MINUTES OF THE SENATE COMMITTEE ON COMMERCE AND LABOR Sixty-eighth Session June 5, 1995 The Senate Committee on Commerce and Labor was called to order by Chairman Randolph J. Townsend, at 9:30 a.m., on Monday, June 5, 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 Molly Dondero, Committee Secretary OTHERS PRESENT: John Gibbons, Investigator, Real Estate Division, Department of Business and Industry Margaret Standish, Senior Deputy Attorney General, Telemarketing and Consumer Fraud Unit, Office of the Attorney General Brooke A. Nielsen, Assistant Attorney General, Telemarketing and Consumer Fraud Unit, Office of the Attorney General Charles W. Joerg, Lobbyist, Nevada Manufactured Housing Association Donald Morris, Investigator, Manufactured Housing Division, Department of Business and Industry Louis Ling, Deputy Attorney General, Office of the Attorney General The hearing began with a discussion of Senate Bill (S.B.) 403. SENATE BILL 403: Revises duties of certain persons who are acting in capacity of agent to parties to real estate transactions. Senator Townsend asked if the Real Estate Division supports the amendment to S.B. 403. John Gibbons, Investigator, Real Estate Division, Department of Business and Industry, stated the division supports Amendment No. 580. SENATOR O'CONNELL MOVED TO AMEND AND DO PASS S.B. 403 WITH AMENDMENT NO. 580. SENATOR REGAN SECONDED THE MOTION. THE MOTION CARRIED. (SENATORS AUGUSTINE AND LOWDEN WERE ABSENT FOR THE VOTE.) ***** The hearing was closed on S.B. 403 and opened on S.B. 488. SENATE BILL 488: Makes various changes to provisions governing solicitation by telephone. Margaret Standish, Senior Deputy Attorney General, Telemarketing and Consumer Fraud Unit, Office of the Attorney General, discussed Exhibit C. Brooke A. Nielsen, Assistant Attorney General, Telemarketing and Consumer Fraud Unit, Office of the Attorney General, discussed section 5(10) of Exhibit C. Ms. Standish discussed section 2 of Exhibit C and stated the press association has not seen the language. Senator Townsend instructed Ms. Standish to discuss the language with them. Ms. Standish stated the press association saw the language last session and the new language carries out the intent of last session. SENATOR O'CONNELL MOVED TO AMEND AND DO PASS S.B. 488. SENATOR REGAN SECONDED THE MOTION. THE MOTION CARRIED. (SENATORS AUGUSTINE AND LOWDEN WERE ABSENT FOR THE VOTE.) ***** The hearing was closed on S.B. 488 and opened on S.B. 493. SENATE BILL 493: Revises provisions governing assessments paid by member insurers to Nevada Life and Health Insurance Guaranty Association. SENATOR REGAN MOVED TO DO PASS S.B. 493. SENATOR O'CONNELL SECONDED THE MOTION. THE MOTION CARRIED. (SENATORS AUGUSTINE AND LOWDEN WERE ABSENT FOR THE VOTE.) ***** The hearing was closed on S.B. 493 and opened on S.B 494. SENATE BILL 494: Repeals requirements for initial and continuing education for certain persons licensed by manufactured housing division of department of business and industry. Senator Townsend pointed out to the committee, that although the bill has been voted out of committee, some concerns have come about concerning this bill. Charles W. Joerg, Lobbyist, Nevada Manufactured Housing Association, discussed the bill. He stated he discussed the bill with Renee Diamond and said they have been unable to reach an agreement about the concerns she expressed concerning this bill. He stated she would like to institute her new program with new staff people and evaluate the program for 2 years, then determine how the program works. He commented he does not feel that will work. Mr. Joerg pointed out it is very difficult to bring people into the state to conduct classes because the cost is excessive. He pointed out the classes are small. He stated the trend in the industry is not for state mandated programs, but for industry specific and sponsored programs. He stated the industry people have the expertise. Senator Shaffer commented when a mobile home leaves a manufacturing facility, it has been tested and must meet rigorous national codes. Mr. Joerg stated Housing and Urban Development (HUD) has strict standards. He stated there are local standards for installation and the installers are regulated by the division of manufactured housing. He stated there is no continuing education required for contractors of site-built homes. He pointed out contractors are regulated by the State Contractors' Board. He commented the installer of a mobile home is also regulated and should not have to have continuing education as a requirement. Donald Morris, Investigator, Manufactured Housing Division, Department of Business and Industry, discussed S.B. 494. He stated he is representing Renee Diamond who could not be at the hearing. Mr. Morris commented S.B. 494 will delete the current requirements the division has for initial and continuing education for dealers, responsible managing employees, salesmen, installers, servicemen, servicemen installers, and rebuilders within the mobile home industry in Nevada. He stated it is the division's opinion ". . . the education is essential to the protection of the consumer's interest and safety." He stated manufacturers agree that the key to a good "end" product is the education and the skill development of those responsible for the installation and the maintenance of the home. He stated information was given to the committee during the hearing on June 2. Mr. Morris commented the educational programs have only been around for 2 years and have not had time to develop due to the lack of personnel within the division. He stated the new budget addresses this deficiency. He urged defeat of S.B. 494. Mr. Joerg commented the Manufactured Housing Division is very short staffed. He stated he feels the people will be better served if extra staff is placed into the titling and licensing department. He stated people often have to stay in motels for weeks waiting for an inspector so they may move into their new homes. He stated he feels this area needs increased staffing rather than the education area. Senator Regan stated in order to sell a mobile home, a person must be licensed and must pass a test to do so. He stated there is an education difference between a dealer and an installer. He commented: If the industry is willing to maintain the education requirements to properly install and maintain that dwelling unit, and the industry is also required to pass a licensing, once you are qualified as a salesman . . . if the industry, itself, is willing to provide this education, why must the state be required to provide it. Mr. Morris stated the division feels the state program is a good program. He stated they feel it is important to update people on what is going on, yearly, within the industry. Mr. Joerg stated the educational program is a new program instituted in 1991. He emphasized there is nothing in the bill which will lessen the standards for getting a license. He stated sales techniques have not changed very much. He said to pass the licensing test, the salesman must have knowledge of the product. Senator Regan stressed he feels it is the manufacturer's obligation to teach proper installation techniques for their product. Senator Neal stated he made the motion to pass S.B. 494 based on the assumption there was no opposition to the bill. He expressed his concern that now he is hearing there is opposition to the bill. Mr. Joerg commented, to date, there have not been courses available to the mobile home salespeople and installers which were meaningful. He stated the courses are repetitive and lacking in new knowledge. He said he does not think the state needs to be involved and it is not a wise use of state funds. Mr. Joerg pointed out that a person must pass a test to receive an installer's license. He stated industry standards are different for each manufacturer. He pointed out that the people, who must be responsible for the training of their installers, must be the dealers and the manufacturers. They have the expertise. Senator Townsend commented the committee will get an update on the status of the budget for the Manufactured Housing Division. He stated a review will be made of the test. The hearing was closed on S.B. 494 and opened on Assembly Bill (A.B.) 58. ASSEMBLY BILL 58: Makes various changes to provisions governing enforcement of claims for wages, commissions or other demands of person financially unable to employ counsel. Senator Lowden discussed her proposed Amendment No. 704 to A.B. 58. She stated the amendment states the gaming commission shall check into the backgrounds of all labor unions which are connected with gaming. She stated it is similar to New Jersey and Missouri gaming laws. Louis Ling, Deputy Attorney General, Office of the Attorney General, indicated their budget has not yet closed. He stated the position required to monitor this bill, has not been placed into the budget. Mr. Ling stated the fiscal note for this position bill is $72,000 and the position will be based in Las Vegas. Ms. Nielsen stated the money is not in the budget at the present time, though it has been discussed. Senator Townsend commented this is a policy which can be pursued independently of the funding. Ms. Nielsen stated there is enough work for a three- quarter-time position. She stated they will need the funding to implement the law. Senator Townsend pointed out an administrator may rearrange an office to service a program about which the administrator feels a commitment. He suggested it can be done. He stressed if the bill is passed, the office will have the authority to implement the law, funds or not. Ms. Nielsen agreed. SENATOR REGAN MOVED TO AMEND AND DO PASS A.B. 58 WITH AMENDMENT NO. 704. SENATOR O'CONNELL SECONDED THE MOTION. THE MOTION CARRIED. (SENATOR NEAL VOTED NO.) ***** The hearing was closed on A.B. 58 and opened on A.B. 61 with a discussion of Exhibit D. ASSEMBLY BILL 61: Expands authority of division governing enforcement of claims for wages, commissions or other demands of person financially unable to employ counsel. SENATOR REGAN MOVED TO AMEND AND DO PASS A.B. 61 WITH AMENDMENT NO. 767. SENATOR LOWDEN SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. ***** With no further business, the hearing was closed at 10:35 a.m. RESPECTFULLY SUBMITTED: Molly Dondero, Committee Secretary APPROVED BY: Senator Randolph J. Townsend, Chairman DATE: Senate Committee on Commerce and Labor June 5, 1995 Page