MINUTES OF THE
SENATE COMMITTEE ON COMMERCE AND LABOR
Sixty-seventh Session
May 19, 1993
The Senate Committee on Commerce and Labor was called to order by Chairman Randolph J. Townsend, at 8:30 a.m., on Wednesday, May 19, 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:
Brian Davie, Senior Research Analyst
Sheri Asay, Committee Secretary
OTHERS PRESENT:
Keith Ashworth, Lobbyist, Nevada Power Company
Donald Fabbi, Manager of Safety Services, Nevada Power Company
Stan Warren, Lobbyist, Sierra Pacific Resources
Curtis Risley, Manager, Risk Management and Claims Department, Sierra Pacific Power Company
Terry Page, Director, Regulatory Operations, Public Service Commission, State of Nevada
Steve Tackes, Lobbyist, Nevada State Cable Television Association
David Nicholas, Lobbyist, Nevada Adult Care Association
Suzanne Ernst, Administrator, Division for Aging Services, Department of Human Resources, State of Nevada
Candice Rutledge, Supervising Compliance Investigator, Division for Aging Services, Department of Human Resources, State of Nevada
Ed Fend, Lobbyist, American Association of Retired Persons
David Luke, Ph.D., Director, Northern Nevada Mental Retardation Services, Division of Mental Hygiene and Mental Retardation, State of Nevada
Wendy Van Curen Simons, Nevada Adult Care Association
Larry Fry, President, Nevada Adult Care Association
Tim Carlson, Executive Director, Commission on Economic Development, State of Nevada
Lori Martin, Marketing, Commission on Economic Development, State of Nevada
Cecilia Colling, Deputy Director, Commission on Economic Development, State of Nevada
Tom Hartley, Chairman, Nevada Development Authority
Ken Lind, President, Economic Development Authority of Western Nevada
Kris Holt, Executive Director, Northern Nevada Development Authority
Shirley Walker, Executive Director, Churchill County Development Authority
Senator Townsend opened the meeting, announcing a discussion of Senate Bill (S.B.) 400.
Senate Bill 400: Prohibits certain activities near overhead line carrying near overhead line carrying high voltage. (BDR 40-950)
Keith Ashworth, Lobbyist, Nevada Power Company, testified on behalf of S.B. 400. He stated there are two amendments the Southern Nevada Utilities discussed regarding the bill. The amendments were to change "the" to "a" on line 6 of page 1. On line 5 and 6 on page 2 it should read 10 feet clearance instead of 6 feet to conform with OSHA regulations.
Donald Fabbi, Manager of Safety Services, Nevada Power Company, testified in support of S.B. 400. He said the vast majority of accidents he has investigated could have been avoided by this type of legislation.
Stan Warren, Lobbyist, Sierra Pacific Resources, addressed the committee and introduced Curtis Risley, Manager, Risk Management and Claims Department, Sierra Pacific Power Company.
Mr. Risley said that other states have passed similar legislation, and that S.B. 400 was based on Arizona law. He said this style of law best protects the worker, and gives the crane operator incentive to obey the law, thus avoiding injury.
Senator McGinness asked Mr. Risley to clarify to whom the law would apply, and wondered if this legislation is intended for "people who happened to be working under them [power lines], and not paying attention..." Mr. Risley said yes and elaborated on situations S.B. 400 would cover. Mr. Warren further explained how the power company is trying to protect workers with this law.
Senator Brown asked how the power company was planning to publicize this new legislation to inform the public. Mr. Risley explained their promotion plans.
Terry Page, Director, Regulatory Operations, Public Service Commission, State of Nevada, addressed the committee and offered his support of S.B. 400.
Steve Tackes, Lobbyist, Nevada State Cable Television Association, testified regarding S.B. 400, and stated that his company had "no problems with it."
Senator Townsend closed discussion on S.B. 400.
SENATOR LOWDEN MOVED TO AMEND AND DO PASS S.B. 400 WITH AMENDMENT 439.
SENATOR NEVIN SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
* * * * *
Senator Townsend announced a discussion of S.B. 434.
Senate Bill 434: Provides for licensing of administrators of residential facilities for groups. (BDR 54-156)
David Nicholas, Lobbyist, Nevada Adult Care Association, testified before the committee on S.B. 434.
