MINUTES OF THE
SENATE Committee on Human Resources and Facilities
Seventy-second Session
February 19, 2003
The Senate Committee on Human Resources and Facilitieswas called to order by Chairman Raymond D. Rawson, at 1:30 p.m., on Wednesday, February 19, 2003, in Room 2135 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 Raymond D. Rawson, Chairman
Senator Barbara Cegavske, Vice Chairman
Senator Maurice E. Washington
Senator Dennis Nolan
Senator Joseph Neal
Senator Bernice Mathews
Senator Valerie Wiener
GUEST LEGISLATORS PRESENT:
Senator Mike McGinness, Central Nevada Senatorial District
STAFF MEMBERS PRESENT:
H. Pepper Sturm, Committee Policy Analyst
Patricia Vardakis, Committee Secretary
OTHERS PRESENT:
Carol M. Stonefield, Committee Policy Analyst
Laura Hale, Management Analyst II, Department of Human Resources
Chairman Rawson:
We will open the hearing on Senate Bill (S.B.) 14.
SENATE BILL 14: Clarifies exemption of religious, charitable and other nonprofit organizations from regulation as food establishments. (BDR 40-333)
Senator Mike McGinness, Central Nevada Senatorial District:
I met this morning with representatives of the Health Division, Washoe County District Health Department, and Carson City Environmental Health Department. They are all opposed to S.B. 14. I told them my goal was to bring uniformity to inspections and rates charged for nonprofit, religious, and charitable organizations. They assured me they planned to meet on a regular basis with an inter-agency committee for special events to address these issues. There is also a federally funded program called Nevada food safety task force. Washoe County, Carson City, Clark County, and the rural areas all interpret these issues differently. This group will be meeting in the next few months and may have some recommendations for legislation. At this time I am asking you to withdraw S.B. 14.
Chairman Rawson:
Rather than withdrawing or postponing, we will set it aside.
Senator McGinness:
It might be a vehicle to use later.
Chairman Rawson:
We will close the hearing on S.B. 14 and open the hearing on S.B. 32.
SENATE BILL 32: Makes various changes regarding Task Force for the Fund for a Healthy Nevada. (BDR 40-258)
I wish to disclose to everyone I have been the chairman of the task force and am familiar with the issues. This may present a potential conflict.
Carol M. Stonefield, Committee Policy Analyst:
I am the policy analyst assigned to the Task Force for the Fund for a Healthy Nevada. I will neither advocate nor oppose any provisions of S.B. 32. The Nevada Revised Statutes (NRS) 439.630 assigns to the task force the privilege of setting the administration of its own procedures. In the course of 2 biennial cycles of awarding grants it was decided to recommend to the Legislature changes be made to the provisions governing the awarding of grants.
Senate Bill 32 has two separate provisions. One provision would replace the annual or fiscal year with a biennial competitive round of grants. The grant process is lengthy, requiring much staff and task force members’ time. It would bring the NRS into compliance with a procedure which has been developed.
The second change relates to the legal vehicle used to award the grants. Presently, the task force and the Department of Human Resources must use the State contract process. This is a procedure for awarding State money to a vender who delivers a service or a product to the State. The grant process for the Task Force for a Healthy Nevada is awarding funds to recipients who provide a service to people in Nevada. The contract process does not exactly apply with the procedures they are following.
Chairman Rawson:
There is an extraordinary amount of time put into evaluating and reviewing applicants to see all conditions have been met. This is a process where a great amount of time could be saved.
Senator Neal:
What is the source of the Funds for a Healthy Nevada?
Ms. Stonefield:
The funds are from the Master Tobacco Settlement Agreement. According to the statutes, half of the money goes to the Task Force for the Fund for a Healthy Nevada and the remainder is distributed to the Millennium Scholarship and the Trust Fund for Public Health.
Senator Neal:
Sixty percent of the funds goes to health care in various ways. Is that all the funds?
Laura Hale, Management Analyst II, Department of Human Resources:
The Department of Human Resources is in support of S.B. 32. It will save the department time and paper. Last year temporary staff was hired just to make copies so the contracts could get through in a timely manner. It will also permit the programs to get into the community more quickly.
Senator Wiener:
Will Nevada benefit from these funds for a long period of time?
Ms. Hale:
The contracts are written for 25-year agreements. We are looking at long term unless the Legislature makes a determination to change how the percentages are allocated.
Chairman Rawson:
The state treasurer is proposing we securitize the settlement money. If they securitize the settlement money, we would be looking for at least 95 percent of the money, otherwise we are not interested in securitizing.
Senator Neal:
If 30 percent of the revenues are set aside for the Fund for a Healthy Nevada, will 70 percent go to the Millennium Scholarship?
Ms. Hale:
The Fund for a Healthy Nevada receives 50 percent; 30 percent is for the SenioRX program, 30 percent for independent living, 20 percent for services to people with disabilities, and 20 percent for tobacco-related programs.
Senator Neal:
Are the percentages set in S.B. 32?
Chairman Rawson:
No. This bill would not change the percentages.
Senator Neal:
The Fund for a Healthy Nevada receives 50 percent and is it 50 percent for the Millennium Scholarship?
Ms. Stonefield:
The Millennium Scholarship receives 40 percent, 10 percent goes to the Trust Fund for Public Health, and 50 percent goes to the Fund for a Healthy Nevada, which is further divided as Ms. Hale has stated.
Senator Neal:
Are 60 percent of the funds being used for entities involved in health care?
