MINUTES OF THE ASSEMBLY COMMITTEE ON JUDICIARY Sixty-eighth Session April 4, 1995 The Committee on Judiciary was called to order at 8:10 a.m., on Tuesday, April 4, 1995, Chairman Humke presiding in Room 332 of the Legislative Building, Carson City, Nevada. Exhibit A is the Agenda. Exhibit B is the Attendance Roster. COMMITTEE MEMBERS PRESENT: Mr. Bernie Anderson, Chairman Mr. David E. Humke, Chairman Ms. Barbara E. Buckley, Vice Chairman Mr. Brian Sandoval, Vice Chairman Mr. Thomas Batten Mr. John C. Carpenter Mr. David Goldwater Mr. Mark Manendo Mrs. Jan Monaghan Ms. Genie Ohrenschall Mr. Richard Perkins Mr. Michael A. (Mike) Schneider Mrs. Dianne Steel Ms. Jeannine Stroth GUEST LEGISLATORS PRESENT: Assemblyman Dennis Nolan, District No. 13 STAFF MEMBERS PRESENT: Dennis Neilander, Research Analyst Patty Hicks, Committee Secretary Christine Shaw, Committee Secretary OTHERS PRESENT: Kathleen Shane, Director of Children's Services/Washoe County Social Services Donald York, Exec. Director, Nevada Area Council/Boy Scouts of America Reverend Paul M. Goulet Jeffrey Artz/Criminal History Repository Vicki Wright, Executive Director/Sierra Nevada Girl Scout Council Ed Roussell, General Director/CEO of YMCA of the Sierra Carolyne Edwards/Clark County School District Dr. Ned Benson, Senior Pastor/St. John's Presbyterian Church Luke Perry Kevin Higgins, Senior Deputy Attorney General James Christiansen Madelaine Durand ASSEMBLY BILL 308 - Authorizes dissemination of records of criminal history to certain agencies which provide protective services to children. Ms. Kathleen Shane, representing Washoe County Social Services, speaking in support of A.B. 308, stated the bill was requested by the Washoe County Grand Jury. Her recommendation as to the only change in the bill was on Page 2, lines 43 through 45: "The division of child and family services of the department of human resources and any county agency that is authorized by statute under NRS 432B.325." Her written testimony is submitted as Exhibit C. Mr. Humke commented A.B. 308 had concurrently been referred to Ways and Means as well as Judiciary. ASSEMBLY BILL 312 - Expands provisions regarding requests by certain employers for information regarding history of prior sexual offenses of employees. Donald York, Executive Director of Nevada Area Council/Boy Scouts of America and Chairman of the State of Nevada Collaboration Committee for Youth, in support of A.B. 312, articulated several principles to guide the development of legislation (See Exhibit D). Assemblyman Dennis Nolan, Sponsor of A.B. 312, explained he was there to enlist the committee's help against sexual abuse and molestation of children in the state. He noted most child molesters had victimized dozens of children by the time they were convicted and received their first record. It was also common knowledge that perpetrators were usually people in trusted positions. Of great concern was the fact that volunteers of church, civic and other philanthropic organizations were currently not given background checks. By enacting this legislation, Nevada would come into compliance with the standards of the 1993 Child Protection Act in the 1994 Crime Bill. He further pointed out the language of A.B. 312 was permissive and therefore organizations may elect not to do background checks if they so desire. Mr. Nolan concluded by saying he was committed to turning a very negative personal experience into something positive in order to help protect children from that sort of abuse. He subsequently introduced Reverend Paul Goulet, pastor of several youth organizations and whose background included counseling perpetrators of sexual offenses. Reverend Goulet related he was involved for eleven years as a counselor, therapist and pastor. A shocking revelation was the testimony of scores of teenagers who had been devastated emotionally and psychologically by the plague of sexual abuse at the hands of youth workers, ranger leaders, boy scout leaders, hockey or football coaches, etc. Molesters were called predators because they seek out young, vulnerable children to molest. He noted it would become more difficult for them by providing a detection and prevention system to protect young children. Reverend Goulet's concluding remarks implored the committee to help prevent predators from ever touching another child. He said it was up to us as adults and responsible citizens of Nevada to take a step and do whatever was necessary to protect our children. Jeffrey Artz, of the Criminal History Repository, stated their support of A.B. 312. He advised the committee that the fees charged for background checks would not go away any time soon, especially the FBI $24 fee; also a $15 user fee for a fingerprint card. Mr. Anderson inquired as to what a reasonable period of time would be to hold on to fingerprint files. Mr. Artz responded two to three years. Ms. Vicki Wright, Executive Director/Sierra Nevada Girl Scout Council, speaking in support of A.B. 312 said their primary concern was the health and safety of the girls they serve. Toward that end, a screening process had been implemented for all volunteers working directly with the girls involving an application and interview process, a requirement of three or four written references, and once approved, required training so as to know rules and policies. One of the policies is that at any girl scout function there must be at least two adults present. Ms. Wright further indicated fingerprints were required for employed staff. She stated they supported the goals and intent of criminal background check legislation but wanted to ensure the best process could be designed to provide safety for the youth as well as due process for valued volunteers. She noted there were over 3600 volunteers in the state of Nevada working with girl scouts and the cost would be prohibitive for fingerprinting. Mr. Ed Roussell, General Director/CEO of the YMCA of the Sierra, shared his agency's concern that the proposed steps were not complete. Until such time as true, broad-based background checks across more than one state could occur, then, he suggested, it was not much more than a Band-Aid in many cases. He stressed true predators had the ability to defy detection in many cases such as moving from state to state. He stated the YMCA in Nevada had over 2000 volunteers and said they would most definitely be disinclined to absorb the costs involved. He further clarified they would not like to see A.B. 312 passed with that inclusion of volunteers. Carolyne Edwards, representing Clark County School District and the Nevada Education Coalition (consisting of all seventeen school districts), provided a little background information. She stated in 1991 this bill was amended due to the fact that in the 1989 session the language on line 12 was added to statute. She noted, although this was permissive legislation, the seventeen school districts' General Council indicated all volunteers who worked for school districts needed to be fingerprinted. For two years, between the 1989 and 1991 legislative session, volunteerism in Nevada schools came to a standstill. Ms. Edwards further indicated they had a bill in this session asking for further disclosure due to what had been experienced with some employees under the current fingerprinting laws....fingerprints came through clean followed by drug related and other crimes taking place after hiring date. The proposed amendment for A.B. 312 was submitted by Ms. Edwards. See (Exhibit E). Dr. Ned Benson, Senior Pastor/St. John's Presbyterian Church, speaking in defense of A.B. 312, explained the serious problem of child molestation and abuse existing in the church today, the extent of which is increasing as predators are known to move more and more across state lines. He stated his church adopted strict policies similar to those of the Girl Scouts in order to help screen volunteers. His church workers must participate in a three hour training program in order to recognize signs and symptoms of child physical and sexual abuse. Dr. Benson further labeled child abuse as a tremendous legal problem in the church. Churches are sued by families and survivors who allege that children have been sexually or physically abused while in the care of congregation. He emphasized a $40 application fee is nothing; insurance cannot be purchased for the payment of judgments in abuse cases. He strongly urged committee members to pass A.B. 312 as it would be a tremendous aid in helping them to do a more effective job of caring for children. A letter dated March 20, 1995 from Dr. Benson to Assemblyman Nolan is submitted as Exhibit F. ASSEMBLY BILL 321 - Prohibits commercial resident agent from engaging in certain activities without obtaining license from secretary of state. Inasmuch as the following assemblymen disclosed they were licensed to practice law and did serve as resident agents for corporations in the state of Nevada, they agreed to waive voting rights but would participate in discussion: Assemblymen Humke, Sandoval, Buckley, Ohrenschall and Steel. Mr. Anderson, chief supporter of A.B. 321, explained one of the primary questions facing the Assembly Judiciary Committee in the 1993 session dealt with a perceived problem involving the conduct of commercial resident agents here in the state of Nevada. Although the bill did not make it through the process, the concern remained to keep a watchful eye on the practice of such agents. Mr. Anderson proceeded to explain the intent of A.B. 321, stating there remained a need to protect the consumer and A.B. 321 should help in that regard. He added the bill was drafted in part with input from the Attorney General's office in the need for additional scrutiny in the area of corporate records. Responding to Ms. Steel's inquiry as to specific abuses, Mr. Anderson explained the problem arose because of a few unscrupulous people and, realizing there was no mechanism in place, through A.B. 321, the intent was to provide a clean mechanism through the Secretary of State's office, followed by a clean mechanism through the Attorney General's office to identify those resident agents whose business practice caused the few to reflect negatively on the larger numbers. Mr. Anderson asked Mr. Luke Perry, a chief proponent of the bill, to come forward. Mr. Luke Perry explained resident agents were in the front line in marketing Nevada's incorporation process and should be held to high state standards. A.B. 321 would help in requiring resident agents to follow ethical guidelines and provide protection from any activity that could be considered as fraud. His remarks in support of the bill are submitted as Exhibit G. Additional remarks and exhibits covering questions relative to occurrences in this industry are on file in the Research Library as Exhibit H. Kevin Higgins, Senior Deputy Attorney General with the criminal division of the office of the Attorney General, spoke next in support of A.B. 321. He explained unscrupulous corporations were using resident agents as a shield for their activities, i.e., telemarketing agencies, telefunders, people selling unlawful securities, etc. Some of these people use resident agents to acquire a phone number and address. Services are then provided which in turn could be used to commit fraud against people in the state of Nevada. Mr. Higgins further stated A.B. 321 currently would make it unlawful for a commercial resident agent to operate without complying with the bonding or insurance requirements of the bill. James Christiansen, proponent of A.B. 321, maintained A.B. 321 was a good bill; however, a proviso should be included in the resident agent's form specifying that he was licensed by the entities that license him. Mr. Humke requested he submit his testimony in writing and Mr. Christiansen agreed. Madalaine Durand emotionally told committee members there were hundreds, if not thousands, of unscrupulous resident agent victims. She noted the reason the Attorney General's office only claimed four or five per year was that the Secretary of State's office informed the people they did not take complaints. Thus, at that point a victim had no recourse. She proceeded to cite some horrendous examples where lives had been devastated and implored committee support of A.B. 321. Mr. Humke declared a continuation hearing on A.B. 321 at a later date. The meeting was adjourned at 11:21 a.m. RESPECTFULLY SUBMITTED: Christine Shaw, Committee Secretary APPROVED BY: Assemblyman Humke, Chairman Assemblyman Anderson, Chairman Assembly Committee on Judiciary April 4, 1995 Page