The Senate Committee on Transportation was called to order by Chairman William R. O'Donnell, at 1:43 p.m., on Tuesday, February 16, 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 William R. O'Donnell, Chairman

Senator Mark Amodei, Vice Chairman

Senator Lawrence E. Jacobsen

Senator Maurice Washington

Senator Raymond C. Shaffer

Senator Valerie Wiener

Senator Terry Care

GUEST LEGISLATORS PRESENT:

Senator Alice Constandina (Dina) Titus, Clark County Senatorial District No. 7

STAFF MEMBERS PRESENT:

Sandy Arraiz, Committee Secretary

Joan Moseid, Committee Secretary

OTHERS PRESENT:

Robert A. Ostrovsky, Lobbyist, 3M Corporation

Ralph W. Juvinall, Lobbyist, Traffic Control Materials Division, 3M Corporation

Raymond C. McAllister, Lobbyist, Professional Firefighters of Nevada

Chairman O’Donnell announced two of the committee’s members had to leave to testify in another committee, but there would still be a quorum after their departures. He opened the hearing on Senate Bill (S.B.) 35.

Senator Alice Constandina (Dina) Titus, Clark County Senatorial District No. 7, told the committee S.B. 35 was a bill brought to her by Mr. Beckford, an elderly constituent who is also a student. The bill made so much common sense that she wanted to sponsor the bill. She related that Mr. Beckford explained parking permits for the disabled allow the disabled people to park in a spot reserved for the handicapped which is fairly close to a building. However, once disabled people enter a building they may face waiting in a long line to accomplish their business, which presents another problem. She said Mr. Beckford suggested that when people apply for license plates for the disabled, they could also get a card that would entitle them to go to the head of the line. Senator Titus clarified the bill could only apply to state and perhaps local agencies, but it would serve as a means of encouraging the federal government and private business to honor such cards. She felt sure the public would not mind allowing disabled people to go to the front of the line in most circumstances.

Senator Titus went on to say it would be nice if all disabled people could apply for this card, even if they do not own a car. She does not want to put an additional burden on the Nevada Department of Motor Vehicles and Public Safety (DMV&PS) by mandating the department assess, evaluate and issue cards to all disabled people. Senator Titus suggested the cards be limited to those who get license plates designated for the disabled. Senator Titus asked the committee to amend the bill to authorize the department to give every person applying for handicapped license plates a wallet-sized card to allow them to go to the head of the line.

Chairman O’Donnell asked Senator Titus whether she was asking the committee to amend her bill. Senator Titus explained that right now the bill states anyone may apply for the card. By leaving the applicant field so wide open, the department might be over-burdened and it would cost too much money. She suggested the program start small by issuing cards only to those applying for license plates for the handicapped.

Chairman O’Donnell recalled that last session Senator Mark A. James, Clark County Senatorial District No. 8, had a bill introduced which allowed the DMV&PS to certify people as permanently handicapped. This would alleviate them from having to keep getting doctor’s certificates declaring them handicapped each time they needed to get license plates or permits for the handicapped.

Senator Titus opined that if a person qualified for a license plate or a parking permit for the handicapped, they would also qualify for a card for the handicapped. This card would identify the cardholders as permanently disabled and they would not have to keep returning to DMV&PS for authorization to go the head of the line. Senator Titus added she would like something in the bill that stated that the private sector is encouraged to recognize these cards, also.

Pete English, Chief, Registration Division, Department of Motor Vehicles and Public Safety, said the department takes no position on this bill. He added the department wanted a couple of amendments to the bill. Mr. English said that one amendment relates to the issue of permanent identification cards. He agreed with Senator O’Donnell’s statement that the law now reflects that those with permanent disabilities do not have to present themselves at the DMV&PS as frequently as before; however, he added, they still must appear every 2 years for recertification. Mr. English explained that is a federal requirement under the Americans with Disabilities Act of 1990 (ADA). He wanted the expedited service permit to have the same conditions.

Chairman O’Donnell asked how many placards have been issued. Mr. English replied that approximately 70,000 handicap placards have been issued statewide.

Chairman O’Donnell asked how many of the placards issued have permanent status. Mr. English was unable to give a number. Chairman O’Donnell asked whether any permanent placards have been issued. Mr. English replied in the affirmative.

Chairman O’Donnell voiced concern that many disabled people are not cognizant of the permanent handicapped stickers. He stated he would hate to have them go into the DMV&PS to request a line card without a permanent identification card and be turned down.

Mr. English stated it is the department’s intention that all applications would be processed through the same center, which could ensure they also have the handicap placard or handicap license plate, and vice versa.

Chairman O’Donnell wanted to be assured DMV&PS would follow through. Mr. English assured department personnel would be instructed to do so.

