The Senate Committee on Judiciary was called to order by Chairman Mark A. James, at 8:30 a.m., on Thursday, February 18, 1999, in Room 2149 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 Mark A. James, Chairman

Senator Jon C. Porter, Vice Chairman

Senator Mike McGinness

Senator Maurice Washington

Senator Dina Titus

Senator Valerie Wiener

Senator Terry Care

STAFF MEMBERS PRESENT:

Silvia Motta, Committee Secretary

OTHERS PRESENT:

Chairman James opened the hearing with introduction of Bill Draft Request (BDR) 3-818.

BILL DRAFT REQUEST 3-818: Authorizes person licensed as process server to serve writ of garnishment. (Later introduced as S.B. 212.)

SENATOR PORTER MOVED FOR COMMITTEE INTRODUCTION OF

BDR 3-818.

SENATOR McGINNESS SECONDED THE MOTION.

THE MOTION CARRIED UNANIMOUSLY.

* * * * *

Chairman James opened the hearing on Senate Bill (S.B.) 62.

Alan B. Rabkin, Senior Vice President, General Counsel, Nevada Bankers Association, presented the committee with a revision list which included S.B. 62 (Exhibit C). He indicated, the secretary of state’s office had reviewed S.B. 62 and has agreed to some procedural changes. He pointed out that generally no substitutions were made, and very few deletions. Mr. Rabkin continued, the suggested goal to have the secretary of state’s office handle filings within 3 days was made based on other states having a serious backlog problem with filings. He said, however, our secretary of state has a policy of timely filing; therefore, it was agreed upon not to include such a measure in this bill.

Chairman James inquired about the proposed effective date of July 1, 2001, and the pre-testing development. Mr. Rabkin explained that in part to stay in conformity with other states, it was decided to adopt the July 1, 2001 effective date. In addition, if there were any last minute changes, there would be an option to make more changes during the 2001 Legislative Session, in order not to disrupt the filing practice. He called attention to item No. 1 of Exhibit C, the proposed global change from "local law" to "the law of the State of", and the change of the effective date from January 1, 2001 to July 1, 2001.

Mr. Rabkin continued his testimony by stressing the importance of pretesting in the event of someone filing under the existing law between now and July 1, 2001. The secretary of state’s office needs to be able to use the alternate system prior to its effective date.

Senator Wiener questioned if the proposed revision to page 74, line 15 of S.B. 62, as outlined in Exhibit C, was changed from "weekly" to "periodically" as a recommendation from the secretary of state. Mr. Rabkin explained the "sell list" of debtors and secured parties is an informational list which can be sold to members of the public who might use it to sell credit-type insurance, other services, or publicly disclose debtors of this state. Therefore, approximately once a month in accordance with the index and filing system, the list is offered to the public.

Scott W. Anderson, Deputy Secretary, Commercial Recordings Division, Office of the Secretary of State, also replied that under the present law there are time limits to process filings. He said once electronic filing is available, the index will be updated more frequently, and then the list would be available weekly.

Mr. Anderson confirmed the agreement between Mr. Rabkin and the Office of the Secretary of State were effective amendments, suitable for all parties interested. Mr. Anderson established there would be a minimal fiscal effect including staff training and computer programmers. He told the committee that it is possible the system would be up and running by July 1, 2001.

There being no further testimony on S.B. 62, Chairman James closed the hearing on S.B. 62 and accepted a motion to amend and do pass.

SENATOR WIENER MOVED TO AMEND AND DO PASS S.B. 62.

SENATOR PORTER SECONDED THE MOTION.

THE MOTION CARRIED. (SENATOR TITUS WAS ABSENT FOR THE VOTE.)

Chairman James opened the hearing for a work session, and introduced S.B. 116.

Chairman James explained that this bill did not have support from the committee when it was heard. He requested a motion for indefinite postponement.

Senator Porter referred to the subcommittee recommendations regarding S.B. 121, Work Session Document, Senate Committee on Judiciary, dated February 18, 1999 (Exhibit D). He stressed that some of the changes would not have an effect on Washoe County or the rural counties.

Chairman James inquired about the changes that would only affect Clark County. After general discussion, he recommended holding S.B. 121 until the next work session to clarify which changes would have a statewide effect.

Chairman James closed the work session on S.B. 121 and opened the work session on S.B. 157.

Chairman James referred to the proposed amendment outlined in Exhibit D, and requested a motion.

SENATOR PORTER MOVED TO AMEND AND RE-REFER S.B. 157 TO THE COMMITTEE ON FINANCE.

SENATOR TITUS SECONDED THE MOTION.

THE MOTION CARRIED UNANIMOUSLY.

* * * * *

The committee then considered S.B. 172.

Chairman James recalled that in a previous hearing multiple witnesses testified against S.B. 172, but no one had appeared in favor of the bill. Senator Titus suggested to indefinitely postpone the bill and not bring it back later in session on an emergency waiver.

SENATOR TITUS MOVED TO INDEFINITELY POSTPONE S.B. 172.

SENATOR WEINER SECONDED THE MOTION.

THE MOTION CARRIED UNANIMOUSLY.

* * * * *

The work session continued with S.B. 173.

Chairman James referred to proposed amendments outlined in Exhibit D including the effective date, which will become effective upon passage and approval of this bill.

SENATOR WIENER MOVED TO AMEND AND DO PASS S.B. 173.

MOTION SECONDED BY SENATOR CARE.

THE MOTION CARRIED UNANIMOUSLY.

* * * * *

There being no further business before the committee, Chairman James adjourned the meeting at 9:15 a.m.

RESPECTFULLY SUBMITTED:

Silvia Motta,

Committee Secretary

APPROVED BY:

Senator Mark A. James, Chairman

DATE: