MINUTES OF MEETING

      ASSEMBLY COMMITTEE ON COMMERCE'

      SUBCOMMITTEE ON AB 235

 

      Sixty-seventh Session

      April 21, 1993

 

 

 

The Assembly Committee on Commerce' Subcommittee on AB 235 was called to order by Chairman David E. Humke at 2:15 p.m., Wednesday, April 21, 1993, in Room 332 of the Legislative Building, Carson City, Nevada.  Exhibit A is the Meeting Agenda, Exhibit B is the Attendance Roster.

 

 

SUBCOMMITTEE MEMBERS PRESENT:

     

      Mr. David E. Humke, Chairman

      Mr. Rick C. Bennett

     

 

 

SUBCOMMITTEE MEMBERS ABSENT:

 

      None

 

GUEST LEGISLATORS PRESENT:

 

      None

 

STAFF MEMBERS PRESENT:

 

      None

 

OTHERS PRESENT:

 

      Ms. Brooke A. Nielsen, Assistant Attorney General; Mr. Jonathan Andrews, Chief Deputy Attorney General, Civil Division; Mr. Steve Mahoney, Brand Division Director, Nevada Department of Agriculture

     

ASSEMBLY BILL 235 -     Establishes and revises various fines and                       penalties.

 

Ms. Brooke A. Nielsen, Assistant Attorney General, testified.  She introduced Mr. Jonathan Andrews, Chief Deputy Attorney General, Civil Division.  Ms. Nielsen said she had attempted in a memorandum to Mr. Humke (Exhibit C) to respond to all questions asked by members of the Commerce Committee and by witnesses (at the hearing on AB 235 before the full committee).

 

She advised the Attorney General's office did research in response to a question raised by Mr. Scherer and determined a due process problem was created when an agency which imposed discipline retained the fine or penalty resulting from a disciplinary action and also retained attorney costs or investigative costs.  She stated the due process problem could be eliminated by amending AB 235 to include language as set forth in Exhibit C.  She explained the proposed language would allow each agency which had authority to recover costs and to retain those costs for operating expenses to delegate a disciplinary action to a hearing officer or panel and if it did so, to then retain any costs, fines or penalties imposed.  She advised should the board not wish to delegate the disciplinary action to a hearing officer or panel but chose to hear the disciplinary action itself, then the monies from any fines, penalties or costs imposed by the board must be placed in the state's general fund.  Ms. Nielsen suggested AB 235 be amended as to the following agencies, in the sections indicated, to include the language proposed in Exhibit C:  State Contractors Board, Section 2; Board of Nursing, Section 4; Board of Examiners for Social Workers, Section 10;  Private Investigators Board, Section 15; Board of Examiners for Nursing Facilities, Section 16.

 

Ms. Nielsen said Mr. Humke informed her the Nevada State Board of Registered Professional Engineers and Land Surveyors wished to have the statutory mechanism just discussed included in its practice act.  Mr. Humke submitted a letter, dated March 5, 1993, from Mr. Jerry Higgins of the Nevada State Board of Registered Professional Engineers (Exhibit D) for inclusion in the minutes of the meeting.

 

Ms. Nielsen proposed Sections 1, 2, 6, 12 through 14, 16 through 22 and 24 through 40 of AB 235 be amended as set forth in Exhibit C to provide that agencies which conducted disciplinary proceedings be entitled to recover costs and attorney's fees when they imposed a discipline.

 

Ms. Nielsen said the committee had raised the question whether all fines and penalties provided by AB 235 should be uniform.  She advised because of the differences in the activities of the various disciplines and professions covered by AB 235, it was not feasible to provide uniform fines and penalties.  She proposed the maximum fine which could be imposed against real estate brokers be increased from $1,000 to $5,000.  She stated the Attorney General agreed with representatives of the Taxicab Authority that the maximum fine imposed against taxicab drivers should remain at $500 and the maximum fine imposed against taxicab company owners should be $15,000.  She said the current language in Section 40 of AB 235 referring to individuals who held certificates, permits or licenses would allow a $15,000 fine to be imposed against taxicab drivers.  She explained taxicab drivers were the only individuals (covered by that language) who were issued permits and suggested Section 40 of AB 235 be amended to clarify that the $15,000 penalty applied to certificate holders and a maximum penalty of $500 would apply to permit holders.

 

Ms. Nielsen indicated the Pharmacy Board desired authority to recover costs and such authority was included in the proposed general amendment concerning recovery of costs.

 

She said the committee had inquired about the effect of reorganization on AB 235.  She advised each profession or business covered by AB 235 would continue to exist after reorganization and would continue to be regulated in much the same fashion as they now were and therefore, the Attorney General did not believe reorganization would affect AB 235 in such a manner as to require AB 235 to be amended further.

 

Ms. Nielsen advised the Labor Commissioner had requested his ability to fine be raised to $25 per day per employee and that ability was provided in AB 235.  She stated  Ms. Giunchigliani had suggested implementation of a sliding scale (of fines).  Ms. Nielsen said if a sliding scale was to be implemented, it would be best to cover such a provision in a separate bill, however if the committee was disposed toward a sliding scale, it could grant the Labor Commissioner authority to enact regulations establishing a sliding scale after first holding public hearings.

 

Mr. Steve Mahoney, Brand Division Director, Nevada Department of Agriculture, asked the subcommittee if the State Board of Agriculture should be included among the boards (to be provided authority to recover costs).  Ms. Nielsen responded the State board of Agriculture was included.

 

The subcommittee concurred to recommend to the Commerce Committee that AB 235 be amended in accordance with the Assistant Attorney Generals proposed amendments.

   

There being no further business to come before the subcommittee, Chairman Humke adjourned the meeting.                                        

                                        RESPECTFULLY SUBMITTED,

 

 

 

                                        _______________________

                                        SARA J. KAUFMAN

                                        Committee Secretary                                       

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Assembly Committee on Commerce

April 21, 1993

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