Chairman O’Donnell asked whether DMV&PS foresees any problems with the bill. Mr. English said there is a fairly hefty fiscal note attached to the bill. He related it would be expensive to create the new identification card.

In response to Chairman O’Donnell’s incredulity at a large fiscal note, Mr. English explained creation of the identification card would require digitized photo imaging. Estimated cost for the first year is $231,000 and $246,000 for the second year.

Chairman O’Donnell maintained the cost seems too high. Mr. English related this card would go through the same process as that of the Nevada identification card or a driver’s license card. He said the card would have security features, a header bar, etc.

Senator Titus asked whether the amount contained in the fiscal note is estimated for how many applications are anticipated, or if the money amount only includes those who currently get handicap license plates. Mr. English stated the fiscal note was based on 70,000 applications.

Senator Wiener asked whether some type of paperwork could be completed when people applied for handicap license plates that would give them the option to apply for the line card. She said, if there were, it could reduce the cost substantially.

Mr. English responded that the option could be made available. He added that the fiscal note was based upon the assumption 70,000 line cards would be issued.

Senator Titus said she was looking at the fiscal note budget and noted 70,000 renewal postcards, 70,000 data cards, 70,000 return envelopes, and 70,000 window envelopes. She felt sure that DMV&PS could operate the process for much less money. Senator Titus suggested combining some of the mailings to save money.

Chairman O’Donnell asked Mr. English to prepare a more realistic fiscal note and bring it back to the committee.

Chairman O’Donnell closed the hearing on S.B. 35 and opened the hearing on S.B. 65.

Senator Lawrence E. Jacobsen, Western Nevada Senatorial District, presented some historical background on the yellow license plate. He related that he and Hale Bennett, a former chief of the Drivers’ License Division of the Department of Motor Vehicles and Public Safety (DMV&PS), realized there was a problem due to the many different special license plates in circulation, but the yellow license plate was necessary because of the volunteer firemen and volunteer ambulance crews in the rural areas. He explained that in most of the rural areas, volunteer firemen are not close to the fire station and must respond directly to the fire scene. He continued there were times upon the occurrence of a traffic accident or some kind of emergency, when the volunteers could not get to the scene because the volunteer had no visible authority to enter the area.

Senator Jacobsen said the highway patrol personnel would stop unauthorized vehicles from entering the scene. He stated the yellow plate solved the problem as it was recognized and honored by highway patrol personnel and others in law enforcement. Senator Jacobsen conveyed the yellow plate has been used successfully for a number of years. He said the plates were issued to the volunteers by the fire department and could be removed for cause. He added the plate was free to the volunteer. Senator Jacobsen related that it was recently brought to his attention that the plate has no authority under the law.

Senator Jacobsen displayed several different license plates that have been issued to designate special events and groups. He reiterated how important it is to have plates that identify volunteers so they are not stopped before they can reach the scene. Senator Jacobsen related he had received a letter from an emergency medical technician (EMT) in Winnemucca who felt EMTs should be issued yellow plates, too. Senator Jacobsen could see no reason the bill could not be amended to indicate that if a first responder, EMT, etc. needs an identification plate, one could be issued. He added that the plates should still be monitored by the fire chief to ensure control of plate issuance. Senator Jacobsen explained that with the passage of this legislation the procedure would stay the same. The fire chief would send written confirmation to the DMV&PS the plate had been issued and to whom. Senator Jacobsen added the plates have been discussed with DMV&PS personnel, who have suggested some amendments to the bill. Senator Jacobsen stated he has read the proposed amendments and does not like the wording that allows the DMV&PS to charge a fee for the issuance of the yellow plates. He felt anyone who volunteers his or her time and effort is entitled to a free yellow license plate.

James W. Riggs, Sr., Lobbyist, Concerned Citizen, said he has had practical experience with the problem. He stated when he first came to this community, within 3 months he became a member of the volunteer fire department in Truckee Meadows when Frank Hagan was chief. He used his own vehicle to respond to fires, because in those days they did not have much equipment. He related he has been stopped by the highway patrol from as far away as a half mile from the fire, and had to argue that he was one of the volunteer firefighters and had to get to the fire. Mr. Riggs stated that in later years he purchased a pickup truck that could hold a so-called slide-in unit which contained a 100 gallons of pressurized water that could be discharged at 28 pounds per minute, which is not much but works well for grass fires. It became a fast vehicle to appear on the scene. One of the Truckee Meadows fire chiefs copied the idea and obtained some pickups with slide-in units made up because they are fast, quick, and more maneuverable than the big fire trucks.

Mr. Riggs continued that manpower has always been a key problem in controlling fires. He emphasized he supported the special license plate, stating in particular the yellow background with blue lettering would be very identifiable. Mr. Riggs conveyed it was very important to get to a fire as quickly as possible, and this license plate would greatly aid in that goal. He claimed most local sheriffs know the volunteer firefighters, but the highway patrol is not as familiar with everyone in a particular area. He noted there was repetition in the bill under section 1, subsection 2 and subsection 3, paragraph (a); both these statements are saying practically the same thing. He concluded that this special permit would greatly improve fire service everywhere and urged to passage of the bill.

