MINUTES OF THE
SENATE COMMITTEE ON NATURAL RESOURCES
Sixty-seventh Session
March 22, 1993
The Senate Committee on Natural Resources was called to order by Chairman R. Hal Smith, at 9:05 a.m., on Monday, March 22, 1993, in Room 224 of the Legislative Building, Carson City, Nevada. Exhibit A is the Meeting Agenda. Exhibit B is the Attendance Roster.
COMMITTEE MEMBERS PRESENT:
Senator R. Hal Smith, Chairman
Senator Dean A. Rhoads, Vice Chairman
Senator Ernest E. Adler
Senator Thomas J. Hickey
Senator Mark A. James
Senator Dina Titus
COMMITTEE MEMBERS ABSENT:
Senator Joseph M. Neal, Jr.
STAFF MEMBERS PRESENT:
Caren Jenkins, Senior Research Analyst
Rayanne Francis, Senate Committee Secretary
OTHERS PRESENT:
Fred F. Messmann, Boating Law Administrator, Nevada Department
of Wildlife
James P. Hawke VII, Director, Nevada Office of Community
Services, Governor's Office
Robert Gronowski, Director, Division of Plant Industry,
Department of Agriculture
Peter D. Krueger, Nevada Petroleum Marketers Association
Terry R. Crawforth, Deputy Director, Nevada Department of
Wildlife
Doug D. Busselman, Lobbyist, Nevada Farm Bureau
Chairman Smith opened the hearing on Senate Bill (S.B.) 117.
SENATE BILL 117: Makes various changes relating to procedures for testing persons suspected of operating watercraft while under influence of alcohol or controlled substance.
ASSEMBLY BILL (A.B.) 57: Clarifies procedure for obtaining involuntary samples of blood from certain persons suspected of driving under influence of controlled substance or alcohol.
Chairman Smith drew attention to the fact S.B. 117 had been passed out of the Senate Committee on Natural Resources on February 26, 1993. He continued by explaining the motion had been rescinded on March 15, 1993 for the express purpose of allowing the Senate Committee on Natural Resources to consider the incorporation of new language (contained in A.B. 57).
Fred F. Messmann, Boating Law Administrator, Nevada Department of Wildlife (NDOW), introduced himself to members of the committee. He referred to a handout which described proposed amendments to S.B. 117 by the NDOW (Exhibit C).
Senator Hickey asked Mr. Messmann to provide the committee with a definition of the term "force", contained on page 2, line 16 of S.B. 117. Mr. Messmann explained "force" described the process by which an impaired person was taken into custody by an officer and required to submit to a blood test for purposes of testing for intoxicating liquor or a controlled substance.
Senator Hickey asked what effect passage of S.B. 117 would have on the NDOW's current procedures and practices. Mr. Messmann explained this bill would enable an officer to require the operator of a boat (involved in a fatality or serious injury accident) to submit a blood sample for testing purposes. He stressed current procedure requires that an officer obtain a search warrant. Senator Hickey was amazed a search warrant would be required just to obtain a blood sample. Mr. Messmann agreed and clarified S.B. 117 would simplify the entire process.
If S.B. 117 were enacted, Senator Hickey asked what would be the procedure if an officer made a routine boat check and suspected the operator was impaired. Mr. Messmann explained that current law restricts an officer from requiring any driver (suspected of operating under the influence [OUI]) to submit a blood sample for testing purposes. He continued by explaining current procedures prevent an officer from using reasonable force to obtain a blood sample if the operator refuses to cooperate. Mr. Messmann clarified S.B. 117 would allow the officer to "force" the operator to submit to a blood test if a boating accident had taken place involving the death or serious injury of any other person.
Chairman Smith called for action on S.B. 117.
SENATOR ADLER MOVED TO AMEND AND DO PASS S.B. 117 AS AMENDED.
SENATOR HICKEY SECONDED THE MOTION.
THE MOTION CARRIED. (SENATORS NEAL AND TITUS WERE ABSENT FOR THE VOTE.)
* * * * *
Chairman Smith opened the hearing on S.B. 295.
SENATE BILL 295: Requires sign that advertises price of gasoline to include price of all grades of gasoline sold on premises on same sign.
Prior to the hearing, members of the Senate Committee on Natural Resources were provided with a letter from John P. Kuminecz, Commissioner, Consumer Affairs Division, Nevada Department of Commerce (Exhibit D).
James P. Hawke VII, Director, Nevada Office of Community Services, Governor's Office, introduced himself to members of the committee. He explained the Nevada Office of Community Services (NOCS) had received phone calls from residents and non-residents right after Saddam Hussein's troops invaded Kuwait. He said almost all of these callers voiced complaints concerning fuel pricing practices in southern Nevada.
Mr. Hawke described a situation where a caller said he had driven into a gas station which displayed a specific price on the street sign, only to find a much higher price on the pump. Unfortunately, the caller did not notice he was being charged a higher price until he had already filled the vehicle's fuel tank. Mr. Hawke pointed out this particular incident had taken place at a "big name" gas station owned by a private individual.
As a result of these telephone calls, Mr. Hawke said he called the Nevada Department of Agriculture, Plant Industry - Weights and Measures, to review the legal requirements of posting prices at gas stations in Nevada. As a result of reviewing existing law with the Nevada deputy attorney general, it was discovered a "loophole" existed which allowed this practice. Mr. Hawke pointed out S.B. 295 had been drafted in an attempt to correct this problem by eliminating the loophole. He stressed this bill would require each gas station to list the correct price of each type of fuel sold and the type of sale (full service or self-serve).
Mr. Hawke provided members of the committee with a copy of a proposed amendment to S.B. 295 (Exhibit E). He explained the proposed language would require a station, displaying a street sign listing fuel prices, to also indicate all types of fuel offered at the facility, as well as the type of sale.
Senator Hickey emphasized many gas stations charge a different price for credit card transactions, as opposed to cash trans-actions. He continued by saying he was aware of circumstances where a person pumped fuel into their vehicle with the distinct impression that they were going to pay $1.20 per gallon. Senator Hickey explained this was perfectly understandable, because this person saw the advertised price of $1.20/gallon displayed on the street sign and the fuel pump. However, when the individual went to pay for the fuel with a credit card, the price was increased 3 to 4 percent to cover the station's cost of accepting credit cards. He asked Mr. Hawke if this issue was addressed in S.B. 295. Mr. Hawke explained S.B. 295 did not deal with this issue. He stated most gas stations are charged approximately 3 percent by credit card companies for the ability to accept credit cards. However, he stressed most credit card agreements prevent a retailer from increasing their prices to cover the expense of accepting credit sales. Mr. Hawke encouraged Senator Hickey to pose this question to others presenting testimony on the bill.
Robert Gronowski, Director, Division of Plant Industry, Department of Agriculture, introduced himself to members of the committee. He explained he also directed the Weights and Measures Division, which is responsible for enforcing the price posting practices of gas stations in the State of Nevada.
Mr. Gronowski explained the Division of Plant Industry is responsible for patrolling approximately 2,000 gas stations on an annual basis. He continued by saying this division also handled related telephone complaints from the public.
Mr. Gronowski explained current law required that the fuel pump face accurately describe a variety of items: 1) type of fuel (unleaded, super unleaded, diesel); 2) fuel grade (87 Octane); 3) price per gallon; and 4) term of sale (cash or credit).
Mr. Gronowski explained the Division of Plant Industry often sampled the fuel and oil sold at various gas stations to ensure accuracy in advertising. He asserted division personnel also compare the posted prices to the pump prices to ensure compliance with Nevada Revised Statutes (NRS).
Mr. Gronowski drew attention to the fact the use of street signs was optional and not required by law. However, he stressed if a gas station ran out of a particular type of fuel, the price would have to be removed from the street sign.
Mr. Gronowski testified that he did not know what else could be done to protect the public, other than what was currently being enforced. He stressed most unpleasant experiences could be avoided if the person interested in purchasing fuel would con-firm the fact that the street sign price matched the pump price.
Senator Hickey inquired how many complaints the Weights and Measures Division received on a annual basis. Mr. Gronowski said the division received approximately 90 complaints each year. He clarified eight of these complaints related to the fuel advertisement displayed at the gas station.
Senator Hickey asked how many of the 90 complaints related to the street sign pricing discrepancies. Mr. Gronowski replied only eight of the 90 calls were pricing complaints. He continued by saying only three of the eight calls had any validity, and none of the calls dealt with misleading fuel prices.
Senator Hickey asked Mr. Gronowski what the remaining 82 tele-phone complaints dealt with. Mr. Gronowski explained the rest of the complaints received by the division generally related to whether the fuel was actually the stated octane level indicated on the pump, as well as the accuracy of what the pump said it pumped into the tank as opposed to what was actually dispensed.
Senator Hickey inquired how the public was aware of the fact that the Division of Plant Industry - Weights and Measures, with the Nevada Department of Agriculture, was the proper entity to contact with complaints dealing with such matters. He asked Mr. Gronowski if the Division of Plant Industry displayed signs of any kind. Mr. Gronowski explained no signs were displayed and admitted he did not know how the average person would know that the Division of Plant Industry was the proper entity to call.
Senator Hickey asked Mr. Gronowski how the three legitimate complaints were handled and what type of punishment had been meted out. Mr. Gronowski explained the offending gas stations had been required to relabel their signs with the correct prices. Senator Hickey asked if the offenders had to pay any sort of fine. Mr. Gronowski replied no fines had been issued. Senator Hickey asked if the Division of Plant Industry could issue administrative fines to violators. Mr. Gronowski explained the division could not issue fines for false price advertising, but stressed a fine could be issued for bad fuel quality.
Senator Hickey expressed his displeasure concerning the lack of ability to adequately penalize violators who misrepresented themselves through false advertising. Mr. Gronowski stated, upon notification, the three gas stations had immediately corrected the pricing discrepancies. He continued by explaining that if the owners/operators of these gas stations had refused to correct the pricing problems, the division would have cited them with a misdemeanor offense and required that they appear in court.
Peter D. Krueger, Nevada Petroleum Marketers Association, introduced himself to members of the committee. He explained this was a trade association of wholesalers in the petroleum industry. He also emphasized he was representing the Nevada Truck Stop Operators Association.
Mr. Krueger asserted both the Nevada Petroleum Marketers Association and the Nevada Truck Stop Operators Association were opposed to passage of S.B. 295. He stressed this bill was not needed due to the fact serious problems are very rare.
With regard to Senator Hickey's earlier question, Mr. Krueger commented every fuel pump should display a sticker stating that it [the pump] had been checked by the Division of Plant Indus-try - Weights and Measures. Senator Hickey said he did not dispute the accuracy of the fuel pumps, however, he did have a problem with one of the members of the Nevada Truck Stop Operators Association. He continued by explaining this truck stop was adding the 3 percent credit charge to the advertised base price of its gasoline.
Senator Hickey pointed out he was a legislator and, up to this point, had not been aware of the fact the Division of Plant Industry - Weights and Measures processed complaints relative to the subject matter. He wondered how the general public would ever know to contact this division with concerns and complaints.
Senator Hickey pointed out it would be very difficult to bring gas stations into compliance (ethically and morally) unless the state enacted adequate sanctions and administrative fines. He stressed it was also very important to notify the public that their complaints could be directed to weights and measures.
Mr. Krueger asked if Senator Hickey's concerns centered on the fact gas stations were advertising fuel at one price and charging another for credit card sales. Senator Hickey said this was correct and emphasized if a certain type of fuel was advertised at a particular price, it was ethically wrong to sell it at a different price. Senator Hickey stressed a great majority of gas stations do not misrepresent their prices, however, he was irritated that a few were able to break the rules. Mr. Krueger assured Senator Hickey that the gas stations breaking the rules would, ultimately, pay the price, because the public would discontinue doing business with them.
Senator Hickey asked Mr. Krueger how the Nevada Petroleum Marketers Association and the Nevada Truck Stop Operators Association handled the gas stations who violated the law. Mr. Krueger explained a trade association cannot dictate prices or force compliance with the law. He continued by saying the associations have ethical standards and stressed a customer should only have the pay the posted fuel price. Mr. Krueger maintained a majority of gas stations do post the 3 to 4 percent price difference between cash and credit sales. He stated both associations feel the language currently contained in statute makes this distinction and felt S.B. 295 was necessary.
Senator Hickey stressed he was merely interested in requiring gas stations to clearly post all fuel prices, including the difference between cash and credit sales. Mr. Krueger reiterated existing statute dealt with the matter appropriately. He declared the problems were created by individuals who did not pay enough attention to the type of fuel or listed price on the fuel pump.
Considerable discussion ensued on whether or not gas stations were violating the law by not advertising the difference between cash and credit sale prices. It was also debated whether or not the gas stations were adding 3 to 4 percent to their credit sale prices.
Chairman Smith closed the hearing on S.B. 295 and referred it to a subcommittee comprised of Senator Hickey. He asked Mr. Krueger, Mr. Hawke and Mr. Gronowski to work cooperatively with Senator Hickey to arrive at some kind of compromise or solution to their differences of opinion.
Chairman Smith opened the hearing on S.B. 297.
SENATE BILL 297: Authorized board of wildlife commissioners to adopt regulations prohibiting importation, transportation or possession of certain species of wildlife.
Before receiving testimony, Chairman Smith stressed this bill would be referred to the Subcommittee on Wildlife.
Terry R. Crawforth, Deputy Director, Nevada Department of Wildlife, introduced himself to members of the committee. He explained S.B. 297 had been requested by the NDOW and provided the depart-ment with regulatory authority concerning the importation and transportation of certain kinds of wildlife.
Mr. Crawforth commented the major amendment to S.B. 297 was contained in section 1, subsection 4. He explained this amend-ment clarified a portion of the authority exercised by the Board of Wildlife Commissioners and the NDOW. This amendment would empower the NDOW to become involved in regulatory concerns for certain wildlife species due to threats to public safety and/or agriculture.
Senator Rhoads encouraged Mr. Crawforth to work with the Nevada Department of Agriculture with respect to S.B. 297.
Doug D. Busselman, Lobbyist, Nevada Farm Bureau (NFB), intro-duced himself to members of the committee. He asserted the NFB would oppose passage of S.B. 297 until the issue of alternative livestock versus wildlife was resolved.
Mr. Busselman explained the NFB is very hesitant about granting the Board of Wildlife Commissioners more authority. He agreed with Senator Rhoads' earlier comment and also encouraged increased cooperation between the NDOW and the Department of Agriculture. Mr. Busselman hoped these departments could reach a consensus regarding the distinction between wildlife and livestock.
Mr. Busselman concluded his testimony by insisting the NFB had no problem with the NDOW managing wildlife. However, he admitted they have major concerns about granting the NDOW increased regulatory control over managing alternative livestock.
Chairman Smith closed the hearing on S.B. 297 and referred the bill to the Subcommittee on Wildlife.
There being no further business before the Senate Committee on Natural Resources, Chairman Smith adjourned the hearing at 9:45 a.m.
RESPECTFULLY SUBMITTED:
Rayanne J. Francis,
Committee Secretary
APPROVED BY:
Senator R. Hal Smith, Chairman
DATE:
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Senate Committee on Natural Resources
March 22, 1993
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