MINUTES OF THE ASSEMBLY COMMITTEE ON TRANSPORTATION Sixty-eighth Session June 13, 1995 The Committee on Transportation was called to order at 1:15 p.m., on Tuesday, June 13, 1995, Chairman Thomas Batten 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 Ms. Genie Ohrenschall Ms. Patricia A. Tripple GUEST LEGISLATORS PRESENT: Assemblyman Saundra Krenzer, Assembly District 19 Assemblyman Peter Ernaut, Assembly District 37 STAFF MEMBERS PRESENT: Mr. Paul Mouritsen, Research Staff OTHERS PRESENT: Thomas Stephens, Director, Nevada State Department of Transportation Marty Manning, Public Works Director Bob Hagen, Department of Motor Vehicles, Public Safety/Registration Division Chuck Bosch, Nevada Department of Transportation Tom Fronapfel, Nevada Department of Transportation Bruce Glover, Department of Motor Vehicles and Public Safety ASSEMBLY BILL 589 - Requires allocation of certain portion of tax levied on special fuel to counties in which payments of tax originate. Mr. Tom Stephens, Director, Department of Transportation, and Mr. Marty Manning, Public Works Director, Clark County testified on A.B. 589. Mr. Stephens commented the basic effect of A.B. 589 was to transfer a large portion of diesel tax revenues from the state highway trust fund to the counties. The state is opposing this concept. Clark County and the Nevada Department of Transportation have agreed to study the issue on an interim study committee. Mr. Stephens distributed an amendment to replace the entire text of A.B. 589 (Exhibit C). This sets up an interim study committee for the study of repair and maintenance of state and local streets and highways, provides an appropriation for the study and defines the composition of committee membership. Mr. Hansen indicated a need for additional funding for state highway, county road, and city street repair and maintenance. Assemblyman Chowning commented this was a visionary approach for the rapid growth in Clark County. Mrs. Chowning applauded everyone involved in this project. Mr. Manning commented the nature of road maintenance in the state indicates this is not specifically a Clark County problem. There are similar problems in Reno and North Las Vegas. Clark County is faced with maintenance problems with a backlog of $52 million dollars in residential streets within the urbanized portion of the county. Mr. Manning supported Mr. Stephens' recommendation for an interim study committee to address the issues. Mr. Bob Hagen, Nevada State Department of Motor Vehicles and Public Safety (DMV), Registration Division, stated DMV took great exception to the original bill. It would be very costly to administer the bill and to obtain funds from motor carriers and dealer industries. He said it would place a heavy burden on the motor carrier industry to report mileage in various counties so the fuel usage tax could be applied in those counties. DMV did not take exception to the proposed amendment, however. Mrs. Chowning requested the committee review the document provided by Clark County (Exhibit D). Mrs. Chowning commented it showed the new roads in red. It did not include the maintenance on the city portion and it gave a vivid idea of the problems and costs involved. ASSEMBLYMAN CHOWNING MOVED TO AMEND AND DO PASS A.B. 589 AND REREFER TO WAYS AND MEANS. ASSEMBLYMAN OHRENSCHALL SECONDED THE MOTION. Mr. Batten requested Mr. Mouritsen to explain the amendment. Mr. Paul Mouritsen, Research Analyst, Legislative Counsel Bureau, explained the proposed amendment which would replace the entire text of A.B. 589 by striking the entire text of Sections 1 and 2 of the bill and adding the new language contained in (Exhibit C). THE MOTION CARRIED UNANIMOUSLY. ASSEMBLY BILL 707 - Makes various changes relating to identification cards for persons without drivers' license. Assemblyman Saundra Krenzer, Assembly District 19, explained A.B. 707 was requested by a constituent in her district. Since 1976, DMV has been issuing identification (ID) cards with non-expiration dates. The cards are used for as long as 10 to 20 years and are not kept up to date with current photographs or addresses. From a law enforcement standpoint, there is a need to provide accurate information. There has been 198,000 valid ID cards on file with an annual rate of 36,000 per year. It would be difficult for everyone to renew their ID cards with the Department of Motor Vehicles. Ms. Krenzer proposed an amendment to grandfather these cards in. A five-year expiration date was proposed which would provide added revenue for DMV. Identification cards will cost $9. Assemblyman Ohrenschall asked under the amendment what if someone has an ID card but loses it. Assemblyman