MINUTES OF THE
SENATE Committee on Transportation
Seventy-First Session
May 3, 2001
The Senate Committee on Transportationwas called to order by Vice Chairman Mark Amodei, at 2:07 p.m., on Thursday, May 3, 2001, in Room 2149 of the Legislative Building, Carson City, Nevada. The meeting was video conferenced to the Grant Sawyer Office Building, Room 4401, Las Vegas, 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 Terry Care
Senator Maggie Carlton
STAFF MEMBERS PRESENT:
Donald O. Williams, Committee Policy Analyst
Alice Nevin, Committee Secretary
OTHERS PRESENT:
Janice Christopherson, Administrative Services Officer, Administrative Services, Nevada Department of Transportation
C. Joseph Guild III, Lobbyist, Union Pacific Railroad
Jim Parsons, Administrator, Management Services and Programs Division, Department of Motor Vehicles and Public Safety
F. Alex Ortiz, Lobbyist, Clark County
Mary C. Walker, Lobbyist, Douglas County
James T. Braswell, Lobbyist, Douglas County, and Nevada Airport Managers Association, Incorporated
Vice Chairman Amodei:
I will call a meeting of the subcommittee on the Senate Committee on Transportation. Will the secretary please reflect the attendance and when a quorum is reached, we will shift to a full Senate Committee on Transportation meeting.
Vice Chairman Amodei:
I will open the hearing on Assembly Bill (A.B.) 86.
ASSEMBLY BILL 86: Prohibits director of department of transportation, in certain circumstances, from retaining portion of contract price of, or requiring bonds in connection with, certain contracts awarded to railroad companies. (BDR 35-762)
Janice Christopherson, Administrative Services Officer, Administrative Services, Nevada Department of Transportation:
We met with Mr. Guild (C. Joseph Guild III, Lobbyist, Union Pacific Railroad) on this issue during the Assembly hearings and offered an amendment which was then incorporated into the bill. The director (Tom Stephens, Director, Nevada Department of Transportation) has asked me to read a letter written to Mr. Guild on this subject (Exhibit C).
C. Joseph Guild III, Lobbyist, Union Pacific Railroad:
There are three reasons for A.B. 86 from the Union Pacific Railroad’s point of view. This bill came about after discussions with the Nevada Department of Transportation (NDOT) relative to the clause in the Nevada Revised Statutes which retains funds for railroad projects. They are seeking, by this bill, to do away with the requirement in the statute and have it become a contractual arrangement, whether retaining funds are required or not.
As you can see in section 1 of A.B. 86, the reason for a contractual arrangement, rather than a statutory requirement, is the construction projects are on railroad property. The railroad is not going to walk away from the state of Nevada and pick up its track and its right-of-way. The projects are usually done by the railroad itself either acting as the builder or general contractor.
The trend with the other states in the Union Pacific Railroad system is to either do away with this or create a negotiated memorandum of understanding regarding these retained funds. Most states in the Union Pacific Railroad system do not require this any more. Basically, the accounting department of the engineering division of the railroad has to do two sets of books and it has become an accounting nightmare. Those are the reasons for the bill. This is not your typical construction-type project where retained funds are necessary. We have worked this out with the NDOT and they are in support of this bill.
Senator Care:
Is there any sort of good-faith obligation here? What if the railroad meets with the NDOT and says they would like to include this provision in the contract and the NDOT disagrees? What good does the statute do you?
Mr. Guild:
I am confident, because of the good-faith effort put forth by the NDOT, and the letter (Exhibit C), in which they say in the second paragraph they would rarely exercise such discretion. I am comfortable with it because I think the NDOT understands the practicalities of this situation. The fact is the railroad will not go away, as opposed to construction projects where the retainage is there to guarantee performance. Based upon my discussions, I am very confident this will be a good and cooperative arrangement between the department and the railroad.
Vice Chairman Amodei:
If there is no further testimony for or against, I will close the hearing on A.B. 86 and open the hearing on A.B. 646. The secretary has indicated a quorum is present so we will open the regular Senate Committee on Transportation meeting.
ASSEMBLY BILL 646: Revises provisions authorizing certain inspection stations and authorized inspection stations to renew certificates of registration. (BDR 43-403)
Jim Parsons, Administrator, Management Services and Programs Division, Department of Motor Vehicles and Public Safety:
The department requested this bill to move the pilot program of registering vehicles at emissions stations to a full program which can be offered to all of the stations.
Vice Chairman Amodei:
Seeing no one else has signed in for or against the bill either here or in Las Vegas, I will close the hearing on A.B. 646 and take a short recess.
Chairman O'Donnell:
I now reconvene this hearing at 2:20 p.m. and open the work session on A.B. 6.
