MINUTES OF THE
SENATE COMMITTEE ON COMMERCE AND LABOR
Sixty-seventh Session
May 11, 1993
The Senate Committee on Commerce and Labor was called to order by Chairman Randolph J. Townsend, at 8:30 a.m., on Tuesday, May 11, 1993, in Room 227 of the Legislative Building, Carson City, 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:
Denise Pinnock, Committee Secretary
Brian Davie, Senior Research Analyst
OTHERS PRESENT:
John Mendoza, Chairman, Public Service Commission of Nevada
Kirby Lampley, Deputy Commissioner, Public Service Commission of Nevada
Mike Greedy, Assistant Policy Advisor, Public Service Commission of Nevada
Thomas Sheets, Attorney, Southwest Gas Corporation
Stan Warren, Lobbyist, Sierra Pacific Resources
Galen Denio, Commissioner, Public Service Commission of Nevada
Stephanie Tyler, Lobbyist, Nevada Propane Dealers Association, Nevada State Chiropractic Association
Marsha Berkbigler, Lobbyist, Nevada State Medical Association
David Rovetti, Doctor of Chiropractic, Nevada State Chiropractic Association
Kelvin Chin, Regional Vice President, American Arbitration Association
Les Berkson, Arbitrator
Terry Rankin, Commissioner of Insurance, Department of Insurance, State of Nevada
George McNally, Lobbyist, Nevada Trial Lawyers Association
Mark Brown, Lobbyist, State Farm Insurance Company
Chairman Townsend opened the meeting with mention of Bill Draft Request (BDR) 52-1818.
BILL DRAFT REQUEST 52-1818: Enlarge locations and products for sale by local wineries.
SENATOR McGINNESS MOVED FOR COMMITTEE INTRODUCTION OF BDR 52-1818.
SENATOR O'CONNELL SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
* * * * *
Senator Townsend opened the hearing on Senate Bill (S.B.) 206.
SENATE BILL 206: Delays prospective expiration of provision requiring public utilities to pay assessments for certain expenses incurred by public service commission of Nevada.
John Mendoza, Chairman, Public Service Commission of Nevada, explained the bill. He submitted a document titled Report on Assessments Charged Public Utilities for Travel Expenses Related to Appearances at Federal Regulatory Agencies (Exhibit C).
Kirby Lampley, Deputy Commissioner, Public Service Commission of Nevada, stated the commission had been successful in reducing some of the rates which would have been charged to Nevada consumers.
Mike Greedy, Assistant Policy Advisor, Public Service Commission of Nevada, cited several examples of "victories" in Washington D.C.
Thomas Sheets, Attorney, Southwest Gas Corporation, submitted written testimony in support of the bill (Exhibit D).
Stan Warren, Lobbyist, Sierra Pacific Resources, stated his agency's support of the bill, and gave a history of the legislation.
SENATOR LOWDEN MOVED TO DO PASS S.B. 206.
SENATOR NEVIN SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
* * * * *
Senator Townsend closed the hearing on S.B. 206 and opened the hearing on Assembly Bill (A.B.) 416.
ASSEMBLY BILL 416: Expands authority of public service commission of Nevada to regulate safety of storage facilities and pipelines for certain gases and increases civil penalty for violation of certain regulations governing safety standards for pipelines used to transport gas.
Galen Denio, Commissioner, Public Service Commission of Nevada, submitted a written statement supporting the proposed legislation (Exhibit E).
Stephanie Tyler, Lobbyist, Nevada Propane Dealers Association, stated her organization's support of the bill.
SENATOR NEVIN MOVED TO DO PASS A.B. 416.
SENATOR LOWDEN SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
* * * * *
Senator Townsend closed the hearing on A.B. 416, and opened the hearing on S.B. 445.
SENATE BILL 445: Requires policies of insurance for motor vehicle liability to provide procedure for arbitration to resolve disputes concerning independent evaluations of medical or chiropractic care.
Ms. Tyler, representing the Nevada State Chiropractic Association, explained the bill to the committee, and submitted a handout regarding binding arbitration and medical examinations (Exhibit F).
Senator Lowden asked if the insurance company would pay for the process of arbitration. Ms. Tyler stated that issue was not covered in the bill. She said traditionally the cost was split between both parties.
Senator Townsend asked how the proposed bill would help the consumer be more aware of their options. Ms. Tyler stated that having provisions in an insurance policy to provide for arbitration would keep some cases out of court, which in the past, would have been litigated.
David Rovetti, Doctor of Chiropractic, Nevada State Chiropractic Association, estimated 5 percent of the auto accident cases he treated were sent for independent medical examination (IME) by the insurer. He said he was only reimbursed for services rendered before the request for IME.
Senator Brown asked if certain insurers always seemed to use the same evaluator, who would consistently report in favor of the insurer. Dr. Rovetti stated the term IME is a misnomer, because the insurance company hires the doctor who does the evaluation.
Kelvin Chin, Regional Vice President, American Arbitration Association, promoted the use of alternative dispute resolution. He gave a history of his organization and explained the difference between arbitration and mediation.
Senator Brown asked if there was an avenue of appeal in binding arbitration. Mr. Chin said there was not, in most cases. If there had been a capricious decision made by the arbitrator, fraud, bias or gross misstatement of fact, the arbitrator's decision could be vacated.
Les Berkson, Arbitrator, supported S.B. 445, with the exception of section 2.
Terry Rankin, Commissioner of Insurance, Department of Insurance, State of Nevada, cited the use of mediation and arbitration to settle the disputes in Florida in the aftermath of Hurricane Andrew.
Senator Lowden asked who paid for those arbitration sessions. Ms. Rankin said the insurers had paid for them in order to accelerate the payment of claims and avoid some of the court proceedings.
Ms. Rankin guessed the proposed bill would have a positive impact on automobile insurance.
George McNally, Lobbyist, Nevada Trial Lawyers Association, warned that if a person's claim did end up in court after binding arbitration, the binding decision might not be subject to litigation.
Mark Brown, Lobbyist, State Farm Insurance Company, stated his organization's concern. He said the qualifications of the arbitrator needed to be spelled out.
Mr. McNally suggested non-binding arbitration as an alternative to the language in section 2.
Senator Townsend explained the bill would go to subcommittee and closed the hearing on S.B. 445.
There being no further business, the meeting was adjourned at 10:05 a.m.
RESPECTFULLY SUBMITTED:
Denise Pinnock,
Committee Secretary
APPROVED BY:
Senator Randolph J. Townsend, Chairman
DATE:
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Senate Committee on Commerce and Labor
May 11, 1993
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