Krenzer suggested to pay for a new ID card with the new provision. Ms. Ohrenschall asked if they would lose the grandfather clause in this situation. In response, Ms. Krenzer stated they would. Assemblyman Tripple asked if an ID card is a necessity. Mr. Bruce Glover, Nevada State Department of Motor Vehicles, Driver's License Division, explained they are in support of the bill with the proposed amendment. Identification cards are used for people who do not drive, for people whose licenses are suspended or revoked and need to cash checks. He recommended a four-year expiration date to have the same expiration compliance as driver's licenses. Ms. Ohrenschall asked if senior citizens who do not drive would be burdened by the renewal factor. She suggested an exception for those over sixty-five years of age. Ms. Krenzer stated she would consider Ms. Ohrenschall's suggestion. Mr. Eric Cooper, Nevada Sheriff's and Chief's Association, stated the driver license or the ID card issued by DMV is considered to be the universal passport by law enforcement in the United States and a positive form of identification. Other forms of ID discussed are not accepted by retailers or government organizations. He deemed the idea important to law enforcement. Ms. Tripple voiced concern regarding the cost and suggested the IDs be self funded. Mr. Glover replied he felt the ID cards would be self funded at the suggested price. Under the current law people who are 65 and over only pay $4. Assemblyman Carpenter asked is there a different ID card provided for minors. Mr. Glover explained IDs for minors have a header bar that states "minor" and a side profile photo is taken. The same precaution is used on the minor's driver license. Mrs. Chowning asked the committee not to do away with identification cards because they provide necessary identification. Ms. Ohrenschall commented there is another form of identification for business purposes, i.e., the passport which has an expiration date of 10 years. She asked why the DMV ID card only lasted for 4 years. Mr. Glover stated DMV has a four-year business cycle. Four years is a common renewal cycle. The average life of a driver license is 2.5 years. Often name and address changes occur in that time or the license is lost. Ms. Ohrenschall asked Mr. Glover to investigate why the U.S. Government issued passports with a ten-year expiration date. Assemblyman Allard commented since this is a totally self-funded program, the word "renewal" on Page 2, line 7, be removed to address Ms. Ohrenschall's concerns. Mr. Glover replied he felt it could be done. Mr. Glover requested adding another amendment to Section 10 making the effective date October 1, 1995. Mr. Batten closed hearing on A.B. 707 and gave Mr. Mouritsen an opportunity to review amendments with the committee. Mr. Mouritsen explained the following amendments: (1) all existing ID cards will be grandfathered in by striking Section 9; (2) no renewal requirement after the age of 65; and (3) the effective date is October 1, 1995. Assemblyman Goldwater asked is there any discreet amount of renewal on these ID cards. He discussed the use of fake IDs by adolescents. Mr. Glover stated there is a mechanism the department uses to monitor the issuance of fake IDs. When two or three duplicates or changes on ID cards or driver's licenses occur within a short period of time, DMV scrutinizes the situations and the cardholder. ASSEMBLYMAN ALLARD MOVED TO AMEND & DO PASS A.B. 707. ASSEMBLYMAN CHOWNING SECONDED THE MOTION. THE MOTION PASSED UNANIMOUSLY. The hearing was opened on Assembly Bill 413. ASSEMBLY BILL 413 - Authorizes local governments and department of transportation to establish toll roads and toll bridges. Mr. Chuck Bosch, Nevada Department of Transportation, stated the department does not have a problem with A.B. 413 with the exception on Page 2, line 17, Section 6. He further stated the department would like to see this portion reworded to indicate should the governing body of a municipality wish to study the feasibility of constructing a toll road or toll bridge, construct, operate and maintain a toll road or toll bridge or defray the cost of the construction, operation and maintenance of the toll road or bridge, the governing body must enter into an agreement with the director of the Department of Transportation. The current wording says "may." This would allow the opening of a toll road on a state route. (Exhibit E) was submitted for the record. Mr. Tom Fronapfel, Assistant Director of Planning, Nevada Department of Transportation, testified in support of amended language which would not allow local municipalities establishing tolls on state facilities without an agreement with DOT. Mrs. Chowning thanked Mr. Bosch for bringing this to the attention of the committee. Mrs. Chowning further commented it had been brought to the attention of the Assembly that Assemblyman Peter Ernaut would like the bill amended to exempt Lake Tahoe. Mrs. Chowning stated she concurred. Mr. Fronapfel commented as it stands now DMV was only interested in looking at future tolls of facilities such as the potential for using that sort of mechanism for funding a bridge crossing over the Colorado River. Mr. Batten requested Mr. Mouritsen to review the amendment. Mr. Mouritsen and Mr. Fronapfel discussed exempting state highways at Lake Tahoe. Mrs. Chowning commented the residents of Lake Tahoe do not want toll roads or the possibility of toll roads to exist in the Lake Tahoe area. Mr. Mouritsen clarified the desire of the committee to not allow state or local government to establish a toll road in the Lake Tahoe Basin. Mrs. Chowning replied this was correct. She discussed a proposal to make Highway 50 coming into Lake Tahoe a toll road to pay for bike paths. If this were done, there would be no alternative free route. Assemblyman Anderson commented rather than draw special exemption for Lake Tahoe, a possible exemption would be in any area where the road crosses a state or national park or forest. He was not in favor of writing the exemption just for Lake Tahoe because it would be exclusive legislation. Assemblyman Tripple commented since the committee is having problems wording the amendment maybe it could state a toll system could be implemented in counties of over 400,000 population. In response to Ms. Tripple's inquiry, Mr. Fronapfel stated within the county system this would apply. He added the bridge construction over the Colorado River would be a joint effort with the State of Arizona. Mrs. Chowning suggested they vote on the bill on Thursday or at a floor session. She noted she was not in favor of a 400,000 population cap due to needs in other areas of the state. Assemblyman Nolan commented he is not an advocate of toll roads and felt the legislation needs to be put to a vote of the people with coordination of all governments involved. He did not see how the committee can exempt Lake Tahoe. Mr. Fronapfel stated Page 2, Section 5, would address the concerns of Mr. Ernaut and Mr. Nolan in terms of the local municipalities. Assemblyman Carpenter suggested the committee Amend & Do Pass A.B. 413 and bring it back to the committee. Mr. Batten closed the hearing on A.B. 413 and stated he would reopen it upon the arrival of Assemblyman Peter Ernaut. A work session was opened. SENATE BILL 352 - Revises provisions relating to documents required to be filed by vehicle dealer for transaction of business. Mr. Paul Mouritsen advised the committee he had spoken with Senator Jacobsen regarding the proposed amendment submitted by Mr. Sam McMullen. Senator Jacobsen did not approve of the amendment. Mr. Mouritsen explained the proposed amendment exempted non-profit organizations from the requirement of being licensed as a used vehicle dealer when selling used donated vehicles. Mr. Batten stated he had spoken with Mr. McMullen who would be bringing amendments before the committee. Mr. McMullen indicated he had discussed the new proposed amendments with Senator Jacobsen who felt they would be acceptable. No action was taken on S.B. 352 at this time. ASSEMBLY BILL 558 - Abolishes advisory board on automotive affairs. Mr. Mouritsen informed the committee a proposed amendment had been presented by the Commissioner of Insurance. Mr. Mouritsen stated it had been proposed to delete lines 14 through 16 (Exhibit F). The effective date of the act is also changed so the abolition of the board would not take place until July 1, 1997. Mr. Batten closed the work session and reopened the hearing on A.B. 413. Assemblyman Peter Ernaut explained A.B. 413 established enabling legislation for the adoption of toll roads. Mr. Ernaut expressed his concern a toll road would be devastating to the tourist economy at Lake Tahoe. The concept of making the road around Lake Tahoe a toll road has been discussed off and on for about thirty years. He further stated toll roads in South Lake Tahoe and Incline Village would be a double taxation issue. Mr. Ernaut asked the committee to exempt Lake Tahoe from the bill. Mr. Batten asked Mr. Mouritsen to assist Mr. Ernaut with new language to exclude the Lake Tahoe Basin from the bill. Mr. Mouritsen suggested the committee Amend & Do Pass the bill and have the amendment brought back to the committee for approval. He stated he would work with bill drafter to exclude the Lake Tahoe Basin. Mr. Ernaut referred to the portion of the bill where a single road is discussed. He suggested the Lake Tahoe exclusion might come at this point since there is only one access road ringing the basin. Assemblyman Allard referring to Section 3, "if practicable, a toll road established pursuant to this chapter must parallel existing roads" stated it would be impossible to build a toll road. Mr. Ernaut said the large loophole were the words "if practicable." Assemblyman Goldwater asked if Mr. Ernaut realized the bill required a vote of the county for a toll road. Mr. Ernaut stated he understood but reminded Mr. Goldwater South Lake Tahoe and Incline Village were two different counties which have battled often over many issues. If the ability existed for Douglas or Washoe to impose toll roads it could happen. Mrs. Chowning commented all her concerns have been met. ASSEMBLYMAN CHOWNING MOVED TO AMEND AND DO PASS A.B. 413 WITH LANGUAGE TO BE DEVELOPED BY MR. MOURITSEN. ASSEMBLYMAN CARPENTER SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. Mr. Ernaut thanked the committee for their support of the bill. Chairman Batten reopened the hearing on S.B. 352. Mr. Sam McMullen, representing Non-Profit Organizations, stated he spoke with Senator Jacobsen and all interested parties and all concur with amendment. He explained if a non-profit organization has been in existence for 5 years or more they can use a licensed motor vehicle dealer to sell the used donated vehicles. No benefit inures to any particular individual as the funds are used for charitable purposes. The title is signed over to the dealer and a used vehicle sales permit is not required for the sale. The vehicle is insured until it is sold by the dealer and the non-profit organization. This is a restatement of the Arizona law and will allow non-profit organizations to gain additional revenue in an uncomplicated way. It would also keep dealers in their appropriate role. Mr. McMullen requested to amend S.B. 352. The proposed amendment is seen in (Exhibit G). Assemblyman Carpenter commented that 5 years is too long for a non-profit organization to be in business and suggested one year is sufficient. Mr. McMullen replied he would leave the issue to the committee. He suggested two years due to filing requirements with the Attorney General's office and to create a track record. Mr. Allard asked Mr. McMullen if the sponsor of the bill and Senator Jacobsen would object to amending this to two years. Mr. McMullen replied the sponsor and Senator Jacobsen had indicated whatever was acceptable to him was acceptable to them. Assemblyman Anderson commented IRS 501C required an existence of at least one year in order to make an application and felt two years would be the minimum statement. Mr. Anderson had a concern regarding winning a used vehicle and asked if this would be in compliance with a similar bill passed in terms of reselling the vehicle to the dealership. Mr. McMullen stated the purpose is not a raffle or a drawing. It would be a donated automobile. It would be on the automobile dealer's lot for purposes of sale, not for raffle or lottery. ASSEMBLYMAN CARPENTER MADE A MOTION TO AMEND AND DO PASS S.B. 352. ASSEMBLYMAN OHRENSCHALL SECONDED THE MOTION. Mr. Anderson expressed continued concern regarding the used motor vehicle statement in the bill. He would like to see additional information. He noted he would vote in opposition. Mrs. Chowning asked if the sponsor, Mr. Artie Valentine, and Senator Jacobsen concur with the amendment. Mr. McMullen stated yes. THE MOTION CARRIED WITH ASSEMBLYMAN ANDERSON VOTING NO. Mr. Batten reopened hearing on A.B. 558 and the committee reviewed the amendment. ASSEMBLYMAN CHOWNING MADE A MOTION TO AMEND AND DO PASS A.B. 558. ASSEMBLYMAN CARPENTER SECONDED THE MOTION. Mr. Anderson needed reassurance that the advisory board will not be abolished until 1997. He felt there was a need for the advisory board. Mr. Batten reassured Mr. Anderson the advisory board will not be abolished until 1997. Mrs. Chowning commented she believed the insurance industry requested continuation of the advisory board for two years. She felt the statute needed to be further addressed in the next session to give a clearer mandate to the goal of the board. Mr. Carpenter commented it gives the board a chance to review their existence. Ms. Ohrenschall concurred with Mr. Carpenter. THE MOTION CARRIED WITH ASSEMBLYMAN ANDERSON VOTING NO. Mr. Batten closed the hearing on S.B. 558. The meeting was adjourned at 3:30 p.m. RESPECTFULLY SUBMITTED: ____________________________ Barbara Prudic Committee Secretary Assembly Committee on Transportation June 13, 1995 Page