Chairman Rawson:
Yes. A good portion of money is used for health-related issues. The Fund for a Healthy Nevada is divided between programs providing health care and programs for the cessation of smoking. The program is extensive, statewide, and has met many purposes. For the committee’s information, a list of the grantees could be provided.
Senator Wiener:
One of the components of the Master Tobacco Settlement Agreement was that monies were allocated for each state based on a smoking population and as the smoking population percentages reduced, the monies to the State would also be reduced. Am I correct?
Chairman Rawson:
The Master Tobacco Settlement Agreement prescribes how much money comes to the State.
Senator Wiener:
Before the first payment, the amount would be less than anticipated because our smoking rate was reduced.
Ms. Hale:
The amount is related to the overall sales. Therefore, we are dependent on tobacco profits, but not Nevada, in relation to other states.
Chairman Rawson:
It is domestic sales. The smoking cessation money used nationwide will have an impact on the amount of tobacco products sold, which influences the fund.
Senator Wiener:
What would be the amount?
Chairman Rawson:
Generally, the actual figure is not known until we are at the end of the granting process.
Ms. Stonefield:
We receive the payment in April. After April 15, we know the amount we will have for the next fiscal year.
Senator Wiener:
Could you report the amount to us when it is received?
Chairman Rawson:
We will still be in session. We will close the hearing on S.B. 32.
SENATOR WIENER MOVED TO DO PASS S.B. 32.
SENATOR CEGAVSKE SECONDED THE MOTION.
Senator Neal:
Was there a reason to add contract to the grant language?
Ms. Hale:
The task force makes their determinations for allocations in an open public forum. This is also true for grants or contracts. The issue in the contract process is not legally the correct form to use because these are not services or products being provided to the State. They are services being provided to the public; therefore, the grant agreement is the appropriate document. Secondly, the contract process adds another 6 weeks of processing for us internally. Additional paperwork and many checks and balances are in place to ensure it is a legitimate process. It is an open public process and competition. We report to the Interim Finance Committee if there are any State entities involved including the community colleges and the university. There is an annual report to the Governor. Our funding process goes to the Office of the State Treasurer.
Senator Neal:
The contract process is different from the grant process. Using the contract process the recipient would be held responsible. If the grant recipients fail you lose the money, there are no performance standards attached to the grant.
Ms. Hale:
The grant agreements can be written with all the integrity of a contract in terms of binding a grantee to those outcomes and deliverables. Ninety-five percent of the grants are paid on a reimbursement basis.
Senator Neal:
If a person had a contract, you have an action against them in the event they did not perform, but a grant you do not. The standards of a grant are less strict than with a contract. Since the proposed changes in S.B. 32 would make contracts and grants on equal terms, and based on your testimony, you are leaning towards developing the grants rather than the contracts.
Ms. Hale:
We do site visits with the grantees who are paid on a reimbursement basis. They report to us on a monthly basis. There are quarterly reports and progress reports as well. In the first cycle there was a concern with two grantees. They both were put on probation. Eventually, one grantee was able to meet their obligations, and in the other case, we transferred the grant monies to another entity. We do have the means to return to the grantee to ensure the goals are being met and have avenues for correction.
Senator Neal:
How many are applying for the grants?
Ms. Hale:
Currently we have 53 grantees in this 2-year cycle. I could provide a list for the committee.
Senator Neal:
How much money is there?
Ms. Hale:
From the Master Tobacco Settlement Agreement there is $4.5 million; the same amount for the children’s health and disabilities program.
Chairman Rawson:
The original Legislation was not definitive and did not specify the language of a contract must be followed. A deputy attorney general said it needed to be clarified in the law to alleviate any questions in the event it was challenged.
Senator Neal:
I am concerned about how favoritism can be prevented.
Chairman Rawson:
Thechairmanis always a legislator and the position rotates between the two houses. There are nine persons on the committee: the Governor, majority leader, and speaker appoint people to the committee.
Senator Neal:
Are there legislators on the committee who have approval of these grants? Is it their responsibility to oversee the grants and contracts?
Chairman Rawson:
The Legislators oversee awarding the grants.
Senator Neal:
Do they come before this committee for approval?
Chairman Rawson:
Yes.
THE MOTION CARRIED. (SENATOR MATHEWS WAS ABSENT FOR THE VOTE.)
*****
Chairman Rawson:
I have three bill draft requests (BDRs) for introduction.
BILL DRAFT REQUEST S-1094: Appropriation for certain nonprofit public broadcasting stations that serve the educational, informational and cultural needs of the community. (Later introduced as Senate Bill 177.)
BILL DRAFT REQUEST S-1064: Appropriation for the "Willed Body Program." (Later introduced as Senate Bill 178.)
BILL DRAFT REQUEST 39-480: Makes changes to provisions concerning mental health issues and Federal compliance concerning treatment and transferal of patients. (Later introduced as Senate Bill 179.)
SENATOR NEAL MOVED TO INTRODUCE BDR S-1094, BDR S-1064, AND BDR 39-480.
SENATOR WIENER SECONDED THE MOTION.
THE MOTION CARRIED. (SENATOR MATHEWS WAS ABSENT FOR THE VOTE.)
*****
Chairman Rawson:
There being no other issues before us today, the meeting is adjourned at 2:08 p.m.
RESPECTFULLY SUBMITTED:
Patricia Vardakis,
Committee Secretary
APPROVED BY:
Senator Raymond D. Rawson, Chairman
DATE: