MINUTES OF THE

SENATE Committee on Commerce and Labor

 

Seventy-second Session

April 30, 2003

 

 

The Senate Committee on Commerce and Labor was called to order by Chairman Randolph J. Townsend, at 7:00 a.m., on Wednesday, April 30, 2003, in Room 2135 of the Legislative Building, Carson City, Nevada. The meeting was videoconferenced to the Grant Sawyer State Office Building, Room 4412, 555 East Washington Avenue, 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 Randolph J. Townsend, Chairman

Senator Warren B. Hardy II, Vice Chairman

Senator Ann O'Connell

Senator Raymond C. Shaffer

Senator Joseph Neal

Senator Maggie Carlton

 

COMMITTEE MEMBERS ABSENT:

 

Senator Michael Schneider (Excused)

 

GUEST LEGISLATORS PRESENT:

 

Assemblywoman Genie Ohrenschall, Assembly District No. 12

Assemblyman Jerry D. Claborn, Assembly District No. 19

Assemblywoman Barbara E. Buckley, Assembly District No. 8

 

STAFF MEMBERS PRESENT:

 

Scott Young, Committee Policy Analyst

Kevin Powers, Committee Counsel

Johanna Downey, Committee Secretary

Maryann Elorreaga, Committee Secretary

OTHERS PRESENT:

Renee Diamond, Administrator, Manufactured Housing Division, Department of Business and Industry

Gub Mix, Executive Director, Nevada Manufactured Housing Association

Ronald L. Lynn, Lobbyist, Clark County

Thelma Clark, Lobbyist, Nevada Silver Haired Legislative Forum

Joseph Guild, Lobbyist, Manufactured Home Community Owners

Thomas J. Hall

Andy Belanger, Lobbyist, Las Vegas Valley Water District

Richard Denison

Ron Teti

Brian A. Sagert, Acting Director, Modernization/Development, Housing Authority, City of Las Vegas

Marolyn C. Mann, Lobbyist, Manufactured Home Community Owners

 

Chairman Townsend opened the hearing on Assembly Bill (A.B.) 212.

 

ASSEMBLY BILL 212 (1st Reprint): Revises provisions relating to Account for Education and Recovery Relating to Manufactured Housing. (BDR 43-462)

 

Renee Diamond, Administrator, Manufactured Housing Division, Department of Business and Industry, read from a prepared statement (Exhibit C), which explained the proposed amendment allowing for the increase in fees paid into the recovery account when licensing salespersons and responsible managing employees.

 

Senator O'Connell said she had read the general audit for the Manufactured Housing Division and was concerned about a fee increase in light of the results of the audit and the way the money had been managed. She asked Ms. Diamond to address the concern.

 

Chairman Townsend read from the principal findings of the audit. The audit report said the division had not developed an adequate method for allocating costs between budget accounts and had not ensured programs funded by specific sources were not subsidizing other programs funded by different sources. Costs were not accurately allocated between the division's four budget accounts; therefore, financial information used to analyze fee levels was not accurate.

Ms. Diamond said the division had recently composed a policy for allocating funds to the four budget accounts. She said the plan was to be submitted to the legislative auditors. She said the division had been out of compliance regarding written policies, but not regarding how the money was handled. She said she would provide copies of the policy to the committee members.

 

Senator O'Connell asked if fees were being raised "all the way around." Ms. Diamond said that fees had been raised, some more than others, and would result in the establishment of a reserve fund.  

 

Senator O'Connell asked if any funds would be raised through the manufactured home park owners. Ms. Diamond said the division only received contributions to the lot rent subsidy and the landlord tenant programs from park owners. Those contributions were determined by statute and would remain the same.

 

Ms. Diamond asked if she would be contacted about the amendment.

 

Kevin Powers, Committee Counsel, said:

 

Mr. Chairman, let me talk to her after the committee is done discussing the bill, and then I'll get the details of the amendment. When the committee brings the bill back up for consideration I'll be able to better describe what the amendment is.

 

Chairman Townsend closed the hearing on A.B. 212 and opened the hearing on A.B. 262.

 

ASSEMBLY BILL 262 (1st Reprint): Makes various changes to provisions governing manufactured housing and mobile homes. (BDR 40-844)

 

Gub Mix, Executive Director, Nevada Manufactured Housing Association, read a prepared statement (Exhibit D) in support of A.B. 262.

 

Senator O'Connell asked what the fees would be under section 4 of the bill and what other categories would be considered under section 5, paragraph 1. Mr. Mix said the fees would be in line with what the local government would have charged, normally in the area of $100. He said he would like to have Ms. Diamond address the other categories.

