The Senate Committee on Commerce and Labor was called to order by Chairman Randolph J. Townsend, at 10:00 a.m., on Friday, May 21, 1999, in Room 2135 of the Legislative Building, Carson City, Nevada. Exhibit A is the Agenda. Exhibit B is the Attendance Roster. All exhibits are available and on file at the Research Library of the Legislative Counsel Bureau.

COMMITTEE MEMBERS PRESENT:

Senator Randolph J. Townsend, Chairman

Senator Ann O’Connell, Vice Chairman

Senator Mark Amodei

Senator Dean A. Rhoads

Senator Raymond C. Shaffer

Senator Michael A. (Mike) Schneider

Senator Maggie Carlton

GUEST LEGISLATORS PRESENT:

Assemblyman David E. Goldwater, Clark County Assembly District No. 10

STAFF MEMBERS PRESENT:

Scott Young, Committee Policy Analyst

John Meder, Committee Policy Analyst

Kevin C. Powers, Committee Counsel

Crystal Suess, Committee Secretary

OTHERS PRESENT:

Chairman Townsend stated S.B. 16 was returned from the Assembly with a amendment to replace "To ask or encourage a prospective or current employee or member of the labor organization to submit to a genetic test" with "Except as otherwise provided in subsection 2, to ask or encourage a prospective or current employee or member of the labor organization to submit to a genetic test." Additionally, the Assembly amendment would remove references to workers’ compensation claims, and toxic exposure in the workplace. Chairman Townsend said Scott Young, Committee Policy Analyst, Research Division, Legislative Counsel Bureau, explained the removal of references to workers’ compensation creates a technical problem, and a conference committee should be appointed to iron out the technicalities.

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Chairman Townsend opened the hearing on S.B. 181.

Chairman Townsend pointed out Assembly Amendment No. 773 removes the requirement of at least 5 years of clinical experience after obtaining a degree.

Chairman Townsend opened the hearing on S.B. 39.

Chairman Townsend opened the hearing on S.B. 451.

Chairman Townsend explained the Assembly amendment to S.B. 451 would change the required time for a civil action to be ratified by homeowners from 30 days to 90 days.

James L. Wadhams, Lobbyist, Southern Nevada Home Builders Association, testified the change was discussed among various interested parties, but he was unsure if all of the interested parties were present for the discussion. Chairman Townsend requested Senator Schneider to contact all of the parties to assure there is a consensus for the change.

Chairman Townsend closed the hearing on S.B. 451, and opened the hearing on Assembly Bill (A.B.) 64.

ASSEMBLY BILL 64: Revises provisions relating to mortgage companies and loans secured by liens on real property. (BDR 54-1204)

James R. Jeppson, CPCU, ARM, Chief Insurance Assistant, Division of Insurance, Department of Business and Industry, explained a proposed amendment to A.B. 64. The proposal is found under tab F of work session document, dated May 21, 1999 (Exhibit C). Mr. Jeppson stated it includes the following: a technical change to allow the inclusion of special deposits that foreign and alien insurance companies post with the commissioner be included in the definition of surety bond offsets allowed title insurer/agents; and the removal of the use of errors and omissions policies in the definition. He continued, the amount of the bond required for a title insurer shall not be less than $20,000 or 2 percent of the average balance in the trust account, whichever is greater. Mr. Jeppson averred this would be beneficial to small rural title insurer/agents.

Alfredo Alonso, Lobbyist, Kaufman and Broad Home Corporation, referred to tab A of Exhibit C. The proposal exempts licensing of mortgage companies under certain conditions. Mr. Alonso explained Kaufman and Broad Home Corporation is both a builder and a mortgage company, regulated by federal requirements.

L. Scott Walshaw, Commissioner, Division of Financial Institutions, Department of Business and Industry, explained tab B of Exhibit C. The suggested amendment would create a sliding scale for the amount of bond necessary for independent escrow agents, starting with a minimum bond requirement of $50,000. Following a telephone call to Larry G. Hickman, CPA, Division of Financial Institutions, Department of Business and Industry, Mr. Walshaw reported that Mr. Hickman would prefer to stay with tab B of Exhibit C as opposed to concurring with the bond proposal on tab F (Exhibit C) relating to title insurers/agents.

Pat Coward, Lobbyist, Nevada Land Title Association, declared the minimum bond requirement for title insurer/agents proposed under tab F (Exhibit C), the greater of 2 percent of the average trust account balance or $20,000, is more equitable for independent escrow agents who choose to limit their activities to loan servicing.

Chairman Townsend verified with Mr. Walshaw the premium for a bond is between 5 and 10 percent of the face amount of the bond. Mr. Walshaw suggested, if the committee is concerned about the apparent inequities between escrow agents and title insurer/title agents, placing a lower-end bond for independent escrow agents, thus giving deference to very small companies.

Kevin C. Powers, Committee Counsel, Legal Division, Legislative Counsel Bureau, said tab B needs to be revised, with graduated amounts for average trust account balances between $20,000 and $100,000.

SENATOR SHAFFER SECONDED THE MOTION.

Mr. Coward assured Chairman Townsend that actions taken by the committee today address the concerns submitted by Dale E. Puhl of Southwest Escrow Company, as outlined on tab C of Exhibit C.

Chairman Townsend reviewed tab D of Exhibit C; a proposed sliding scale for a surety bond required of construction control businesses.

SENATOR CARLTON SECONDED THE MOTION.

Chairman Townsend adjourned the meeting 11:15 a.m.

RESPECTFULLY SUBMITTED:

Cynthia Cook,

Committee Secretary

APPROVED BY:

Senator Randolph J. Townsend, Chairman

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