Committee advances discussion on AB498 to modernize motor-club rules, allow nonresident agents in some cases

Assemblyman Max Carter presented Assembly Bill 498 as a committee bill that updates Nevada’s motor-club statute, most provisions of which date to 1971. Carter said the bill “modernizes and streamlines regulations in regards to an industry” that provides roadside assistance, towing and lockout services.

Deborah Poland, general counsel for the National Auto and Travel Organization (NATO), told the committee that motor-club statutes have not been updated in decades and described services provided by member organizations. She said AB498 would remove an outdated requirement that a motor club list “the usual place of business in this state” on contracts or membership cards and would give the insurance commissioner discretion to license nonresident agents when the agent’s home state does not license such agents.

Matt Morris, counsel with Holland & Hart representing NATO, walked the committee through the bill’s text and said the intent “is to modernize a few provisions of Nevada’s motor club statute, NRS chapter 696A, which was first enacted in 1971.” He explained that some motor-club providers do not maintain a brick-and-mortar Nevada office and that requiring a Nevada street address leads to listing only a registered-agent address.

Deborah Poland and industry callers emphasized consumer benefits from broader access to motor-club services and said expanding licensing flexibility would allow more firms to operate in Nevada, which they said would also help local service providers (towers, locksmiths) receive more business.

Rick McCann of Snap Towing testified in support, as did callers from NATO and Cross Country Motor Club. Adam Plain with the Nevada Division of Insurance testified in neutral; he told the committee the Division is comfortable with removing the location-disclosure requirement and supported clarifying reciprocity so that agents from states that no longer license agents are not automatically barred from Nevada licensing. Plain also said the Division performs limited background checks and would continue to consider “trustworthiness” for agents.

Committee members asked why the "trustworthy individual" language remained in the statute and whether to substitute a clearer legal standard; Matt Morris said that wording is existing, antiquated language dating to 1971 and that section edits clarify that the licensee is an "individual" rather than a corporate "person." Senator Lang suggested replacing vague “trustworthy” language with a defined standard; committee legal staff offered to work on any amendment.

No formal committee action or recorded vote was taken during the hearing. Sponsors and industry representatives said they will continue working with the Division of Insurance and legal counsel on any drafting or definitional changes.