MINUTES OF THE SENATE COMMITTEE ON LEGISLATIVE AFFAIRS AND OPERATIONS Sixty-eighth Session May 30, 1995 The Senate Committee on Legislative Affairs and Operations was called to order by Chairman Mike McGinness, at 2:16 p.m., on Tuesday, May 30, 1995, in Room 227 of the Legislative Building, Carson City, Nevada. Exhibit A is the Agenda. Exhibit B is the Attendance Roster. COMMITTEE MEMBERS PRESENT: Senator Mike McGinness, Chairman Senator William J. Raggio, Vice Chairman Senator Raymond D. Rawson Senator Mark A. James Senator Dina Titus Senator Bob Coffin COMMITTEE MEMBERS ABSENT: Senator Bernice Mathews (Excused) GUEST LEGISLATORS PRESENT: Assemblywoman Dianne Steel, Clark County Assembly District No. 16 STAFF MEMBERS PRESENT: Robert E. Erickson, Research Director, Legislative Counsel Bureau Mavis Scarff, Committee Secretary OTHERS PRESENT: Larry D. Struve, Chief of Industrial Development and Planning, Consumer Affairs Division, State of Nevada Sandra K. Neese, Associate Professor, University of Nevada, Reno Judith Winzeler, Executive Director, Nevada Humanities Committee Joan G. Kerschner, Director, Department of Museums, Library and Arts Ande Engleman, Private Citizen John D. Adkins, Deputy Treasurer of Cash Management, Office of the State Treasurer, State of Nevada John Sande, Lobbyist, Nevada Bankers Association Ted Balash, Director, Loral Aerospace Services Greg Titus, Vice President, First Interstate Bank of Nevada The chairman indicated that he had reviewed and approved the following bill draft requests (BDRs). BILL DRAFT REQUEST R-1917: Directs Legislative Commission to conduct interim study of effects of competition in generation and sale of electric energy. BILL DRAFT REQUEST R-2077: Memorializing Nevada native and community lea der , Jo hn Bla ckf ord "J ac k" Da yto n. BILL DRAFT REQUEST R-2097: Memorializes Sparks police officer, Larry D. Johnson Senator McGinness then asked approval for a BDR, requested by Senator Raggio, on a majority vote for legislation recommended by Interim Study Committees (Exhibit C). Senator Raggio explained that on any joint committee, whether they are standing committees, or interim committees, this bill would provide that there would have to be a majority vote on each side, of each house. SENATOR RAGGIO MOVED TO REQUEST A BILL DRAFT REQUEST REQUIRING A MAJORITY VOTE FOR LEGISLATION RECOMMENDED BY ANY JOINT COMMITTEE. SENATOR RAWSON SECONDED THE MOTION. Senator Coffin asked, due to the unusual split in the Assembly, are they going to require an equal number of Senators and Assemblymen on each committee? Senator Raggio replied no, that they usually do not. Senator Coffin confirmed that Senator Raggio had no objection if they have three Senators and four Assemblymen. Senator Raggio replied, no. THE MOTION CARRIED. (SENATORS JAMES AND MATHEWS WERE ABSENT FOR THE VOTE.) ***** Senator McGinness indicated he had approved a request by Senator Raggio for a resolution for Stan Warren. The chairman opened the hearing on Senate Concurrent Resolution (S.C.R.) 38, and introduced Larry Struve. SENATE CONCURRENT RESOLUTION 38: Urges state and local governments to establish programs to encourage participation of residents of Nevada in development of public policy and operation of state and local government. (BDR R-1829) Larry D. Struve, Chief of Industrial Development and Planning, Consumer Affairs Division, State of Nevada, said he is appearing today not only in his official capacity, but as a former vice chairman and executive director of the Nevada Commission of the Bicentennial of the United States Constitution, which completed its celebration in 1991. He said S.C.R. 38 is an effort to keep alive the spirit that he thinks reigned during the celebration of the bicentennial of the United States Constitution. He indicated that they found that many in the society were very uninformed about what the Constitution provides, and it seemed to track a declining participation by citizens in elections and other forms of democratic institutions. He believes that more needs to be done, and that S.C.R. 38 is a vehicle that could assist in trying to get citizens more involved in the governing processes, but involved in a meaningful way so that they are both informed and involved in the decisions that affect their lives. He thinks S.C.R. 38 will do five things: First, it is going to urge every state agency and every local government in Nevada to adopt a statement; it can be done through a resolution, a proclamation, a regulation, whatever is appropriate, that acknowledges that particular unit of government is committed to establishing a program that encourages the active participation of residents and citizens in the development of public policy and the operation of state and local government. Secondly, S.C.R. 38 would request that the Governor include a reference to this resolution in his annual proclamation issued pursuant to Nevada Revised Statutes (NRS) 236.035 during the next 2 years of the biennium. Number 3. It would encourage public officers and employees, and all residents of this state to development new ideas and programs to increase the participation of residents in the processes of government. Number 4. It designates the Department of Museums, Library and Arts as the repository for any resolution, regulation, proclamation, statement, or suggestions made by residents of this state, so that there is a central place where this information can be obtained, and have a record on how Nevada is trying to improve citizen participation in governance. Lastly, the resolution requires that the Director of the Department of Museums, Library and Arts, prepare a report to the 1997 session of the Nevada Legislature giving an overview of the response to this resolution and to make appropriate recommendations on how Nevada can continue this noble effort to try and increase the citizen participation in our governing institutions. Mr. Struve then introduced Sandra Neese. Sandra K. Neese, Associate Professor, University of Nevada, Reno, said there were some contextual issues that helped shape the Gold Hill Gathering last year. She stated that legislators have heard that Americans are apathetic about politics; that citizens only care if they are directly affected by policy issues; that Americans just do not take time to learn about issues. She emphasized that Americans do care about politics, but they no longer believe they have an effect; citizens feel cut off from most policy issues, because they don't see their concerns reflected; and Americans say they do need to be better informed. She referred to the last sheet in Exhibit D and described the Gold Hill Gathering and its results. She noted that there were five themes; to renew community spirit; to increase collaboration with decision makers, which is certainly the intent of S.C.R. 38; to reform campaign finance practice; to manage information; and to empower people. Dr. Neese noted that, as a follow-up to the Gold Hill Gathering, some work groups have been formed and they will be continuing the work begun at the gathering. Judith Winzeler, Executive Director, Nevada Humanities Committee, and formally a member of the Nevada Commission on the Bicentennial of the United States Constitution, spoke from the Summary of the Gold Hill Gathering (Exhibit E. Original is on file in the Research Library.). Though this resolution has no teeth in it, she stated, it does encourage state government to likewise become more actively engaged in the democratic process, and she urged the committee's support. Joan G. Kerschner, Director, Department of Museums, Library and Arts, indicated that they consider, as their normal course of duty in their department, to encourage public participation and access to information. She noted that the National Issues Forum was cosponsored by the State Library and Archives, and that most of those discussion groups took place in public libraries. She said that they also consider that it is part of their normal course of duties to be the repository for this type of information, since they do gather and disseminate government information. She hastened to assure the committee that they are not going to ask for additional funding to do this particular project, but they will use a number of groups, they have already tapped into as volunteers, to help hold this together. Senator McGinness asked Mr. Struve if he could tell him how many state agencies there are, since this bill would urge every state agency to adopt a statement? Mr. Struve said he did not have that answer, but he estimated it was in the hundreds. He suggested sending a directive to the department heads. Senator Titus said she worked with Mr. Struve and Ms. Winzeler as a member of the Constitutional Commission, and was on the Humanities Committee, and she is very pleased to have brought this bill to the committee. She asked the committee to introduce it, stating she thinks it is very important to get more people involved in the process, and she commended and thanked the group for coming to testify. Senator McGinness also commended the group. Senator Rawson asked if in the participation in the past, had there been a good representation of all groups represented? Dr. Neese indicated that at the Gold Hill Gathering they did have a cross section, but that it was kind of an administrative experience. She said the community leadership programs she is involved with through the university targets minority populations. Ande Engleman, Private Citizen, said that after fighting so many governmental entities on disclosure of information to the public this year, she is pleasantly surprised to see that government wants to extend access to the people. She emphasized that if this program is going to open up public records, and insure open meetings to the public so that they can feel more involved instead of being shut out of things, then she is all for this legislation. Senator McGinness closed the hearing on S.C.R. 38 and opened the hearing on Assembly Bill (A.B.) 563. ASSEMBLY BILL 563: Revises provisions governing reimbursement of certain expenses of legislators. (BDR 17-1901) Assemblywoman Dianne Steel, Clark County Assembly District No. 16, described her decision process in getting furniture in Carson City for the session. Her choices were: Rent furniture for the session - cost $600-$700 Cannot use moving expense account to rent furniture Have furniture moved from Las Vegas to Carson City Moving company cost: $2,200 to $2,400 Moving expense account applicable Move her furniture herself - cost $1,400 each way Moving expense account applicable She said she chose the last option, but noted the she could have saved taxpayers money is she could have rented furniture and have it apply to the moving expense account. Robert E. Erickson, Research Director, Legislative Counsel Bureau, said he thinks the bill also states that the rental of furniture could not be more than what it would cost for a round trip to move the furniture, with a cap of $6,800 Ms. Steel said there is no increase or extra benefit to the legislator for doing this. Senator Raggio asked what was the amendment that had been added to the bill? Ms. Steel said when they had drafted it they only had the furniture coming from Las Vegas to Carson City; they did not give us a return, so they added "to and from." Senator Coffin asked Ms. Steel if the bill would seek reimbursement for legislators to rent during session? She agreed. He then asked if this is not part of the per diem that is supposed to cover all their costs? Ms. Steel stated that a legislator can do one of two things: move up here and rent furniture out of per diem, or move furniture here as part of the moving expenses. She stated she went for the least expensive for her pocketbook; however, it did increase the expenses to the taxpayer. Senator Coffin said all of us who rent, whether it be an apartment that is furnished or a house that is unfurnished, the cost of the furniture is implied. He asked if legislators would get into trouble with their tax status if they reimbursed themselves for more than the federal allowance for per diem? Ms. Steel said she had no idea and that it would have to be researched. Senator Coffin noted they are given a per diem in lieu of individual reimbursement for all their expenses, and it is an amount of money equivalent to the federal allowance for per diem for this particular area which then prevents legislators from getting into a situation where their per diem is taxable. He said it varies also according to the distance of their residence from the capitol, and indicated that it is something that the Legal Division might want to take a look at. Senator McGinness agreed, and closed the hearing on A.B. 563 and opened the hearing on S.C.R. 32. SENATE CONCURRENT RESOLUTION 32: Amends Joint Rules of Senate and Assembly for 68th legislative session to require standing committees that review budgets of state agencies to require agencies to collect revenue through use of lock boxes when practicable. (BDR R-608) John E. Adkins, Deputy Treasurer of Cash Management, Office of the State Treasurer, State of Nevada, said the treasurer's office is in full support of the resolution which suggests the utilization of lock box operations by agencies where practicable. He stated that they understand that this refers only to lock box operations and it is limited somewhat to the respect of all cash management activities, but noted that they were agreeable to expanding the resolution to include all new and improving cash management activities. He indicated the use of a lock box operation is a basic element in good cash management; an easy operation to install, generally provides immediate benefits to the agency by releasing some personnel staff, and it benefits the state by having funds available. Mr. Adkins identified that presently all lock box operations are coordinated through the state treasurer's office as the lock box activity is part of the total banking relationship that the treasurer has with the state bankers. He stated they believe that S.C.R. 32 will help the treasurer's office reduce some of the subtle resistance they have been receiving with respect to some agencies in switching to a lock box operation. Senator McGinness asked if the state treasurer's office brought this bill forward? Mr. Adkins replied they did not. John Sande, Lobbyist, Nevada Bankers Association, said he did not know who brought the bill forward. He distributed some proposed revisions (Exhibit F), and clarified that they were not opposed to S.C.R. 32, but they think it might be expanded to make sure they are dealing with twenty-first century technology. Greg Titus, Vice President, First Interstate Bank of Nevada, indicated they are in support of what they see as the goal of this resolution, which is to expedite the processing of receivables by state agencies. He noted that lock boxes have been around for probably 20 years, and said there are only a couple of banks in the state of Nevada that are capable of providing lock box services as it is a fairly expensive service. Most banks are making their investments in electronically processed receivables which is much more cost effective. He discussed Exhibit F and concluded that they would all support the goal of trying to expedite the processing of receivables. Senator Coffin indicated he was confused, because he cannot figure out why they have a resolution instead of a bill. He stated it is a logical thing to require state agencies to require their customers to deposit funds in something that would immediately gain interest. But, why, he asked, are we dealing with it through this convoluted mechanism? Mr. Adkins replied that though they did not submit the bill, he thinks the reason for it being a resolution rather than a bill is that he does not think the Legislature can require all agencies to use a lock box operation because it is an optional item to be utilized in certain circumstances; whereas the law, unless it was flexible enough to allow that, would be inoperable. He said this resolution helps us, in that now when we present a lock box operation concept to an agency, the agency at this point is hesitant or has a resistance to doing that, and this will eliminate some of that resistance. Senator Coffin asked if this is because the document that accompanies the payment gets sidetracked or separated from the payment, and that causes concern to some of the agencies. He asked why an agency would not want a lock box? Mr. Adkins said probably some of the agency's resistance has been because they felt they lost control of the documentation that is attached to the check; another reason is that they felt they did not have the time to create a system to handle lock box operations; and they did not want to do it. Senator Raggio said last session the treasurer testified that some lock boxes were being used, and that it would be a prudent idea to mandate them in all of the state agencies. Senator Raggio noted that there was evidently a disinclination on the part of some agencies to do so, and stated that the executive department has the authority now to require it, but some of these departments, for whatever reasons, do not want to do it. He indicated that a statute that makes a lock box mandatory could probably create a problem for some places where maybe it is not feasible. Mr. Titus said he thinks that for some agencies, particularly those with small volumes or complicated forms that they need to go through, a lock box may not be cost effective; one needs to look at each case individually. He stated that is why they proposed to expand this bill to allow more flexibility, and to look at the electronic options and other options that may be developed in the near future. Senator McGinness closed the hearing on S.C.R. 32 and opened the hearing on S.C.R. 37, and introduced Ted Balash of Loral Aerospace Services. SENATE CONCURRENT RESOLUTION 37. Expresses appreciation to Loral Corporation for its activities in Nevada. (BDR R-2043) Ted Balash, Director, Loral Aerospace Services, said that the Loral operation has been in the state of Nevada since 1980, and they have participated in many community activities in both Las Vegas and Fallon, and they have operations all up and down Highway 95. He stated his people participate quite heavily in the operations and the activities in the city of Fallon, putting about $4 million into the economy in Fallon. He indicated that their small and small-disadvantaged business programs, both in Las Vegas and in Fallon, are recognized through our headquarters in Philadelphia as being very participatory, and the programs put roughly 53 percent of their $7 million into the small business area, primarily in Fallon and the northern Nevada area. Senator McGinnes said everybody knows about Nellis, but asked Mr. Balash to give the committee a thumbnail sketch of what Loral does at the Fallon Naval Air Station. Mr. Balash said they have approximately 165 people that work in the Fallon Naval Air Station, both at the base and out on the range, which is approximately 40 miles east of the base. He stated they operate and maintain the equipment that makes up the range in the form of the electronic warfare equipment that simulates the enemy air defense radars, as well as the tactical air crew combat training system. He concluded saying they do everything from bombing range maintenance to clean up, generator maintenance, as well as all the support activities that go into the electronic warfare and the tactical air crew combat system equipment. Senator McGinness closed the hearing on S.C.R. 37 and opened discussion on S.C.R. 20. SENATE CONCURRENT RESOLUTION 20: Amends Joint Rules of the Senate and Assembly to establish policy regarding sexual harassment and procedures for administration of related claims. (BDR R-543). Senator Titus stated she had the amendment here that she hopes will satisfy all the concerns that were expressed (Exhibit G). She indicated that she discussed the amendment with Senator James, and he approved. She went over the amendment. Senator Titus said Senator Coffin's concern that it would not affect one legislator in relation to another legislator was not addressed, because she disagreed with that. Senator Coffin asked if it was the intent of the committee for legislators to be able to accuse each other of sexual harassment? Senator Titus said that sexual harassment is not necessarily about sex, it is about power, and one can have power relationships between or among legislators also. She indicated that she thinks it is appropriate that legislators be left in, and that to exempt legislators and their relationship from this would not be a move in the right direction. Senator Raggio asked if Senator Titus discussed with the bill drafter and got satisfaction as to whether or not the language like verbal conduct, etc. did refer to only something which has a sexual connotation? Senator Titus said she thinks it is taken care of in number 2, near the top of the first page, because it says sexual harassment means unwelcome sexual advances. SENATOR TITUS MOVED TO AMEND AND DO ADOPT SENATE CONCURRENT RESOLUTION 20. SENATOR JAMES SECONDED THE MOTION. THE MOTION CARRIED. (SENATOR MATHEWS WAS ABSENT FOR THE VOTE.) ***** The meeting adjourned at 3:07 p.m. RESPECTFULLY SUBMITTED: Mavis Scarff, Committee Secretary APPROVED BY: Senator Mike McGinness, Chairman DATE: Senate Committee on Legislative Affairs and Operations May 30, 1995 Page