John Holmes, Concerned Citizen, stated that he along with Senator Jacobsen and Hale Bennett, got this idea going from personal experience in being prevented from attending fires. He said he brought in his vehicle that he has been running for the last 16 years, and that is how the license plate is typically displayed, one over the top of the other. Mr. Holmes said he and Senator Jacobsen met with DMV&PS representatives about the bill and the volunteers’ needs. The DMV&PS in turn gave the bill to the Legislative Counsel Bureau (LCB). He mentioned what was discussed and what the LCB bill drafter produced hardly had any correlation.

Mr. Holmes stated he prepared a handout with revisions to S.B. 65 that is greatly simplified (Exhibit C), which takes the responsibility away from DMV&PS. He said the proposed amendments simply codify what has been in operation for the past 16 years. It is up to the volunteer chief to design the plate. The plate is to be identified as the property of the fire department with a phone number on it, should the plate be lost. He said that last detail is not specifically in the bill but is generally covered in section 1, subsection 3. He said in subsection 2 all DMV&PS has to do is issue a piece of yellow metal. The individual fire departments then have the responsibility to put their logo and numbering on it, and to police its use.

Mr. Holmes noted that when this thing first started, law enforcement was a little nervous about how this was going to work. He continued that for the last few years the highway patrol and sheriff’s departments received a list of volunteers with a description of each volunteer’s vehicle, license plate number, and the yellow plate number. After a couple of years, they knew the purpose of the yellow plates, and discontinued use of the list because there had not been any problems. Mr. Holmes added that he did not want DMV&PS to have any bookkeeping problems. He said each fire chief would manage the use of the yellow plates. He noted that 16 years ago Hale Bennett issued 100 of these plates, and the fire departments have used 83 so far. He stated that DMV&PS still has a number of yellow plates, so there would no concern about production right now. He elucidated the intent of the legislation is to get the plates into the statutes as a recognized means of identifying volunteer firefighters.

Senator Wiener inquired how it would be enforced to get plates back from people who are no longer volunteer firefighters. Mr. Holmes responded that to his knowledge there has never been a problem. It would be in the same category as the return of all turnout equipment the department initially issued the volunteer, which is kept on file in written form.

Jim Reinhardt, Fire Chief, East Fork Fire and Paramedic District, Douglas County, said he can address the question. He said the fire district administers this program in Douglas County for ten departments. When a new member is issued a plate, the plate is numbered, and the license plate and vehicle identification number (VIN) of the vehicle to which the plate is permanently attached is recorded. If the plate is not permanently attached to the vehicle, it is not recognized by law enforcement people as being a legitimate entry into an incident scene. He maintained East Fork Fire and Paramedic District would like to continue that practice of district-maintained records of each plate that goes to each department and each member that has a plate. He said as members move on or retire, depending how long they were active, the department may give that person the plate to hang on their wall as a token of appreciation for their years of service. He said East Fork has 270 volunteers they administer, and up to this point there have been no problems. He said volunteers are very possessive of their equipment, and if a person leaves without returning their equipment, the other volunteers will make sure that person does; even to the point of going to southern California to get the equipment and plate back. Chief Reinhardt emphasized the fire department has done a good job of policing the use of the plates, and would like to make it a legitimate part of the operation so we can continue with the program. He said the district covers over 620 square miles and only 15 firefighters are paid; the rest of the firefighters consist of 270 volunteers.

Senator Wiener wanted to know how many volunteer firefighters operate in Nevada. Chief Reinhardt responded there are approximately 2,500 volunteer firefighters around the state. For example, there are 36 volunteer departments in Elko County, 13 in Washoe County, 1 in Carson City, and 11 in Douglas County. As for the rest of the state, he said he did not have those figures with him.

Senator O’Donnell wanted to know when responding to fires, do the volunteers turn on their vehicle’s emergency signals. Chief Reinhardt stated emergency signals on private vehicles are not allowed in Nevada. He stressed that often the volunteer is in their vehicle when emergency calls come through and the fire engine has already responded. The volunteer needs to go directly to the scene, and that is usually in a personal vehicle. This happens a lot with automobile accidents, and the plate helps identify the volunteer so he can get to the scene and give assistance. He illustrated that 20 years ago his wife, a volunteer, was stopped by law enforcement. When the call came through from the Carson City Sheriff’s Department, they said they had some blond in a Cadillac claiming she was a fireman. He said back in those days that seemed far-fetched, and she was very upset that she was not allowed to respond. He said that was one of the main reasons the plate program was started. He stressed the plates solved the problem, and to this day the department’s volunteers do not have a problem.

Senator O’Donnell stated other officers who have been trained in emergency response usually respond to a red flashing light. He wondered if the department considered the volunteers having one to put on the roof of their vehicles when responding to a call.

Chief Reinhardt stated he did not think that was necessary. He stated it would open the door for possible abuse. In his experience, the yellow plate is getting the job done, stays within the state statutes, and keeps the liability impact to a minimum. He emphasized what is being proposed is to legitimize a system where a volunteer who is responding to a scene can get through a law enforcement roadblock in a safe manner and with little delay.

Chairman O’Donnell closed the hearing on S.B. 65 and opened the hearing on S.B. 67.

Senator Valerie Wiener, Clark County Senatorial District No. 3, read from prepared text (Exhibit D) in support of the bill for special license plates. She pointed out that efficiency in government and appropriate use of taxpayer money is what the public expects of their representatives. She noted that in the past five legislative sessions, 28 special license plate bills have been introduced. She pointed out the number of staff, amount of time, and the legislators that are required to be involved for each piece of legislation. She said proponents have worked with LCB staff for several months, researching how other states work with special license plates, and have included the most successful of those provisions in S.B. 67. She observed that since DMV&PS already has jurisdiction over license plates, the bill should create minimal agency impact. Senator Wiener emphasized this bill will represent efficient use of the 120-day limited session while providing a service to the consumers of Nevada.

Chairman O’Donnell asked the senator to tell the committee exactly how the bill would work. Senator Wiener stated the bill would cause minimal change at the DMV&PS. She said the main difference is DMV&PS would take on the hearing process of working directly with the public. She said one of the main changes to the law is that it would require 50 signatures to get a hearing for a bill and 250 applications before the plate would be issued. There is a 4-year time limit to acquire those commitments. The discretion is outlined as to what the criteria are for determining appropriate plates. She said on page 2, line 3 it says what the plate can include; and what kinds of things they would look for to be in good taste, and make an appropriate plate to be on the road. The bill also allows the proponents to set up a special fund to raise money for specific causes and organizations as a fund-raiser. That fund would be established and maintained separately. There is a provision for returning the plates. Fee guidelines are also laid out in the bill. She said that DMV&PS has some questions regarding the funding of the special plates and the accompanying accounting.

Senator Washington inquired whether there would be an appeal process should a request be denied. Senator Wiener replied that it is not built into this legislation, and the current law does not have an appeal provision either.

Senator Jacobsen noted a big consideration in special plates is the cost of the die. He said it is not cost-effective to buy a die for around $500 and then only sell ten plates. He stressed they have tried over the years to make sure the plate proponents come with a reasonably good idea of how many plates would be sold. He noted the Lake Tahoe plate has been a successful plate. He suggested to Chairman O’Donnell that it would help to show all the plates that have been issued to date as an aid to the consumer in preparing their programs and plate designs.

Senator Jacobsen continued that Senator Rhoads has a request for a Future Farmers of America (FFA) plate. He observed that most people do not know anything about this organization. He commends the FFA members for their youthful enthusiasm, but believes they should look into it further.

Chairman O’Donnell agreed the committee spends an inordinate amount of time each session on the subject of special license plates. This bill would essentially shift the responsibility to DMV&PS. He said he was not adverse to having special license plates for special organizations if it develops revenue for DMV&PS and for the organization. He wondered if the bill had something regarding people asking for a certain dollar amount for the license plates as a fund-raiser.

Senator Wiener responded there are specific criteria and standards the requester must meet. The requester would have to present just reasons for wanting to raise funds for their organization through a special license plate; and a special account would be established through the state to be specifically earmarked for that organization.

Senator Washington said he agreed with the basic premise of the bill, but for his own corporate level he thinks there should be a mechanism in the bill that will allow an organization to have an appeal process going back to the legislative body, if so deemed. He said he was not sure what criteria would trigger that mechanism. It could say it was denied and the reasons why, and include the committee review to either grant or deny the request for a special license plate. He said he would leave it up to LCB to develop the appropriate language.

Senator Wiener wondered if this committee had the authority to be an adjudicatory body.

Paul Mouritsen, Committee Policy Analyst, Research Division, Legislative Counsel Bureau, stated the usual process of appeal of and administrative decision is to go through the administrative procedures act, and then ultimately appeal to the court if the agency has violated the law or has acted capriciously. The Legislature would not be in the direct line of appeal, but could go ahead and create special plates even after this, if they wish.

Chairman O’Donnell stated the committee normally has hearings on license plate bills and requests go through both houses. He indicated he would have no problem in appealing back to the Legislature if the requester is turned down.

Bruce Glover, Deputy Director, Motor Vehicles, Department of Motor Vehicles and Public Safety, said the DMV&PS is in support of S.B. 67. He stated that it is a bill that can help the Legislature as well as DMV&PS in doing a standardized approval of special license plates. He said this would probably be one of several special plate bills that will come before the Legislature this session. Mr. Glover indicated the bill has a trigger of 50 people plus 250 signatures before the plate would be issued. He said nowhere in DMV&PS’s budget is there money to manufacture the special plates. He noted some of the issues are that the 250 interested people pay in advance to cover production costs, and the money is deposited into a special plate fund. He remarked that would be applicable to all the special license plates. Mr. Glover articulated as a result of last session’s approval of the popular Lake Tahoe plate, DMV&PS exceeded their budget and there was no money to produce the firefighters’ plate. He stated DMV&PS has taken a stand that before they take on special projects, funding for the special project will be identified first.

Mr. English stated that currently the license plate factory operates out of a budget funded through the state Highway Fund. It is through the state legislatively approved budget process. He said the manufacture of all license plates is created through that budget process, and special license plates that are approved have to come out of that funding. He noted there are currently 15 requested plates; 4 have the required 250 or more signatures needed for production.

Mr. English stressed the critical issue is funding, which they do not have. He explained the cost to produce a standard-issue Nevada license plate is approximately 55 cents per plate. Specialized plates are generally short production runs, and depending on the color scheme of the plate, the production costs can run from $1.12 to $1.46 per plate for up to four colors, so it becomes an expensive proposition when getting into the multi-colored specialized plates. He told the committee the license plate factory receives no funding for its operation, outside of the executive budget. Mr. English communicated DMV&PS would like to propose an enterprise account where funding for the production of special plates goes directly to the license plate factory instead of to the Highway Fund; and thus provides the funding mechanism whereby special plates can be produced.

Senator Washington stated the committee has a pretty good idea of how the funding works, and what the committee needs to do is amend the bill so DMV&PS can pay as they go. Mr. English affirmed that was correct. What the DMV&PS needs is a mechanism whereby the funding perpetuates the production of the specialized plates, but the funding has to be created in such a way as to go directly to the license plate factory, and not to the Highway Fund.

Senator Amodei clarified that what is being discussed is an accounting mechanism, not necessarily a pronouncement on whether or not specialized plates do or do not pay for themselves. Mr. Glover commented that many times the DMV&PS denies requests whether it is a business license, drivers’ license or registration; and the requester has the right to appeal through the Administrative Procedures Act chapter 232B of Nevada Revised Statutes (NRS). He said he liked Chairman O’Donnell’s idea where they could have one appeal to DMV&PS, but ultimately it could rest with this committee.

Chairman O’Donnell noted that if the requesters are going to appeal the denial, they are not going to want to go back to the DMV&PS to appeal it; they will have to return to the Legislature to appeal. Mr. Glover said he wanted to add that this particular bill happens to be the first of the specialty plate bills in the Legislature. The specialty plate issues would have to be brought forth sooner or later.

Chairman O’Donnell noted that unfortunately because there are a number of license plate bills coming before them this session, this particular bill would have a conflict with every single license plate bill that comes along. He said the only way he can see around it is to make the effective date January 1, 2000.

Senator Jacobsen wanted to know if there were any special license plates designated as removed or not available. Mr. English responded that the only plate he was aware of was the state’s 125^th anniversary commemorative plate, which was issued only for that 1-year period.

Senator Jacobsen queried if DMV&PS had a composite of all the plates that have been authorized and are still available today. Mr. Glover responded that DMV&PS is working on it right now to put in their offices so people can see what plates are available, the count, and a running tally of the plates in those areas. He concluded that when that reference piece is designed and produced the DMV&PS will provide the committee with one.

Senator Jacobsen noted that such an assemblage would make a nice sales aid in all the DMV&PS offices around the state. That way someone who is registering their vehicle can see the selection and may be willing to pay an extra $10 or $15 for an existing special license plate.

Chairman O’Donnell wanted to know if the special plate fund for the University of Nevada, Reno (UNR) and the University of Nevada, Las Vegas (UNLV), was being collected and going to both universities. Mr. Glover stated that the last he heard, rumors only, was that was not happening. He heard they were not even collecting funds.

Chairman O’Donnell asked for assistance in finding out what the current status is regarding the funds for special plates going into their respective accounts.

Robert A. Ostrovsky, Lobbyist, 3M Corporation, said 3M is the authorized agent of the state in that they have the contract for the production of the sheeting material used to print the license plate. He said he wanted to be sure the committee understood in Mr. English’s testimony that the $1.73 is the cost of the sheeting that becomes the actual plate that is seen. The other costs include the cost of the aluminum and the manufacturing costs. The cost for the regular plate is 57 cents, because of the long run. A four-color plate generally runs $1.73 each plus the cost of the metal, the sheeting, and the manufacturing. He emphasized from prior experience on the appeal issue, there are only three ways the Legislature can affect what goes on in the Executive Branch of government; that is by passing a bill, not approving their budget, or by browbeating them from the chair. He elucidated he was not sure how the public would appeal other than going to district court. He suggested that the committee put into the bill some requirement that the department report back to the Legislature at each of its sessions; giving a report about the number of license plate applications received, how they were adjudicated, and whether any were denied. This would give the committee some exposure as to what was going on and then, if needed, could make adjustments through a bill.

