MINUTES OF THE
SENATE Committee on Commerce and Labor
Seventy-First Session
June 2, 2001
The Senate Committee on Commerce and Laborwas called to order by Chairman Randolph J. Townsend, at 8:30 a.m., on Saturday, June 2, 2001, 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 Dean A. Rhoads
Senator Raymond C. Shaffer
Senator Maggie Carlton
COMMITTEE MEMBERS ABSENT:
Senator Ann O’Connell, Vice Chairman (Excused)
Senator Mark Amodei (Excused)
Senator Michael A. (Mike) Schneider (Excused)
STAFF MEMBERS PRESENT:
Scott Young, Committee Policy Analyst
Kevin C. Powers, Senior Deputy Legislative Counsel
Gayle Nadeau, Committee Secretary
OTHERS PRESENT:
Doug Walther, Chief, Office of Business Finance and Planning, Department of Business and Industry
Sydney Wickliffe, C.P.A., Director, Department of Business and Industry
John M. Vergiels, Lobbyist, Nevada Association of Mortgage Brokers
Robert Barengo, Lobbyist, Nevada Consumer Finance Association
Chairman Townsend opened the work session on Assembly Bill (A.B.) 324.
ASSEMBLY BILL 324: Revises various provisions regarding regulation of mortgage brokers, mortgage agents and mortgage companies. (BDR 54-491)
Chairman Townsend explained a possible way to amend A.B. 324 by deleting the first 99 sections, which are the commission and self-regulation portions. He referred to a list of proposed amendments (Exhibit C) which was prepared by the Legislative Counsel Bureau (LCB) Legal Division. Chairman Townsend asked if there were any problems with these proposed amendments thus far. Doug Walther, Chief, Office of Business Finance and Planning, Department of Business and Industry, stated he had no objections. Mr. Walther explained the language in the proposed amendments is language applying to real estate transactions. Chairman Townsend noted Mr. Walther had responsibilities for real estate and asked if, under that circumstance, the amendments were still acceptable. Sydney Wickliffe, C.P.A., Director, Department of Business and Industry, answered they were still satisfactory to the Department of Business and Industry. Ms. Wickliffe distributed a packet to the committee (Exhibit D), but did not make reference to it. Chairman Townsend queried if Mr. Walther had any concerns with page 2 (Exhibit C). Mr. Walther replied he had no concerns. Chairman Townsend asked John M. Vergiels, Lobbyist, Nevada Association of Mortgage Brokers, if the proposed language in page 7 (Exhibit C) was acceptable. Mr. Vergiels affirmed it was acceptable.
Mr. Walther stated the Department of Business and Industry conducts exit reviews and allows for the opportunity to comment on the report’s content. He explained this was not meant to correct the deficiencies found in the exam, but rather it concerned how the report is presented.
Chairman Townsend asked Ms. Wickliffe if mortgage brokers are subject to chapter 598 of Nevada Revised Statutes (NRS) 598, under deceptive practices, if there is something that does not meet the criteria. Ms. Wickliffe affirmed mortgage brokers are subject to chapter 598 of NRS. Chairman Townsend asked Mr. Walther to further explain the new language proposed on page 16 (Exhibit C). Mr. Walther replied the language would not affect the validity of powers of attorney that were executed and recorded at a time when they complied with existing law. Chairman Townsend and Mr. Walther discussed the powers of attorney. Chairman Townsend asked Kevin C. Powers, Senior Deputy Legislative Counsel, Legal Division, Legislative Counsel Bureau, for his insight on page 16 (Exhibit C). Mr. Powers, explained line 4, subsection 3 was void after the effective date of A.B. 64 of the Seventieth Session.
ASSEMBLY BILL 64 OF THE SEVENTIETH SESSION: Revises provisions relating to mortgage companies and loans secured by liens on real property. (BDR 54-1204)
Mr. Powers stated on October 1, 1999, the new powers of attorney was executed under A.B. 64 of the Seventieth Session, which are still valid despite the changes made by A.B. 324.
Chairman Townsend asked if July 1, 2001, was chosen as the effective date for a reason. Mr. Vergiels responded July 1 had been chosen because it gave a 12-month period between exams. Ms. Wickliffe agreed July 1 was a more acceptable date than the date of A.B. 64 of the Seventieth Session’s passage and approval.
Robert Barengo, Lobbyist, Nevada Consumer Finance Association, stated his prior opposition to A.B. 64 of the Seventieth Session had been eliminated by the proposed amendments.
Chairman Townsend stated for the record the advisory boards are very important tools for this state, but in many cases they are misunderstood. He said they are there to advise only about changes and trends in the Department of Business and Industry, and both must work together to maintain their lines of communication.
Chairman Townsend closed the work session on A.B. 324 and opened the work session on A.B. 133.
ASSEMBLY BILL 133: Makes various changes concerning construction, constructional defects and common-interest communities. (BDR 3-667)
Chairman Townsend referred to a list of proposed amendments to A.B. 133 (Exhibit E). He said he would get copies of these amendments to the committee for its consideration as soon as possible. Chairman Townsend closed the work session on A.B. 133 and opened the work session on A.B. 661.
ASSEMBLY BILL 661: Revises and repeals various provisions concerning utilities and energy. (BDR 58-1128)
Chairman Townsend referred to a list of what would be discussed in conference (Exhibit F) concerning A.B. 661. He said he would provide a copy of the list for the committee as well. Chairman Townsend closed the work session on A.B. 661 and opened the discussion on A.B. 572.
ASSEMBLY BILL 572: Establishes single fraud control unit for insurance within office of attorney general. (BDR 18-487)
Chairman Townsend stated there had not been an agreement on the contents on this bill.
Chairman Townsend reopened the work session on A.B. 324. He asked for a motion to amend and do pass A.B. 324 with the proposed amendments (Exhibit C).
SENATOR RHOADS MOVED TO AMEND AND DO PASS A.B. 324.
SENATOR SHAFFER SECONDED THE MOTION.
THE MOTION CARRIED. (SENATORS O’CONNELL, AMODEI, AND
SCHNEIDER WERE ABSENT FOR THE VOTE.)
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Chairman Townsend called a recess at 9:20 a.m. until the call of the chair or 30 minutes before the Senate Floor Session on June 3, 2001.
RESPECTFULLY SUBMITTED:
Heather Miller,
Committee Secretary
APPROVED BY:
Senator Randolph J. Townsend, Chairman
DATE: