MINUTES OF THE SENATE COMMITTEE ON COMMERCE AND LABOR Sixty-eighth Session May 24, 1995 The Senate Committee on Commerce and Labor was called to order by Chairman Randolph J. Townsend, at 8:30 a.m., on Wednesday, May 24, 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: Beverly Willis, Committee Secretary Scott Young, Senior Research Analyst OTHERS PRESENT: Joe Guild, Lobbyist, Union Pacific Railroad Jeff Asay, Assistant General Solicitor, Union Pacific Railroad John Mendoza, Chairman, Public Service Commission of Nevada (PSC) Michael Tanchek, Assistant Staff Counsel, Public Service Commission of Nevada (PSC) Rick Hackman, Manager, Consumer Division, Public Service Commission of Nevada (PSC) Robert Fisher, Nevada State Legislative Director, United Transportation Union Wayne Horiuchi, Special Representative, Union Pacific Railroad Charlie Joerg, Lobbyist, Nevada Manufactured Housing Association Gub Mix, Executive Director, Nevada Manufactured Housing Association Ronald Lynn, Assistant Director, Clark County Building Department Tom Grady, Executive Director, Nevada League of Cities Barbara McKenzie, Legislative Coordinator, City of Reno Rose McKinney-James, Director, Department of Business and Industry Larry Struve, Chief, Industrial Development and Planning, Department of Business and Industry Darryl Capurro, Lobbyist, Executive Director, Nevada Franchised Auto Dealers Association Mary Santina-Lau, Lobbyist, Executive Director, Retail Association of Nevada Senator Townsend opened the meeting with the hearing on Senate Bill (S.B.) 480. SENATE BILL 480: Requires public service commission of Nevada to grant application to discontinue, modify or restrict service of railroad agency under certain circumstances. Joe Guild, Lobbyist, Union Pacific Railroad, testified, seeking support from the committee for S.B. 480. Jeff Asay, Assistant General Solicitor, Union Pacific Railroad, who was introduced by Mr. Guild, also supported S.B. 480. Mr. Asay presented Exhibit C, and stated he feels the Union Pacific Railroad will not ever obtain any permission from the Public Service Commission of Nevada (PSC) to take off any more agencies. Mr. Asay stated S.B. 480 is a compromise that says if less than 50 percent of shippers object then the PSC will not hold a hearing. Senator O'Connell, questioned Mr. Asay, stating, "I want to be sure we understand the issue and from the material you have given us (Exhibit C) it all seems to based around whether or not the agency is still a safety position or a sales person, is that correct?" Mr. Asay stated,"[These] agencies have no function right now and have no impact on safety. [The agents] are not trained in safety and hazardous material. .....These people simply don't have that training." Mr. Guild noted, " If these agencies are closed in Nevada, no agent would lose their job." Mr. Guild, referring to Exhibit C, noted a number of states have no agents. In answer to inquiries by Senator Regan pertaining to informational access, Mr. Asay pointed out the availability of a central computer system in St. Louis, MO. Next to testify, John Mendoza, Chairman, Public Service Commission of Nevada (PSC), Michael Tanchek, Assistant Staff Counsel, Public Service Commission of Nevada (PSC), and Rick Hackman, Manager, Consumer Division, Public Service Commission of Nevada (PSC) testified next. Mr. Mendoza, referring to Exhibit D and Exhibit E, gave extended and detailed testimony. Mr. Mendoza stated he does not feel this legislation can pass or be applicable in its present form. Senator Townsend questioned Mr. Mendoza on his meaning, asking, "The presentation put forward by the proponents, its expectation is not met by current language in the bill, because there are other things in statute that would prevent you passing....." Mr. Mendoza continued by asserting the public would not have any input to proceedings that would come before the PSC. Mr. Mendoza went on alluding to the safety factor he feels is missing. Senator Townsend again questioned Mr. Mendoza noting previous testimony stated these agencies were not involved or trained in safety matters. Mr. Mendoza continued with his testimony giving examples he feels are pertinent. Senator Neal and Mr. Tanchek then joined the discussion, with Mr. Tanchek asserting these agencies are needed for safety purposes. Senator O'Connell inquired why the railroad might leave themselves open for liability by asking to remove agents if they are necessary for safety purposes and why have most states discontinued agents if they are key to the operation. Mr. Mendoza indicated he did not have an answer. Mr. Tanchek gave an explanation for Senator Regan defining the difference between an agent and a clerk. Mr. Mendoza proceeded with his testimony. Senator Townsend stated, "Telling a company, even a regulated company how may people they ought to have and where they ought to have them is really bad public policy." Mr. Mendoza asserted the question the statute raises is whether or not the public interest is protected. Senator Townsend and Mr. Mendoza continued discussing the pros and cons of this legislation. Senator Townsend noted: I can't support any regulatory body telling a private company a person to have, the name of the person and where they are going to be located. I have a problem with that. Forgetting the safety issue, or include it. Who are we to tell them that. That's the problem. If you want to say safety is the number