ASSEMBLY BILL 6: Revises provisions governing driving of certain combinations of vehicles. (BDR 43-292)
Chairman O'Donnell:
This bill requires the Department of Motor Vehicles and Public Safety (DMV/PS) to adopt regulations authorizing the holder of a Class A noncommercial license to drive any combination of vehicles under 70 feet in length with a gross-weight rating of 26,000 pounds or less. The gross-weight rating of the towed vehicle may not exceed the gross-weight rating of the towing vehicle. The holder of a Class A license is authorized by statute to drive these combinations of vehicles until the department adopts regulations.
SENATOR CARLTON MOVED TO DO PASS A.B. 6.
SENATOR AMODEI SECONDED THE MOTION.
THE MOTION CARRIED. (SENATOR SHAFFER WAS ABSENT FOR THE VOTE.)
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Chairman O'Donnell:
I will open the work session on A.B. 7.
ASSEMBLY BILL 7: Revises provisions governing school zones and school crossing zones. (BDR 43-817)
Chairman O'Donnell:
This measure was requested by Assemblyman Collins (Tom Collins, Clark County Assembly District No. 1). This bill amends the laws relating to the signs which must be posted to mark school zones and school-crossing zones.
Was there some discussion on the fiscal impact of this bill on school districts?
Chairman O'Donnell:
I understand there was no testimony in opposition to the bill and there were no amendments offered in the hearing.
SENATOR AMODEI MOVED TO DO PASS A.B. 7.
SENATOR WASHINGTON SECONDED THE MOTION.
THE MOTION CARRIED. (SENATOR SHAFFER WAS ABSENT FOR THE VOTE.)
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Chairman O'Donnell:
I will open the work session on A.B. 83.
ASSEMBLY BILL 83: Makes various changes concerning vehicles used to provide public mass transportation. (BDR 43-1020)
Chairman O’Donnell:
This bill increases the maximum axle weight allowed for vehicles used in mass transit. The weight is increased from 20,000 pounds to 29,000 pounds if the vehicle has tires not less than 20 inches wide, is used in an approved demonstration project, and receives a permit issued by the NDOT.
SENATOR AMODEI MOVED TO DO PASS A.B. 83.
SENATOR CARLTON SECONDED THE MOTION.
THE MOTION CARRIED. (SENATOR SHAFFER WAS ABSENT FOR THE VOTE.)
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Chairman O'Donnell:
I will open the work session on A.B. 113.
ASSEMBLY BILL 113: Provides for issuance of special license plates for support of rodeos. (BDR 43-1005)
Chairman O'Donnell:
This bill was requested by Assemblyman Anderson (Bernard [Bernie] Anderson, Washoe County Assembly District No. 31). The bill provides for the issuance of special license plates for the support of rodeos. There is a proposed amendment to the bill to provide for the issuance of special license plates and souvenir license plates to support the protection and enhancement of the lower Truckee River and Pyramid Lake.
Senator Amodei:
Alan Mandell, Tribal Chairman, Pyramid Lake Paiute Tribe, and Gerry Emm, Environmental Director, Pyramid Lake Paiute Tribe, approached the committee with the proposed amendment. I have assisted them in coordinating this with Assemblyman Anderson, whose bill this is amended into, and I can represent for the record he is amenable to this amendment.
SENATOR AMODEI MOVED TO AMEND AND DO PASS A.B. 113.
SENATOR CARLTON SECONDED THE MOTION.
THE MOTION CARRIED. (SENATOR SHAFFER WAS ABSENT FOR THE VOTE.)
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Chairman O'Donnell:
I will open the work session on A.B. 171.
ASSEMBLY BILL 171: Makes various changes relating to garages for repair of motor vehicles. (BDR 43-582)
Chairman O'Donnell:
This bill is proposed by Assemblywoman Chowning (Vonne S. Chowning, Clark County Assembly District No. 28) and makes several technical changes to the existing law regarding repair of motor vehicles. The bill replaces the word “automobile” with the words “motor vehicle.” This change extends the protection of the law to the owners of recreational vehicles, motor homes, and similar vehicles.
Chairman O’Donnell:
It also authorizes the Department of Motor Vehicles and Public Safety to revoke or refuse to renew a certificate of registration of a person who fails to comply with an order of a court relating to repair of a motor vehicle. The bill requires the department to provide the person with a notice and hearing before it may revoke or refuse to renew the certificate of registration.
SENATOR WASHINGTON MOVED TO DO PASS A.B. 171.
SENATOR CARLTON SECONDED THE MOTION.
THE MOTION CARRIED. (SENATOR SHAFFER WAS ABSENT FOR THE VOTE.)
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Chairman O'Donnell:
I will open the work session on A.B. 210.
ASSEMBLY BILL 210: Increases authorized term for lease of county property for use as airport, airport facility or airport service. (BDR 44-507)
Chairman O'Donnell:
This bill was requested by the Assembly Committee on Transportation on behalf of Douglas County. The bill amends the laws governing airports operated by counties. This extends the leasing capability from 50 years to 99 years.