Mr. Ostrovsky added a report may be enough to give people access, and they could be invited to testify regarding the experience. As for the funding issue, he recommended the 250 people who sign up for plates do not make a cash deposit, because if they later decide not to purchase the plate, the division has already ordered the sheeting from 3M. He added that 250 pairs are 500 plates. He said 3M requires a sufficient deposit to cover the basic cost of materials, the die, and any other manufacturing materials required. He continued if people have to put $10 down along with their application, they might feel differently, and fewer plates would be approved. He suggested the deposit not be refundable because the cost of handling the application and a refund would most likely exceed the deposit amount.

Senator Amodei noted the cost for sheeting had been given, and wanted to know the cost of aluminum per plate. Mr. Ostrovski responded the cost was about 25 cents per plate. He said that was based on using recycled aluminum. He said people are encouraged to return their old plates for recycling, so he was not sure of the current cost, and it could vary tomorrow.

Senator Amodei wanted to know what the volatility range was for recycled aluminum. Ralph Juvinall, Lobbyist, Traffic Control Materials Division, 3M Corporation, said aluminum is a hugely volatile commodity, it will swing from $1.20 per pound which makes a little over four plates, to over $2 in a year to a year-and-a-half. He did not know if the price variation had to do with labor relations in Chile or what, but it really swings. Aluminum production has become a consolidated industry as it relates to license plates, since there are fewer providers today than in the past.

Senator Jacobsen said he visited the license plate factory, and was curious regarding the value when the old plates are recycled and rejuvenated. Mr. Juvinall responded that because of the price of aluminum in today’s market, they are barely willing to come out and pick up any recyclable items. He said in the past it was a profitable retrieval situation, but today it is at push level.

Senator Washington said he was curious that if ultimately the responsibility is the legislators to approve or disapprove plates, then would it come back to the legislators as their responsibility to hear the appeals without going through the traditional branch. He said court costs and attorney fees would cause most people to come to the legislators redress of the denial.

Mr. Ostrovsky responded that other than the legislator pressuring the requesting of a bill to circumvent the provisions of this law, he did not see what else could be done. He observed the Judicial Branch of government could order the Administrative Branch to take some action, and the requester could work his way up the ladder of courts. Mr. Ostrovsky noted the other alternative is to have all applications go to DMV&PS who then brings one bill to the Legislature, noting all who have applied in that biennium period with the DMV&PS’s recommendation. The committee would hold a single hearing to cover all license plate requests. He reiterated he did not know of any way to appeal an administrative agency’s decision other than through the court.

Chairman O’Donnell surmised that there should be nothing in the bill to preclude somebody from going directly to the Legislature to get a license plate. However, if they came to DMV&PS first, unless there were very extenuating circumstances such as Senator Jacobsen’s bill, the 250-signature threshold would never have been reached. The requesters can make their case after they are turned down at DMV&PS; then the committee would probably hear testimony and pass a bill for that particular license plate.

Senator Wiener interjected that research had been done regarding how other states deal with this issue; there was nothing that precludes coming to the Legislature for a special plate. She said the hope was there would be year-round access rather than every 24 months. She said in her testimony this bill was intended to expedite service to the public and use the committee’s time more efficiently. She said each session the committee gets 8-12 license plate bills. That means that in a 120-day session there may be 4-6 license plate bills that may not get a hearing, or someone in another arena will not get a hearing. She said the bill does not preclude them coming to the Legislature, but she did not see coming to the Legislature as the appeal process, and anticipated they would go to DMV&PS first.

Chairman O’Donnell observed that it becomes a de facto appeal. If DMV&PS, denies the request, then basically it is a de facto that they have appealed it directly to the committee. He noted the first question to ask is did the requester go through DMV&PS, and the next question is why were they turned down. He surmised the best way to handle it is to give DMV&PS the authority and save the Legislature’s time, which is very valuable.

Randy McAllister, Lobbyist, Professional Firefighters of Nevada, said he had no particular position on the bill, other than the funding concept needs to be addressed. He said that regarding the date of January 1, 2000, and implementation of a fund, he wanted to know about the ones already submitted; if they would also have to wait until January 2000 to get their plates established. He articulated the firefighters had their 250 signatures in June 1997. Mr. McAllister asserted DMV&PS told him that by the time of their plate request, the 10,000 sets of Lake Tahoe plates had used up $20,000 worth of a fund that had only $16,000 from the start.

Chairman O’Donnell wanted to know if he understood Mr. McAllister to say that the Lake Tahoe plates cost the DMV&PS money. Mr. McAllister affirmed that was correct. He said the cost to produce the firefighter’s plate would be $11,000. He expounded that Mr. English’s explanation of why the DMV&PS was not able to fund the firefighters’ plate was of the $45 for Lake Tahoe plates, $10 goes to Lake Tahoe, and $35 goes to the Highway Fund of which DMV&PS cannot get any money back to make more plates. Mr. McAllister elucidated that of 10,000 Lake Tahoe plates DMV&PS made $350,000 that went directly to the Highway Fund, and none of the money was available to produce $11,000 worth of plates with a guaranteed sale of 2,000 plates. He said the firefighters were the only ones who did not choose to set a price for their plate.

Mr. McAllister said he brought Mr. English an option of an order for 1,000 sets of plates. He averred the firefighters do not care if they have to pay an extra $10 for a set of plates; they need them in order to do their job. He stated Mr. English said it would not do any good because the money would go directly to the Highway Fund, and Mr. English could not use the money to produce the requested plates. Mr. McAllister asked the committee for a resolution to the situation, and if the time frame could be expedited considering they have been waiting almost 2 years for the plates.

Mr. English acknowledged there is no money in the fund to create the firefighter plate. He said the fund has a shortfall of about $25,000 to continue manufacturing the standard-issue plate and the Lake Tahoe plate.

Chairman O’Donnell wanted to know if DMV&PS was still producing plates although they were $25,000 in debt. He inquired why they could not go "in the hole" for the firefighters. Mr. English replied the demand for the Lake Tahoe plates took precedence over any others. He said it was an administrative decision.

Chairman O’Donnell commented that this is what was meant by allowing the DMV&PS to specifically put specialty plate money aside to replenish that fund if in the current budget there was any money allocated back to that plate. He wanted to know the starting amount of money. Mr. English stated he did not have the current figures before him, but there is requested funding through the executive budget.

Chairman O’Donnell noted an amendment is needed, so if it passes the DMV&PS is at least allowed to replenish the special license plate fund, so the cost of producing the plates is covered. Otherwise no one is going to get anywhere.

Mr. English acknowledged that Mr. McAllister had a good point in that any funds currently collected, whether from the Lake Tahoe plate or any other special plate, do not go into the Highway Fund; they go to the tag plant to continue production of specialized plates.

Senator Wiener mentioned, if the committee were to develop a formula for deposits or advanced payment, that would produce the needed capital in the fund because people would make a financial commitment to the production of their plate. This would presume the funds would be earmarked as an enterprise fund for special license plates. She stated that each plate would be an autonomous account so that all funds could easily be accounted for the particular plate. Mr. English acknowledged that DMV&PS could charge back to each account the cost of production for that special plate.

Chairman O’Donnell surmised there could be a revolving $25,000 account so that when funds get low DMV&PS could requisition the Highway Fund to replenish that money through the Interim Finance Committee (IFC). Mr. Glover remarked that when the plate account came up short, DMV&PS could go to IFC for the money. He conveyed the Highway Fund is not set up where they can approach IFC to replenish funds. He stated when the Highway Fund budget comes up short, there is no recourse until the next Legislature, and that is why the problem with the funds.

Chairman O’Donnell commented that according to Mr. Reinhardt he has requests for 11,000 plates, but that is more money in the Highway Fund, so we are "cutting off our nose to spite our face."

Senator Amodei qualified that when it is said it costs more money to produce a special license plate, it is not necessarily the plate is unprofitable; it is that DMV&PS through the state accounting process is not being reimbursed for their cost from the Highway Fund to produce the plates. Mr. Glover acknowledged that was a correct observation.

Senator Washington wondered how priorities are set to determine which plates get produced first. Mr. English said by statute any organization or entity that requests a special license plate has to have 250 signatures. Whoever acquires the signatures first has the priority, and that was the instance with the Lake Tahoe plate as opposed to the professional firefighter plate. He added the firefighters plate is next on the list.

Mr. McAllister claimed the only thing that concerns him is that more money will be appropriated to make more Lake Tahoe plates. He said that Mr. Glover and Mr. English recently informed him that the Lake Tahoe plates are almost gone. Mr. McAllister conveyed he had a feeling since the Lake Tahoe plates are so popular that once they are gone, there will be more people demanding more Lake Tahoe plates be produced, but there is no money.

Mr. Glover acknowledged Mr. McAllister was correct, other than they have enough produced now to fulfill the demand until July 1 when the new budget becomes effective and they start the cycle all over again.

Mr. McAllister interjected that Senator Wiener’s bill happened to be the first addressing special license plates, and now is the chance to try to cure the situation, otherwise it will only get worse.

Chairman O’Donnell observed the DMV&PS may be trying to solve the wrong problem by waiting until July. He continued they need to address the right problem, which appears to be the funding mechanism, so that particular fund always has money to manufacture plates. He declared that by going into debt $25,000, everybody else has to be told no, which is not fair.

Mr. Glover elucidated that is what they were saying when they came forth with this bill, the need to address that problem. He stressed that he went to Senator Wiener requesting the problem be addressed. He concluded it is getting to the point of limited patience.

There being no further testimony, Chairman O’Donnell closed the hearing on S.B. 67.

Chairman O’Donnell noted there were a couple of bill draft requests (BDRs) to review to decide whether they would be introduced. He stated the first was his bill request which would allow law enforcement to ‘boot’ a car if the driver is found to be driving under the influence (DUI) or 0.10 percent or more by weight of alcohol in his blood. Essentially the vehicle the person was driving would be immobilized in their driveway.

Chairman O’Donnell remarked that in other words if the driver is found at 0.10 percent, the vehicle gets arrested and cannot be driven for 30 days, regardless of the outcome of the hearing. The person can still drive, but the car the person was in at the time they were found under the influence, is immobilized. He said if that person has a valid driver’s license and they have to get to work, they can drive, but in a different vehicle.

*****

Chairman O’Donnell explained the request came from the insurance industry. He elaborated that in Las Vegas there are places where signals allow cars to backup through other intersections. He said people are getting into the far right lane, which is designated by a solid white line as a bicycle lane, and going through the intersection at the same time somebody is making a left-hand turn across three lanes of traffic and cannot see the vehicle coming in the bicycle lane. He acknowledged this may not prohibit or stop people from doing that, but what it would do is establish liability for who is at fault if a collision results.

*****

Chairman O’Donnell explained that when somebody buys a vehicle they get a temporary registration in the form of a white sticker about four inches square, which is taped to the front windshield of the vehicle, and the rear of car usually only identifies the dealership. He said law enforcement has a tough time trying to determine whether or not that vehicle is registered. He said law enforcement has told him there are all kinds of things taped to a vehicle’s windshield, even shopping lists, just to evade registering the vehicle. He said this bill would allow the placard to be placed as a license plate with the date of expiration, so if a person drives an unregistered vehicle after that expiration date, he/she will be cited.

Senator Washington suggested adding that after the placard is issued and the person registers their vehicle, that the placard be turned in before registration can be issued. Chairman O’Donnell stated that would not be necessary as it would be stale-dated and printed in indelible ink. He added this is done in a majority of other states. The placard says Department of Motor Vehicles and Public Safety, and in large numbers the month, day, and year the vehicle must be registered.

*****

Chairman O’Donnell introduced a bill draft request from the Department of Motor Vehicles and Public Safety that would require all vehicles except commercial vehicles to pay privilege tax.

*****

Chairman O’Donnell introduced BDR 43-653.

*****

Chairman O’Donnell introduced the next bill draft request for a license plate bill relating to historic preservation.

*****

Chairman O’Donnell introduced BDR 43-1397 revising the requirements for obtaining a driver’s license.

*****

Chairman O’Donnell noted there seems to be a problem with the amendment to S.B. 81 by removing the words "by regulation." He said staff is concerned that by removing those words it may be unconstitutional. He said the bill would be addressed at the Thursday meeting.

Senator Washington said that in other related business he had an amendment he would like to propose to Senator Jacobsen’s bill. He said it deletes some language that is in current statute that prohibits those honored by the Congressional Medal of Honor from receiving a set of two plates. He said he has a constituent who had a set of congressional plates. After going to DMV&PS and being approved for another set, he received a notice in the mail asking him to return the plates because he was only allowed to have one set. Senator Washington noted that with special plates, a person could get two sets, except for the Congressional Medal of Honor license plate. He said this bill deletes that exclusionary language allowing a person to obtain two sets of congressional license plates.

Chairman O’Donnell stated that bill can be reviewed at Thursday’s meeting. He brought to the committee’s attention that the sponsors of the Lake Tahoe license plate asked for a revision on the amendment. He said at this time the bill provides the issuance of the license plate for a passenger car or light commercial vehicle, which is a utility truck. However, people have requested the plate for campers, motorcycles, and other vehicles, and the law does not allow that. He talked with Pam Drum of the Tahoe Regional Planning Agency (TRPA) and she is in support of the amendment. He noted it would mean a little more revenue for the Lake Tahoe area. He said the amendment would be added to a bill that deals with Nevada Revised Statutes (NRS) chapter 482.

There being no further business, the meeting was adjourned at 3:28 p.m.

RESPECTFULLY SUBMITTED:

Laura Adler

Committee Secretary

APPROVED BY:

Senator William R. O'Donnell, Chairman

DATE: