MINUTES OF THE SENATE COMMITTEE ON COMMERCE AND LABOR Sixty-eighth Session June 23, 1995 The Senate Committee on Commerce and Labor was called to order by Chairman Randolph J. Townsend, at 7:30 a.m., on Friday, June 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. GUEST LEGISLATORS PRESENT: Assemblywoman Vonne Chowning STAFF MEMBERS PRESENT: Beverly Willis, Committee Secretary Scott Young, Senior Research Analyst OTHERS PRESENT: Rose McKinney-James, Director, Department of Business and Industry Larry Stout, Assistant Chief, Registration Division, Department of Motor Vehicles and Public Safety Daryl Capurro, Lobbyist, Executive Director, Nevada Franchised Auto Dealers' Association Cam Walker, Las Vegas Valley Water District Rene Diamond, Administrator, Manufactured Housing Division, Department of Business and Industry Fred Hillerby, Lobbyist, Nevada Optometric Association Marsha Berkbigler, Lobbyist, Nevada State Ophthalmology Society/Nevada State Medical Association Brian Herr, External Affairs, Nevada Bell Teresa Maloney, Vice Chairman, National Coalition of Associations of 7-Eleven Franchisees Scott Craigie, Lobbyist, International Franchise Association/PepsiCo Helen Foley, Lobbyist, 7-Eleven Franchise Owners Bill Nolan, Market Manager, The Southland Corporation Rich Davies, Franchisee, 7-Eleven Tim Cegavske, Director, 7-Eleven Franchise Owners Bob Ostrovsky, Lobbyist, Nevada Resort Association Mike Hillerby, Lobbyist, American Institute of Architects Bryan Gresh, Lobbyist, Legislative Coalition of Interior Designers Christen Basham, Managing Partner, Domos Design Group The meeting opened with the hearing on Assembly Bill (A.B.) 462: ASSEMBLY BILL 462: Requires garages that repair motor vehicles to register with department of motor vehicles and public safety and creates motor vehicle repair advisory board. Assemblywoman Vonne Chowning testified in support of this legislation, noting a number of reasons for this legislation. Senator Townsend, referring to A.B. 462, had several questions pertaining to members of an advisory board. Senator Townsend was especially concerned over legislators who might serve on this advisory board. Ms. Chowning, continued with her reasoning for supporting this bill and noted there will be a $25.00 registration fee. Next to testify, Rose McKinney-James, Director, Department of Business and Industry, also noted her support for A.B. 462. Ms. McKinney-James went on with various reasons for her support. Senator O'Connell and Ms. McKinney- James then discussed the new fees, part of which might be used to fund new personnel, with Senator O'Connell noting her concern over any new fees. Further discussion ensued between Ms. Chowning, Ms. McKinney-James, Senator O'Connell and Senator Townsend pertaining to the lack of data available on numbers of complaints concerning auto repairs. At this time, Larry Stout, Assistant Chief, Registration Division, Department of Motor Vehicles and Public Safety, came forward to answer questions concerning the $25.00 fee, posed by Senator Townsend. Mr. Stout replied this fee is based on the estimated number of auto repair shops that had been collected from the phone book, to fund the $43,000 needed to support the advisory board and activities to register the auto repair shops. Senator Townsend again voiced concerns pertaining to members of the Legislature being a part of the advisory board, noting he would prefer to see consumers instead. Senator Townsend continued voicing his concerns relating to disposition of funds. Ms. Chowning then presented Exhibit C as backup for utilization of the funds. Senator Townsend continued: I would prefer the following to happen, and I will lobby my committee members to see it my way. That would be to drop the two legislators from this board and replace them with two consumer members...that takes care of the legislative fund cost. I would drop the per diem and allowance. I would drop this $25.00 to something that is more reasonable... and put that money to deal with public education... Putting almost $45,000 into one more board doesn't help the consumer. We need to communicate with that consumer on how to go in and deal with automobile repair shops. Ms. Chowning continued with her justification for this proposed legislation. Ms. McKinney-James, Senator O'Connell, Senator Neal and Mr. Stout proceeded to discuss numerous other facets of this legislation. Mr. Stout, stated: Our input for this bill was in cooperation with Ms. Chowning and the Department of Business and Industry. When we received the bill, [A.B. 462] we noted on page 6, section 18, what I believe to be a technical error by the bill drafter. It's on line 17, subsection 2, and line 22, subsection 3. This would impact the current functioning of the Registration Division in regulating the wrecking yards, the salvage pools and body shops and we would request that in subsection 2 of section 18, the new language in italics be removed and that sub-section 3 be deleted entirely. Daryl Capurro, Lobbyist, Executive Director, Nevada Franchised Auto Dealers' Association, acknowledged his organization, in concept, was in agreement with this legislation and had worked with Ms. Chowning in the drafting process. He continued noting, in the meantime, changes about which he was unaware had been made. Mr. Capurro continued with several examples. He proceeded, stating he feels this legislation could be a bit more concise and also concurred with objections made by Mr. Stout. Senator Neal, Mr. Capurro and Ms. Chowning continued reviewing the need for this legislation. The hearing was closed on A.B. 462 and opened on A.B. 440. ASSEMBLY BILL 440: Revises provisions governing escrow agents, agencies and officers. As no one was at the meeting for A.B. 440, Senator Townsend continued, opening the hearing on A.B. 287. ASSEMBLY BILL 287: Removes prohibitions against individual water meters in mobile home parks. Cam Walker, Las Vegas Valley Water District, came forward to testify, presenting Exhibit D, Exhibit E and Exhibit F, with an explanation. A short discussion was held between Senator Augustine and Mr. Walker concerning the operation of the water usage system. SENATOR O'CONNELL MOVED TO DO PASS ASSEMBLY BILL 287. SENATOR AUGUSTINE SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. * * * * * The hearing closed on A.B. 287 and opened on A.B. 361. ASSEMBLY BILL 361: Makes various changes relating to mobile home parks. Rene Diamond, Administrator, Manufactured Housing Division, Department of Business and Industry, came forward with an explanation on Exhibit G. SENATOR REGAN MOVED TO AMEND AND DO PASS ASSEMBLY BILL 361 WITH AMENDMENT NO. 1175. SENATOR LOWDEN SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. * * * * * The hearing closed on A.B. 361 and opened on A.B. 439. ASSEMBLY BILL 439: Revises various provisions relating to mobile home parks. Once again, Ms. Diamond came forward to testify. She proceeded, giving an explanation, noting this legislation covers technical corrections to the low-income lot rent subsidy program. SENATOR SHAFFER MOVED TO DO PASS ASSEMBLY BILL 439. SENATOR REGAN SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. * * * * * The hearing was closed on A.B. 439 and opened on A.B. 690. ASSEMBLY BILL 690: Revises provisions governing practice of podiatry. SENATOR O'CONNELL MOVED TO DO PASS ASSEMBLY BILL 690. SENATOR NEAL SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. * * * * * The hearing closed on A.B. 690 and opened on A.B. 399. ASSEMBLY BILL 399: Revises provisions relating to state contractors' board. After a short discussion, Exhibit H was presented. SENATOR NEAL MOVED TO DO PASS ASSEMBLY BILL 399. SENATOR SHAFFER SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. * * * * * The hearing was closed on A.B. 399. At this time, Fred Hillerby, Lobbyist, Nevada Optometric Association, and Marsha Berkbigler, Lobbyist, Nevada State Ophthalmology Society/Nevada State Medical Association, came forward to testify with concerns on A.B. 438. ASSEMBLY BILL 438: Prohibits optometrist from administering or prescribing therapeutic pharmaceutical agents without certificate issued by Nevada state board of optometry. Mr. Hillerby noted that although A.B. 438 was passed in a previous meeting, several items had escaped his attention and needed to be addressed. At this time, Mr. Hillerby presented Exhibit I, an amendment for A.B. 438. SENATOR O'CONNELL MOVED TO RESCIND THE ACTION TAKEN BY THE COMMITTEE ON ASSEMBLY BILL 438. SENATOR SHAFFER SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. * * * * * SENATOR O'CONNELL MOVED TO AMEND AND DO PASS ASSEMBLY BILL 438 WITH AMENDMENT NO. 1225. SENATOR SHAFFER SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. * * * * * The hearing then opened on Senate Bill 459. SENATE BILL 459: Regulates operation of franchises. At this time, Senator Townsend interrupted the hearing on S.B. 459 with information on S.B. 353. SENATE BILL 353: Authorizes injunctive relief against certain advertising. Brian Herr, External Affairs, Nevada Bell, came forward to testify, noting he was at the meeting, neither in support or in opposition of this legislation. Mr. Herr proceeded noting his company feels this is unnecessary legislation. SENATOR REGAN MOVED TO INDEFINITELY POSTPONE SENATE BILL 353. SENATOR AUGUSTINE SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. * * * * * At this time, Senator Townsend returned to S.B. 459, referring to Exhibit J, an amendment to S.B. 459. Senator Townsend went on to note, "Because our firm represents the proponents, I will not be voting." Senator Augustine stated it was her understanding there was a change in some of the language in Exhibit J. First to testify