Senator Care:
I had an idea to amend the bill to not apply to leases for retail concessions inside the airports themselves. What brought this to mind was the antics involving the McCarran International Airport and the way leases are handled there. For example, I cannot see granting someone a 99-year lease for a McDonald’s franchise at that airport.
My proposed amendment would be for 99 years, but the existing language (50 years) would remain in effect for airport concessions, meaning the retail concessions within the complex itself. Even though it is not currently being contemplated, a certain commission could approve a 99-year retail lease for somebody. I think it could happen.
F. Alex Ortiz, Lobbyist, Clark County:
We write different contracts for different terms. I am not sure there is an average or a minimum but we do month-to-month contracts with an average of 5 to 10 years for concessions.
Chairman O'Donnell:
I will hold this bill for a moment and open the work session on A.B. 242.
ASSEMBLY BILL 242: Provides that certain instructors for schools for training drivers are not required to complete requirements for continuing education. (BDR 43-1173)
Chairman O'Donnell:
This bill eliminates continuing education requirements for certain driving instructors who only prepare applicants to take the examination for the commercial drivers’ licenses. At present, these instructors are required to take six credits of continuing education every five years in order to renew their instructor’s license.
SENATOR AMODEI MOVED TO DO PASS A.B. 242.
SENATOR JACOBSEN SECONDED THE MOTION.
THE MOTION CARRIED. (SENATOR SHAFFER WAS ABSENT FOR THE VOTE.)
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Chairman O'Donnell:
I will open the work session on A.B. 481.
ASSEMBLY BILL 481: Prohibits in certain circumstances person from operating sound amplification system in motor vehicle in certain manner. (BDR 43‑1278)
SENATOR JACOBSEN MOVED TO DO PASS A.B. 481.
SENATOR CARLTON SECONDED THE MOTION.
THE MOTION CARRIED. (SENATOR SHAFFER WAS ABSENT FOR THE VOTE. SENATOR CARE AND SENATOR WASHINGTON VOTED NO.)
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Chairman O'Donnell:
I will reopen the work session on A.B. 210.
Mary C. Walker, Lobbyist, Douglas County:
If we want to do what Senator Care suggested, which is 50 years for internal and 99 years for external, I suggest deleting the words “except for” in the proposed amendment (Exhibit D). We would start with, “Any concessions within designated passenger terminals for which the airport has provided the shell, space, and or kiosk and lessee is responsible for tenant improvements and where the concession spaces are used for the sales of retail products, food, and beverage,” and then add, “shall not have a lease term not exceeding 50 years.”
Senator Amodei:
I understand the smaller airports, fixed-space operators who have the hangar, the gas, the coffee shop, the bar, the nightclub, I am wondering if we could do something to them without realizing it.
James T. Braswell, Lobbyist, Douglas County, and Nevada Airport Managers Association, Incorporated:
Most of these are covered by land lease agreements instead of concession agreements, and I would say 99 percent of the smaller general aviation airports do not really have concessions. I cannot say for certain, but I am sure they are mostly land leases.
Chairman O'Donnell:
I have a problem with the amendment. I feel as though the county commissioners and airport authorities who run these airports have the authority to do what is right for the airport and the citizenry. I know we have had problems in the past, and I know there has been a lot of patronization of individuals who worked on various campaigns, but I can assure you the scrutiny is extremely high at the airport and at least in Clark County, I am very respectful of the airport manager. I would hate to tie the hands of the airport authorities and the airport managers when in reality you are looking at the difference between 50 years and 99 years. To me, it is like quibbling over the distance between here and Mars or here and Venus. If I could, I would make these 5-year renewable contracts; but allow airport managers to make the airport concessions attractive to individuals who want to invest.
What happens in a concession, usually, the concessionaire rents the space, and they pay what they call a “key figure.” They pay as much as $50 to $100,000 just for the key, the privilege of having the key to the door. Then they pay rent in addition. Sometimes they pay rent inclusive of the tax on gross receipts and then, the individual who does the concession, has to put their own money into the build-out. The airport does not pay for the build-out. We have to make the lease term attractive enough to attract individuals to come there. I would rather leave it up to the airport authorities to determine rather than by having a state law do it.
Senator Care:
I can live with the bill as currently drafted, so I will withdraw my amendment.
SENATOR JACOBSEN MOVED TO DO PASS A.B. 210.
SENATOR JACOBSEN SECONDED THE MOTION.
THE MOTION CARRIED. (SENATOR SHAFFER WAS ABSENT FOR THE VOTE.)
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Chairman O'Donnell:
There being no further business, the meeting is adjourned at 2:46 p.m.
RESPECTFULLY SUBMITTED:
Alice Nevin,
Committee Secretary
APPROVED BY:
Senator William R. O'Donnell, Chairman
DATE: