MINUTES OF MEETING

      ASSEMBLY COMMITTEE ON COMMERCE

 

      Sixty-seventh Session

      May 21, 1993

 

 

 

The Assembly Committee on Commerce was called to order by Chairman Gene T. Porter at 2:00 p.m., Friday, May 21, 1993, in Room 332 of the Legislative Building, Carson City, Nevada.  Exhibit A is the Meeting Agenda, Exhibit B is the Attendance Roster.

 

 

COMMITTEE MEMBERS PRESENT:

 

      Mr. Gene T. Porter, Chairman

      Mr. Morse Arberry, Jr., Vice Chairman

      Ms. Kathy M. Augustine

      Mr. Rick C. Bennett

      Mr. John Bonaventura

      Mr. Val Z. Garner

      Ms. Chris Giunchigliani

      Mr. Dean A. Heller

      Mr. David E. Humke

      Ms. Erin Kenny

      Mr. Richard Perkins

      Ms. Myrna T. Williams

 

COMMITTEE MEMBERS ABSENT:

 

      Mr. Scott Scherer

 

GUEST LEGISLATORS PRESENT:

 

      None 

 

STAFF MEMBERS PRESENT:

 

      Mr. Paul Mouritsen, Senior Staff Analyst, Legislative    Counsel Bureau

 

OTHERS PRESENT:

     

      Ms. Cynthia Woodgate, Deputy Secretary of State; Sherry Porter, Trademark Coordinator, Office of the Secretary of State; Ms. Bobbie Gang, Nevada Pharmacists Association; Mr. Fred Hillerby, Nevada State Board of Pharmacy, Associated Pathology Laboratories and Blue Cross and Blue Shield of Nevada; Ms. Sharon Ezell, Chief, Bureau of Licensure and Certification, Health Division; Mr. Scott Walshaw, Commissioner, Financial Institutions Division; Mr. Doug Walther, Senior Deputy Attorney General; Ms. Teresa Rankin, Insurance Commissioner (see also Exhibit B attached hereto)

 

AB 184      Requires annual prepayment of tax on insurance premiums.

 

Chairman Porter directed attention to an amendment to AB 184, Amendment 583 (Exhibit C).  He explained Amendment 583 constituted an insurance premium tax which was a $30 million component of the Governor's budget.  Chairman Porter called for a motion to approve Amendment 583 to AB 184.

 

      ASSEMBLYMAN BENNETT MOVED TO APPROVE AMENDMENT 583 TO AB   184.

 

      ASSEMBLYMAN GARNER SECONDED THE MOTION.

 

Discussions were held among committee members.

 

      THE MOTION CARRIED; Assemblymen Augustine, Heller and Humke   voted "no."

 

SB 214      Makes various changes relating to registration of trade-marks and insignia.

 

Ms. Cynthia Woodgate, Deputy Secretary of State, testified in support of SB 214.  She introduced Sherry Porter, Trademark Coordinator, Office of the Secretary of State. 

 

Ms. Woodgate explained one purpose of SB 214 was to reduce the effective period of trademarks, trade names and insignias from 10 years to 5 years.  She advised of 291 renewal notices mailed by the Secretary of State during the first five months of 1993, 118 renewal notices were returned because they could not be delivered as addressed.

 

Ms. Woodgate indicated SB 214 would also provide increases in fees charged by the Secretary of State.  She advised all fees resulting from trademarks collected by the Office of the Secretary of State were placed in the state's general fund.  She said the Secretary of State requested the fee for a first filing (of a trademark, trade name or insignia) be increased from $25 to $50 and requested the fee for a renewal be increased from $10 to $25.

 

Mr. Arberry asked why the Secretary of State had selected the sum of $50 as the fee for a first filing.  Ms. Woodgate indicated such a fee would generate additional revenues of approximately $23,375 for the state's general fund.

 

Mr. Humke asked by what percentage the filing fee was increased if the effective period (of the filing) was halved and the filing fee doubled.  Ms. Woodgate responded she was not certain.  She said some individuals filed trademarks, trade names or insignia which those individuals then never used and which no one else could use during the present ten year effective period.  Mr. Humke explained the purpose of his question was to point out the filing fee was being doubled twice.

 

Chairman Porter closed the hearing on SB 214.

 

SB 254      Allows exchange of information between pharmacists relating to suspected misuse of drugs.

 

Ms. Bobbie Gang, Nevada Pharmacists Association, testified.  She stated the association supported SB 254.  She advised SB 254 would permit pharmacists to exchange information concerning potential misuse or abuse of drugs.  She indicated individuals who abused drugs sometimes obtained prescriptions from several doctors. She said pharmacists believed often they could perceive such instances of drug abuse and suggested if pharmacists could communicate with one another (regarding suspected misuse or abuse of drugs), they could ascertain if an individual was having the same or similar prescriptions filled (at different pharmacies).  She said such activity then could be reported and investigated. 

 

Chairman Porter asked if the prescriptions to which Ms. Gang referred were prescriptions signed by physicians.  Ms. Gang replied some were signed by physicians, but some were forged.  She suggested if an individual utilizing forged prescriptions took those prescriptions to various pharmacies to be filled and if pharmacists were allowed to communicate with one another about such activity, those circumstances would provide a means to identify such an individual. 

 

Mr. Fred Hillerby, Nevada State Board of Pharmacy, testified.  He advised the board supported SB 254.  

 

Mr. Hillerby said some patients who abused drugs were clever at obtaining prescriptions for small supplies of controlled substances from doctors prior to the time they could be seen by those doctors and pharmacists "will find where they will change the numbers on that."

 

Mr. Hillerby referred to Section 1, subsection (b) of SB 254 which he explained would permit pharmacists to communicate with one another to learn if an individual was taking drugs other than the drug for which he presented a prescription.  He advised the purpose of such communication was to ascertain there were no contra-indications for the drug the individual was attempting to obtain.

 

Mr. Arberry asked if the provisions of SB 254 pertained to all drugs or only to addictive drugs.  Mr. Hillerby explained the provisions could be applied to all drugs because contra-indications could exist for drugs which were not controlled substances, and it could be dangerous for individuals to take combinations of drugs.

 

Mr. Arberry asked if pharmacists would communicate by telephone as opposed to communicating by computer.  Mr. Hillerby responded some chain store pharmacies might have the ability to communicate among their various stores by computer, but it was envisioned such communication would be by telephone.

 

Chairman Porter closed the hearing on SB 254.

 

SB 357      Expands definition of "medical laboratory."

 

Mr. Fred Hillerby, Associated Pathology Laboratories, testified.  He stated SB 357 was similar to SB 192, passed during the last legislative session.  He advised SB 192 was vetoed by the Governor, but subsequently the support of both the Governor and members of law enforcement had been obtained.  He said the purpose of SB 192 of the 66th session was to redefine laboratories to ensure laboratories, particularly those specializing in toxicology, would be licensed by the state.  He said the premise for SB 357 was the same as that for SB 192.  He contended having unlicensed laboratories conducting drug testing in the workplace was not good public policy.

 

Chairman Porter commented the Governor had reviewed the language of SB 357 and had no objection to it.

 

Mr. Garner asked how many licensed laboratories there were in Las Vegas.  Ms. Sharon Ezell, Chief, Bureau of Licensure and Certification, Health Division, responded.  She advised there were 372 licensed laboratories in the state of Nevada and said she could ascertain for Mr. Garner the number of licensed laboratories in Las Vegas.

 

Mr. Garner asked what requirements a laboratory must meet to become licensed.  Ms. Ezell replied to become licensed a laboratory must employ a pathologist, a laboratory director and licensed technologists and technicians and must utilize certain quality assurance programs.

 

Mr. Garner asked when was the most recent occasion a laboratory was issued a new license to do business in Nevada.  Ms. Ezell responded, "...it's been within the last month or so."

 

Mr. Garner stated he was concerned about the possibility of a monopoly being created for one or two laboratories in Las Vegas.

 

Mr. Bennett asked if most requirements concerned with the licensure or establishment of a laboratory were based on federal guidelines.  Ms. Ezell replied they were.  She said the laboratories discussed in SB 357 would be affected by the Clinical Laboratory Improvement Act and amendments to that act.

 

Mr. Bennett asked if many of the 372 laboratories licensed to do business in Nevada were located in physicians' offices.  Ms. Ezell replied they were.      

 

Chairman Porter closed the hearing on SB 357.

 

SB 328      Makes various changes to provisions governing licensure and discipline of mortgage companies.

 

Mr. Scott Walshaw, Commissioner, Financial Institutions Division, testified.  He introduced Mr. Doug Walther, Senior Deputy Attorney General, and advised Mr. Walther represented the Department of Commerce and more specifically the Financial Institutions Division.   He stated many provisions of SB 328 resulted from requests by Mr. Walther. 

 

Mr. Walshaw explained the various sections of SB 328 much as he explained them in his memorandum dated April 28, 1993 (Exhibit D).

 

Mr. Doug Walther testified.  Mr. Walther explained the purpose of the proposed amendments to NRS set forth in Sections 2 and 5 of AB 328 was to separate grounds for denial of a license from grounds for disciplinary action.  He said an additional purpose of Section 5 was to eliminate certain vague and outdated language in order to clarify grounds for disciplinary action.  He indicated it was hoped such clarification would guide the industry and would make the state's disciplinary actions more reasonable and more defensible upon judicial review.

 

Mr. Arberry referred to language in Section 3, subsection 3(a), regarding an individual's possessing a good reputation for honesty, trustworthiness and integrity and displaying competency to transact the business of a mortgage company and asked, "How are you going to prove that? If they go into business and they meet all that criteria and then they fold...."  Mr. Walshaw contended if the state put a company out of business because the company had defrauded a customer or customers, as opposed to the company going out of business because of bad luck or poor business and without causing a loss to one of its customers, the state would have a "basis to prove that a person is dishonest, untrustworthy, etc., etc."

 

A colloquy ensued between Mr. Arberry, Mrs. Williams and Mr. Walshaw.

 

Mr. Humke referred to Section 5 of AB 328 and asked why the administrative fine provided by that section, $500, was such a small fine.  Mr. Walshaw replied the division could levy multiple fines but had selected the sum of $500 based on similar provisions in other statutes.  He indicated during the current legislative session, a bill was introduced to make fines more uniform and more meaningful.  He advised if the legislature passed that bill, the fines provided by AB 328 would be changed.  Mr. Humke suggested all "infractions" for which the fine provided in Section 5 could be imposed were "rather reprehensible."  Mr. Walshaw explained often a fine was imposed as a preliminary to more severe action being taken and was used as an "attention getting device."  He said a fine was not intended to substitute for revocation of a license.

 

Chairman Porter closed the hearing on AB 328.

 

SB 397      Clarifies that nonprofit corporation for hospital, medical or dental services may issue blanket health insurance.

 

Mr. Fred Hillerby, Blue Cross and Blue Shield of Nevada, testified.  He advised blanket health insurance was a special form of health insurance used to provide coverage for such purposes as schools' sporting events and church camps.

 

Ms. Teresa Rankin, Insurance Commissioner, testified.  She said the Department of Insurance supported the change (to NRS 689B.080) proposed by SB 397 and believed the change would provide to Blue Cross and Blue Shield the option to write blanket health insurance policies.

 

Chairman Porter closed the hearing on SB 397.

 

Chairman Porter advised the committee would conduct a work session on May 31, 1993, and requested the committee's subcommittees be prepared to present their reports.

 

There being no further business before the committee, Chairman Porter adjourned the meeting.    

 

                                   RESPECTFULLY SUBMITTED,

 

 

 

                                      

                                   _______________________

                                   SARA J. KAUFMAN

                                   Committee Secretary

                                        

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Assembly Committee on Commerce

May 21, 1993

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