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From YouTube: 2/25/2021 - Assembly Ways and Means and Senate Finance, Subcommittees on General Government
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A
I'd
like
to
welcome
everybody
to
the
assembly
committee
on
ways
and
means
and
senate
committee
of
finance
subcommittee
on
general
government.
Let's
call
this
meeting
to
order
and
can
the
secretary
please
take
the.
A
C
D
A
E
A
Just
want
to
go
over
a
couple
of
housekeeping
things.
We've
been
doing
this
for
a
minute,
but
I
wanted
to
make
sure
everyone
had
access.
We
today
do
not
have
access
to
the
zoom
chat.
So
please,
if
you
have
questions
direct
them
via
skype
or
raise
your
hand
in
in
the
meeting,
and
I
will
try
and
acknowledge
you.
If
I
miss
you,
please
don't
hesitate
to
shout
out
and
say:
hey.
A
A
If
you
would
like
to
make
public
comment,
you
may
access
that
via
the
nellis
program
and
sign
up
on
today's
meeting
page,
and
I
just
want
to
remind
presenters
that,
as
you
are
speaking,
would
you
please
remember
to
say
your
name
clearly
for
the
secretary
and
the
record
see
I
think
I
covered
everything.
A
So
on
today's
agenda,
the
subcommittee
is
going
to
hear
the
department
of
business
and
industries
first
budget.
We
are
hearing
from
the
director's
office
of
administration
and
then
oh
and
budgets,
from
insurance,
industrial
relationships
and
or
relations
and
the
real
estate
division
and
I'm
going
to
go
ahead.
Unless
I
missed
anything,
go
ahead
and
ask
director
reynolds
to
go
ahead
and
begin.
The
presentation.
E
F
Peters,
this
is
terry
reynolds,
I'm
the
director
for
the
department
of
business
and
industry,
as
the
chair
indicated,
we're
going
to
go
through
four
of
our
divisions,
actually,
the
director's
office,
the
administrative
account
division
of
insurance,
division
of
industrial
relations
and
two
budget
accounts
for
real
estate,
the
real
estate
and
then
education
and
research
lisa.
If
you
can
get
the
we
get,
the
slides
up.
C
A
B
C
B
Able
to
see
it
now,
we
are
not
currently,
okay,
let's
walk
through
it
together,
hit
the
share
screen
button
in
zoom,
and
do
you
see
your
presentation?
There
should
be
an
option
for
various
files
that
you
can
share.
I
am
seeing
director
reynolds,
which
is
very
before
when
I
clicked
on
it.
It
brought
me
up
to
my
presentation.
B
F
Thank
you.
This
is
terry
reynolds
again,
director
for
the
department
of
business
and
industry
just
wanted
to
kind
of
go
through
and
I'll
go
through
this
rather
quickly.
As
you
know,
the
department
of
business
industry
has
four
major
areas:
commerce
and
capital
regulation.
Today,
we'll
be
looking
at
insurance
and
real
estate
under
that
function.
We
also
have
community
development
and
small
business.
F
We
will
actually
not
be
getting
into
too
much
of
that.
We'll
talk
about
the
our
director's
office,
which
also
houses
the
office
of
business,
finance
and
planning
under
labor
and
workforce
protection,
we'll
be
going
and
looking
at
the
budget
for
industrial
relations.
F
In
addition
to
that
under
advocacy
and
advancement
the
director's
office,
I'm
going
to
highlight
and
talk
about
our
consumer
affairs
of
units
under
that.
So
with
that,
we
go
to
the
next
slide.
F
First
of
all,
I
wanted
to
kind
of
lay
some
groundwork
for
our
discussion
today,
the
department
of
business
and
industry
for
our
general
fund.
Only
4.5
percent
of
our
entire
budget
are
funded
by
the
general
fund
and
that
follows
a
portion
of
the
director's
office.
It
funds
a
portion
of
the
real
estate
division
actually
about
50
of
the
real
estate
division,
because
half
of
that
is
funded
fee-funded,
which
deals
with
common
interest
communities.
F
B
F
That
amounted
to
cuts
of
1
million
30
415.
That
was
a
difficult
task
for
us.
I'd
like
to
tell
you
that
we
had
to
make
some
very
tough
decisions.
F
Some
of
that
will
be
in
the
budget.
Recommendations
will
be
coming
back,
but
commission
on
minority
fairs.
We
had
at
the
operating
on
that
by
11
856
dollars,
the
office
of
business
finance
and
planning
89
800.
A
lot
of
that
was
using
our
bond
funds
to
assist
from
paying
for
those
functions
that
were
done
by
our
management
analyst
program
officer
under
the
office
of
labor.
Commissioner,
we
cut
out
263
728
dollars
under
the
real
estate
division,
probably
the
largest
cuts
we
had
for
403
481.
F
Next
slide,
I'm
going
to
go
through
consumer
affairs
unit,
it
is
a
small
unit
to
begin
with.
We
have
basically
we
had
6.5
positions
within
that
they
actually
spent
a
lot
of
time
on
three
areas.
One
is
basically
keeping
working
with
the
fight
fraud
task
force,
especially
in
southern
nevada.
F
They
investigate
cases
and
they
try
to
educate
consumers.
We
do
work
in
close
contact
with
the
attorney
general's
office
and
we
work
with
them
to
prosecute
cases
for
deceptive
trade
practices.
F
Most
of
our
cases
involve
seniors
and
or
what
I
would
say
are
underrepresented
public
that
don't
have
attorneys
that
are
get
caught
up
in
in
scams
or
fraud
and
we
helped
them
recover
their
monies
back.
They
spent
for
products
that
really
are
not
what
they
were
represented
to
be
so
occasionally
we
get
into
large
circumstances
of
fraud
that
are
happening
nationwide
and
that's
not
not
uncommon.
F
Today,
under
that
you
can
see
under
advocacy
and
protection
of
how
the
calls
come
in
or
how
the
inquiries
come
in
and
we've
broken
that
down
for
you.
This
was
requested.
I
think
we
discussed
this
the
last
when
we
did
the
initial
presentation
of
the
budget,
but
most
of
our
inquiries
come
in
via
phone
and
email.
F
F
F
What
we're
looking
at
is
under
consumer
fraud.
The
consumer
affairs
unit
is
to
remove
the
expiration
date,
and
this
unit
has
sunset
at
every
every
biennium
and
so
we'd
like
to
see
that
not
happening
teamwork
not
have
to
every
every
biennium
go
in
and
argue
to
to
do
that,
I
think
they're
a
very
effective
unit.
F
They
have
about
a
92
to
93
clearance
rate
of
all
the
cases
that
come
in
to
it.
So
this
also
reinstates
the
expiring
operational
budgets.
It
reduces
the
alj.
The
attorney
law
judge
that
we
have
from
full-time
to
50
percent
and
we
looked
at
the
caseload
that
we
have
with
that
administrative
law
judge,
and
we
feel
that
a
50
halftime
position
would
be
very
able
to
handle
the
caseload
that
we
have.
F
This
also
eliminates
one
full
time
and
on
part-time
administrative
assistant
we
were
able
to
with
the
director's
office
in
southern
nevada.
We
were
able
to
move
the
full-time
position
within
the
office
there
to
help
us
with
payroll
and
the
halftime
assistant
actually
was
a
new
mother
and
decided
to
stay
home.
So
we're
not
replacing
that
position.
F
It
continues
the
video
and
conferencing
subscription
that
we
use
for
our
virtual
meetings.
It
reinstates
the
commission
on
my
minority
affairs
travel
budget.
It
replaces
equipment,
computers,
server
and
conferencing
equipment
that
we
have
under
our
normal
schedule.
It.
F
F
We
only
have
one
it
professional
right
now
at
the
state
business
center
to
serve
nine
different
agencies,
and
so
this
will
be
really
helpful
to
all
of
our
agencies
there.
That
will
be
cost
allocated
to
our
different
agencies
to
be
able
to
serve
them
in
the
state
business
center.
F
So
that
that
really
ends
the
the
overall
presentation
for
the
director's
office,
administrating
budget
4681
so
happy
to
take
any
questions
on
that.
A
G
Today
I.
B
F
Thank
you
for
that
question.
Someone
gorlo
it
is,
we
average
go
back
and
forth.
We
average
about
2200
to
2300
cases
a
year.
F
A
lot
of
those
depend
on
what's
what's
happening
in
the
economy
or
problems
in
the
economy.
You
know
we
used
to
get
huge
amounts
of
of
telemarketing,
but
now
we're
seeing
like
moving
and
storage.
We
we
always
see
a
lot
of
cases
with
communications
companies
with
selling
for
everything
from
iphones
to
or
different
types
of
phones
to
different
types
of
plans
for
consumers
to
pick
up
for
communications,
auto
body
and
repair
is,
is
a
big
issue.
F
Home
repairs
and
a
lot
of
people
were
home
during
coven.
So
they're
doing
you
know
home
repairs
and
I
think
that
attributed
to
to
an
increase
on
that
internet,
a
lot
of
scams
and
issues
over
the
internet,
so
it's
they're
always
varied
and
it's
there's
no
real.
How
do
I
say
this?
There's
no
real
trend
in
one
area,
but
we
are
seeing
the
fact
that
with
covid
there
was
a
lot
of
people
home.
They
were
doing
home
projects,
they
spent
more
time.
F
You
know
on
the
internet
ordering
products
or
ordering
everything
from
food
to
to
you
know
daily
necessities
over
the
internet,
so
we
saw
a
little
bit
a
rise
in
that,
but
generally,
these
types
of
things
are
fairly
stable
and
they're
fairly
predictable
in
terms
of
the
areas.
B
Like
follow-up
chair
ahead,
thank
you.
Do
you
anticipate
that
these
trends
will
continue
in
the
next
biennium
and,
if
so,
and.
F
Yes,
I
do
yes,
I
do
think
that
the
trend
will
continue.
We
have
handled
anywhere
from
2500
cases
to
you,
know
high
of
3
000
cases
we're
down.
You
know
we're
right
in
the
average
and
I
and
I
still
think
those
will
continue.
How
is
it
going
to
be
handled
if
we
get
into
this
unit
if
it
goes
away?
F
First
of
all,
I
would
say
that
the
attorney
general's
office
really
only
handles
more
criminal
cases
or
large
civil
cases
and,
as
I
said,
these
are
cases
that
involve
people
that
are
really.
This
is
their
kind
of
last
resort
to
come
to
us
and
get
those
cases
handled
we're
seniors.
F
We
try
to
educate
people
not
to
get
into
these
types
of
situations,
but
but
they
happen.
The
scams
and
fraud
happens
from
time
to
time,
especially
in
poor
economic
times.
We
see
more
cases
happen.
So
I
think
this
unit
is
extremely
important.
They
have
a
high
degree
of
effectiveness,
90
plus
percent
of
the
cases
they
take
on,
and
I
think
the
individuals
would
really
have
nowhere
else
to
go.
F
I
think
the
ag's
office
would
handle
it,
but
before
they
looked
at
the
cost-benefit
ratio
of
trying
to
be
able
to
to
handle
the
smaller
types
of
cases-
and
frankly,
it's
really
tough
on
them
to
keep
that
up
and
then
handle
the
large
cases
that
they
they
do
more
criminal
and
large
civil
cases
that
they're
involved
in.
So
I
think
this
is
kind
of
a
a
last
resort
for
a
lot
of
people
to
be
able
to
be
able
to
recover
monies
that
were
taken
from
them
by
deceptive
trade
practices.
A
Thank
you
and
I
think
I
have
a
follow-up
question
from
senator
dennis.
D
Yeah,
thank
you.
I
you
know
that
last
question
I
got
to
thinking.
You
know
it
used
to
be
that
we
had
this
huge
consumer
affairs
unit
that
had
a
lot
of
people
and
were
handing
a
lot
of
cases
and
then
and
then
we
as
a
state,
we
just
decided
to
just
get
rid
of
it
for
budget
and
other
reasons.
D
So
if
we
really
want
to
know
what
happens,
if
we
don't
fund
this,
we
can
look
at
those
years
where
we
didn't
have
really
consumer
affairs,
and
it
was
the
attorney
general's
office
that
they'd
rely
on
and
they
only
worked
on
the
big
cases.
So
all
of
our
constituents
that
had
these
little
cases
you
know
they
didn't
it
was
harder
to
help
them,
and
so
I,
my
question
had
to
do
with.
How
long
is
it
taking
to
resolve
these?
D
F
Senator
dennis
terry
reynolds
for
the
record.
Thank
you
for
that
question.
That's
a
that's!
A
a
very
good
good
question.
We
average
probably
2500
to
3
000
cases
a
year
or
right
in
that
that
track
record
right
now
we
resolve
about
92
to
93
of
all
of
our
cases
and
we
actually
annually
return
about
250
000
to
300
000
a
year
back
to
consumers
that
have
been
defrauded
it's
taking
longer
because
of
more
cases
we
have
and
less
people
in
the
office.
F
So
we're
looking
at
probably
a
two
to
three
week
previously
to
three
week
resolution
and
now
we're
probably
looking
at
four
to
six
weeks
to
be
able
to
get
that
done
and
that's
the
downside
of
having
less
people
and
in
higher
case
loads
in
the
unit,
but
we're
still
still
resolving
them,
still
being
effective
and
still
getting
the
same
resolution
rate
as
we
had
before.
Just
taking
a
long
time.
D
A
Thank
you
and
I
have
a
little
bit
of
a
follow-up
to
that
related
to
the
proposal
for
maintaining
the
two
vacant
administrative
assistant
positions.
Can
you
talk
about
how
maintaining
those
positions
would
potentially
affect
the
resolution
of
customer
complaints,
timeline.
F
Thank
you,
terry
reynolds,
director
for
bni.
F
So
when
cases
come
in,
they
generally
come
in,
as
you
saw
by
phone
or
email,
and
so
the
administrative
assistants
really
help
prep
and
work
on
the
cases
so
that
our
investigators
can
can
work
on
those
cases.
F
So
the
workload
is
going
to
go
up.
It's
going
to
take
a
little
longer
we're
getting
staff.
Some
of
the
investigators
are
going
to
be
taking
the
calls
and
then
helping
prep.
On
that
statistical
analysis
too,
we
put
everything
into,
we
call
eyesight
or
our
software
system,
so
we
can
track
those
those
cases
it's
very
important
for
us.
So
we
can
generate
statistics,
so
we
can
know
where.
If
there
are
trends
and
what
areas
we
need
to
concentrate
on,
so
that's
the
downside
of
having
not
having
the
administrative
assistants.
F
Frankly,
you
know
if
we
were
able
to
reinstate
some
positions,
that
would
be
the
full-time
administrative
assistant
positions
within
in
the
southern
nevada
office,
because
that
person
is
really
invaluable.
The
person
that
was
had
that
position
is
still
there
and
can
provide
that
knowledge
still
working
in
the
office,
but
in
a
different
section
in
the
office.
So.
F
B
Thank
you,
chair,
peters,
director.
My
questions
are:
are
regarding
the
reducing
of
the
administrative
law,
judge
position
down
to
a
half
time
or
part-time
status,
and
obviously
the
concerns
that
it
may
have
on
the
impact
of
the
consumer
complaint.
So
my
first
question
is
on
average,
how
many
investigations
actually
lead
to
administrative
hearings
or
alternative
dispute
resolution
proceedings.
F
Okay,
terry
reynolds
for
the
record.
Thank
you
for
the
question.
We
only
see
probably
well
in
the
context
for
consumer
affairs.
We
only
see
probably
four
to
five
high
of
six
or
seven
cases
a
year,
most
of
the
cases,
the
investigations
we
do
and
resolve
we
are
resolved
within
with
our
staff
and
within
our
staff,
working
to
basically
mediate
those
issues
with
the
wrong
party
and
and
the
business
or
the
person
involved
in
that
very
few
of
these
actually
go
to
caseload.
F
In
addition
to
that,
what
you're
not
seeing
here
is
that
we
have
cases
that
will
be
involved
with
mortgage
lending
or
financial
institutions
or
real
estate,
where
the
alj
will
step
in
those
cases
we'll
probably
have
to
have.
F
We
have
attorneys
from
our
insurance
division
or
they're
trained
in
administrative
process
or
attorneys
from
our
labor
commissioner
office
to
be
able
to
handle
those.
So
we
are
able
to
shift
some
of
that
workload.
So
a
50
person
and
we've
had
a
lot
of
interest
in
that,
because
there's
a
lot
of
attorneys
that
want
to
basically
work
part-time
on
that
senior
attorneys
that
are
actually
very
experienced.
So
I
think
they
will
be
able
to
handle
the
work
vote.
F
F
Keep
in
mind
that
we
had
to
make
a
23
reduction
in
our
general
fund,
which
is
very
very
difficult,
and
but
we
looked
at
what
our
workloads
were,
how
effective
we
could
be
with
a
part-time
person,
and
we
think
we
can
handle
the
workflow
with
that.
B
Okay,
so
it
sounds
like
that,
you
don't
anticipate,
it
would
have
a
huge
impact
because
of
the
small
volume
right
now.
It
also
sounds
like
you're
saying
that
right
now,
because
I
understand
that
the
positions
actually
vacant
that
you
have
other
attorneys
from
other
agencies
pitching
in
and
helping
with
that
workload,
is
that
correct.
F
B
One
final
question,
because
I
know
that
we
are
right
right
now:
everyone
there's
a
lot
of
reduction
happening
and
we
see
the
trends
are
decreasing
in
so
many
areas,
but
also
the
trends
are
decreasing
because
of
covid
and
because
of
you
know,
we're
not
fully
up
and
running
yet
as
as
a
state
so
to
speak.
So
are
there
any
concerns
that
the
trend
could
change
eventually,
as
the
state
and
the
economy
fully
opens
and
comes
back
that
maybe
they
would
increase?
F
Terry
reynolds
for
the
record.
Thank
you
for
that
question
because
that's
that's
a
that's
something
that
we're
looking
at
very
strongly.
For
example,
time
shares
we
know
and
we'll
get
into
that
again.
E
F
Discussion
but
timeshare
industry
we
feel,
will
be
picking
back
up
within
the
within
the
fall
because
of
the
covid
issues
going
down
and
more
people
having
more
confidence
to
come
and.
F
And
so
we're
looking
at
that
with
that,
though,
comes
areas
of
consumer
fraud
and
scams
and
as
the
economy
gets
better.
So
we're
concerned
that,
probably
by
late
next
fiscal
year,
we're
going
to
have
to
be
looking
at
some
some
adjustments.
So
we
are
looking
at
where
we're
at.
In
those
trends,
we
work
with
goed
in
terms
of
looking
at
their
financial
numbers
companies
coming
in
where
the
economy
is
headed
and
trying
to
look
at
where
we'll
be
within
the
next
year.
A
Thank
you.
Are
there
any
other
questions,
I'm
looking
at
gallery
to
see
if
there
are
hands?
Okay
looks
like
we're
good.
If
you
want
to
move
on
to
the
next
budget,
please.
F
Great
the
next
next
one
we
have
is
division
of
insurance,
and
I'm
going
to
let
commissioner
richardson
take
that
over.
Thank
you.
C
C
3813
is
primarily
funded
by
assessments
against
entities
and
individuals
that
are
regulated
by
the
division.
Some
of
these
assessments
are
based
on
specific
amounts
that
are
set
forth
in
nrs
nrs680c
and
the
remainder
are
funded
through
tiered
assessments
that
are
paid
by
authorized
insurance
companies,
and
this
is
all
based
on
the
premium
written
on
by
those
companies
in
nevada.
I'm
not
focusing
on
the
initial
slide.
C
Just
so
you
know,
so
you
can
move
to
the
next
slide
only
because
I
was
just
trying
to
make
sure
that
you
had
a
base
understanding
of
what
the
insurance
division
does
in
that
base
slide.
C
So
back
to
the
budget
itself,
I
just
wanted
to
to
chat
about
the
assessment
amounts,
so
you'll
notice,
the
assessment
amounts
for
2019,
and
our
budget
was
three
million
four
hundred
thirty
two
million
or
a
thousand
or
three
million
yeah
forty
000.,
and
we
had
no
change
in
our
tiering
structure.
However,
the
2020
tiered
assessment
ended
up
totaling
392
400.,
so
this
type
of
change
happens
either
because
new
companies
come
into
the
market
or
the
tiered
allocation
for
company
may
change
as
its
premiums
rise
or
fall.
C
The
most
significant
change
in
our
budget
from
the
last
biennium
in
the
to
this
upcoming
biennium
is
that
in
the
2019
session
in
sb
86,
the
industry
actually
requested
an
increase
in
the
fraud
assessment
to
double
the
amount.
So
the
fraud
program
is
funded
by
assessments
against
insurance
carriers
based
on
the
premium
written
in
the
state
by
each
insurer.
So
the
doi
collects
the
funds
and
the
assessment
revenue
is
shared
with
the
attorney
general's
office.
The
ag's
office
receives
85
percent
of
funding
and
the
division
retains
15.
C
So
in
2020
we
we
collected
approximately
or
we're
going
to
be
collecting
yeah
or
we
did
collect,
I
should
say
2.4
million
versus
2019,
which
is
1.2
for
this
particular
fraud
assessment,
so
you'll
notice
in
our
budget
we're
really
only
asking
for
one
enhancement,
so
the
proposed
budget
includes
the
one
enhancement
request
for
asking
to
replace
a
server
for
each
of
the
biennium
years.
C
For
approximately
seven
thousand
dollars
each
but
of
note
you'll
see
that
our
enhancement
for
computer
equipment
requests
didn't
propose
to
replace
the
computers
in
fy,
22
and
23..
C
We
see
increased,
improved
use
of
electronic
processes
and
we've
encouraged
the
staff
to
also
embrace
and
make
moves
to
increase
the
use
of
their
interactions
with
consumers
and
increase
their
interactions
with
insurance
carriers
using
virtual
meetings
increased
database,
and
this
has
made
a
significant
reduced
reliance
on
paper.
There's
no
printing
allowed.
We've
we've
really
pushed
off
all
of
those
things
and
what
the
plan
is
to
try
to
continue
this
when
staff
return
to
the
office
so
internally.
C
The
staff
that
are
here
are
helping
us
clean
up
old
files
to
make
sure
that
when
folks
come
back
in
the
door,
the
there
is
no
change
in
their
environment.
From
working
at
home
to
working
here
in
the
office
and
all
that
being
said,
you're
going
to
see
that
the
division's
budget
reflects
a
biennium
increase
in
operations
of
3
million
945
224
over
the
fy
2021..
C
So
this
increases
mainly
due
that
fraud
assessment
that
I've
already
noted
earlier.
It
also
brought
in
86,
also
sb
86,
also
brought
in
two
new
fraud
positions
that
were
include
that
were
not
included
in
the
2021
base
budget,
and
I
can
answer
any
questions.
The
other
thing
I
just
wanted
you
to
know
of
note
is
that
we
have
three
bdrs
this
year,
so
the
first
one
is
ab4.
C
The
insurance
guarantee
association
for
this
is
for
the
pnc
market,
and
then
we
have
sv18,
which
is
a
consumer
protection
bill,
especially
for
auto
consumers,
and
then
our
omnibus
bill,
which
is
ab45,
and
I
stand
for
any
questions.
A
Thank
you.
Are
there
any
questions
on
this
particular
budget
item.
A
Well,
I
just
want
to
say
I'm
looking
forward
to
your
your
bills
very
interesting
and
thank
you
so
much
for
your
presentation.
Thank
you,
madam
chair.
All
right.
I
think
we
can
move
into
the
next
budget
unless
I
miss
anybody's
questions.
F
C
Good
morning,
madam
chair
members
of
the
committee
victoria
garrion
for
the
record,
I'm
the
administrator
at
the
division
of
industrial
relations.
The
budget
before
you
today
is
our
4680
budget,
which
is
for
our
administration
and
our
workers,
compensation
section
just
to
give
you
an
overall
view
of
what
the
division
does.
C
So
that
administration
includes
our
administrative
staff
as
well
as
our
legal
office
and
our
information
technology
staff
and
then
the
workers.
Compensation
section
is
where
the
bulk
of
the
fte
is
for
this
budget,
and
that
section
regulates
nevada's
workers,
compensation
programs
to
ensure
that
injured
workers
receive
timely
and
accurate
delivery
of
benefits.
So
we
can
go
on
to
the
next
slide,
so
our
budget
is
essentially
flat.
We
are
funded
by
the
workers,
compensation
and
safety
fund,
which
is
primarily
funded
by
an
assessment
on
workers
compensation,
insurers.
C
The
only
increase
in
our
budget
is
due
to
cost
of
living
and
salary
adjustments.
We
have
73
positions.
The
major
changes
in
our
budget
include
a
change
due
to
senate
bill,
55
related
to
employee
leasing.
Companies.
This
bill
will
transfer
employee
leasing,
companies
from
division
of
industrial
relations
to
the
division
of
insurance.
It
has
been
heard
in
the
senate,
commerce
and
labor
committee,
which
amended
the
bill
to
actually
place
the
responsibility
in
the
labor
commissioner,
so
that
will
be
pending
on
the
senate
floor
that
amendment
so
e-225.
C
What
you
see
is
eliminate
oversight
fee
recognized
in
division
of
insurance.
That
is
actually
the
transfer
of
the
revenue
from
the
employee
leasing
companies
to
the
division
of
insurance.
Should
it
actually
go
to
the
labor
commissioner,
an
appropriate
change
would
be
made,
but
the
revenue
would
no
longer
be
in
the
division
of
industrial
relations
and
to
give
you
a
sense
of
the
amount
it's
about
114
000
and
our
remaining
changes
in
our
budget
deal
with
replacement
of
computers
and
servers
based
on
the
regular
replacement
schedules
and
I'm
available
for
any
questions.
Thank
you.
B
Thank
you
chair
good
morning
I
mine's
around
e225
and
and
and
I
want
to
know
the
primary
reason
for
the
the
oversight
of
employee
leasing
companies
to
be
delivered
to
another
agency
within
the
within
the
department.
C
Thank
you
for
the
question.
This
is
victoria
caldwell,
the
administrator
division
of
industrial
relations.
The
primary
reason
for
that
was
that
the
review
of
those
applications
involves
review
of
some
financial
statements
and
we
felt
that
another
division
within
the
department
of
business
and
industry
could
more
adequately
do
that
function,
whereas
our
staff
has
expertise
in
enforcement
of
the
workers,
compensation
laws.
F
This
is
terry
reynolds
director,
and
I
wanted
to
add
to
that
senator
brooks.
Thank
you
for
that
question.
I
think
it's
important
to
note
that
we
had
a
discussion
between
the
office
of
labor,
commissioner,
the
insurance
commissioner
and
the
administrator
for
dir
and
looking
at
the
most
efficient
way
to
be
able
to
handle
that
and
the
agency
with
the
most
experience
in
dealing
with
that
issue
of
employee
leasing.
F
F
They
do
that
on
public
works
projects
and
and
different
projects
to
make
sure
that
they
audit
labor
firms
to
make
sure
that
they're
paying
their
the
wages.
The
correct
wages
on
that.
In
addition
to
that,
we
felt
that
and
there's
no
offense
to
the
dir,
but
there
wasn't
really
a
lot
of
work
that
was
done,
cases
that
they
felt
where
there
was
an
issue
were
referred
to
the
general
attorney
general's
office.
F
They
really
weren't
doing
a
lot
of
follow-up
on
on
those,
and
so
we
didn't
see
a
lot
of
case
investigation
work
where
I
think,
if
you
take
it
over
to
the
office
of
labor,
commissioner
you'll
see
more
investigative
work
and
more
control
regulation
of
that
area.
So
I
think
it
will
benefit
both
by
having
the
knowledge,
both
by
having
the
investigative
staff
to
be
able
to
handle
the
cases
that
they're
most
knowledgeable
with
and
companies
that
are
involved
in
that.
F
So
the
office
of
labor
commissioner,
looked
at
what
was
happening
nationally
with
that
and
how
it
was
handled,
and
we
feel
that
that
was
probably
the
best
way
to
to
do
it.
And
that's
why
we
are
suggesting
an
amendment
to
the
to
the
bill.
But
we
we
feel
that
it'll
be
handled
better
within
the
office
of
labor,
commissioner
than
it
was
within
dir.
B
C
Thank
you
for
the
question.
This
is
victoria
caryon,
for
the
record
and
in
terms
of
our
current
staff
allocation,
it's
about
.4,
of
an
fte
not
doing
this
function
will
allow
us
to
concentrate
on
enforcement
of
workers
compensation
laws,
so
this
is.
This
function
is
currently
handled
within
our
workers
compensation
enforcement
unit.
So
we.
G
A
Thank
you.
Are
there
any
other
questions
from
the
committee
members
don't
see.
B
F
C
E
You
thank
you
director,
reynolds
good
morning,
members
of
the
committee,
madam
chair
sharath,
chandra
administrator
for
the
real
estate
division.
Again,
this
slide
is
just
an
overview,
so
I'll
go
over.
The
two
budget
accounts
that
we're
currently
under
your
consideration.
E
So
the
real
estate,
the
first
budget
account,
is
the
real
estate
administrative
account.
This
primarily
supports
the
licensing
function
of
the
division,
so
the
previous
slide
summarizes
the
number
of
licenses
the
division
oversees.
So
essentially,
it
consists
of
five
distinct
sectors
of
the
marketplace.
Each
with
varying
licensees
and
sector
concerns
so
essentially
you'll
see
real
estate
has
sales
persons,
brokers,
broker,
broker
sales
persons,
property
managers,
so
that
consists
of
the
bulk
of
the
real
estate.
E
Then
we
have
builders
developers,
time
shares,
appraisers
energy,
auditors,
inspectors
of
structures.
So
you
know
grand
total,
almost
40
little
over
40
000
licensees
that
come
under
the
real
estate,
administrative
account
and
and
then
the
other
account
that
we're
going
to
look
at
is
the
educational
department
and
this
again
serves
as
the
hub
for
all
real
estate,
education,
training
and
information.
So
we'll
move
to
the
next
slide,
which
is
essentially
talking
about
the
budget
account
3823,
which
is
essentially
the
bulk
of
the
up
administrative
account
for
the
real
estate
division.
E
Again,
the
fy
2223
you'll
see
there's
a
increase,
but
essentially
all
of
that
increases
due
to
the
cost
of
living,
salary,
adjustments,
attorney
general
cost
allocations
and
and
the
only
enhancement-
and
if
you
look
at
the
budget
enhancements
for
26.26
positions
again,
director
reynolds
previewed
these
some
of
the
cuts
that
we
took
during
the
last
fy
2021
cycle
again.
So
the
biggest
thing
here
is
the
e550
licensing
management
software
and
that's
the
one
that
the
division
is
looking
to
get.
We
have
a
system
that
was
approved,
I
believe
in
the
2003-2005
legislative
session.
E
So
it's
been
over
15
years,
and
so
that's
the
software
licensing
platform
that
we
want
to
replace
and
that's
really
the
only
enhancement
on
that
again.
The
20
26.6
positions,
just
as
a
just
as
a
backdrop
when
the
2010,
you
know
crisis
happened
in
the
and
we
went
into
a
recession.
E
The
next
budget
account
that
we
wanted
to
talk
about
briefly
was
the
3826
account,
which
is
the
real
estate
education
account
this
one
right
now
the
budget
proposes
illumination
of
administrative
assistant,
one
and
an
administrative
assistant
too,
and
again,
the
other
addition
to
this
is
an
education
software
database.
Again,
we
feel
like
if
we
could
get
a
database
that
helps
streamline
the
process
a
little
more.
A
lot
of
this
is
educational.
E
Education
instructors
have
to
be
reviewed,
their
qualifications
have
to
be
reviewed
and
also
sponsors
that
put
in
for
these
courses
are
also
reviewed
and
so
having
a
database
could
streamline
the
process
a
lot
more
and
take
off
a
little
bit
of
the
burden
on
the
staff
that
currently
are,
quite
frankly,
a
little
stretched.
A
Thank
you.
We
do
have
quite
a
few
questions
and
and
I'm
going
to
go
ahead
and
kick
us
off
with
the
first
question.
We
know
that
there
was
an
lcb
audit
blood
that
I
think
was
published
in
september
of
last
year,
and
I
would
just
like
for
you
to
provide
a
status
update
on
the
progress
of
implementing
those
audit
recommendations.
Please.
E
Thank
you,
madam
chair
shiraz,
chandra
for
the
real
estate
division
administrator.
So
the
audit
most
of
the
findings
for
the
audit
we
have
been
able
to
work
through.
So
one
of
the
one
of
the
concerns
was
that
there
was,
you
know,
a
reconciliation
issue,
and
so
we
resolve
that.
E
But
some
of
the
bigger
ones
have
to
kind
of
tie
back
into
the
software
and
the
lack
of
us
being
able
to
reconcile
our
platform
with
the
financial
platform,
because,
because
the
operating
software
does
licensing,
it
does
timeshares,
it
does
education,
it
does
compliance
and
so
taking
that
one
and
try
to
integrate
it
with
a
financial
system
and
the
reporting
a
lot
of
it
is
done
manually.
The
director's
office
assists
us
with
that,
and
so
I
think
a
big
key
to
that
is
technology.
And
so
that's
where
we're
struggling.
We
can.
E
We
can
do
a
lot
of
those
things,
but
it
takes
extensive
manual
processes
and
again
with
the
current
staffing
and
the
resources.
That
is
where
the
biggest
challenge
is,
and
especially
there
was
a
section
there
that
had
a
four
or
five
recommendations
which,
in
our
opinion,
is
just
one
really
one
big
recommendation.
E
So
it
is
how
the
compliance,
section,
audits
brokers,
and
so
the
question
was
well.
Why
don't
you
audit
every
broker?
That
has
a
trust,
account?
Well,
that
is
doable
but
resource-hungry
operations,
and
so
traditionally
what
the
division
has
done
is
it's
focused
on
an
area
that
we
believe
could
be
the
most
vulnerable
for
fraud,
and
so
it
was
on
people
that
did
property
management,
and
so
we
focused
on
property
managers.
We
made
sure
that
we
got
trust,
accounts
from
them
and
there's
a
process
to
review
and,
quite
honestly,
the
people
that
do
this.
E
E
Probably
not,
but
that
is
kind
of
the
challenge
that
we
faced
with
and
we
understand,
there's
a
responsibility
for
consumers
and
I
think
the
division
has
really
gone
up
to
extremes,
to
try
to
make
sure
that
we,
you
know,
ensure
that
there's
compliance
and
also
some
public
protection.
So
that's
kind
of
the
background
on
the
audit.
I
believe
most
of
the
other
recommendations
that
the
audit
have
were
valid.
We've
worked
on
solutions
for
all
of
that
debt
collection,
reconciliations,
those
are
doable
and
I've
already
almost
finished
most
of
them.
E
A
Thank
you.
I
have
some
additional
questions
from
assembly
woman
and
vice
chair
how
to
eat.
Please
thank.
G
You
chair
and
thank
you
for
the
presentation
I
just
I
do
have
still
some
more
questions
in
the
audit
area.
You,
you
answered
one
of
my
questions
regarding
whether
there
was
budgetary
constraints
in
regards
to
meeting
some
of
the
audit
recommendations,
but
first
I
wanna
you
mentioned
having
an
auditor
to
help
or
needing
an
auditor
there
to
help,
but
I
know
that
the
the
auditor
actually
made
the
recommendation
that
you
wouldn't
need
an
auditor
to
actually
help
imp
like
implement
the
recommendations
that
they
actually
gave
you
a
recommendation
of
using.
G
I
believe
it
was.
I
read
through
the
audit
and
the
recommendations.
Let
me
see
if
I
can
find
my
notes,
an
attestation
form
to
actually
fill
that.
So
did
you
guys
give
any
thought
to
the
recommendation
that
came
from
the
from
the
auditor
where
he
identified
that
you
really
didn't
need
an
auditor
to
help
with
this
that
a
simple
attestation
form
could
be
utilized.
E
E
We
get
the
trust,
account
reconciliations
or
we
get
a
form
that
says
I
don't
have
a
trust
account
and,
and
so
hence
that's
the
form,
and
so
that
process
is
in
place.
Now
the
question
really
is:
how
are
we
reviewing
these
trust
accounts?
Are
we
going
back
and
doing
a
financial
audit?
Are
we
looking
at
just
some
red
flags
and
thereby,
then
that
triggers
an
audit
or
a
request
for
more
information,
so.
A
E
Some
of
those
recommendations
were
already
in
place.
It
may
not
have
been
as
clean
as
they
expected
and
we
made
those
adjustments,
but
really
the
larger
recommendation
was
hey.
Why
don't
you
do
it
for
everybody
and-
and
the
challenge
was
that's
possible,
but
we
need
a
lot
more
help
to
do
that,
but
in
a
limited
basis.
Yes,
we
can
absolutely
do
it
and
we've
actually
worked
on
that
process
to
make
it
a
much
more
cleaner.
E
G
Okay,
thank
you,
and
I
know
it's
just
that.
Like
I
know
in
the
executive
budget,
there
isn't
any
enhancements
or
recommendations
for
extra
personnel,
so
I
was
just
you
know:
I'm
worried
about
how
you're
gonna,
how
you're
gonna
get
through
the
recommendations
from
the
audit,
with
just
the
staff
that
you
have,
because
there
isn't
any
you
know,
recommendations
or
enhancements
for
extra
personnel
so,
but
also,
maybe
if
you
could
just
touch
on
that
a
little
bit
and
then
just
I
know,
there's
a
need
for
technology
enhancements
and
system
enhancement.
G
E
Thank
you,
madam
vice
chair,
short
chandra
administrator
for
the
real
estate
division.
I
think
that
will
greatly
help.
I
think
what
it'll
do
is
it'll,
give
us
a
better
platform
to
kind
of
consolidate
some
of
the
data.
Some
of
the
reports
can
be
uploaded,
and
that
way
you
know,
maybe
a
report
could
be
generated,
much
seamlessly
much
more
seamlessly
and
so.
G
E
It's
going
to
create
a
situation
where
that
would
probably
enable
us
to
create
a
different
process
to
go
a
little
more
deeper
into
the
audits
or
maybe
expand
the
audit
a
little
more
to
require
folks
to
turn
in
additional
documents.
But
yes,
I
don't
want
to
say
that's
the
smoking
gun
that'll
solve
all
our
problems,
but
I
think,
having
that
in
place
would
greatly
enhance
the
efficiencies
that
we
can.
We
can
work
on.
F
F
Actually,
our
volume
of
licensees
has
were
just
about
where
we
were
at
the
before
the
recession
came
in,
so
I
think
we
were
like
forty
42
000
and
so
we're
close
to
41
000
licensees
right
now,
so
we're
generating
quite
a
bit
of
revenue,
but
unfortunately
this
is
a
general
fund
agency,
this
portion
of
that
and
so
we're
competing
with
other
general
fund
areas
within
the
state
education,
healthcare
in
those
areas-
and
so
this
really
begs
for
in
the
future
for
real
estate
to
be
self-funded,
and
I
think
we
have
discussed
that
with
the
real
estate
associations.
F
They
would
like
to
see
that
this
would
allow
us
to
build
up
a
reserve
and
be
able
to
handle
the
kind
of
the
cyclical
times
that
we
have
within
the
industry.
So
I
think
that's
the
future
where
we
we
need
to
move,
but
right
now.
This
is
very
difficult
because
we're
caught
in
the
trying
to
with
competing
interests
within
the
general
fund
and
trying
to
manage
the
real
estate
division
and
keep
essentially
a
number
of
employees
to
be
able
to
to
do
the
proper
functions
that
we
need
to
do.
G
Yes,
thank
you.
Thank
you
and
director
reynolds.
That's
thank
you
for
that,
because
that
that
actually
said
weighs
me
into
my
next
question
because
I
was
reading
through
the
audit,
and
I
noticed
you
know
I
saw
from
our
notes
what
the
budget
was
and
other
funds
and
but
in
the
audit
outline
in
2019,
it
looks
like
there
was
14
million
in
revenues
by
the
division,
the
real
estate
division
and
I'm
assuming
that's
mainly
from
fees.
So
there
was
14
million
in
revenues
in,
but
only
seven
million
in
expenses.
G
F
Terry
reynolds
for
the
record
in
some
areas
that
goes
straight
into
the
general
fund
and
some
of
the
we
were
able
to,
I
think
in
2015
to
take
timeshare
revenues
and
have
those
come
in
directly
and
also
map
review
that
we
did
to
have
those
come
back
into
the
department.
But
essentially
the
bulk
of
the
revenue
that
we
have,
that
is
not
used
for
expenses
goes
right
directly
into
the
general
fund.
So
it's
not
available
for
the
real
estate
division.
G
G
Director
reynolds
what
what
portion
of
the
fees
that
the
division
generates?
Do
you
get
to
keep
and
is
there
like
a
percentage
and
then
everything
else
gets
reverted
to
the
general
good
or
does
do
100
of
the
fees
that
you
collect
go
to
the
general
fund?
And
then
you
request
general
fund
to
fund
your
division.
F
F
Let
the
administrator
handle
that,
but
essentially
that
is
the
case.
We
generate
a
considerable
amount
of
revenues
through
the
department
and
then
we
get
money
back
to
be
able
to
to
fund
the
division.
So
but
giraffe
do
you
want
to
go
through
that.
E
Thank
you,
madam
west
chair.
I
think
these
are
really
good
questions
and
really,
I
think,
there's
there's
a
little
bit
of
confusion
here
so
essentially
to
keep
it
very
simple.
Real
estate
revenue
comes
in,
it's
kind
of
bifurcated,
so
part
of
it
goes
straight
to
the
general
fund.
E
Everything
goes
straight
to
the
general
fund
time
shares
and,
like
the
director
said,
some
builder
fees
come
to
our
fund,
which
is
3823,
that's
before
you,
and
so,
if
you
look
at
the
economy,
the
timeshare
industry
shut
down
so
all
timeshare
licensees
that
came
through
the
division.
We
lost
about
50
of
that
and
also
timeshare
of
companies
that
would
register
new
timeshares
stop
and
so
that
revenue
shrunk.
E
So
suddenly,
you've
got
an
agency
that
is
dependent
on
that
stream
of
revenue
where
50
of
that
goes
down,
and
so
that's
kind
of
the
challenge
that
we
faced
and
so
that
that
revenue
is
balanced
against
our
expenditures.
So
again,
very
simply
for
every
dollar
we
only
spend
50
cents
is
approximately.
How
I
would
say.
G
Okay
and
then
just
my
last
question,
and
just
I
just
have
a
few
questions
just
because
this
is
the
industry
I
come
from.
You
know
my
husband
being
in
real
estate
and
me
being
entitled
in
escrow.
I'm
just
curious,
but-
and
so
I
do
have
one
last
question
regarding
the
audit
and
just
because
we're
in
a
situation
where
every
dollar
counts-
and
I
just
want
to
know
what
you're
doing
to
address
this.
G
But
I
read
through
the
audit
and-
and
it
indicated
that
there
was
one
thing
that
consistently
been
reported
or
recommended
for
the
last
three
audits
that
you
guys
have
received.
And
so
it
looks
like
you
get
an
audit
every
10
years
and
it
was
the
collection
of
past
due
accounts
and
we're
in
a
position
right
now
where
every
dollar
counts.
And
I
know
the
auditor
kind
of
indicated
that
you
guys
had
you
guys
weren't
actively
pursuing
past
due
accounts.
So
has
what
have
you
guys
done
to
to
fix
that.
E
You
vice
chair,
so
the
the
collections
is,
has
been
a
challenge,
but
it's
not
really
the
collection,
but
just
the
process
and
we've
worked
with
bni
to
establish
a
better
process,
but
really
the
way
collections
works
for
the
division.
Is
you
know
if
the
commission
finds
against
a
licensee
or
a
fine,
then
you
know
the
fine
is
paid
and
then
that's
only
when
the
licensee
gets
reinstated
or
is
able
to
continue
with
their
license.
So
at
that
level
the
collection
is
very
good.
E
There's
only
these
cases
where
a
licensee
creates
such
a
bad
record
that
you
know
there's
a
significant
amount
of
fine.
Where
then
they
don't,
you
know
they
leave
the
industry,
and
so
really
there
is
that's
where
those
don't
get
repaid,
then
that
goes
into
a
collection
process,
but
the
chances
of
that
ever
getting
collected
are
minimal,
but
that
process
is
a
little
convoluted
and
we've
taken
steps
to
remedy
that
essentially
notices
the
sent
out.
E
E
We
used
to
have
accounting
in
our
in-house
and
then
it
was
consolidated
and
all
the
divisions
processes
were
consolidated,
and
so
some
of
that
breakdown
was
there
and
we've
worked
on
it
and
the
other
piece
was
the
technology
us
being
able
to
account
for
those
pass
it
over
to
their
office
and
then
able
to
interface
with
the
with
with
the
treasurer's
office.
Those
are
the
things
that
process
improvement
and
the
technology
will
help,
but
really
from
the
collection
perspective
for
the
division.
E
If
you're
a
licensee
and
you're
fined,
then
you
either
have
a
suspended
license
or
have
to
reinstate
after
you
pay
the
fine.
So
the
collection
on
that
is
very
good.
So
we've
we've
not
had
a
lot
of
issues
on
the
front
end,
but
the
larger
amounts
is
always
a
challenge.
G
A
Well,
there
are
enough
of
us
who
are
new
on
the
committee
and
new
to
these
budgets.
I
really
appreciate
your
depth
of
questions
and
clarification
on
some
of
these
areas
that
are
more
technical
and
how
the
budget
is
managed.
I
do
want
to
move
on
to
questions
for
the
next
budget,
though,
and
I
do
I
believe
vice
chair
howard.
He
also
has
questions
on
this
budget,
but
I'm
gonna
start
with
senator
dennis
with
his
questions.
D
Thank
you,
madam
chair.
I
I
want
to
ask
about
the
database,
so
let
me
find
make
sure
I
get
to
the
right
place
in
in
e551.
Talk
about
the
the
I
think.
You've
alluded.
You
alluded
to
it
when
in
your
presentation,
but
the
anticipated
benefits
and
efficiencies
of
the
recommended
integrated
licensing
system.
E
Thank
you
senator
dennis
chandra
administrator
for
the
real
estate
division,
and
so
I
think
the
technology,
especially
when
it
comes
to
licensing,
is
so
critical.
It's
almost
like
the
heart
of
what
we
do
and
so
having
a
database
that,
where
licensees
information
can
be
stored,
properly
education,
because,
as
you
know,
sir
education
is
a
big
component,
and
so
you
know
there's
continuing
education,
there's
pre-licensing
education,
there's
you
know
post
licensing
and
then
there's
continuing
education
and
so
the
36
hours,
all
those
have
to
be
tracked.
E
They
have
to
be
matched
against.
You
know
each
licensee
at
the
renewal
period.
Any
compliance
issues
have
to
be
also
in
that
database
and
so
having
something.
That's
a
little
more
flexible
and
the
biggest
thing
is
this
pandemic
has
exposed
a
lot
of
the
issues
that
we've
had,
which
is
being
able
to
do
this
online
we've.
Within
the
limited
circumstances,
we've
turned
on
everything
to
try
to
push
this
online,
but
you
know
some
of
the
you
know.
E
E
That
is
simpler
to
use,
even
just
as
simple
as
if
you're
a
new
applicant,
you
could
go
on
there
and
see
the
progress
of
your
application
application
received,
processed
or
ready
to
go
something
as
simple
as
that
would
greatly
benefit
folks,
and
even
if
you're
renewing
uploading
the
ability
to
upload
documents
ability
to
just
reference
certain
things
connecting
the
education
certificates
to
the
license,
and
so
you
not
have
to
bring
everything
in
manually
those
kind
of
things.
E
So
now
it's
everything's
in
the
mail
we've
got
to
process
it
and
also
even
ease
of
payment.
Just
things
like
that
would
would
would
greatly
enhance
it
and
what
we
did
was
before.
We
even
thought
about
this
database.
We
did
a
whole
study.
We
have
a
you
know,
a
document
from
an
expert
that
breaks
down
all
the
areas
of
challenges
and
anticipated
improvements.
So
we
have
a
document,
we
kind
of
know
where
the
issues
are,
and
we
know
the
technology
fixes
that
will
help.
So
essentially,
a
database
is
at
this
point
critical.
E
D
So
so,
once
when
you,
when
you
mention
the
one
part
that
you
had
me
sold
on
that
part
only
because
when
I
take
ce
classes
having
to
keep
track
of
it
manually
and
then
physically
having
to
take
it
to
the
office
as
opposed
to
being
able
to
electronically,
I
think
there's
a
lot
of
agents
that
will
appreciate
that,
because
that's
you
know
when
you're
taking
ce
you've
got
to
keep
track
of.
D
All
of
that,
and
then
you've
got
to
physically
take
a
piece
of
paper,
and
so
I
think
that
that's,
I
think
we
need
to
move
into
the
21st
century
with
our
technology
for
real
estate.
So
do
you
anticipate
the
the
database
that
you're
going
to
use?
Do
you
anticipate
using
an
off-the-shelf
solution.
E
So
the
goal
is
to
create
something:
that's
scalable
and
also
you
know,
used
with
mobile
applications,
something
that
doesn't
have
to
be
custom
built
because
the
issues
have
always
been
you
have.
These
custom
builds
with
these
workarounds
and
and
they're
antiquated,
and
you
need
special
programmers
for
this.
So
hopefully
we're
going
to
something.
E
That's
a
little
more
modern
and
almost
like
lego
blocks,
so
you
could
kind
of
build
out
each
piece
and
then
they
would
all
fit
in
because
you
know
there's
compliance,
there's
audits,
there's
licensing,
there's
education,
so
you
could
build
all
these
and
then
they
could
just
slot
in
that's
the
vision-
and
I
think
also
if
we
do
change
vendors,
the
raw
data
is
available
in
a
format
that
can
just
be
shifted
onto
you
know
a
new
vendor,
so
something
like
that,
so
it
doesn't
destruct
operations.
E
There
are
certain
challenges,
of
course,
because
of
the
way
the
division
is,
we've
got
time
shares
we've
got
projects,
we've
got
builders,
there
are
specific
things
that,
of
course,
you
need
to
get
in
a
little
more
detail
in
the
software,
but
really
the
goal
is
to
do
something,
that's
more
streamlined
and
also
we
can
implement
much
quicker.
E
There
are
some
really
good
examples
out
there
of
some
companies
that
have
jumped
in
but
again
we'd
have
to
go
through
an
rfp.
We,
we
have
put
everything
together.
Now,
it's
a
matter
of
going
through
the
process,
putting
out
an
rfp,
seeing
what's
out
there
we're
open
to
different
funding
business
models,
so
we'll
put
some
options
out
there,
but
again,
at
the
end
of
the
day,
it
has
to
be
a
public
process
and
you
know
see
what's
out
there
and
then
we'll
make
a
decision
based
on
that.
D
E
Senator
dennis
schrachender
administrator
for
the
real
estate
division.
That's
that's!
That's
an
excellent
question.
We've.
I
have
thought
about
that
more.
Like
a
microsoft
365,
where
you
know
the
company
takes
on
the
liability
of
building
it
out,
but
then
we
go
on
an
annual
maintenance
contract
that
supports
the
and
then
the
offers
the
updates
and
everything.
So
that's
a
model
that
I
believe
will
really
work
in
this
case.
So
you
don't
have
an
upfront
cost.
E
You
do
have
some
upfront
cost
to
set
it
up,
but
then
you
transfer
a
lot
of
the
costs
on
the
annual
renewal.
That's
a
model!
It's
still
hasn't
got
a
lot
of
traction.
Some
of
the
other
companies
are
traditional,
so
we'll
put
both
options
out,
but
we
definitely
have
to
have
a
base
because
it
does
take
a
significant
amount
of
resources
on
the
front
end
to
get
something
going,
but
also
there's
cloud
hosting.
E
There's
storage,
there's
updates
and
that's
where
the
challenge
has
always
been
is
because
you
could
build
something
out,
but
if
they're
not
being
updated
or
not
been
improved,
you're
going
to
get
stuck
at
the
same
position
where
now
you've
got
to
pay
for
those
upgrades.
So
we're
we're
happy
to
look
at
some
options,
but
ideally,
yes,
that
would
be
one
average.
D
E
Yes,
sir,
what
we
we,
what
we
propose
to
do
is
we
have
a
traditional
model
and
then
also
we're
open
to
other
funding
models
that
again
we
don't
want
to
create
something,
that's
not
out
there.
We
just
want
to
make
sure
that
we
solicit
information,
so
we
can
make
that
decision.
The
companies
are
free
to
submit
whatever
they
their
business
model.
Is
we're
not
advocating
for
one
way
or
the
other
and
we'll
review
it
all
the
same,
and
if
one
works
better
than
the
other,
then
we're
open
to
that.
A
Thank
you
and
I
appreciate
the
divisions
interested
in
that
transparency,
piece
and
public
input,
piece
or
public
process
piece.
I
also
want
to
caution
to
just
enjoy
taking
a
look
at
proprietary
information
that
comes
out
of
any
off-the-shelf
tech
that
we
buy.
It's
common
practice
to
to
create
outputs
that
are
proprietary
and
that
just
puts
us
in
a
struggle
when
it
comes
to
if
we
have
to
transition
into
a
different
program
later
on.
Okay,
so
are
there
other
questions?
A
G
You
chair,
thank
you,
director,
reynolds
and
administrator
chandra.
I
just
okay
have
a
few
questions
again,
so
thank
you.
I
want
to
start
with
the
elimination
of
the
two
positions
in
the
education
and
research
budget,
so
I
I
noticed
that
the
the
governor's
recommended
budget
recommended
eliminating
the
positions
but
like
from
our
discussions
today,
I've
you
know,
we've
heard
throughout
the
presentations
about
how
understaffed
the
real
estate
division
is.
G
So
was
there
any
conversations
with
the
with
the
governor's
office
about
maybe
holding
the
positions
vacant
instead
of
eliminating
them
and
if
they
are
eliminated?
Is
that
enough,
for
you
guys
to
kind
of
regain
financial
stability.
F
This
is
terry
reynolds
director
for
division
for
bni
and
shirath
can
also
add
into
this.
But
there
was
discussion
about
that
and
we
were
able
to
transfer
those
individuals
into
other
vacant
positions,
or
we
had
positioned
people
left
and
and
went
on
to
to
other
areas,
but
simply
we're
in
a
position
where
we
may
have
to
reinstate
that
or
we
look
at
what
position
that
would
benefit
the
division.
F
So
we
may
upgrade
a
position
or
we
need
to
have
some
some
flexibility
and
I
think,
given
the
the
status
of
where
we're
at
with
a
lot
of
these
budget
cuts,
we
may
be
coming
back
and
requesting
the
addition
of
of
a
position
or
the
inclusion
of
upgrading
a
position
to
be
able
to
be
filled.
So
you
know
we're
in
that
different
difficult
circumstances
where
those
were
eliminated
should
they
be
held
and
not
not
funded.
That's
probably
preferable
in
that,
but
I'll.
Let
sharath
go
through
and
discuss
that.
E
Thank
you
direct
reynolds,
sharath,
chandra
administrator
for
the
real
estate
division.
You
know,
I
think
we
we've
discussed
this
again.
Like
director
reynolds
said.
I
think
the
challenge
has
always
been
because
of
education
because
of
the
volume
that
we
do
senator
dennis
knows
this.
Also
we
went
from
24
to
36
hours,
we
increased
the
pre-licensing
requirements
from
90
to
120
hours,
and
we
have
also
post
licensing
requirements
and
also
we've
got
about
800
educators
out
there
about
800
courses
that
they
submit
annually.
E
That
have
to
be
reviewed
of
their
audits
to
be
done
course,
manuals
to
be
produced
newsletters,
so
there's
a
whole
host
of
things
that
this
section
does.
Also
this
section
does
monitors.
The
mailbox
is
also
kind
of
the
central
place
to
answer
phone
calls
questions.
A
lot
of
the
relatives
have
questions
about
their
education.
Where
take
what
to
take?
How
much
to
take
some
of
this
is
handled
by
licensing.
But
again,
education
is
a
key,
so
you
know
it's
a
rock
and
a
hard
place.
E
We
would
like
to
see
a
position,
maybe
come
back,
but
also,
if
you
see
there,
I
have
a
request
for
some
software
again.
This
is
again
to
streamline
the
education
process
a
little
bit
more
being
able
to
get
those
documents.
The
education,
packets,
back
in
this
more
streamlined
way
to
process
them
more
streamlined
to
upload
certificates,
more
streamlined,
because
the
process-
and
I
don't
want
to
get
into
the
details
too
much
but
really
educators
provide
education.
E
Then
there
is
a
there's,
a
certificate,
that's
given
to
the
licensee
that
accounts
for
their
continuing
education
and
that
has
to
be
uploaded
and
integrated
to
the
licensing
system.
So
anything
to
take
away
the
manual
process
will
save
a
lot
of
workload
for
folks,
but
then
we
can
focus
on
other
areas,
but
really
a
combination
of
technology,
and
you
know
again,
there's
no
substitute
for
good
folks
in
the
state
and
our
our
folks
are
incredible,
but
their
stretch
so
thin.
E
So
any
help
would
would
be
good.
I
just
you
know
it's
one
of
those
situations
where
having
two
positions
will
put
us
in
the
rent
because
of
the
way
the
model
is
set
up,
but
if
he
can,
like
direct
reynolds,
said,
get
one
back,
we
would
greatly
appreciate
it.
G
Okay
and
then
just
with
staying
in
that
director
reynolds,
you
had
mentioned
that
the
positions
were
transferred,
but
I
was
under
the
impression
that
the
those
positions
had
been
vacant
since
the
beginning
of
2020,
and
so
there
originally
there
were
six
positions,
but
those
positions
had
been
vacant.
G
So
there's
only
been
four
people
in
that
department
doing
the
work-
and
you
guys
have
had
to
borrow
from
the
real
estate
administration's
budget
personnel
from
there
to
help
kind
of
fill
the
backlog
of
work
or
help
with
the
workload
and
is
that
what
you
guys
are
currently
doing,
and
you
think
you
will
do
if
these
positions
are
eliminated?
Will
you
guys
continue
to
borrow
personnel
from
the
administration
budget.
F
Terry
reynolds
for
the
record,
the
first
part
of
that
is:
yes,
they
were
vacant
and
then
some
of
them
we
were
able
to
to
move
a
person
over
to
another
vacant
position
to
fill
in.
But
I'll
have
sharath
answer
that,
but
essentially
yes,
we're
going
to
have
to
work
and
borrow
within
the
division
to
meet
the
requirements
until
we
get
the
software
going.
But
we're
still
going
to
be
short
people.
E
Thank
you,
greg
reynolds,
chandra
administrator
for
the
royalist
division.
Yes,
that's
correct,
I
think
it's
it's
kind
of
a
we.
Those
positions
were
filled.
Then
there
was
some
turnover
they
were
filled
again
and
then
there
was
a
there
was
another
round
of
turnovers,
so
essentially
for
the
majority
of
since
the
pandemic.
Those
positions
have
been
vacant
and
of
course,
you
know,
current
staff
have
been
filling
those
roles
and
if
those
don't
come
back
then
I
think
it
is
we're
going
to
continue
to
do
that.
It
is
definitely
going
to
impact
we.
E
We
definitely
have
to
take
a
hard
look
once
we
come
back
to
normal
and
we
get
back
to
a
process.
We've
got
to
really
think
about.
What
is
it
that
we
do?
How
are
we
doing?
This
is
there's
things
that
we
can
kind
of
shed,
which
is
a
shame
because
at
this
point
we've
tried
to
listen
to
what
the
industry
needs
and
we
believe,
we've
kind
of
created,
a
very
streamlined
model
of
processing
approving
reviewing,
but
then
we'll
have
to
take
a
hard
look
at
that.
E
Hopefully,
technology
helps,
but
definitely
it's
it's
challenging
with
four
people.
That's
that's
a
33
percent
cut
to
a
six-person
group,
and
so
yes,
we
will
there's
a
huge
mail
process,
that's
involved
because
everything,
because
we
don't
have
a
northern
office
and
so
everything's
processed
in
the
south.
So
all
those
realtors
about
20
of
the
40
000
are
up
north
and
so
they
have
to
mail
in
everything
here
and
so
that
creates
a
lot
of
mail.
And
so
we
process
the
mail.
E
We
go
through
everything
and
then
you
know
that
then
goes
to
licensing
and
being
processed.
So
it's
a
huge
manual
process
and
this
group
does
a
significant
amount
of
that
and
so
reduction.
There
would
also
cause
some
challenges,
and
so
that's
that's
really
the
where
we
are.
G
Thank
you,
mr
chandra,
dr
reynolds,
madam
chair.
If
I
can
just
I
want
to
follow
up
for
the
portion
yeah.
Absolutely
thanks.
Thank
you,
madam
chair,
and
then
I
you
know,
I
was
just
really
surprised
at
how
the
the
education
like
portion
this
division
is
funded
with
the
surplus
of
what's
left
over
in
the
recovery
account,
and
so
I
I
had
a
couple
of
questions
regarding
this.
So
I
know
no.
G
The
real
estate,
education,
research
and
recovery
fund
is
in
charge
of
doing
all
of
the
education,
the
continuing
education
and
stuff,
but
I
you
charge
for
the
classes
the
continuing
education
classes
correct.
So
do
you
not
get
to
keep
the
fees
that
are
collected
from
the
continuing
education
classes
and
with
that
I
know
that
the
money
you
get
for
the
education
fund
comes
from
the
recovery
account
and
the
recovery
account
is
funded
through
a
portion
of
application
fees
and
renewal
fees.
G
E
That
is
a
lot
scratch
or
administrator
for
the
real
estate
division.
So
so
just
we'll
talk
about
that
first
part.
So
there
is
that
education
recovery
account.
Forty
dollars
of
every
renewal
license
goes
towards
that.
So
every
two
year
cycle
forty
dollars
is
set
aside.
E
It
goes
into
this
account
which
is
used
to
pay
out
if
there
were
any
issues
that
came
up
for
reimbursement
and
there's
an
entire
process
for
that
you
go
through
small
claims
court,
you
get
a
judgment,
you
come
and
claim
against
this
fund,
and
so
that
fund
has
about
three
hundred
thousand
dollars.
That
is,
that
has
to
be
set
aside
and
then
about
150
000
in
budgetary
account.
That's
set
aside
to
pay
out
these
claims.
E
Anything
over
that
that's
collected
goes
into
this
education
recovery,
education,
research
account
and
that's
what
funds
the
operations
of
this
group
this
group
doesn't
they
they
provide
some
education,
but
most
of
the
time
we
outsource
for
lack
of
a
better
word
to
the
educators
and
the
professionals
out
there,
so
they
develop
the
courses.
What
we
do
is
we
review
the
courses
and
we
approve
them.
We
provide
a
number,
and
we
also
annually
renew
those
courses
and
so
the
revenue
that
we
generate
with
that
that
doesn't
stay
with
us.
E
It
goes
to
the
general
fund,
so
really
the
only
way
that
this
group
operates
is
through
the
excess
money
that's
collected
at
that
account,
and
then
that
is
moved
into
this
account
that
funds
these
folks
and
so
again,
if
there
is
a
problem
in
the
economy
and
there's
a
drop
in
the
licensing
amounts
that
will
coincide
with
the
drop
in
the
revenue
that
goes
into
that
special
fund,
which
in
turn
will
reduce
the
money
that
comes
into
this
account,
and
if
there
are
a
lot
of
claims,
because
economy
improves
there's
some
fraud.
E
G
E
Sheri
chandra
administrator
of
the
real
estate
division-
yes,
that
is
partially
true,
but
again
we
have
to
look
at
the
larger
picture.
They're.
All
these
funds
are
bifurcated
so
much,
but
when,
if
there
is
like
the
director
explained
earlier,
if
there
is
a
move
to
sell
funding,
all
those
little
barriers
will
be
broken.
It
would
just
be
you
know,
then
it
could
be
allocated
accordingly.
You
don't
have
to
increase
one
little
area
to
fund
one
little
area.
It
would
just
be
across
the
board
of
you
know.
F
E
Be
a
set
aside
to
pay
that
recovery
fund
and
anything
else
can
be
used
across
the
division
as
opposed
to
right
now.
There's
little
pots
of
money
here.
Spot
of
money
goes
to
the
general
fund,
a
lot
of
money
stays
in
the
division,
and
so
it's
so
a
larger
way
to
approach.
This
would
probably
be
the
best
way,
but,
yes,
essentially,
the
only
way
to
increase
that
is
to
increase
the
money.
That's
set
aside
for
the
recovery.
A
Thank
you
now
that
leaves
us
with
some
some
thought.
Provoking
ideas
are.
G
A
Any
other
questions
on
these
budgets
that
I
may
have
missed
from
looking
at
gallery
for
hands
wave
in
all
right.
I
don't
see
any
other
questions,
so
I,
unless
director
reynolds
you
have
any
closing
remarks.
F
F
We,
you
know
very
good
dialogue
today
and
I
think
you've
gotten
to
the
heart
of
kind
of
the
issues
within
these
budget
accounts
so
and
the
real
estate
division
is
one
of
those
that
we
have
had
multiple
discussions
with
the
industry
and
to
look
at
kind
of
where
we're
at
with
the
financing
of
the
agency
and
the
viability
to
be
able
to
to
do
the
things
that
we
need
to
do
to
modernize
and
keep
up
with
the
real
estate
industry
and
we've
had
significant
discussions
about
about
self-funding
and
how
we
would
approach
that,
but
still
keeping
the
general
fund
hole
in
terms
of
not
taking
away
from
that,
but
being
able
to
adequately
fund
the
real
estate
division.
F
A
Thank
you,
and
we
appreciate
you
all
coming
to
present
these
budgets
and
I
with
that.
I
will
go
ahead
and
close
these
this
part
of
the
committee,
and
we
can
go
ahead
and
move
on
to
public
comment.
A
A
A
Broadcast
do
we
have
any
college.
E
No,
madam
chair,
the
public
line
is
open
and
working.
However,
there
are
still.