Ms. Diamond said the section related to additional categories that were already licensed by the contractors' board but not by the Manufactured Housing Division. She said a manufactured home was an engineered home; if a serviceperson completed a job that affected the engineering, it could affect the integrity of a home. The division wanted the ability to offer limited licenses to servicepersons who were going to work on manufactured homes that were already licensed with the contractors' board whose work could affect the integrity of a manufactured home.

 

Senator O'Connell questioned the language, "Any other category …" in the bill. Ms. Diamond said the division did not want to be too specific in the statute. She said the categories listed in the written testimony on A.B. 262 (Exhibit E) were the categories thought to be applicable.

 

Ronald L. Lynn, Lobbyist, Clark County, addressed section 1, subsections 2 and 4, and stated Clark County had a long-standing cooperative relationship with the Manufactured Housing Division. He said Clark County had issued 10,000 certificates of occupancy for single-family residences. Mr. Lynn said the relationship with the Manufactured Housing Division had changed from time to time, depending on the needs of the division. He said Clark County wanted to be sure the bill was focused on appropriate issues.

 

Chairman Townsend closed the hearing on A.B. 262 and opened the hearing on A.B. 352.

 

ASSEMBLY BILL 352 (1st Reprint): Makes various changes relating to manufactured home parks. (BDR 43-970)

 

Assemblywoman Genie Ohrenschall, Assembly District No. 12, presented the bill. She said the bill clarified what disclosures must be made on a contract of sale of a mobile home in a mobile home park. She said current law required full, written disclosure on an offer to buy, sell, or lease a mobile home but did not state what information must be included in the disclosure. Assemblywoman. Ohrenschall read from section 1 of the bill, which listed the disclosure information to be included by amendment. She read section 2, which listed suggested disclosure information required of the landlord of a manufactured home park. Assemblywoman Ohrenschall explained the difficulties encountered by purchasers of mobile homes or manufactured homes in mobile home parks, which had prompted her to sponsor A.B. 352. She said the parks would change hands every few years and the space rent would increase at that time. If prospective buyers knew when the park had last been purchased, they would have a good idea when a space rent increase might occur.

 

Assemblywoman Ohrenschall, Senator O'Connell, and Ms. Diamond discussed the merits of the disclosures. Prospective buyers of mobile homes would be better protected from purchasing unsafe and/or fire-damaged property.

 

Assemblyman Jerry D. Claborn, Assembly District No. 19, said he was not familiar with the mobile home park situations but was a landlord for two mobile homes situated in a mobile home park. He said he supported the bill.

 

Senator Neal asked why the provisions in section 2 were important. Assemblywoman Ohrenschall said the information was useful to potential park space renters to determine when rent increases may occur.

 

Thelma Clark, Lobbyist, Nevada Silver Haired Legislative Forum, said she would give the committee a different perspective on the issue. She said she knew of a woman who purchased an old mobile home, in a mobile home park. The woman paid for the mobile home, moved in, and then discovered the water heater and the air conditioner did not work, and the kitchen appliances needed to be replaced. Ms. Clark said she thought the committee should form some sort of public policy to protect buyers of used mobile homes from dishonest landlords.

 

Chairman Townsend said the incident described was in violation of Nevada's laws against deceptive trade practices.

 

Senator O'Connell asked if there was a requirement for mobile home park owners to post information advising tenants of the availability of the services of the Manufactured Housing Division. Ms. Diamond said there was no requirement for that information about the services of the Manufactured Housing Division to be posted.

 

Joseph Guild, Lobbyist, Manufactured Home Community Owners, said he opposed section 2 of A.B. 352 but was confident the owners of mobile home parks, which he represented, would have no objection to posting information regarding the services of the Manufactured Housing Division.

Thomas J. Hall said he owned a mobile home park and saw no public need to know the net profits of his business. He said he saw it as an invasion of his privacy.

 

Chairman Townsend said there would be a solution to the problem described by Assemblywoman Ohrenschall other than the provisions in section 2 of the bill. He said looking at profits did not address the issue.

 

Chairman Townsend closed the meeting on A.B. 352 and opened the meeting on A.B. 230.

 

ASSEMBLY BILL 230 (1st Reprint): Revises provisions regarding mobile home parks. (BDR 40-202)

 

 Assemblywoman Barbara E. Buckley, Assembly District No. 8, gave an overview of A.B. 230. Section 1 of the amendment addressed the makeup of boards of directors of mobile home parks owned or leased by a nonprofit organization. She said the amendment expanded the composition of the boards of directors to include residents as one-third of the members. Assemblywoman Buckley said it was important residents concerned about the operation of mobile home parks be on the boards.

 

Assemblywoman Buckley said section 2 of the bill deleted the requirement for individual water meters on each lot in mobile home parks. She said it appeared the requirement was hindering the expansion of mobile home parks because of the high cost of installing the meters.

 

Senator Neal said water conservation was an important issue, especially in southern Nevada. He said he did not think mobile home parks should be shown deference by eliminating the individual water meter requirement.

 

Assemblywoman Buckley said it was ironic that golf courses and new resorts, which used large amounts of water, could be built in a desert but a mobile home park for low-income senior citizens could not be expanded.

 

Senator Hardy said he testified, as a lobbyist, when the individual water meter requirement was heard in a past Legislative Session. He asked if the law had been successful in conserving water usage.

Andy Belanger, Lobbyist, Las Vegas Valley Water District, said there had not been any mobile home parks constructed since October 1, 1995, which was the date the law went into effect. Mr. Belanger submitted a proposed amendment to the committee (Exhibit F). He said the Las Vegas Valley Water District was opposed to the bill because it was too broad, and they would prefer the amendment apply only to public housing authorities, nonprofits, and cooperatives. Some mobile home parks did not use large quantities of water and could be on a master meter.

 

Richard Denison, a resident of the Las Vegas Jaycees Senior Mobile Home Park, a mobile home park owned by a nonprofit organization, read a prepared statement in support of A.B. 230 (Exhibit G).

 

Ron Teti, Chairman, Residents' Council, Las Vegas Jaycees Senior Mobile Home Park, read a prepared statement in support of A.B. 230 (Exhibit H).

 

Senator O'Connell asked who was on the board at the Jaycees Senior Mobile Home Park. Assemblywoman Buckley said initially the board had wide representation from the Las Vegas Jaycees. Over time, the board dissipated until there was only one member. That was when the problems started. She said she tried to intervene and suggested more meetings with residents and offered to help solve some of the problems but her offers were rejected. Elections of residents to the board no longer took place so the residents had no representation on the board. Assemblywoman Buckley said it became apparent a responsive, accountable board was needed; the proposed amendment would fill that need.

 

Senator O'Connell asked if there was an office on the premises. Assemblywoman Buckley said the Clark County Housing Authority had a management contract with the Jaycees. There were no members of the Jaycees or the board at the office, just housing authority staff.

 

Senator O'Connell asked why the residents were not allowed to post notice of the legislative hearing. Assemblywoman Buckley said the notice was posted but torn down. Mr. Teti said the president of the Jaycees trustees ordered the notice to be torn down.

 

Senator Hardy asked if the intent of the bill was for one-third of the membership of the board to be residents. Assemblywoman Buckley said residents would elect residents.

 

Chairman Townsend asked Ms. Clark if she was familiar with the proposed amendment from the Las Vegas Valley Water District (Exhibit F).

 

Ms. Clark said she did not think A.B. 230 was a water conservation bill. She said there were other multifamily complexes, such as apartment buildings, which did not have separate water meters for each residence. Ms. Clark said at the mobile home park where she resided, water usage for irrigation was very low because the landscaping consisted mainly of gravel.

 

Brian A. Sagert, Acting Director, Modernization/Development, Housing Authority, City of Las Vegas, read from an information packet he had submitted (Exhibit I. Original is on file in the Research Library.) in support of A.B. 230. He said the fees associated with Nevada Revised Statutes (NRS)461A.230 had contributed to a lack of new mobile home development, a decrease in the number of existing mobile homes, and the lack of affordable mobile home spaces for rent.

 

Marolyn C. Mann, Lobbyist, Manufactured Home Community Owners, said a study, based on a similar national study, had been conducted in Las Vegas mobile home parks that had been retrofitted with individual water meters. Communities with individual water meters used approximately one-third less water.

 

Chairman Townsend closed the hearing on A.B. 230 and opened the hearing on A.B. 498.

 

ASSEMBLY BILL 498 (1st Reprint): Makes various changes to provisions governing manufactured home parks. (BDR 10-1296)

 

Assemblywoman Buckley said there should be no opposition to the bill as mobile home park owners and residents jointly created it.

 

Mr. Guild said section 1 gave a prospective tenant time to review a proposed rental agreement prior to signing. It would not preclude a mobile home park owner or manager from renting the space to another prospective tenant. Referencing section 2, subsection 4, he said the 5 percent interest had been changed to an interest rate equal to the average of the prevailing rates of interest for deposits. Section 3 subsection 2, requires a landlord to make a tenant aware of the provisions of NRS 489.311, when bringing a manufactured home into a manufactured home park. The person installing a manufactured home must be licensed to do so. Mr. Guild said section 4, subsection 3, required a landlord to post or provide to each tenant, office hours at the park location. He read from sections 8 through 12. The sections addressed moving manufactured homes when manufactured home parks closed and issuing notices of termination of rental agreements.

 

Senator O'Connell asked if there were a statutory definition of "not a natural person" as referenced in section 11, paragraph 2. Mr. Guild said there was a definition in the law; the term referred to business entities.

 

Ms. Mann said both mobile home park owners and residents had worked together on the bill and both groups were pleased with the result of the cooperative effort.

 

A discussion ensued regarding where, in the bill, to state the requirement of the landlord to post information about the availability of the Manufactured Housing Division.

 

Mr. Powers said, "And may I suggest, Mr. Chairman, we could have the division prescribe the contents of the notice or form, by regulation, if you wanted to give them an opportunity."

 

Chairman Townsend said requirement of the notice could be written into the bill the same way as the requirement in section 4, subsection 3, was written.

 

Ms. Diamond asked that the posting list the address of the Manufactured Housing Division office closest to the mobile home park. There were offices in Las Vegas and Carson City.

 

Ms. Mann said mobile home community owners were required to provide a copy of NRS 118B to residents. She said the information about contacting the division could be included in that booklet as well.

Chairman Townsend closed the hearing on A.B. 498 and opened the work session on A.B. 498.

 

SENATOR O'CONNELL MOVED TO AMEND AND DO PASS A.B. 498.

 

SENATOR NEAL SECONDED THE MOTION.

 

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

 

*****

Chairman Townsend closed the work session on A.B. 498 and opened the work session on A.B. 212.

 

SENATOR O'CONNELL MOVED TO AMEND AND DO PASS A.B. 212.

 

SENATOR NEAL SECONDED THE MOTION.

 

THE MOTION CARRIED. (SENATOR HARDY ABSTAINED FROM THE VOTE. SENATOR SCHNEIDER WAS ABSENT FOR THE VOTE.)

 

*****

 

Chairman Townsend closed the work session on A.B. 212 and opened the work session on A.B. 262.

 

SENATOR O'CONNELL MOVED TO DO PASS A.B. 262.

 

SENATOR CARLTON SECONDED THE MOTION.

 

THE MOTION CARRIED. (SENATOR HARDY ABSTAINED FROM THE VOTE. SENATOR SCHNEIDER WAS ABSENT FOR THE VOTE.)

 

*****

 

Chairman Townsend closed the work session on A.B. 262 and opened the work session on A.B. 230.

 

Senator O'Connell asked why the term "cooperative" was included in section 1 of the bill. Mr. Belanger said Assemblywoman Buckley had requested the term be included.

 

Ms. Diamond said she believed the term had been included because a cooperative is a new form of tenant ownership, similar to a cooperative condominium community. A cooperative is an existing unit, which would be taken over, but conceptually a group of tenants could form a cooperative and build a new park.

 

Senator O'Connell said she assumed the intent of the bill was to protect low‑income and senior tenants. She said cooperatives would not fall into that category.

 

Senator Hardy said he considered the term to be redundant. He said he could not conceive of a cooperative that was not a nonprofit.

 

Ms. Diamond said she did not know if it was redundant but apparently the bill drafters did not consider it to be. Chairman Townsend said it was a legal issue. A nonprofit would not have to be a cooperative and a cooperative did not have to be a nonprofit.

 

Mr. Powers said:

 

Mr. Chairman, it is an issue in drafting because the way the proposed amendment is framed now, the adjective "nonprofit" only modifies cooperation. It doesn't modify the term cooperative. So this would apply to any cooperative whether it's for profit or nonprofit. And Ms. Buckley's bill, A.B. 230, uses the term nonprofit organization.

 

Senator O'Connell said she would like to speak with Assemblywoman Buckley and learn the reason for including the term in the amendment.

 

Ms. Clark said Assemblywoman Buckley told her the term was already in the law.

 

Chairman Townsend said A.B. 230 and A.B. 352 would be heard in work session the next day.

 

There being no further business, Chairman Townsend adjourned the meeting at 9:45 a.m.

 

 

 

 

RESPECTFULLY SUBMITTED:

 

 

 

                                                           

Maryann Elorreaga,

Committee Secretary

 

 

APPROVED BY:

 

 

 

                                                                                         

Senator Randolph J. Townsend, Chairman

 

 

DATE: