Subcommittee approves staff-recommended budget actions for Business and Industry; rejects proposed general counsel post

A Legislative Money Committees subcommittee on Business and Industry approved a package of closing recommendations on budget accounts for the Department of Business and Industry and related agencies on motions made and seconded by members during a public meeting.

The subcommittee approved funding for new business-process and compliance positions in the Division of Insurance but voted not to approve the governor’s requested unclassified general counsel position. It also recommended statutory action and a letter of intent related to the captive insurers account’s solvency, approved a reduced staffing plan for the newly created Office of Nevada Boards, Commissions, and Council Standards contingent on enabling legislation, and approved several solvency and technical adjustments for the Taxicab Authority and Nevada Transportation Authority.

Why it matters: the decisions allocate staff and operating resources that the agencies said are needed to respond to rising workloads (consumer complaints in insurance, oversight of licensing boards, public-works investigations and apprenticeship growth) and address structural solvency risks in self-funded accounts. Some approvals were explicitly made contingent on passage of enabling legislation (Senate Bill 78) to allow fee collection and cost-allocation reimbursement.

Most important outcomes

- Division of Insurance: the subcommittee approved reserve reductions to fund three new positions (business process analyst, management analyst, legal-research support) and a separate compliance investigator position to handle rising consumer complaints. The panel declined the request to add an unclassified general counsel position.

- Captive Insurers: the subcommittee recommended pursuing a merger of the Captive Insurers budget account with the Insurance Regulation account because of projected insolvency and asked the money committees to request a bill draft to amend chapter 694C of NRS; it also asked the agency to provide semiannual solvency updates.

- Office of Boards, Commissions and Council Standards: the panel approved transferring an existing deputy director position into the new office, approved a funding-source change (to cost allocation reimbursements) contingent on passage of SB 78 or similar enabling legislation, approved a management analyst position, and approved a reduced package of new positions and operating funds (less than the governor’s original 14-position request), with semiannual reporting required.

- Taxicab Authority: facing declining trip-charge revenue, the subcommittee approved the governor’s expenditure reductions and position eliminations proposed to preserve reserves, accepted revised trip projections supplied by the agency, and requested the agency to submit a long-term solvency plan and semiannual updates; the panel discussed, but did not enact, a statutory fee increase (would require amending NRS 706.8825).

- Nevada Transportation Authority (NTA): the subcommittee approved highway-fund appropriations to consolidate the NTA’s driver-permit system with the Taxi Cab Authority’s Exela system and to fund contracted migration work (vendor: TruePoint Solutions).

- Labor Commissioner: the subcommittee approved four positions to establish a Public Works compliance team (chief compliance audit investigator, auditor, compliance audit investigator, administrative assistant) and approved an additional administrative assistant to support the State Apprenticeship Program, with a letter of intent directing annual performance updates on 90-day resolution measures for public-works claims.

Votes at a glance

- Insurance regulation decision units (business process analyst, management analyst, legal researcher): Approved (motioned/seconded; no recorded opposition). Outcome: fund reserve reductions to add three positions and associated operating costs.

- Insurance regulation decision unit (compliance investigator): Approved (motioned/seconded; no recorded opposition). Outcome: fund one compliance investigator to reduce average complaint closure time.

- Insurance regulation decision unit (general counsel, unclassified): Not approved (motioned/seconded; no recorded opposition to the motion to deny). Outcome: governor-requested general counsel position denied.

- Captive Insurers: Approved recommendation to merge the Captive Insurers budget account with Insurance Regulation and request a bill draft to amend chapter 694C of NRS; subcommittee also requested semiannual solvency updates from the agency.

- Boards, Commissions, and Council Standards office: • Transfer deputy director position into new office: Approved. • Change funding source for deputy director to cost allocation reimbursements (contingent on SB 78 or similar enabling legislation): Approved. • Management analyst position: Approved (contingent on enabling legislation when noted). • Reduced position package (agency revised request; fewer than the governor’s 14 positions): Approved; governor’s larger request and the 55-position SB 78 implementation packet were not approved. • Director’s Office cost allocation methodology: Approved a hybrid methodology and related technical adjustments.

- Taxicab Authority: Approved recommended eliminations of vacant compliance positions and additional expenditure reductions and technical adjustments to preserve solvency; approved issuing a letter of intent requesting a long-term plan and semiannual solvency updates. The subcommittee discussed industry support for a fee increase but did not enact statutory fee changes in this meeting.

- Nevada Transportation Authority: Approved highway-fund appropriations to continue modernization and consolidate the NTA driver-permit database onto the Taxi Cab Authority’s Exela system (vendor TruePoint Solutions); motion carried unanimously.

- Labor Commissioner: Approved funding to create a four-member Public Works compliance team and an administrative assistant for the State Apprenticeship Program; the subcommittee added a letter of intent requiring annual workload/performance reporting.

Discussion highlights and agency assertions

- Division of Insurance said consumer complaints rose from 2,471 in calendar year 2021 to 4,346 in calendar year 2024 and that it currently takes about 42 days on average to close a complaint before transfer. The approved compliance investigator position is intended to reduce that workload and shorten case time.

- Captive Insurers: fiscal staff presented projections showing an ending operating reserve of about $39,763 by fiscal year 2027 (roughly 18 days of operating expenses) under the governor’s recommendation; fiscal staff said that level is below standard targets (30–60 days) and likely to cause insolvency without revenue/expense adjustments.

- Boards and Commissions office: the subcommittee’s approvals were repeatedly made contingent on passing enabling legislation (Senate Bill 78 or similar) because the office currently lacks statutory authority to collect fees from boards and commissions; several funding recommendations were changed from charges-for-service to cost-allocation reimbursements in the proposed budget amendments.

- Taxicab Authority: agency trip projections were revised downward (agency provided 13.6 million trips for FY2026 and 13.7 million for FY2027 vs. prior governor estimates of 14.6M and 15.3M). The authority’s recommended transfer for the Taxi Assistance Program (currently budgeted at about $343,590 yearly) may need to be reduced to preserve minimum operating reserves.

Attributions and process notes

Most substantive presentation and technical explanations were given by Madison Ryan, LCB fiscal, who read the closing packets and recommended motions for the record. Committee motions and seconds were routinely recorded as originating from Assemblywoman Anderson (mover) and Assemblywoman Bacchus/Backus (second), and the chair called for votes; nearly all motions passed with no recorded opposition. Several approvals were explicitly contingent on legislation (not yet enacted) to change fee or collection authority; the subcommittee directed agencies to provide semiannual or annual updates as noted.

What’s next

The subcommittee’s recommendations will be forwarded to the full money committees and may require bill drafts and budget-implementation language to effectuate funding-source changes or fee-authority changes (for example, a proposed fee change for the Taxicab Authority would require amendment of NRS 706.8825). Agencies were asked to provide semiannual or annual status reports where the subcommittee requested further oversight.

Ending

The meeting closed with no public comment and adjournment after the subcommittee completed its closing recommendations and votes.