MINUTES OF THE ASSEMBLY COMMITTEE ON TRANSPORTATION Sixty-eighth Session April 27, 1995 The Committee on Transportation was called to order at 1:15 p.m., on Thursday, April 27, 1995, Chairman Chowning presiding in Room 331 of the Legislative Building, Carson City, Nevada. Exhibit A is the Agenda. Exhibit B is the Attendance Roster. COMMITTEE MEMBERS PRESENT: Mr. Thomas Batten, Chairman Mrs. Vonne Chowning, Chairman Mr. Dennis L. Allard, Vice Chairman Mr. David Goldwater, Vice Chairman Mr. Bernie Anderson Mr. John C. Carpenter Mrs. Marcia de Braga Mr. Dennis Nolan Mrs. Genie Ohrenschall Ms. Patricia A. Tripple GUEST LEGISLATORS PRESENT: Assemblyman Tom Fettic Speaker Lynn Hettrick STAFF MEMBERS PRESENT: Paul Mouritsen, Senior Research Analyst Gary Crews, Legislative Auditor Steve Wood, Chief Deputy/Legislative Auditor OTHERS PRESENT: Myla Florence, Administrator, State Welfare Division Kay Zunino, Chief, Child Support Enforcement Don Winne, Deputy Attorney General Elizabeth Livingston, Nevada Women's Lobby Nicholas Soraich, Director, District Attorney Family Support Division Lance Turner, Administrator, Washoe County District Attorney's Family Support Division Jan Gilbert, League of Women Voters of Nevada Ben Graham, District Attorney's Association Donna Wadey, DMV Stan Warren, Nevada Car Owner's Association Norton Pickett Ed Glick Jan Matley Mr. and Mrs. James Huntington James Sohns Daryl Capurro ASSEMBLY BILL 425 - Requires suspension of drivers' licenses of persons who are in arrears in payment for support of children. Assemblyman Tom Fettic explained the program first began in the state of Maine with a startup cost of $70,000. Stating the difference in the two programs, he noted in Maine, if a violator did not come up with a workable payment plan, his license was simply pulled. With this plan, people in Nevada can have a restricted license in order to job seek, go back and forth to work, shop and take care of medical needs. He indicated there were 10,000 of these offenders in the Las Vegas area. The first bill is submitted as Exhibit C. Myla Florence, Administrator, State Welfare Division, explained the Nevada Child Support Enforcement Program is a joint federal/state/county program under the supervision of the Welfare Division and is responsible for the collection of delinquent child support payments. She indicated seven states now have laws to restrict or revoke drivers' licenses of persons in arrears in payment for support of children and cited the state of Maine as a success story. She stated A.B. 425 should send a powerful message to parents who are not supporting their children. "In Nevada it is a privilege to have a driver's license and a responsibility to pay your child support." She further noted the small fiscal impact that would affect DMV and the counties would be more than overcome by collections received. Her written testimony is submitted as Exhibit D along with attached proposed amendments. Committee discussion ensued. Mr. Allard posed a question concerning a delinquent parent of children in other states. Ms. Florence indicated the parent who owes support must be a resident of Nevada in order for a license to be suspended or revoked. Kay Zunino, Chief of Child Support Enforcement, explained parents have the opportunity to satisfy back payments in several ways. Arrearage payments generally run between $50 and $100 per month and the individual would have to satisfy those payments in the last 12 months and within 20 days. Don Winne, Deputy Attorney General, further explained....an individual who has failed to pay child support can still apply for a restricted driver's license to go to work, to buy groceries, make doctors' appointments, etc.; however, in order to have an unrestricted driver's license, a person must get current at least for one year and show some good faith effort. In view of the fact Ms. Zunino would be retiring shortly, Mr. Anderson publicly recognized her enormous contribution made to the children of the state. Elizabeth Livingston, Nevada Womens' Lobby and Mr. Nicholas Soraich, Director of District Attorney Family Support Division indicated complete support of A.B. 425 and proposed amendments. A list of organizations was submitted supporting issues which concern women and families (Exhibit E). Elana Hatch, Chief Deputy, District Attorney's Family Support Division, elaborated on the process used in the calculation of arrearages: A petitioner alleges arrears are due in an affidavit form; there is a hearing in which the respondent has opportunity to respond; court sets arrearages; payments then are logged through a computer system...followed by periodic hand audits. Ms. Hatch indicated "there were approximately 34,000 open cases in Clark County, and with the amendments it is anticipated 20,000 cases would be impacted with about 7,000 of them going to hearing. The fiscal estimate would be approximately $80,000 to $80,892 for Clark County. With a 92% federal reimbursement, the final figure for cost impact would be $6,471.00. For Washoe County: 25% of the state cases in comparison to Clark County's 65%. Their impact would be approximately $20,223.00. With the 92% federal reimbursement, they would have a total cost of approximately $1,618.00. The balance of the state has 10% of the cases, and the cost of impact would be $8,089.00 with federal reimbursement, $647.00 total. So the grand total figure for the entire state: $109,204 anticipated. With federal reimbursement anticipated, the grand total cost is $8,736.00." This is an anticipated, estimated figure. (This does not include the position required for DMV). Ms. Hatch commented one of the most beneficial aspects of A.B. 425 is the fact that a non-custodial parent can pay within a specified time period, 20 days, all of the arrears. The respondent has an opportunity for a hearing before his name is referred to DMV for suspension of license. Mrs. Chowning alerted committee members it was the Chair's intention to appoint a subcommittee on A.B. 425 with Mr. Batten as Chair along with Mr. Goldwater and herself. Lance Turner, Administrator, Washoe County District Attorney's Family Support Division, concurred with the state and Clark County; however, he also recommended the development and inclusion of an additional amendment whereby the court would be allowed discretion with notification by the District Attorney or other public agency to the Department where it would be in the best interest of the child. Mr. Anderson interjected a question concerning the removal of insurance when losing a driver's license for other than a moving vehicle violation. He indicated another committee is in the process of drafting a statute relative to that issue. Jan Gilbert, League of Women Voters of Nevada, voiced support for A.B. 425 and commended Mr. Fettic for his fine work. Ben Graham, District Attorney's Association, said on behalf of District Attorneys of all 17 counties they support A.B. 425. ASSEMBLY BILL 333 - Requires vehicle privilege tax to be based on market value of vehicle. Gary Crews, Legislative Auditor, indicated A.B. 333 was developed by the Department of Motor Vehicles and Public Safety in response to problems identified in an audit of the Registration Division. The audit addressed the way privilege taxes are calculated on all cars less than ten years old and identified serious and long standing problems in the application of privilege taxes by the department. They found between 1987 and 1991 DMV charged incorrect privilege taxes on nearly every vehicle less than nine years old. The department changed its method in 1992 of calculating privilege taxes. However, it was found that DMV inappropriately charged 112,000 vehicles in 1992 a total of $2.6 million. The same method used in 1992 is currently being used today. In fact, some taxpayers are paying as much as 45% more in privilege taxes than other vehicles of the same value which clearly raises the question as far as equitable and fair taxation. Mr. Crews submitted a handout (Exhibit F) explaining concerns and recommendations. He asked Mr. Steve Wood, Chief Deputy, Legislative Auditor to walk committee through same. Prior to Mr. Wood's presentation, Mr. Crews identified again there were $2.6 million in overcharges in 1992. It is now three and one-half years since the new method was implemented which adds up to approximately $9 to $10 million in overcharges in vehicles. Mr. Wood subsequently indicated their recommendation would involve legislation be obtained providing a clear definition of what a new vehicle was in order to correct the inequity in the privilege tax calculation made in the audit. DMV rejected the recommendation made in the audit and chose to come in with A.B. 333. Responding to Mr. Goldwater's inquiry as to whether A.B. 205's definition of "new and used cars" would be applicable, Mr. Wood replied that would not apply to NRS Chapter 371, the chapter dealing with privilege tax. He indicated the language in Chapter 482 defining "new vehicle" would fit perfectly. It basically says a new vehicle is one that has never been registered. Mr. Batten questioned whether there were ever rebates due to DMV overcharges. Ms. Donna Wadey, DMV, replied there were no rebates as DMV disagreed with the recommendations. Referring to classic vehicles, Mrs. Chowning stated it was not the intention of either chairman to affect any one segment of the auto population unfairly. She said, "We do not feel that it is fair just because of the ultimate age of a vehicle...simply because of its appraised value that they would constantly have to pay a higher rate." Assemblymen Goldwater, Anderson, Nolan and de Braga volunteered to serve on a subcommittee for further consideration. Speaker Lynn Hettrick, District 39, stated he opposed the idea of market value registration because it does not recognize the fact that most older vehicles sit in a garage most of the time. Use of the highways or mileage is a non-factor and to pay an ongoing fee on a continuing basis would be inappropriate. His suggestion would be to put back depreciation schedules and adjust the problem of the new car registration question and definition of "new car" as was used in determination for new cars in the registration question. Stan Warren, Nevada Car Owner's Association, asked that he be included in the subcommittee meetings to help resolve the problem. Mr. Norton Pickett said he concurred with what the group believed. "The issue is in fine hands and we look forward to driving our cars without undue expense." Mr. Ed Glick, Jan Matley, Mr. and Mrs. James Huntington, James Sohns and Mr. Daryl Capurro all concurred with preceding remarks. Exhibit G represents testimony submitted by Mrs. Jan Matley. The meeting adjourned at 4:00 p.m. RESPECTFULLY SUBMITTED: Christine Shaw, Committee Secretary APPROVED BY: Assemblyman Thomas Batten, Chairman Assemblyman Vonne Chowning, Chairman Assembly Committee on Transportation April 27, 1995 Page