Assembly Committee on Judiciary-April 3, 2017
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MINUTES OF THE MEETING OF THE ASSEMBLY COMMITTEE ON JUDICIARY Seventy-Ninth Session April 3, 2017 The Committee on Judiciary was called to order by Chairman Steve Yeager at 8:33 a.m. on Monday, April 3, 2017, in Room 3138 of the Legislative Building, 401 South Carson Street, Carson City, Nevada. The meeting was videoconferenced to Room 4401 of the Grant Sawyer State Office Building, 555 East Washington Avenue, Las Vegas, Nevada. Copies of the minutes, including the Agenda (Exhibit A), the Attendance Roster (Exhibit B), and other substantive exhibits, are available and on file in the Research Library of the Legislative Counsel Bureau and on the Nevada Legislature's website at www.leg.state.nv.us/App/NELIS/REL/79th2017. COMMITTEE MEMBERS PRESENT: Assemblyman Steve Yeager, Chairman Assemblyman James Ohrenschall, Vice Chairman Assemblyman Elliot T. Anderson Assemblywoman Lesley E. Cohen Assemblyman Ozzie Fumo Assemblyman Ira Hansen Assemblywoman Sandra Jauregui Assemblywoman Lisa Krasner Assemblywoman Brittney Miller Assemblyman Keith Pickard Assemblyman Tyrone Thompson Assemblywoman Jill Tolles Assemblyman Justin Watkins Assemblyman Jim Wheeler COMMITTEE MEMBERS ABSENT: None GUEST LEGISLATORS PRESENT: Assemblyman William McCurdy II, Assembly District No. 6 Assemblywoman Dina Neal, Assembly District No. 7 Minutes ID: 709 *CM709* Assembly Committee on Judiciary April 3, 2017 Page 2 STAFF MEMBERS PRESENT: Diane C. Thornton, Committee Policy Analyst Brad Wilkinson, Committee Counsel Linda Whimple, Committee Secretary Melissa Loomis, Committee Assistant OTHERS PRESENT: Christina Tetreault, Staff Attorney, Consumers Union, San Francisco, California Anna C. Clark, Public Defender, Clark County Public Defender's Office Robert E. O'Brien, Deputy Public Defender, Clark County Public Defender's Office William Waters, Chief Public Defender, Clark County Public Defender's Office John J. Piro, Deputy Public Defender, Clark County Public Defender's Office Amy Coffee, Attorney, Clark County Public Defender's Office; and representing Nevada Attorneys for Criminal Justice Sean B. Sullivan, Deputy Public Defender, Washoe County Public Defender's Office Alanna Bundy, Intern, American Civil Liberties Union of Nevada Tonja Brown, Private Citizen, Carson City, Nevada Wendy Stolyarov, Legislative Director, Libertarian Party of Nevada Christopher J. Lalli, Assistant District Attorney, Clark County District Attorney's Office Christopher J. Hicks, District Attorney, Washoe County District Attorney's Office; and representing Nevada District Attorneys Association Marc M. Schifalacqua, Senior Assistant City Attorney, City Attorney's Office, City of Henderson Charlotte M. Bible, Assistant General Counsel, Las Vegas Metropolitan Police Department Jeff Segal, Bureau Chief, Criminal Justice, Office of the Attorney General Luke Prengaman, Chief Deputy District Attorney, Washoe County District Attorney's Office Chairman Yeager: [Roll was called and protocol was explained.] We have three items on the agenda today and will start with Assembly Bill 287. After we are done with that bill, we are going to do the other two bills together in one hearing, because the bills are fairly similar and I expect the testimony will be similar on both of those bills. I will formally open the hearing on Assembly Bill 287. Assembly Bill 287: Revises provisions governing the issuance of gift certificates. (BDR 52-855) Assemblyman William McCurdy II, Assembly District No. 6: Thank you for having me here this morning. Joining me by phone today is Christina Tetreault, who is a staff attorney at Consumers Union, which is an organization that Assembly Committee on Judiciary April 3, 2017 Page 3 serves consumers through unbiased product testing and ratings, research, journalism, public education, and advocacy. I will walk the Committee through Assembly Bill 287 and then turn it over to Christina to add additional comments and to help answer any questions the Committee may have. In 2009, Congress passed and President Obama signed the Credit Card Accountability Responsibility and Disclosure Act of 2009, which prohibits the expiration of gift cards within five years of issuance. Assembly Bill 287 would prohibit any gift card or gift certificate sold in the state of Nevada from having expiration dates. Like many here in this Committee, we all know how those gift certificates or gift cards are put in a drawer and sometimes may be forgotten about or have not had an opportunity to be used before the expiration date. Assembly Bill 287 takes the next logical steps to prohibit the expiration of gift cards in general. Currently, eight other states have prohibited the expiration of gift cards: California, Connecticut, Florida, Maine, Minnesota, Montana, Rhode Island, and Washington. Nevada should join that list. Hardworking Nevadans deserve to have common-sense consumer protections in place, and banning expirations on gift cards protects Nevadans from being cheated out of their hard-earned wages while giving and receiving these gifts. I will turn it over to Christina to answer any questions in regards to this bill. Christina Tetreault, Staff Attorney, Consumers Union, San Francisco, California: Consumers Union is the mobilization arm of Consumer Reports, and we are very grateful for this opportunity to offer support for A.B. 287, a bill to eliminate expiration dates for gift cards. Consumers like to give and get gift cards. A 2015 holiday survey by the National Retail Federation found that gift cards were the most desired gifts nine years in a row. That same survey estimated gift card spending at nearly $26 billion for the holidays alone. While gift cards are popular to give and receive, they are not without problems. For a variety of reasons, gift cards often end up misplaced or forgotten. A Consumer Reports poll from several years ago found that a quarter of adults still have one unused gift card from the last holiday season, and 55 percent of that group have more than two unused gift cards. We asked why they had not used their gift cards. Thirty-six percent reported that they had not had time to use the gift cards and a slightly lower number of consumers—34 percent—said they had simply forgotten about the card. It used to be that consumers who misplaced a gift card for even a few months could get a nasty shock when they tried to redeem it. Cards often expired quickly or value was eaten up by junk fees. These abuses were substantially curbed by the Credit Card Accountability Responsibility and Disclosure Act of 2009, commonly known as the Credit CARD Act. The Credit CARD Act amended the federal Electronic Fund Transfer Act to extend some basic protections for gift cards including: 1) prohibiting funds on gift cards from expiring for at least five years from the date the card was purchased, or from the last date any additional money was loaded onto the card; 2) disallowing inactivity fees for the first year after the card was issued and limiting any inactivity fees charged thereafter to only one per month; Assembly Committee on Judiciary April 3, 2017 Page 4 and 3) mandating that any expiration date of a card be clearly disclosed along with any fees. These reforms have saved consumers an estimated $973 million, according to a recent report from CEB Global. The Electronic Fund Transfer Act does not preempt any state law that addresses dormancy, inactivity, service fees, or expiration dates for gift certificates or gift cards, so long as any state law on these topics provides greater consumer protection. A number of states, including California, have adopted rules that provide consumers with stronger protection by completely banning all gift card expiration dates. We urge Nevada to adopt a rule banning expiration dates for gift cards. Cash does not expire, and neither should a gift card. Consumers deserve the sole benefit of the bargain when they purchase or receive a gift card. A ban on expiration dates is also a win for retailers, because funds are ultimately redeemed with them. The Nevada Legislature holds the power to put an end to consumer losses due to expiring gift cards by barring gift card expiration. We urge you to take this task. Thank you for your time, and I am happy to answer any questions you may have. Assemblyman Pickard: The bill references specifically gift certificates, not gift cards. I know that some gift certificates are awarded for different reasons—marketing and promotional types of things—that do not require a purchase. This would ostensibly affect those. As you drafted this, did you consider that difference? Assemblyman McCurdy: I did not consider it. If there is something we can do to provide protections for those who do those types of promotions or gift certificates, we can definitely get there. I understand that concern. Chairman Yeager: If you look at page 2 of the bill, subsection 2, starting at line 27, it seems to indicate that the sections of the bill do not apply if the gift certificate was issued as part of an award, loyalty, promotional, rebate, incentive or reward program for which no consideration was provided. Then the next subsection talks about gift certificates that are given out at charitable or nonprofit organizations. I am not sure if that answers the question, but I wanted to make sure the record was clear that there do appear to be some exemptions in the bill. Assemblyman Pickard: I do not do this, but I understand there are myriad means of issuing these, and I did not know whether or not that was all-inclusive in the opposite. The second question