one concern and therefore you have to meet certain standards, then set the standards up and let them meet it.....With all due respect, that isn't what you [the PSC] are supposed to be doing. You are supposed to insure the safety of the public. Senator Townsend, Senator Shaffer and Mr. Mendoza continued discussing the public hearing process. At this time, Mr. Hackman noted he concurs with Mr. Mendoza and is here to represent the interests of the railroad's customers, who in his view are not represented. According to Mr. Hackman, testimony from customers attests the railroad's computerized system is unsatisfactory. Robert Fisher, Nevada State Legislative Director, United Transportation Union, testified stating his opposition to S.B. 480. Mr. Fisher noted, among other items, he is concerned with the safety factor and proceeded to give several examples. Senator Lowden made inquiries whether or not Mr. Fisher knew of any safety problems in other areas of the country, to which Mr. Fisher stated he does not have any definite information. Further discussion ensued between Senator Augustine, Senator Lowden and Mr. Fisher regarding safety concerns. Entering the conversation, Wayne Horiuchi, Special Representative, Union Pacific Railroad, gave information regarding duties of agents, noting other members of the train crew are responsible for certain safety inspections, again noting the responsibility of the agent is not safety. Senator Neal, Mr. Guild, Senator Augustine, Senator Shaffer and Mr. Asay continued with further discussion. Senator Townsend suggested interested parties meet for further discussion. The hearing was then closed on S.B. 480 and opened on S.B., 453. SENATE BILL 453: Prohibits local zoning regulations that distinguish between certain manufactured homes. Charlie Joerg, Lobbyist, Nevada Manufactured Housing Association, presented Exhibit F and introduced Gub Mix, Executive Director, Nevada Manufactured Housing Association. Mr. Joerg, noted that page 11 of Exhibit F, contained several conclusions that might be helpful. Mr. Mix spoke from written testimony, (Exhibit G) giving further explanation and expressing his support. Senator Shaffer, Senator Regan and Mr. Mix entered into a detailed discussion pertaining to differences between a manufactured home and a stick built home. Senator O'Connell and Mr. Mix continued, especially touching on zoning laws in Nevada and surrounding states. Senator Regan, Mr. Joerg and Mr. Mix proceeded noting the resale value of manufactured homes, in the proper location, is very good. Ronald Lynn, Assistant Director, Clark County Building Department, Tom Grady, Executive Director, Nevada League of Cities, and Barbara McKenzie Legislative Coordinator, City of Reno, came forward in opposition to S.B. 453. Mr. Lynn began with his testimony, presenting Exhibit H, giving a number of reasons for his opposition. Mr. Grady, concurred with Mr. Lynn and expressed his concerns, especially zoning and building codes. Ms. McKenzie noted her opposition and among her concerns, a uniform building code was primary. The hearing was closed on S.B. 453 and opened on S.B. 479. SENATE BILL 479: Makes various changes to provisions governing deceptive trade practices. Rose McKinney-James, Director, Department of Business and Industry and Larry Struve, Chief, Industrial Development and Planning, Department of Business and Industry, approached the committee with testimony on S.B. 479. Senator Townsend noted the committee has special interest concerning any fiscal implications of this legislation, and went on to declare a particular problem the committee might have will be any item where the legislation might be sent to the finance committee. Senator Townsend continued, noting, "This committee does not have authorization to pass a bill to the floor and let it be voted on if it affects the General Fund without being in the budget." Ms. McKinney-James noted there is very little likelihood of any fiscal impact, if the legislation is approved. Ms. McKinney-James then presented Exhibit I and Exhibit J, with explanations. She went on to assert S.B. 479 is an effort for a corrective action plan to put the Consumers Affairs Division in the proper prospective. The legislation will also attempt to establish new remedies for the division to elevate its ability to provide enforcement on behalf of consumers in the state. Ms. McKinney-James continued with further explanation of this legislation. Mr. Struve proceeded to expand the explanation of S.B. 479. Mr. Struve concentrated on sections pertaining to complaints of consumers against various businesses and the difficulty in releasing information. Next to testify, Darryl Capurro, Lobbyist, Executive Director, Nevada Franchised Auto Dealers Association, expressed various concerns and opposition regarding this legislation. Ms. McKinney-James asserted proposed personnel changes may help make information available in a more timely fashion. Mary Santina- Lau, Lobbyist, Executive Director, Retail Association of Nevada, also noted her organization's opposition to this legislation. As there seemed to be a number of problems, Senator Townsend recommended subcommittee action on this legislation. There being no further business, the meeting was adjourned at 10:55 a.m. RESPECTFULLY SUBMITTED: Beverly Willis, Committee Secretary APPROVED BY: Senator Randolph J. Townsend, Chairman DATE: Senate Committee on Commerce and Labor May 24, 1995 Page