MINUTES OF THE
SENATE COMMITTEE ON COMMERCE AND LABOR
Sixty-seventh Session
February 18, 1993
The Senate Committee on Commerce and Labor was called to order by Chairman Randolph J. Townsend, at 1:30 p.m., on Thursday, February 18, 1993, in Room 207/208 of Cashman Field Center, Las Vegas, Nevada. Exhibit A is the Meeting Agenda. Exhibit B is the Attendance Roster.
COMMITTEE MEMBERS PRESENT:
Senator Randolph J. Townsend, Chairman
Senator Sue Lowden, Vice Chairman
Senator Ann O'Connell
Senator Mike McGinness
Senator Raymond C. Shaffer
Senator Leonard V. Nevin
Senator Lori L. Brown
STAFF MEMBERS PRESENT:
Brian Davie, Senior Research Analyst
Denise Pinnock, Committee Secretary
Sheri Asay, Committee Secretary
Frank Krajewski, Senior Research Analyst
OTHERS PRESENT:
Scott Young, General Counsel, State Industrial Insurance System
Margi Grein, Director of Finance, Nevada State Contractors Board,
Alex Delgado, Board Member, Nevada State Board of Physical Therapy Examiners
Cindy Wade, Executive Director, Nevada State Board of Chiropractic Examiners, testified from Carson City
Stephen Borzeka, Private Citizen
Todd Russell, Legal Counsel, Nevada State Board of Accounting, testified from Carson City
Ken Shaddy, Legislative Representative, State Barbers Association
Keith MacDonald, Executive Secretary, Board of Pharmacy, testified from Carson City.
Douglas Finlay, President, AAA Hearing Aids
Tom Rainford, Secretary/Treasurer, Nevada State Board of Hearing Aid Specialists
Carol Hanna, Executive Director, Private Investigator's Licensing Board, testified from Carson City
Dr. Gerald Peterson, President, Homeopathic Board of Medical Examiners, testified from Carson City
Louis Test, Secretary/Treasurer, Homeopathic Board of Medical Examiners, testified from Carson City
David Moredock, Pharmacist
Mary Manna, Executive Secretary, Nevada State Board of Cosmetologists
Dr. Thomas Scully, M.D. Secretary/Treasurer, Nevada State Board of Medical Examiners, testified from Carson City
Jerry Higgins, Director, Nevada State Board of Engineers & Land Surveyors, testified from Carson City
Jane Nichols, President, Nevada State Board of Social Work Examiners, testified from Carson City
Dr. Stephen C. McFarlane, Audiology & Speech Pathology Board of Examiners, testified from Carson City
Chris Christoff, Manager, Food & Beverage Consultant
Bill Webb, Pharmacist
Senator Nevin opened the meeting, which he said would focus on professions, occupations and businesses.
Senator Nevin expressed concern about a problem the committee recently became aware of. He said, "...we heard yesterday...that under the reorganization plan they're taking eight auditors out of SIIS (State Industrial Insurance System), move them under the business and industry part of the reorganization plan." He discussed the impact of this action on premium payers, "on a stand alone account, which is not General Fund money."
Senator Nevin referred to the telemarketer's account:
...which is not General Fund money, that is derived from assessing internally within telemarketers, that there's over $1 million dollars they're transferring over into the General Fund, that should not be General Fund monies. That's there to help run that operation, hire people, staff it. So that's why we're here.
Senator Nevin asked Brian Davie, Senior Research Analyst, to address the committee on that issue. Mr. Davie reported to the committee regarding the assessment of boards under the Governor's reorganization plan (Exhibit C). He discussed Bill Draft Request (BDR) 52-1720.
BDR 52-1720: Reverts balance in excess of $250.000 in
Telemarketing budget to general fund.
Senator Nevin commented on the new reorganization plan:
We get a little concerned when money is being used for something other than its purpose. I get concerned when I hear talk about the state looking at borrowing money, quote, unquote, from the Public Employees Retirement System, which has nothing to do with the General Fund, with no paybacks....
Senator Nevin asked for comments from board members, on how the money, which the boards assess themselves, should be handled.
Scott Young, General Counsel, State Industrial Insurance System, testified regarding the Nevada State Contractors Board. He commented on the need for the board to take action against contractors who fail to pay workers' compensation insurance.
Margi Grein, Director of Finance, Nevada State Contractors Board, addressed the committee. She expressed concern over the reorganization plan, and said she was told it would have little or no effect on the contractors board. Ms. Grein thought that going from an independent board to a newly created department would be a major change. She spoke of the costs involved in the change, and stated that the fees contractors pay would have to go up as a result.
In response to a question by Senator Nevin, Ms. Grein said the board had "very little input in the organizational material," although they tried to get involved as much as possible.
There was further discussion on what is being done about contractors who are not covered under workers' compensation.
Senator O'Connell assured Ms. Grein that, according to the information she had been given, there would be no change in how the boards operate under the reorganization plan. She stated that each board will function independently, as they always have, but their facilitator to the Governor will be the administrator they are now under. Senator O'Connell explained the assistance that would be available to the boards under the new plan.
Ms. Grein stressed that the State Contractors Board would like to remain as it is.
Senator Nevin expressed concern about boards having to increase their fees, because of the reorganization.
Alex Delgado, Board Member, Nevada State Board of Physical Therapy Examiners, testified regarding Bill Draft Request (BDR) 54-617.
BDR 54-617: Makes various changes concerning physical therapists.
Senator Nevin asked if the State Board of Physical Therapy would increase fees. Mr. Delgado said they would not, and asked the committee to support BDR 54-617. There was discussion on the regulation of physical therapy personnel.
Cindy Wade, Executive Director, Nevada State Board of Chiropractic Examiners, testified from Carson City. She asked for support for BDR 54-562.
BDR 54-562: Makes various changes relating to the practice of chiropractic medicine.
Ms. Wade expressed concern about the chiropractic board being put under "administrative assistance" in the reorganization plan. "The board is concerned that we will lose our staffing...we don't want to lose our staffing, because our board works very well," explained Ms. Wade.
Stephen Borzeka, Private Citizen, testified regarding a complaint against an automobile repair company (Exhibit D). Senator Nevin offered to look into the problem.
Todd Russell, Legal Counsel, Nevada State Board of Accounting, testified from Carson City. He explained the board's history and purpose. Mr. Russell cited concerns of the board regarding the reorganization plan. According to Mr. Russell, the Board of Accounting does not want to be "regulated by another government agency," because the board has worked well on its own, at no cost to the government.
Senator Nevin thanked Mr. Russell for his testimony and explained, "With this reorganization plan, we legislators understand the purpose of it, to streamline and make things more functional." He spoke of the impact it would have on the boards, and stated the committee wanted to be able to answer questions the boards may have, before they "do a reorganization program."
Mr. Russell discussed the board's prior and current assessment in response to a question by Senator O'Connell.
Ken Shaddy, Legislative Representative, State Barbers Association, expressed the association's confusion regarding the reorganization plan. He stated the association would not like to "pay them to create another agency for doing nothing for us."
Senator O'Connell cautioned the board represenatives, "Until you see it in writing, don't put yourselves through all this aggravation." She informed the testifiers that the reorganization bill would come before the Senate Committee on Government Affairs, to be voted on.
Senator O'Connell expressed her disapproval of over-regulation by government. Senator Nevin advised the testifiers to be aware of what is happening, and asked for their input. Mr. Shaddy reiterated his concern about creating another agency and the costs involved.
Senator Lowden asked if the barbers board had a problem consolidating with the cosmetologists. Mr. Shaddy responded "We have never been, quote, friends from the beginning...." He thought both boards were doing a good job, and there was no need to merge them. Senator Lowden explained that the purpose was not to punish the boards by consolidating them, but to eliminate duplication of services.
Senator Shaffer said that it appears, "Nobody wants...another plateau of bureaucratic government to pay a fee to."
Keith MacDonald, Executive Secretary, Board of Pharmacy, testified from Carson City. He thanked the committee for hearing their concerns, and for alleviating their anxiety. Mr. MacDonald said his board does not anticipate raising fees. He talked about expanding bureaucracy, and related the history of the Board of Pharmacy. Mr. MacDonald talked about privatization, and said the boards have been a good example of that. He made suggestions of ways to improve the boards.
Senator O'Connell wondered what other states have done about "putting more efficiency into government." She pointed out that there are 363 different boards and commissions in the State of Nevada. Mr. MacDonald offered several suggestions for improving efficiency.
Douglas Finlay, President, AAA Hearing Aids, testified about the Hearing Aid Specialist Act. He said he had been licensed in several states, and had never seen the boards of professional dispensers and audiologists placed together. Mr. Finlay offered alternative suggestions. He spoke of fraud involving the sale of hearing aids, and said his board favored policing their own organization. He expressed concern about the boards having proper representation under the reorganization plan.
Tom Rainford, Secretary/Treasurer, Nevada State Board of Hearing Aid Specialists, addressed the committee in response to a question by Senator O'Connell regarding the board's assessment under the new plan. Mr. Rainford said they have received no information on the assessment, or on how his board would be impacted by the reorganization.
There was further discussion on combining the Board of Speech Pathology and Audiology and the Board of Hearing Aid Specialists.
Mr. Rainford expressed his displeasure at the prospective merger, stating that the two boards performed entirely different functions.
He also thought that new members of the board, as a result of the reorganization, should be trained in the legislative process.
Mr. Rainford stated his opinion that the "adnminstrative assistance," under the new plan, would benefit small boards, which are generally understaffed. He mentioned BDR 54-883.
BDR 54-883: Makes various changes concerning hearing aid
specialists.
Carol Hanna, Executive Director, Private Investigator's Licensing Board, testified from Carson City. She said her understanding was that, under the reorganization plan, the Private Investigator's Licensing Board would not be affected. Senator Nevin checked his list, and said that her board would not be changed, because they are already under the control of the Attorney General's Office.
Dr. Gerald Peterson, President, Homeopathic Board of Medical Examiners, testified from Carson City. He introduced Louis Test, Secretary/Treasurer, Homeopathic Board of Medical Examiners, who also addressed the committee from Carson City, regarding the reorganization plan. He stated that their major concern was trying to come up with some type of shared clerical assistance, shared office space and shared investigative personnel, to better perform their functions. Mr. Test said his board did not want to be regulated by a state agency, but added that they could use some clerical assistance.
Senator Nevin thanked Mr. Test, and remarked, "Those who need assistance, let's get them the assistance and let them pay the assessment. Those who feel they're functioning fine, and don't need another layer of bureaucracy over them...this is something the committee has to look at."
In response to a question by Senator Lowden, Mr. Test said his board would not be combined with any other board under the plan.
David Moredock, Pharmacist, addressed the committee and read from prepared testimony (Exhibit E). Mr. Moredock provided the committee with a handout (Exhibit F), which explains problems with which pharmacists must contend. He referred to BDR 54-884, in response to a question by Senator Nevin.
BDR 54-884: Provides regulation and definition of
"supportive personnel."
Mr. Moredock offered suggestions to the committee regarding areas of concern to pharmacists. Regarding the merger of occupational licensing boards under the reorganization plan, he said he thought the boards could work together successfully, if necessary.
Bill Webb, Pharmacist, stated his opinion on the subject of using technicians for pharmacists. He did not feel it would help alleviate the problem of a shortage of pharmacists. Mr. Webb added that, if pharmacy technicians were used, they should be educated and licensed.
Mary Manna, Executive Secretary, Nevada State Board of Cosmetologists, testified and thanked the committee for inviting her board to the hearing. She said the Board of Cosmetology was neutral on the idea of merging the barbers and cosmetologists boards. Ms. Manna expressed concern as to how the merger would take place, and the details of the structure and staffing of the combined board.
Dr. Thomas Scully, M.D. Secretary/Treasurer, Nevada State Board of Medical Examiners, testified from Carson City. He described the makeup of the Board of Medical Examiners, and discussed their current assessment rates.
Dr. Scully quoted Judy Matteucci, State Budget Director, from a
joint committee meeting held February 4, 1993, "No money from the boards will be going into the General Fund, except a small amount to help support the one position to give administrative support to the smaller boards." Dr. Scully said he personally had no trouble with that concept, but said the board has not taken an official position on it. He discussed the assessment of the board, in response to an earlier inquiry by Senator O'Connell.
Dr. Scully quoted Ms. Matteuci from the February 4, 1993 meeting:
Their funding will remain with them, there will be no change in legal representation, clearly, for the record, no money will go into the General Fund except for a small amount to help support the one position, reporting structure only to the Department of Business and Industry, with no change in budget, personnel, legal services. They set their own budget, and they would control their own functions. We will not bring funds into the state treasury, the money will stay where it is. All the big boards are not even going to see any change....
Dr. Scully suggested, "...no changes be made in the way our board functions, and we will continue to report to the public of our activities." He explained the makeup of the board.
Senator Nevin asked Dr. Scully if he objected to paying $8,400 now, $13,000 next year and $16,000 the following year.
Dr. Scully responded:
I said my personal opinion would be, I would have no trouble, and it would not significantly impact the board's budget. I think the question remains, what the entire board, which meets on March the 5th, what their attitude would be, I think, some of them, if not all, will express the same concern heard by other larger boards, but what, if anything, does that do for the boards who are being assessed. I think in the spirit of cooperation, though, in terms of actual dollars expended is not significant, it would represent, as you can figure it out very quickly, a small percentage of a $600,000 annual budget. But I do think, I want the committee's record to point out, that's my personal opinion. I
cannot and am not speaking for the entire board on that specific issue because it hasn't been addressed....
Senator Nevin thanked Dr. Scully for his comments.
Jerry Higgins, Director, Nevada State Board of Engineers & Land Surveyors, testified from Carson City, to express the opinion of his board. Regarding the reorganization plan, he stated:
We're all in favor of improving the efficiency of government...as far as the independent occupational licensing boards are concerned, there really isn't any reporting relationship now. The Governor appoints the members of these boards, and these boards, once a year, deal with the Department of Administration on their budget.
Mr. Higgins said the Board of Engineers & Land Surveyors is skeptical about coming under a department of government.
Senator Nevin thanked Mr. Higgins for his remarks.
Jane Nichols, President, Nevada State Board of Social Work Examiners, testified from Carson City. She explained the position of the Board of Social Workers on the reorganization plan. Ms. Nichols said they had been assured that this plan would not change the independence of the board, or their budget structure. She gave the committee details on the size of the Board of Social Work Examiners, and the rates they pay. Ms. Nichols expressed concern over the appointment, by the Governor, of the chief staff person of each board.
Dr. Stephen C. McFarlane, Audiology & Speech Pathology Board of Examiners, testified from Carson City, on behalf of the president and vice president of the board. He expressed concern about the reorganization plan, in regard to the merging of the Hearing Aid Licensing Board with the Audiology and Speech Pathology Board. Dr. McFarlane stated they are two different and learned professions. He explained how his board functions, and commented:
Our concerns are; one, about being considerably different than the licensure board for hearing aid dealers, and, if this new board were conceived and called the hearing specialists board, that would totally, in the title anyway, rule out the profession of speech pathology, which is the largest number of licensees in the state, of those three entities, speech pathology, audiology and hearing aid dealers.
Senator Nevin thanked Dr. McFarlane for his remarks.
Dr. McFarlane added, "Again, like other boards, we have no reporting to the Governor, in that regard, so it doesn't complicate his (the Governor's) duties..."
Chris Christoff, Manager, Food & Beverage Consultant, testified before the committee regarding discrimination against the elderly in the culinary profession. He said he has observed, over the years, this type of discrimination in Clark County businesses.
Senator Nevin informed Mr. Christoff that the issue should come before the Senate Committee on Human Resources. Senator Townsend asked what piece of legislation could be drafted that would address the complaint. In response, Mr. Christoff said:
Okay, records, that are not available from Human Resources to the Labor Department, unless they are subpoenaed...it has nothing to do with race, it has something to do with age structure.
Senator Townsend pointed out there is a law prohibiting age discrimination. Mr. Christoff explained further the discrimination that exists.
Senator Townsend suggested Mr. Christoff talk to the heads of the Labor Commission, the Advisory Board, and Employment Security Department, who are appointed by the Governor.
Mr. Christoff responded that the "...Labor Department, and I'm not here to put them down, they have a laxative attitude (sic) towards the industrial, that's the gaming industrial, on these matters."
Mr. Christoff asked for a "competent investigation" of the charge of age discrimination.
Senator Townsend referred him to the proper channels to air his complaint.
Senator Nevin told Mr. Christoff that he has more information than he did a year ago, and reiterated the suggestion that he take his complaint to the Labor Commission.
Mr. Christoff informed the committee of his plans to publicize the discrimination.
There was further discussion on the subject of age discrimination.
There being no further business, the meeting was adjourned at 4:04 p.m.
RESPECTFULLY SUBMITTED:
Sheri Asay,
Committee Secretary
APPROVED BY:
Senator Randolph J. Townsend, Chairman
DATE:
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Senate Committee on Commerce and Labor
February 18, 1993
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