MINUTES OF THE
SENATE COMMITTEE ON COMMERCE AND LABOR
Sixty-seventh Session
June 10, 1993
The Senate Committee on Commerce and Labor was called to order by Chairman Randolph J. Townsend, at 9:30 a.m., on Thursday, June 10, 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
STAFF MEMBERS PRESENT:
Denise Pinnock, Committee Secretary
Brian Davie, Senior Research Analyst
OTHERS PRESENT:
Frank MacDonald, Commissioner, Labor Commission, State of Nevada
Erik Joseph, Assistant Director, Division of Motion Picture and Television, Commission on Economic Development, State of Nevada
Lois Kelly, Investigator, Labor Commission, State of Nevada
Bob Chapman, Classic Models
Gaya Trombley, President, Convention Ease
Valerie Coplin, President/Owner, Vegas Entertainment International
Gae Chalker, President, Las Vegas Models
Richard Weber, Vice President/Marketing, Lenz Agency
Marjorie Noble, Casting Director, Nevada Casting Group, Inc.
Bob Ostrovsky, Lobbyist, Nevada Resort Association
Brian Harris, Legal Counsel, Governor's Office, State of Nevada
Donny Loux, Chief, Planning, Research and Program Development, Rehabilitation Division, Department of Human Resources, State of Nevada
Ron Malcolm, Coordinator, Governor's Task Force on Hearing Aid Practices
Theresa Gregory, Self Help For Hard of Hearing People
Ernie Fuller, Nevada Relay Advisory Committee
Tom Rainford, Secretary/Treasurer, Nevada State Board of Hearing Aid Specialists
Tom Morris, Nevada Hearing Service
Senator Townsend called the meeting to order. The first item of business was Senate Bill (S.B.) 487.
SENATE BILL 487: Makes various changes relating to regulation of talent agencies.
Senator Brown explained the difference between an employment agency and a talent agency. She gave a section-by-section explanation of the bill. Senator Brown submitted a letter from Frankie Sue Del Papa, Attorney General, State of Nevada (Exhibit C), stating her support for the bill, and a packet of letters from talent agents with mixed feelings about the bill (Exhibit D).
Senator Lowden asked how a time constraint of 45 days would work. She wondered what would happen if the agency itself did not get paid inside of 45 days. Senator Brown said if there was a law in Nevada stating the talent had to be paid within 45 days the agents could tell the clients that payment within that time frame was mandatory.
Senator Lowden then asked how the time card system would work. Senator Brown explained the talent is given a piece of paper which someone on the job initials.
Senator O'Connell asked why the Labor Commission would be involved instead of the Tax Division, which does most of the audits for businesses. Frank MacDonald, Commissioner, Labor Commission, State of Nevada, said the fiscal note the Labor Commission submitted is for an auditor who would investigate and audit complaints in the Las Vegas area. He explained investigation in this field has traditionally been conducted by the Labor Commission.
Erik Joseph, Assistant Director, Division of Motion Picture and Television, Commission on Economic Development, State of Nevada, submitted information on laws in different states regarding talent agencies. (Exhibit E. Original is in the Research Library.)
Senator Townsend asked if there is a prohibition against receiving a fee from both the agency and the client in any other jurisdiction. Mr. Joseph said he is not aware of any.
Lois Kelly, Investigator, Labor Commission, State of Nevada, said that under Nevada Revised Statutes (NRS) 611 an employment agency, which includes talent and booking agencies, cannot charge both an employer and an applicant.
Senator Townsend pointed out that the definition of talent in the proposed bill would encompass prostitutes. Senator O'Connell added that Amway dealers, store demonstrators, and Avon ladies would also be covered. Ms. Kelly said she did not realize all those occupations would be included.
Senator Brown stated that if an Avon salesperson did not employ an agent to book her into people's homes nothing in the bill would affect her. She said she would consider an amendment to exclude prostitution.
Senator Nevin agreed with Senator O'Connell that the proposed definition would include many professions. He stated the Labor Commission would need to add more staff to make sure the statute was being enforced, because "once you let one go you set a precedent, and then you'll be challenged."
Senator Townsend asked Mr. Joseph what the biggest complaints are about this area. Mr. Joseph said that would be unlicensed agents.
Senator O'Connell stated it sounded like the bill was going after the wrong people. She said the people who are established in our state are not the people who should be targeted. Senator O'Connell suggested a temporary licensing requirement to ascertain compliance by out-of-state agents.
Mr. Joseph stated out-of-state businesses are currently required to be licensed.
Ms. Kelly submitted a list of proposed amendments (Exhibit F).
Senator Townsend explained the individual amendments would be considered in subcommittee.
Bob Chapman, Classic Models, expressed "violent opposition" to the passage of S.B. 487. He said the industry had only become aware of the bill 10 days prior to the hearing. Mr. Chapman commented on the fact that there is no "enforcement arm." He explained how talent agencies recognize unlicensed talent at shows. He said it is very difficult to get any action when they try to turn in such persons to the authorities. His concerns are outlined in Exhibit G.
Gaya Trombley, President, Convention Ease, submitted written testimony (Exhibit H) in opposition to the bill.
Valerie Coplin, President/Owner, Vegas Entertainment International, addressed the difference between independent contractors and employees (Exhibit I).
Senator Shaffer asked whether talent agencies make sure their independent contractors are abiding by state guidelines and paying into the Nevada State Industrial Insurance System. Ms. Coplin said that they are aware of the requirements, but do not have the policing staff to make sure every independent contractor has the required insurance and licensing.
Gae Chalker, President, Las Vegas Models, agreed that it is time to move talent agencies out of the employment agency regulations, but feels the 45 day limit for payment is unreasonable.
Richard Weber, Vice President/Marketing, Lenz Agency, stated his concerns regarding the regulation of fees (Exhibit J). He said the industry has always been market driven and works just fine.
Marjorie Noble, Casting Director, Nevada Casting Group, Inc., stated her company's opposition to the bill. She said the bill helps no one and hurts everyone.
Bob Ostrovsky, Lobbyist, Nevada Resort Association, expressed his organization's concerns about the bill: The fact that the bill does not exempt employers from needing to be licensed as talent agents, and the restrictions on commissions.
Senator Townsend closed the hearing on S.B. 487 and opened the hearing on Assembly Bill (A.B.) 300.
ASSEMBLY BILL 300: Makes various changes to provisions governing hearing aid specialists.
Brian Harris, Legal Counsel, Governor's Office, State of Nevada, explained that late last year the Governor had started receiving complaints from hard of hearing persons regarding hearing aid dispensers. The Governor formed a task force to look into those complaints. Mr. Harris submitted a copy of the findings of that task force. (Exhibit K. Original is in the Research Library.)
Donny Loux, Chief, Planning, Research and Program Development, Rehabilitation Division, Department of Human Resources, State of Nevada, introduced Ron Malcolm, Coordinator, Governor's Task Force on Hearing Aid Practices.
Mr. Malcolm said his experience in dealing with dispensing audiologists has always been good, and he wished everyone's experience had been the same. He submitted written testimony along with a letter to the Governor from Stephen C. McFarlane, the chairman of the task force (Exhibit L).
Senator Townsend thanked Mr. Malcolm for his testimony and stated the bill would go to the subcommittee chaired by Senator Shaffer.
Theresa Gregory, Self Help For Hard of Hearing People (SHHH), submitted a newsletter from her organization (Exhibit M), an overview of the task force report (Exhibit N), and letters from the Nevada State Board of Hearing Aid Specialists (Exhibit O).
Ernie Fuller, Nevada Relay Advisory Committee, stated this is a case a few bad apples, not the industry as a whole. Most audiologists already, voluntarily, do the things the task force is advising.
Tom Rainford, Secretary/Treasurer, Nevada State Board of Hearing Aid Specialists, wanted to explain why the board had been inactive.
Senator Townsend asked whether the amendments Mr. Fuller proposed along with the recommendations of the task force would address the problems consumers have brought forward. Mr. Rainford said some of the recommendations would address those complaints, but stated he has not seen the amendments Mr. Fuller is proposing. Mr. Rainford asserted that SHHH had not been trying to work with the board. He also stated the board has to act under a 60 day constraint on complaints. If the consumer waits longer than 60 days the board cannot act on their behalf.
Tom Morris, Nevada Hearing Service, suggested the main emphasis should be on reconstituting the board.
Senator Townsend asked all interested parties to remain in the meeting room to work on amendments everyone could agree to. There being no further business the meeting was adjourned at 11:20 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
June 10, 1993
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