MINUTES OF THE
SENATE COMMITTEE ON COMMERCE AND LABOR
Sixty-seventh Session
May 12, 1993
The Senate Committee on Commerce and Labor was called to order by Chairman Randolph J. Townsend, at 8:30 a.m., on May 12, 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
GUEST LEGISLATORS PRESENT:
William A. Petrak, Assemblyman, District 18
STAFF MEMBERS PRESENT:
Beverly Willis, Committee Secretary
Brian Davie, Senior Research Analyst
OTHERS PRESENT:
Roy Fehler, Board Member, Sunrise Seniors Association
Marie H. Lobbyist, Soldo, Sierra Health Services, Inc.
Brian Herr, Lobbyist, Nevada Bell
Margaret McMillan, Lobbyist, Sprint, Central Telephone, Nevada
Fred Schmidt, Deputy Attorney General, Office of Consumer Advocate
Joyce Newman, Lobbyist, Utility Shareholders Association of Nevada
Richard W. Colon, Director, Utility Shareholders Association of Nevada
Bob Crowell, Lobbyist, Utility Shareholders Association of Nevada
Galen Denio, Commissioner, Public Service Commission, State of Nevada
Andrea "Ande" Engleman, Lobbyist, Nevada State Press Association, Inc.
Steve Rigazio, Vice President, Nevada Power Company
Stan Warren, Lobbyist, Sierra Pacific Power Company
William A. Petrak, Assemblyman, District 18, opened the hearing on Assembly Concurrent Resolution (A.C.R.) 12.
ASSEMBLY CONCURRENT
RESOLUTION 12: Urges Commissioner of Insurance to encourage insurers who issue policies of health insurance to offer policies with limited coverage to certain persons.
Assemblyman Petrak urged passage of A.C.R. 12. He noted that senior citizens oftentimes could not find affordable insurance. Senator O'Connell, Senator Lowden, Senator Brown and Senator Nevin discussed the need for this legislation.
Next to testify was Roy Fehler, Board Member, Sunrise Seniors Association, who concurred with Assemblyman Petrak in urging passage of A.C.R. 12, stating it is urgent to have limited insurance coverage available for seniors.
SENATOR O'CONNELL MOVED TO DO PASS A.C.R. 12.
THE MOTION WAS SECONDED BY SENATOR LOWDEN.
THE MOTION PASSED UNANIMOUSLY.
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Marie H. Soldo, Lobbyist, Sierra Health Services, Inc., testified her organization was working on limited coverage and she would confer with Assemblyman Petrak to obtain his input. Senator Townsend noted he feels the needs of those over 50 years of age are substantially more dramatic than those who may have just entered the work force. Ms. Soldo stated she has concerns about a benefit package that would be affordable, since the cost would be out-of-pocket.
Senator Townsend closed the hearing on A.C.R. 12 and opened the hearing on Senate Bill (S.B.) 425.
SENATE BILL 425: Extends date upon which public service commission of Nevada must report to legislature concerning alternative plan for regulating public utilities that provide telecommunication services.
Senator Lori Lipman Brown, Senate District 7, came forward to testify. At that time Senator Brown presented Exhibit C, an amendment to S.B. 425. Senator Brown also urged passage of this bill.
Next to testify was Brian Herr, Lobbyist, Nevada Bell, who gave a history of the alternative plan of regulation for phone companies.
Margaret McMillan, Lobbyist, Sprint, Central Telephone, Nevada, noted Central Telephone had not opted to use the alternative regulation plan. Ms. McMillan did note, however, her organization would support this legislation. She noted The Nevada Telephone Association also supports S.B. 425.
Fred Schmidt, Deputy Attorney General, Office of the Consumer Advocate, also supports S.B. 425. Mr. Schmidt discussed the pros and cons of the legislation.
Senator Townsend noted for the record that his firm represents Nevada Bell and Central Telephone.
SENATOR BROWN MOVED TO AMEND AND DO PASS S.B. 425.
SENATOR NEVIN SECONDED THE MOTION.
THE MOTION CARRIED. (SENATOR TOWNSEND ABSTAINED FROM THE VOTE.)
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Senator Townsend closed the hearing on S.B. 425 and opened the hearing on Senate Bill (S.B.) 441.
