MINUTES OF THE

      SENATE COMMITTEE ON COMMERCE AND LABOR

 

      Sixty-seventh Session

      April 29, 1993

 

 

 

The Senate Committee on Commerce and Labor was called to order by Chairman Randolph J. Townsend, at 8:30 a.m., on April 29, 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 Ann O'Connell

Senator Mike McGinness

Senator Raymond C. Shaffer

Senator Leonard V. Nevin

Senator Lori L. Brown

 

 

GUEST LEGISLATORS PRESENT:

 

Senator Ernest Adler, Capitol Senatorial District

 

STAFF MEMBERS PRESENT:

 

Beverly Willis, Committee Secretary

Brian Davie, Senior Research Analyst

 

 

OTHERS PRESENT:

 

L. Scott Walshaw, Commissioner, Division of Financial Institutions,       Department of Commerce

Douglas E. Walther, Senior Deputy Attorney General, Attorney    General's Office

Stephen M. Baroldy, President, National Business Factors, Inc.

Rod Barbash, President, Collection Service of Nevada, Nevada       Collection Association

Richard Billman, Nevada Credico, Inc.

Jim Fitzpatrick, J. J. MacIntyre Company, Nevada Collection       Association

Don Springmeyer, Attorney

Terri Rankin, Insurance Commissioner, Department of Insurance

John P. Sande III, Lobbyist, Nevada Bankers Association

David Horton, Legal Counsel, Committee to Restore the Constitution

Robert L. Seale, Treasurer, State of Nevada

 

 

Senator Townsend opened the hearing on Senate Bill (S.B.) 406.

 

SENATE BILL 406:  Makes various changes relating to regulation of collection agencies.

 

L. Scott Walshaw, Commissioner, Division of Financial Institutions, Department of Commerce, gave a short history of why S.B. 406 was requested.  At this time Mr. Walshaw introduced Exhibit C, a memorandum noting the changes to the collection agency act.  Douglas E. Walther, Senior Deputy Attorney General, Attorney General's Office, joined in a discussion between Senator O'Connell and Mr. Walshaw to clarify various questions posed by Senator O'Connell.  Mr. Walther testified further on the reasons for certain language in this bill.

 

Stephen M. Baroldy, President, National Business Factors, Inc., and associated with Nevada Collection Association, was next to testify. Mr. Baroldy noted that his organization was unanimously opposed to this bill.  He went on to state the reasons for this opposition.  Senator Townsend had questions regarding portions of S.B. 406 in which Mr. Baroldy and his associates felt there were inequalities.

 

Answering Senator Townsend, Rod Barbash, President, Collection Service of Nevada, Nevada Collection Association, testified that certain agencies from outside the state were not subject to all the fees and licenses required of those agencies inside Nevada.  Because of this lack of equality, the out-of-state collection agencies were able to undercut pricing as opposed to in-state collection agencies.  Mr. Baroldy concurred.  Mr. Barbash went on to say his organization did feel that Assembly Bill (A.B.) 480 would be a more equitable solution. 

 

ASSEMBLY BILL 480:      Makes various changes related to collection agencies.

 

Richard Billman, Nevada Credico, Inc., came forward to testify that many other states are extremely restrictive as far as allowing out- of-state collection agencies operate in their states.  A discussion between Senator O'Connell and Mr. Billman took place regarding the advantage of using A.B. 480 as opposed to other methods in order to have an equitable situation with collection agencies. 

 

Senator Townsend then asked for a motion to introduce Bill Draft Request (BDR) 53-537.

 

BDR 53-537:Allows dissemination of information contained in records of employment security department under certain circumstances.

 

      SENATOR O'CONNELL MOVED FOR COMMITTEE INTRODUCTION OF BDR 53-537.

  

      SENATOR NEVIN SECONDED THE MOTION.

 

      THE MOTION CARRIED UNANIMOUSLY.

 

      * * * * *

 

Jim Fitzpatrick, J. J. MacIntyre Company, Nevada Collection      Association, testified expressing his views and experiences with the problems he found in the licensing process.

 

Senator Townsend then announced that A.B. 480 would go to Senator Shaffer's subcommittee.

 

Don Springmeyer, Attorney, came forward to testify.  Mr. Springmeyer noted he had questions on section 2 of S.B. 406.  Mr. Springmeyer said he felt one of the most important issues would be a responsive agency to handle situations where people are being pursued by collection agencies.  Mr. Springmeyer went on to state he felt all agencies should be licensed and if someone misbehaves, the license should be taken away and they would not be able to do business in Nevada anymore.

 

Mr. Walther responded with the information that there were provisions that would allow regulation of out-of-state companies.  Senator O'Connell,  Senator Shaffer, Senator Townsend, Mr. Springmeyer and Mr. Walther continued the discussion.

 

Senator Townsend closed the hearing on S.B. 406 and opened the hearing on S.B. 328.

 

SENATE BILL 328;  Makes various changes to provisions governing licensure and discipline of mortgage companies.

 

Mr. Walshaw opened the hearing and introduced Exhibit D, an explanation of S.B. 328.  Mr. Walshaw went on to comment on his memorandum, section by section.

 

Senator Townsend asked for an explanation of changes made, specifically in section 2.  Mr. Walther proceeded to give an explanation on section 2.  Once again, Mr. Walther testified on changes, this time on section 5.            

 

Senator Townsend closed the hearing on S.B. 328 and opened the hearing on S.B. 407.

 

SENATE BILL 407:  Makes various changes relating to licensing and regulation of escrow agencies and agents.

 

At this time, Mr. Walshaw introduced Exhibit E, an explanation of the proposed changes on S.B. 407.  Mr. Walshaw went through his memorandum section by section.

 

Senator O'Connell noted the industry was not represented and wanted to know if they were informed of the hearing on this bill.  Mr. Walshaw replied that although notification had not been made, there had been discussions within the industry at a previous time.  Senator Townsend requested that Brian Davie, Senior Research Analyst, see to it that the bill was made available to those it would affect.

 

Terri Rankin, Insurance Commissioner, Department of Insurance, came forward to testify on some specific language in S.B. 407.  This particular section deals with the possibility of an escrow agency being conducted in an insurance agency.  Ms. Rankin was not comfortable with this language and asked that it be removed.  Mr. Walshaw and Ms. Rankin continued a discussion on Ms. Rankin's concerns.

 

Senator Townsend closed the hearing on S.B. 407 and opened the hearing on Assembly Bill (A.B.) 299.

 

ASSEMBLY BILL 299:      Revises provisions governing annual meetings of stockholders of banks.

 

Mr. Walshaw again came forward to testify.  He noted A.B. 299 was submitted by the Nevada Banker's Association and that he had no objection to it.  John P. Sande III, Lobbyist, Nevada Bankers Association, gave a short explanation on A.B. 299.

 

Senator Townsend closed the hearing on A.B. 299 and opened the hearing on Senate Joint Resolution (S.J.R.) 24.

 

S.J.R. 24:  Proposes to amend Nevada constitution to permit establishment of corporate state bank.

 

Senator Ernest Adler, Capitol Senatorial District, gave an explanation of S.J.R. 24.  Senator Townsend and Senator Adler had an in-depth discussion regarding the purpose of S.J.R. 24.  David Horton, Legal Counsel, Committee to Restore the Constitution, presented Exhibit F, a statement in support of S.J.R. 24.  Further discussion ensued between Mr. Horton, Senator Townsend and Senator Adler on the merits and ways to implement this resolution.  Robert L. Seale, Treasurer, State of Nevada, Senator O'Connell, Mr. Sande, and Senator Brown joined the discussion at this time.

 

Senator Townsend closed the hearing on S.J.R. 24, by noting it would be scheduled for a work session in the very near future.

 

Senator Townsend asked for a motion on A.B. 299.

 

      SENATOR O'CONNELL MOVED TO DO PASS S.B. 299.

 

      SENATOR BROWN SECONDED THE MOTION.

     

      THE MOTION PASSED UNANIMOUSLY.

     

      * * * * *

 

Senator Townsend then asked for a motion on S.B. 328.

 

      SENATOR O'CONNELL MOVED TO DO PASS S.B. 328.

 

      SENATOR LOWDEN SECONDED THE MOTION.

 

      THE MOTION PASSED UNANIMOUSLY.

     

      * * * * *

 

Next, Senator Townsend asked for a motion for committee introduction on BDR 53-901.

 

BDR 53-901:Revises provisions concerning conditions of eligibility for unemployment benefits to comply with federal law.

 

      SENATOR SHAFFER MOVED FOR COMMITTEE INTRODUCTION OF BDR 53-901.

 

      SENATOR O'CONNELL SECONDED THE MOTION.

 

      THE MOTION PASSED UNANIMOUSLY.

 

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

April 29, 1993

Page 1