MINUTES OF THE

SENATE Committee on Transportation

 

Seventy-second Session

March 11, 2003

 

 

The Senate Committee on Transportation was called to order by Chairman Raymond C. Shaffer, at 1:40 p.m., on Tuesday, March 11, 2003, 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 Raymond C. Shaffer, Chairman

Senator Dennis Nolan, Vice Chairman

Senator Mark E. Amodei

Senator Warren B. Hardy, II

Senator Michael Schneider

Senator Terry Care

Senator Maggie Carlton

 

STAFF MEMBERS PRESENT:

 

Marsheilah Lyons, Committee Policy Analyst

Lee-Ann Keever, Committee Secretary

 

OTHERS PRESENT:

 

Dennis Colling, Chief, Administrative Services Division, Department of Motor Vehicles

Virginia (Ginny) Lewis, Director, Department of Motor Vehicles

 

Chairman Shaffer opened the hearing on Senate Bill (S.B.) 149.

 

SENATE BILL 149:  Authorizes advertising in buildings in which Department of Motor Vehicles offers services to public. (BDR 43-765)

 

Dennis Colling, Chief, Administrative Services, Department of Motor Vehicles (DMV), read from prepared text (Exhibit C). He said there would be a fiscal note of $2,252 attached to S.B. 149. Mr. Colling stated DMV had prepared an amendment to S.B. 149 (Exhibit D). The amendment would allow DMV to place advertisements in the mailings it sent to the public. Mr. Colling said he wanted to know if advertisements of a political or sensitive nature would be permitted under the provisions of S.B. 149.

 

Senator Michael Schneider said DMV would contract with a master vendor who would be responsible for the advertisements placed in DMV’s buildings or mailings. The master vendor would subcontract with other vendors. The contract would give DMV the ability to scrutinize the advertisements prior to installation or mailing. DMV could pull any advertisements it found objectionable.

 

Senator Schneider said he thought S.B. 149 would be a good source of additional funding for the State as the advertisements would be geared toward local people, not tourists. The revenues raised by the bill would be used for driver education courses in Nevada high schools. He said DMV would not be selling the advertisements because the master vendor would be responsible for generating advertising sales. The DMV would receive a portion of the sales which in turn would be used for the educational courses outlined by the senator.

 

Chairman Shaffer asked if other states or government agencies advertised.  Senator Schneider said he did not think any government agency in Nevada was permitted to advertise. He stated New Mexico has privatized the issuance of drivers’ licenses. The private companies who issued the drivers’ licenses, advertised.

 

Senator Schneider said any company who contracted with DMV would have to exercise considerable discretion in the types of advertising that would be allowed. He again stressed the advertising at DMV facilities would be geared toward Nevada residents, not tourists. The advertisements would be family‑oriented and not of a questionable or objectionable nature.

 

Mr. Colling stated a contract for the advertising would be let and contain performance clauses. Mr. Colling said any company or entity regulated by DMV would not be allowed to advertise at a DMV location or in mailings.

 

Senator Care said buses in Clark County carried advertising.  He suggested the Clark County Regional Transportation Commission (CCRTC) had worked out all the legal problems associated with public entity advertising.  Senator Care said the CCRTC would have information on the criteria it used to determine appropriate advertising. He suggested contacting the CCRTC to learn how advertising was selected by them.

 

Senator Nolan said S.B. 149 was similar in nature to a bill he sponsored during the 2001 Legislative Session. He said he was familiar with the CCRTC and knew they did not allow pornographic advertising.

 

Senator Nolan said the constitutionality of public entity advertising had been addressed during the hearings on his measure. During those hearings, it was decided DMV could not provide television to its patrons as the advertising content of some programs might violate constitutional provisions. Television programming for DMV patrons could be provided only if the statutes were changed.

 

Senator Nolan said he supported S.B. 149 as it would provide a new revenue stream for the DMV.  He thought the DMV would be able to narrowly define the types of advertising it would accept at its facilities.

 

Mr. Colling stated DMV would not realize any revenue from S.B. 149.  All monies generated by the advertisements would be deposited into the State’s General Fund, and be dispersed by the state treasurer to schools in Nevada. The money would fund driver education programs for teenaged drivers. Mr. Colling said one of DMV’s stated objectives would be no person should have to stand in a DMV line forever.

 

Senator Schneider said it was not his intention to burden DMV with advertisers who would take up the time of management and staff.  He had intended DMV’s participation to be arm’s length with DMV receiving a percentage of all profits realized by the advertising sales. The senator wanted the entire program to be as simple as possible.

 

Chairman Shaffer closed the hearing on S.B. 149 and opened the hearing on Senate Bill 213.

 

SENATE BILL 213:  Authorizes Department of Motor Vehicles to establish pilot program pursuant to which period of registration for certain motor vehicles is expanded. (BDR S-484)

 

Ms. Virginia (Ginny) Lewis, Director, Department of Motor Vehicles (DMV), testified S.B. 213 authorized a 2-year pilot program for extended vehicle registration. Vehicles registered under the pilot program would be registered for 2 years, and receive a 1-year decal; 35 days before the decal expired, the vehicle owner would be sent another 1-year decal. The second decal would be sent only after a computer search verified there were no problems with the vehicle’s registration. In those counties requiring a vehicle inspection, a computer-generated notice of inspection would be sent to the vehicle owner. The results of the inspection would be transmitted electronically to DMV. Unless there was a problem with the vehicle’s registration or inspection, the owner would not have to go to a DMV office for 2 years.

 

Ms. Lewis said the DMV wanted to be responsive to the needs of its patrons and was acting proactively by sponsoring the 2-year pilot program for vehicle registration. Ms. Lewis stated the DMV’s computer system ensured there were no problems with the registration process. The renewal process would be simple.

 

Senator Hardy said he thought it was a great idea.  He asked how the funds generated by a 2-year registration would be dispersed.  Ms. Lewis said the local government portion of the funds would be dispersed to the counties immediately. Every month DMV dispersed funds to the counties based on the number of vehicles registered in a particular county.

 

Senator Nolan stated Nevada’s vehicle registration fees were some of the highest in the western United States. He asked for and received clarification from Ms. Lewis that participation in the program would be optional and not present a financial hardship to vehicle owners in Nevada.

 

Chairman Shaffer asked if a person would be able to use their Veteran’s exemption on license plates registered under the 2-year program. Ms. Lewis said the Veterans’ exemptions were issued yearly. As no mechanism was currently in place for a 2-year exemption, the veterans’ exemptions could not be used on vehicles registered under the pilot program.

 

Senator Carlton said people sometimes turned their license plates into DMV for credit. She asked how DMV would handle the credit generated by such returns.  Ms. Lewis said when license plates were returned for credit under the pilot program, the DMV adjusted the funds sent to the counties by withholding an amount equal to the credit from the funds being sent in subsequent months to the appropriate county.

 

Chairman Shaffer closed the hearing on S.B. 213.

 

The committee members decided to schedule Senate Bill 149 for a work session.  At the work session, vendor negotiation, DMV generated mailings, the estimated costs to DMV, and fiscal notes would be discussed. Senator Carlton said she wanted more information on the bill’s fiscal note presented at the work session. Senator Schneider said it was his intent that S.B. 149 secure additional funding for education.

 

SENATOR NOLAN MOVED TO DO PASS S.B. 213.

 

SENATOR HARDY SECONDED THE MOTION.

 

THE MOTION CARRIED UNANIMOUSLY.

 

* * * * *

 

There being no further business, Chairman Shaffer adjourned the Senate Committee on Transportation at 2:05 p.m.

 

 

RESPECTFULLY SUBMITTED:

 

 

 

                                                           

Lee-Ann Keever,

Committee Secretary

 

 

APPROVED BY:

 

 

 

                                                                                         

Senator Raymond C. Shaffer, Chairman

 

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