MINUTES of the FEBRUARY 11, 2016 MEETING of the INTERIM FINANCE COMMITTEE Las Vegas, Nevada
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MINUTES OF THE FEBRUARY 11, 2016 MEETING OF THE INTERIM FINANCE COMMITTEE Las Vegas, Nevada Chair Paul Anderson called a regular meeting of the Interim Finance Committee (IFC) to order at 9:11 A.M. on February 11, 2016, in Room 4401 of the Grant Sawyer Office Building, 555 East Washington Avenue, Las Vegas, Nevada. The meeting was videoconferenced to Room 4100 of the Nevada Legislative Building, 401 South Carson Street, Carson City, Nevada. COMMITTEE MEMBERS PRESENT: Assemblyman Paul Anderson, Chair Senator Ben Kieckhefer, Vice-Chair Senator Pete Goicoechea Senator Mark Lipparelli Senator David Parks Senator Michael Roberson Senator Aaron Ford for Senator Smith Senator Joyce Woodhouse Assemblyman Derek Armstrong Assemblywoman Teresa Benitez-Thompson Assemblywoman Irene Bustamante Adams Assemblywoman Maggie Carlton Assemblywoman Jill Dickman Assemblyman Chris Edwards Assemblyman John Hambrick Assemblyman Stephen Silberkraus Assemblyman Tyrone Thompson Assemblyman Randy Kirner Assemblyman James Oscarson Assemblyman Michael Sprinkle Assemblywoman Heidi Swank Assemblywoman Robin Titus COMMITTEE MEMBERS EXCUSED: Senator Debbie Smith LEGISLATIVE COUNSEL BUREAU STAFF PRESENT: Rick Combs, Director, Legislative Counsel Bureau Cindy Jones, Fiscal Analyst, Assembly Mark Krmpotic, Fiscal Analyst, Senate Sarah Coffman, Deputy Fiscal Analyst Alex Haartz, Deputy Fiscal Analyst Brenda Erdoes, Legislative Counsel Eileen O’Grady, Chief Deputy Legislative Counsel Cheryl Harvey, Fiscal Analysis Division Secretary Carla Ulrych, Fiscal Analysis Division Secretary EXHIBITS: Exhibit A: Agenda Exhibit B: Meeting Packet – Volume I Exhibit C: Meeting Packet – Volume II Exhibit D: Meeting Packet – Volume III Exhibit E: Nevada Dispensary Association – Public Comment Exhibit F: Legislative Counsel Bureau Legal Opinion to Senator Farley A. ROLL CALL. Rick Combs, Director, Legislative Counsel Bureau and Secretary, Interim Finance Committee, called the roll; all members were present, except Senator Smith, who was excused. B. PUBLIC COMMENT. Senator Tick Segerblom spoke in regard to Agenda Items E-35 and E-36 concerning the Medical Marijuana Program. He said the Division of Public and Behavioral Health was requesting authority to utilize funds to help expedite certain processes. He said the dispensary program was working well and medical marijuana products were being produced; however, the medical marijuana card system needed to be expedited. He said approximately 13,000 medical marijuana cards had been issued in Nevada compared to 100,000 cards in Arizona. Senator Segerblom said there were patients who had been diagnosed with diseases such as cancer who had to wait almost two months before they received their medical marijuana card. Senator Segerblom indicated that Brenda Erdoes, Legal Counsel, Legislative Counsel Bureau, recently provided her legal opinion concerning two issues that could expedite patient access to medical marijuana and related products. He encouraged the Committee to review the legal opinion and approve the division’s use of funds as requested. Senator Segerblom said the state earned revenue each time someone applied for a medical marijuana card or purchased medical marijuana. He encouraged the Committee to support Agenda Items E-35 and E-36 and to provide additional funds as needed, because the medical marijuana industry was new in Nevada and required the state’s support. Phillip Peckman, Nevada Cancer Coalition, said he owned a licensed dispensary and cultivation facility. He expressed concern regarding the length of time patients had to wait to receive their medical marijuana cards. 2 C. APPROVAL OF MINUTES OF THE OCTOBER 21, 2015, MEETING. SENATOR KIECKHEFER MOVED TO APPROVE THE MINUTES OF THE OCTOBER 21, 2015, MEETING. ASSEMBLYMAN SILBERKRAUS SECONDED THE MOTION. THE MOTION PASSED UNANIMOUSLY. (Assemblywoman Benitez-Thompson was not present for the vote.) D. WORK PROGRAM REVISIONS IN ACCORDANCE WITH NRS 353.220(5)(b). INFORMATIONAL ONLY – REQUIRED EXPEDITIOUS ACTION WITHIN 15 DAYS. Cindy Jones, Assembly Fiscal Analyst, Fiscal Analysis Division, Legislative Counsel Bureau (LCB), said Agenda Item D included two work programs submitted for expeditious action within 15 days. She said both items related to federal funds for system enhancements for the Division of Health Care Financing and Policy (DHCFP) and the Division of Welfare and Supportive Services (DWSS). The system modifications were necessary to comply with the Affordable Care Act (ACA) Security and Privacy Standards. Fiscal staff had no questions or concerns, and no action was required. 1. Department of Health and Human Services - Health Care Financing and Policy - Administration - FY 2016 - Addition of $585,000 in federal Title XIX grant funds to complete the system modifications required to comply with the recently published Affordable Care Act Security and Privacy Policy and Guidance for the Minimum Acceptable Risk Standards for Exchanges. Requires Interim Finance approval since the amount added to the Payments to State Agencies category exceeds $75,000. RELATES TO ITEM D.2. Work Program #C34578 2. Department of Health and Human Services - Welfare and Supportive Services - Administration - FY 2016 - Addition of $585,000 in federal Title XIX grant funds and transfer of $65,000 from the Personnel Services category to the Health Care Reform (HCR) Eligibility Engine category to complete the system modifications required to comply with the recently published Affordable Care Act Security and Privacy Policy and Guidance for the Minimum Acceptable Risk Standards for Exchanges. Requires Interim Finance approval since the amount added to the HCR Eligibility Engine category exceeds $75,000. RELATES TO ITEM D.1. Work Program #C34553 3 E. APPROVAL OF GIFTS, GRANTS, WORK PROGRAM REVISIONS AND POSITION CHANGES IN ACCORDANCE WITH CHAPTER 353 OF NRS. The Committee expressed interest in hearing testimony on the following items: Agenda Items E-4, Office of the Attorney General; E-12, Department of Education; E-13, Department of Education; E-27, Department of Health and Human Services (DHHS), DHCFP; E-35, DHHS, Division of Public and Behavioral Health (DPBH); E-36, DHHS, DPBH; E-49, DHHS, Division of Child and Family Services (DCFS); E-67, Department of Agriculture; E-68, Department of Agriculture; and Position Reclassifications, Department of Employment, Training and Rehabilitation, Employment Security Division. Ms. Jones noted that Agenda Item E-54, Department of Public Safety, was withdrawn on February 11, 2016. Assemblyman Edwards requested further testimony on Agenda Item E-63, Nevada Department of Wildlife (NDOW). Assemblywoman Titus requested further testimony on Agenda Item E-20, DHHS, Director’s Office. Assemblywoman Bustamante Adams requested further testimony on Agenda Item E-1, Office of the Attorney General. Assemblyman Thompson requested further testimony on Agenda Item E-5, Office of the State Treasurer. Sarah Coffman, Principal Deputy Fiscal Analyst, Fiscal Analysis Division, LCB, stated that Agenda Items E-41, DHHS, DPBH, and E-45, DHHS, DWSS, involved allocation of block grant funds and required a public hearing. Ms. Jones stated there were adjustments to Agenda Item E-25, DHHS, DHCFP. She said the adjustments reflected calculation errors and modifications to the anticipated caseload and costs associated with provider rate changes. Ms. Jones said category 12 was reduced from $596,834 to $575,135 and category 86 was reduced from $553,826 to $432,127. Ms. Jones stated there were adjustments to Agenda Item E-28, DHHS, DHCFP. She said Title XXI Federal Receipts was reduced from $12,435,479 to $10,607,593. Additionally, Reimbursement of Federal Expenses was increased from $832,828 to $958,484 and Transfer from IGT Account was reduced from $596,834 to $575,135. With regard to categorical expenditures, Ms. Jones said category 12, Program Medical Expenditures was reduced from $13,260,720 to $11,492,791. Ms. Jones said Fiscal staff, the Governor’s Finance Office Budget Division and the agency were in agreement with the technical adjustments to Work Programs C34633 and C34532. 4 ASSEMBLYWOMAN DICKMAN MOVED TO APPROVE THE REMAINING WORK PROGRAM REVISIONS, INCLUDING THE NOTED ADJUSTMENTS TO AGENDA ITEMS E-25 AND E-28, AND POSITION RECLASSIFICATIONS IN AGENDA ITEM E. SENATOR FORD SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. 1. Office of the Attorney General - Violence Against Women Grants - FY 2016 - Addition of $1,025,811 in federal Violence Against Women Act (VAWA) - Services Training Officers Prosecution (STOP) grant funds to provide a victim-centered response to crimes against women of intimate partner violence, sexual violence, dating violence, stalking, and sex trafficking throughout Nevada. Requires Interim Finance approval since the amount added to the STOP grant category exceeds $75,000. Work Program #C34275 Elizabeth Greb, Management Analyst and Grants Unit Supervisor, Office of the Attorney General (OAG), said Agenda Item E-1 requested approval to accept the federal Services Training Officers Prosecution (STOP) grant. She said the STOP grant was a formula grant received by the OAG each year from the U.S. Department of Justice, Office on Violence Against Women (OVAW). Ms. Greb said the grant funds would be placed in budget account 1040, category 18, STOP Grant Administrative Costs, and then subgranted to government and nonprofit agencies statewide for projects that met the purposes of the STOP grant. Assemblywoman Bustamante Adams said she appreciated the OAG’s efforts