MINUTES OF THE SENATE COMMITTEE ON COMMERCE AND LABOR Sixty-eighth Session March 23, 1995 The Senate Committee on Commerce and Labor was called to order by Chairman Randolph J. Townsend, at 8:30 a.m., on Thursday, March 23, 1995, in Room 227 of the Legislative Building, Carson City, Nevada. Exhibit A is the Agenda. Exhibit B is the Attendance Roster. COMMITTEE MEMBERS PRESENT: Senator Randolph J. Townsend, Chairman Senator Ann O'Connell, Vice Chairman Senator Sue Lowden Senator Kathy M. Augustine Senator Raymond C. Shaffer Senator John B. (Jack) Regan Senator Joseph M. Neal, Jr. STAFF MEMBERS PRESENT: Scott Young, Senior Research Analyst Vance Hughey, Senior Research Analyst Molly Dondero, Committee Secretary OTHERS PRESENT: Andy Swall, Westcar Carol Widmer-Hanna, Executive Director, Office of the Attorney General, Private Investigator's Licensing Board John F. Mendoza, Chairman, Public Service Commission (PSC) Terry Page, Director, Regulatory Operations, Public Service Commission (PSC) Frederick Schmidt, Consumer's Advocate, Office of Advocate for Customers of Public Utilities, Office of the Attorney General Introduction was made of Bill Draft Request 57-1440. BILL DRAFT REQUEST (BDR) 57-1440: Allow denial of claim under policy of insurance if attorney for insured or claimant does not provide certain notice and information to insurer. SENATOR O'CONNELL MOVED TO INTRODUCE, BDR 57-1440. SENATOR REGAN SECONDED THE MOTION. THE MOTION PASSED UNANIMOUSLY. ***** Andy Swall, Westcar, spoke on behalf of Senate Bill (S.B.) 258. SENATE BILL 258: Revises applicability of provisions governing licensure of repossessors. Mr. Swall articulated the need for S.B. 258. He stated the bill is to reduce unlicensed activity in repossession by clarifying the exemption of those persons who should lawfully be regulated. Mr. Swall read paragraph 5 of the bill. He stated there are many unregulated persons conducting repossessions. If a person is unlicensed there are no safeguards on their behavior. He stressed severe penalties are imposed on licensed repossessors, but the unlicensed person goes unpunished. He stated the law currently allows unlimited numbers of employers and employees. Carol Widmer-Hanna, Executive Director, Office of the Attorney General, Private Investigator's Licensing Board, expressed their support of the bill. She stated the bill will deter unlicensed activity, which is their goal. Senator Neal asked why the exception is necessary in subsection 5. Ms. Hanna commented there are contract people, who are not on payroll, who do repossession work for car agencies and are not licensed. Mr. Swall stated the proposed amendment will not interfere with any of the rights granted by the Uniform Commercial Code. Senator Townsend read subsection 4. Senator Shaffer asked how this bill affects a finance company. Ms. Hanna stated they are the exception. She explained they are licensed by other entities. Senator Neal asked if a repossessor can only work as an employee for someone else. Ms. Hanna stated a repossessor may operate as long as he is licensed by the Private Investigator's Licensing Board or if they are an employee of an agency. SENATOR O'CONNELL MOVED TO DO PASS S.B. 258. SENATOR SHAFFER SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. ***** John F. Mendoza, Chairman, Public Service Commission (PSC), spoke in favor of changes presented in Exhibit C. He read from the testimony contained in Exhibit C. Senator Townsend commented it is the committee's goal for the public to receive the competitive advantage. It is also the goal of the committee for industry to feel they have the opportunity for investment in the state. He asked how cellular technology is being addressed by this request for legislation. Mr. Mendoza stated cellular regulation will be handled separately from the rules outlined in Exhibit C. Senator Townsend commented since cable is no longer regulated by the Public Utilities Commission (PUC), but is under the guidance of local government, is there going to be a need in the future for adjustment concerning cable issues. Mr. Mendoza stated he is not certain what the future needs will be. Senator Townsend stressed mergers occurring outside state boundaries still will affect the service in the state. Mr. Mendoza stated the Federal Communications Commission (FCC) may take control in the future. Mr. Mendoza stated the next date for a hearing on proposed regulations is April 24, 1995. Senator Townsend requested the hearing be teleconferenced. Senator Neal asked what other communication industries are included besides cable and cellular in the new regulations. Terry Page, Director, Regulatory Operations, Public Service Commission (PSC), explained all the local, long-distance telephone companies, resellers, cable television association, Nevada Press Association, one large cable television company from southern Nevada, the staff of the PSC, the Consumer Advocate, and other interested parties participate in the PSC hearings to determine new regulations. Frederick Schmidt, Consumer's Advocate, Office of Advocate for Customers of Public Utilities, Office of the Attorney General, commented on the regulations presented. He stated there are no major disagreements between the entities involved. He said he is comfortable with the regulations. Senator Regan asked about protection of the rural areas. Mr. Schmidt stated the rural companies participated in the hearings and their concerns were considered. He stated the Universal Service Fund was designed to ensure that rural residential and business rates do not significantly escalate to any degree. Senator Townsend asked Mr. Schmidt to monitor his budgetary needs. Mr. Schmidt stressed he has no intention of asking for more money. There being no further business, the hearing closed at 9:35 a.m. RESPECTFULLY SUBMITTED: Molly Dondero, Committee Secretary APPROVED BY: Senator Randolph J. Townsend, Chairman DATE: Senate Committee on Commerce and Labor March 23, 1995 Page