502: Extends reversion date of certain appropriations from previous sessions for park improvements. (BDR S-1366)
Steve Weaver, Chief of Planning and Development, Division of State Parks, State Department of Conservation and Natural Resources:
This bill is a carryover authorization for expenditure of approximately $170,000 in General Fund appropriation for two partially completed park renovations and restoration projects. These funds are being used to leverage approximately $650,000 in federal funds. The first project is the first floor interior restoration work in the 133-year-old Buckland Station at Fort Churchill State Historic Park. The second project is the completion of the Cathedral Gorge State Park Campground including potable water and irrigation systems, recreation vehicle dump station, reconstruction of retaining walls, grading of gravel pads, and repair of campsite tables and grills.
Senator Raggio:
This amendment would extend the reversion date for the funds.
Senator Tiffany:
Was this reversion money built into the Executive Budget?
Mr. Ghiggeri:
If the projects had been completed, any leftover funds would have been built in as a reversion.
Senator Tiffany:
Are you saying the money was not built into the budget?
Mr. Ghiggeri:
I would guess it was not built in.
Senator Raggio:
I will accept a motion.
SENATOR TIFFANY MOVED TO DO PASS S.B. 502.
SENATOR CEGAVSKE SECONDED THE MOTION.
THE MOTION CARRIED. (SENATOR RAWSON WAS ABSENT FOR THE VOTE.)
*****
Senator Raggio:
The committee will consider A.B. 544.
ASSEMBLY BILL 544: Establishes for next biennium amount to be paid by this state for group insurance for certain public employees, public officers and retired public employees. (BDR S-1342)
P. Forrest Thorne, Executive Officer, Board of the Public Employees’ Benefits System:
This bill establishes the subsidy levels for active state employees and for retired state employees over the biennium. The amounts are the same as those included in the Governor’s recommended budget and in the budget as closed. For fiscal year (FY) 2003-2004 the State’s share of the cost of premiums for group insurance for active state employees is $495.68 per month. For FY 2004-2005 the amount will be $558.07 per month.
The State’s share of the cost of premiums for state retired employees in FY 2003-2004 will be $280.78 per month. For FY 2004-2005 the amount of subsidy for retired state employees will be $316.26 per month.
Senator Raggio:
The figures you read would be the State’s subsidy for each active or retired state employee participating in the plan. Is that correct?
Mr. Thorne:
Yes, that is correct.
Senator Raggio:
What is the cost of the premium for the group health insurance for a Legislator?
Mr. Thorne:
The cost for a Legislator is equivalent to the State subsidy amount.
Senator Raggio:
In Section 2, the amounts you read are for the State subsidy for retired state employees, but those employees must make up the balance. Is that correct?
Mr. Thorne:
Yes, that is correct. This establishes the base amount for state employee retirees post-1994. There is a graduated scale in statute that ranges from a low of 5 years of state service for a 25 percent State subsidy of the base amount to 20 or more years of state service for a 137.5 percent State subsidy of the base amount.
Senator Tiffany:
What is the amount of our life insurance benefit?
Mr. Thorne:
As of July 1, 2003, for active state employees it will be $20,000 and for retirees it will be $10,000.
Senator Tiffany:
Is that the same amount as always, or has it been raised?
Mr. Thorne:
It has been reduced from the current $40,000 to $20,000 effective July 1, 2003, for state active employees, and for retirees it has been reduced from $20,000 down to $10,000. The agency arranged with its new voluntary life insurance carrier, Standard Insurance, to provide guarantee issue for all participants. For active state employees, there is a guaranteed issue of up to $100,000 at age-related rates and for state retirees; the first $10,000 above the new amount is a guaranteed issue at a flat $19.17 per month regardless of age.
Senator Coffin:
This is a critical item. All state employees need to be aware that, although their current insurance has been reduced, the employees have the right to buy a term life insurance policy from Standard Insurance. Is the term insurance the employees are eligible to buy convertible to an ordinary life insurance policy?
Mr. Thorne:
It is both portable and convertible.
Senator Coffin:
I hope this information gets out to all state employees, because it is important they take advantage of the benefit. What is the length of the grace period after July 1, 2003?
Mr. Thorne:
It was going to end May 30, 2003, but the enrollment period in the voluntary life insurance election is being extended for an additional 30 days. The agency will be doing another mailing to those people who have the existing company’s coverage saying the account can be rolled over to the new plan.
Senator Coffin:
How many people have signed up with the new carrier?
Mr. Thorne:
Approximately 800 people had signed up through the end of last week.
Senator Raggio:
Is there an amendment needed on this bill?
Senator Mathews:
I called the agency’s office because I was not sure what the Standard Insurance enrollment forms were for. Your office does not give out requested information; instead they tell you to call the insurance company directly. The State is not giving its employees good information.
Mr. Thorne:
The agency will try to rectify the problem. There was some information in the open enrollment packet about the change in life insurance coverage. Standard Insurance also did a separate mailing to all state participants and nonparticipants providing information on the amounts available. The company also provided a personal identification number so employees could use a telephone response system.
Senator Coffin:
If only 800 people have responded and we are coming to the end of an open enrollment period, is an extension of the date a possibility? How many employees are we talking about?
Mr. Thorne:
There are approximately 31,000 employees involved. The existing voluntary life insurance program, which the agency has had for a number of years, only had 1100 participants.
Mr. Ghiggeri:
I have distributed to the committee an amendment to A.B. 544 (Exhibit C). When the committee was closing budgets for various state agencies, it was discovered there was insufficient funding in the budget to fund the assessments that were levied in the various budget accounts. This amendment will provide approximately $1.6 million in FY 2003-2004 and $1.6 million in FY 2004-2005. It will provide funding to IFC that state agencies can apply to the IFC to cover any deficit the agencies may incur as a result of the amount required not being funded in budgets. Staff ran out of time to go back and insert this amount into each individual budget. The appropriation for the University and Community College System of Nevada (UCCSN) is provided directly to UCCSN.
Senator Raggio:
This amendment is necessary because of the inability to go back into each of these budgets and make the necessary adjustments. Is that correct?
Mr. Ghiggeri:
Yes, that is correct.
Senator Raggio:
I will accept a motion.
SENATOR RHOADS MOVED TO AMEND A.B. 544 TO PROVIDE A $1.6 MILLION GENERAL FUND APPROPRIATION IN EACH YEAR OF THE BIENNIUM TO THE IFC TO MAKE FUNDS AVAILABLE TO AGENCIES, UPON APPLICATION TO THE IFC, TO MAKE UP BUDGET SHORTFALLS, AND TO DO PASS AS AMENDED.
SENATOR COFFIN SECONDED THE MOTION.
THE MOTION CARRIED. (SENATOR RAWSON WAS ABSENT FOR THE VOTE.)
*****
Senator Raggio:
I have given the committee Amendment No. 953 to S.B. 235 (1st Reprint).
SENATE BILL 235 (1st Reprint): Revises provisions governing payment of hospitals for treating disproportionate share of Medicaid patients, indigent patients or other low-income patients. (BDR 38-746)
Senator Rawson:
Staff has looked over the amendment and agreed the language in the amendment accomplishes the objective and it appears to be in order.
Senator Raggio:
Is there any objection to the utilization of the amendment? There are no objections, so the committee will recommend the utilization of Amendment No. 953 to S.B. 235 (1st Reprint). This meeting is in recess at 9:18 a.m. until the call of the chair.
RESPECTFULLY SUBMITTED:
Judy Coolbaugh,
Committee Secretary
APPROVED BY:
Senator William J. Raggio, Chairman
DATE: