MINUTES OF THE
SENATE COMMITTEE ON COMMERCE AND LABOR
Sixty-seventh Session
April 12, 1993
The Senate Committee on Commerce and Labor was called to order by Chairman Randolph J. Townsend, at 8:00 a.m., on Monday, April 12, 1993, in Room 227 of the Legislative Building, Carson City, Nevada. Exhibit A is the Meeting Agenda. Exhibit B is the Attendance Roster.
COMMITTEE MEMBERS PRESENT:
Senator Randolph J. Townsend, Chairman
Senator Sue Lowden, Vice Chairman
Senator Mike McGinness
Senator Leonard V. Nevin
Senator Lori L. Brown
COMMITTEE MEMBERS ABSENT:
Senator Ann O'Connell (Excused)
Senator Raymond C. Shaffer (Excused)
GUEST LEGISLATORS PRESENT:
Assemblyman Douglas Bache, Clark County District 11
STAFF MEMBERS PRESENT:
Denise Pinnock, Committee Secretary
Brian Davie, Senior Research Analyst
OTHERS PRESENT:
Jack Jeffrey, Lobbyist, Southern Nevada Building and Construction Trades Council
Scott Young, General Counsel, Nevada State Industrial Insurance System (SIIS)
Pam Miller, Lobbyist, Associated General Contractors
Margi Grein, Director of Finance, Nevada State Contractors' Board
Terry Gilmartin, Director of Investigations, Nevada State Contractors Board
Jim Shelly, Senior Research Analyst, Employment Security Department, State of Nevada
Chairman Townsend opened the meeting, and invited Jack Jeffrey, Lobbyist, Southern Nevada Building and Construction Trades Council, to testify on Assembly Bill (A.B.) 205.
A.B. 205: Eliminates exemption of certain contractors from provisions of industrial insurance law for employees who are hired outside this state for temporary work in this state.
Mr. Jeffrey spoke in favor of the bill. Assemblyman Douglas Bache, Clark County District 11, explained the bill.
Mr. Jeffrey stated there had been a problem in the construction industry where a contractor would come in from out-of-state, where workers' compensation premiums were considerably lower than Nevada's. They had much lower costs to incorporate into their bids, and were, therefore, able to bid substantially lower. That bill would put all contractors on an even playing field.
Senator Lowden asked what happened when a worker, who was insured in another state, was injured in Nevada. Mr. Jeffrey said they would be taken care of in Nevada.
Senator Nevin asked if the bill would cover subcontractors. Mr. Jeffrey said it would cover them.
Senator Townsend explained the committee wanted to address the issue of subcontractors, and responsibilities. He stated the committee would schedule a hearing to deal specifically with those issues. Mr. Jeffrey suggested someone from the State Industrial Insurance System (SIIS), the Labor Commissioner's Office, and the Employment Security Department be present at that hearing.
Scott Young, General Counsel, Nevada State Industrial Insurance System, said a number of states, including Arizona, Colorado, and New Mexico, had revoked their reciprocity statutes. He stated there were 11 other states with reciprocity statutes in effect, but the trend seemed to be away from those statutes.
Senator Nevin asked whether, by repealing Nevada's reciprocity, the reciprocity of those 11 other states would be withdrawn from Nevada.
Mr. Young said there would be no reciprocity on construction contracts in those states, but all other businesses would be unaffected.
Pam Miller, Lobbyist, Associated General Contractors, stated her organization's support of the bill.
Senator Townsend closed the hearing on A.B. 205, and opened the hearing on A.B. 303.
A.B. 303: Authorizes state contractors' board to obtain certain information from state industrial insurance system and employment security department.
Mr. Bache testified in favor of the bill.
Margi Grein, Director of Finance, Nevada State Contractors' Board, submitted Exhibit C. She said they had requested the proposed legislation as part of their plan of attack on unlicensed contractors.
Terry Gilmartin, Director of Investigations, Nevada State Contractors' Board, stated his office had discovered various unlicensed people doing contractor activities in their communities.
Senator Lowden asked if implementing the bill would mean more money for the SIIS. Mr. Gilmartin stated he thought it would.
Senator McGinness asked if the department had so many pending cases because they were not high priority. Mr. Gilmartin stated the unlicensed contractor had high priority with their office. He said the cases pending were only pending to be processed through the district attorney's office.
Senator Townsend asked what the penalty was for practicing without a license. Mr. Gilmartin said the first offense of conviction was a misdemeanor, and the second offense of conviction was a gross misdemeanor, up to $1000 fine, and up to 6 months in jail. Senator Townsend asked if Mr. Gilmartin thought the fine should be higher. Mr. Gilmartin said he did think the fine should be higher.
Senator Nevin said a higher fine would "get their attention."
Mr. Gilmartin stated his department also had the option of using cease and desist orders. Senator Nevin suggested eliminating the gross misdemeanor penalty, and using a much higher fine to deter. Mr. Gilmartin said he would encourage that.
Senator Townsend asked Mr. Gilmartin to contact his board of directors regarding raising the fine, and report back to the committee.
Jim Shelly, Senior Research Analyst, Employment Security Department, State of Nevada, testified in favor of the bill.
Mr. Young also stated his department's support of A.B. 303. He said it would give them a needed ability to share information with the Employment Security Department.
Senator Townsend closed the hearing on A.B. 303.
As there was no further business, the meeting was adjourned at 10:45 a.m.
RESPECTFULLY SUBMITTED:
Denise Pinnock,
Committee Secretary
APPROVED BY:
Senator Randolph J. Townsend, Chairman
DATE:
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Senate Committee on Commerce and Labor
April 12, 1993
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