SENATE BILL 441: Declares policy of legislature concerning regulation of public utilities.
First to testify was Joyce Newman, Lobbyist, Utility Shareholders Association of Nevada, who introduced Richard W. Colon, Director, Utility Shareholders Association of Nevada and Robert Crowell, Utility Shareholders Association of Nevada. Ms. Newman presented Exhibit D, a proposed amendment for S.B. 441. Ms. Newman said she had consulted with Mr. Schmidt regarding the language on the amendment. At this time, Mr. Colon testified with an explanation of the legislation and why his organization thinks it is important. He noted he feels S.B. 441 would help temper future swings in regulation. Mr. Crowell testified it is his legal opinion that S.B. 441 would provide legislative guidance that would carry out a policy of financial responsibility and reliable service.
Galen Denio, Commissioner, Public Service Commission, State of Nevada, stated the commission supports S.B. 441 as amended. Mr. Denio went on to say the Public Service Commission believes that S.B. 441 represents what has long been a commission practice and could support this bill as amended.
Mr. Denio replied to concerns expressed by Senator Townsend regarding equitable responsibility to customers and utility companies by staff of the Public Service Commission. Mr. Denio stated the commission is made up of two parts. One being advisors to the commissioners and the second is the regulatory staff. Mr. Denio noted that any investigative work done by the regulatory staff is done separately.
Andrea "Ande" Engleman, Lobbyist, Nevada State Press Association, Inc., testified, stating for the record.
I would like to disclose some personal conflicts here, which actually may give me a unique position in all of this. In addition to being a utility customer, I represent the press association which has had proceedings over the last couple of years before the Public Service Commission where I've been actively involved, but you should also be aware that, as my parents informed me last year, I receive an income, an independent income, from a trust fund which has large chunks of Nevada Power stock which were purchased when it plummeted and is now considered a very, very good buy. Also American Telegraph & Telephone and Pacific Telesis stock, in addition.
Ms. Engleman went on to state there is a move in the country whereby there are large monopolies getting involved in areas where before there has been free enterprise and without safeguards by the Public Service Commission, the small businesses could not possibly compete with a protected monopoly. Ms. Engleman went on to offer some changes to the proposed amendment.
Fred Schmidt, Deputy Attorney General, Office of the Consumer Advocate, stated he has one main concern, namely, what the need is for S.B. 441. Mr. Schmidt stated he feels the Public Service Commission is doing its job, which is to balance the interests of consumers and shareholders and provide for fair regulation. He feels S.B. 441 covers this issue. He went on to say why put it into law if the situation is already being covered. Mr. Schmidt concluded his remarks by reiterating he feels S.B. 441 is unnecessary, but if the committee feels this bill was necessary, please adopt the amendment.
Steve Rigazio, Vice President, Nevada Power Company, stated he feels S.B. 441 is very important. He explained why he thinks this bill should be incorporated and reiterated that he thinks it is a very important bill.
Stan Warren, Lobbyist, Sierra Pacific Power Company, spoke briefly, stating he supported passage of S.B. 441.
Senator Townsend closed the hearing on S.B. 441. He then asked for a motion for committee introduction of Bill Draft Request (BDR) 57-1039.
BILL DRAFT REQUEST 57-1039: Makes various changes relating to group insurance.
SENATOR SHAFFER MOVED FOR COMMITTEE INTRODUCTION OF BDR 57-1039.
SENATOR NEVIN SECONDED THE MOTION.
THE MOTION PASSED UNANIMOUSLY.
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Senator Townsend then asked for committee introduction of BDR 15-1219.
BILL DRAFT REQUEST 15-1219: Repeals prohibition against sexual conduct between consenting adults of same sex.
SENATOR SHAFFER MOVED FOR COMMITTEE INTRODUCTION OF BDR 15-1219.
SENATOR BROWN SECONDED THE MOTION.
THE MOTION CARRIED. (SENATORS O'CONNELL AND MCGINNESS VOTED NO.)
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There being no further business, the meeting was adjourned at
10:55 a.m.
RESPECTFULLY SUBMITTED:
Beverly Willis,
Committee Secretary
APPROVED BY:
Senator Randolph J. Townsend, Chairman
DATE:
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Senate Committee on Commerce and Labor
May 12, 1993
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