Teresa Maloney, Vice Chairman, National Coalition of Associations of 7-Eleven Franchisees, noted this language presents minimum standards of behavior in franchisees. Further discussion pertaining to the issue of "venue" was held by Ms. Maloney, Senator O'Connell and Scott Craigie, Lobbyist, International Franchise Association/PepsiCo. Senator Lowden and Senator Shaffer noted according to their sources of information they did not feel they could support this legislation. Helen Foley, Lobbyist, 7-Eleven Franchise Owners, noted she intends to be sure Southland Corporation keeps commitments made before this committee. Ms. Foley continued, stating, "In the last couple of days, we have received many calls from our franchisees, telling us they have been pressured to contact you [the senators] and that if they did not they would not have their contracts renewed." At Senator O'Connell's request, Bill Nolan, Market Manager, The Southland Corporation, came forward to respond to statements made by Ms. Foley. Mr. Nolan, stated "That absolutely did not occur. ...I am very interested if someone does feel that threat has been made to them, they can personally contact me, in Las Vegas when I get back to work." Next to testify, Rich Davies, Franchisee, 7-Eleven, noted he feels statements regarding franchisees being intimidated and coerced are false. He went on to state, "When Ms. Foley comes up and says she is representing the franchise owners;...she is representing the franchise owners' association, which is supposed to be representing the franchisees and at this time is not." Senator Neal, Mr. Davies and Mr. Nolan continued with the subject of franchise association meetings, and various other phases pertaining to this legislation. Tim Cegavske, Director, 7-Eleven Franchise Owners, noted at an earlier meeting of his group, there was unanimous support for the original bill presented to the committee. Mr. Cegavske continued, "For a franchisee to say this bill does not have franchisee support is absolutely false." Once again, a detailed discussion took place between Mr. Nolan, Mr. Davies and Mr. Cegavske concerning the subject of meetings between Southland Corporation and the Franchise Owners Association. Senator Regan noted he and Mr. Nolan have conferred on the possibility of enlisting the aid of an ombudsman to help alleviate further problems. The hearing was closed on S.B. 459. At Senator Townsend's request, Bob Ostrovsky, Lobbyist, Nevada Resort Association, came forward with an overview on progress in the Assembly concerning legislation dealing with the State Industrial Insurance System (SIIS). Mr. Ostrovsky gave a detailed overview of this legislation. Senator Townsend then referred to S.B. 506. SENATE BILL 506: Provides for registration and regulation of registered interior designers. Senator Townsend noted there is another amendment being drafted to replace Amendment No. 766. The new amendment basically allows the 2-year programs to be in place and will allow the board of architecture to draft the appropriate test. Mike Hillerby, Lobbyist, American Institute of Architects, offered his views, noting one concern is the scope of practice which would open up, essentially a new profession and the qualifications to do this. Mr. Hillerby continued, stating it is his understanding there is another amendment that may come forth, with the proviso that would put the title "interior design" back into the public domain, allow those who wish to do more, perhaps with some completely new name. Mr. Hillerby expressed concerns over the 2-year graduate provision, along with various other concerns. Senator Augustine noted she would like to support the original amendment (No. 766) with certain changes. Senator Townsend joined the discussion asking, "Is it fair to say [Amendment] No. 766 and the amendment offered by Senators Augustine and Lowden are compatible?" Mr. Hillerby replied in the affirmative. At this time, Bryan Gresh, Lobbyist, Legislative Coalition of Interior Designers, entered the discussion, noting he concurs with Mr. Hillerby. Responding to concerns voiced by Senator Neal, Mr. Hillerby resumed the discussion, noting it is his opinion the 2-year program of schooling will not be affected adversely. He stated, "...The amendment to leave the title "interior designer," in the public domain, allows everyone to continue to operate as they are now and provides an opportunity for those who wish to do more by education, experience, qualification and testing to do that." Christen Basham, Managing Partner, Domos Design Group, came forward to give his views concerning S.B. 506. There being no further business, the meeting was adjourned at 9:55 a.m. RESPECTFULLY SUBMITTED: Beverly Willis, Committee Secretary APPROVED BY: Senator Randolph J. Townsend, Chairman DATE: Senate Committee on Commerce and Labor June 23, 1995 Page