Mr. Nicholas said that the main reason for S.B. 434 was that "...because in this year's budget...there's an amount of $1.2 million, which is a deduct from Medicaid expenses for the transfer of patients from licensed health care, governed by the existent board, to residential care..." He explained that this bill imposes on residential care, many of the same restrictions imposed on licensed care, to satisfy the government and the people.
Mr. Nicholas introduced Suzanne Ernst, Administrator, Division for Aging Services (DAS), Department of Human Resources, State of Nevada.
Ms. Ernst said that she would call the facilities "group care" rather than "residential care" and explained their function. She discussed the need for additional regulatory methods to insure quality care for clients. Ms. Ernst cited a nationwide survey by the American Association of Retired Persons (AARP), which concluded; (1) that the enforcement of regulations of group care homes is nearly always a state responsibility, (2) about half of all elderly clients pay for their care with private resources, (3) there are increasing demands for residential care for the elderly and mentally ill and (4) there is national concern that the regulatory structure is inadequate to insure quality care. Ms. Ernst added that the AARP survey states most licensing requirements specifiy the qualifications and training of administrators.
Ms. Ernst outlined what the DAS doing to monitor the residential homes. She said the DAS supports S.B. 434, as being "in the best interest of residents." Ms. Ernst suggest the language under Nevada Revised Statutes (NRS) 654.180 be changed to "not allow group care home administrators to have reciprocity from other jurisdictions, due to the lack of uniformity that there is nationally."
Candice Rutledge, Supervising Compliance Investigator, Division for Aging Services, Department of Human Resources, State of Nevada, introduced herself to the committee, and explained that she is the advocate for long-term and group care for the elderly.
David Luke, Ph.D., Director, Northern Nevada Mental Retardation Services, addressed the committee and explained a minor modification he wanted to see in the bill.
In response to a question by Senator Townsend regarding the funding of S.B. 434, Mr. Luke replied that "this will be self-sustaining if the bill goes through as written."
There was further discussion on what kind of control should be exercised over the group care facilities. Mr. Nicholas explained the different type of group care facilities.
Ms. Rutledge cited statistics of complaints against group care facilities in a 12-month period. She concluded by stating that the DAS is "...seeing some very difficult situations for our frail and elderly clients and we need this additional oversight."
Ed Fend, Lobbyist, American Association of Retired Persons (AARP), testified in support of S.B. 434. He said that monitoring group care facilities is a high priority for AARP in 1993. Mr. Fend stated he thought that a dangerous situation exists for the elderly, and more control needs to be established.
In response to a question by Senator Lowden, Ms. Ernst explained what kinds of group care homes are currently operating.
There was discussion of how the homes would be monitored by the DAS, if this legislation passes. The fees for this type of care was discussed, and Ms. Ernst thought fees would not go up as a result of S.B. 434. She explained the difficulty the DAS currently has in monitoring the activities of the group care homes.
Mr. Nicholas responded to a question by Senator Lowden, and explained how the license of a group home operator was rescinded for negligent care.
In response to a question by Senator McGinness, Ms. Ernst replied, "We have another piece of legislation, senator, A.B. 193, and we've asked...for that loophole to be closed because that has turned out to be a nightmare for us, when that was changed that if you had less than three, you didn't have to be licensed."
Assembly Bill 193: Revises provisions regarding medical and other related facilities. (BDR 40-803)
Ms. Ernst explained that closing the loophole would provide for licensing of group homes for anyone who is being paid to care for someone. There would still be some exclusions, she added.
Senator McGinness expressed concern over the elderly who are not incapacitated, but still need someone to care for them. He thought those caretakers would not necessarily need training, and they would refuse to care for the elderly rather than get the training.
Ms. Ernst responded that there was a provision in A.B. 193 for a licensing waiver for small operations. Mr. Nicholas explained the methods the DAS would use to make it easier for a group care operator in rural areas to get his or her license.
S.B. 434 was referred to a subcommittee for further discussion.
Wendy Van Curen Simons, Nevada Adult Care Association, introduced herself and Larry Fry, President, Nevada Adult Care Association.
Mr. Fry spoke about his organization and discussed the need for better operator training certification for group home care. He said they have been working on a training course for the past 8 months. Mr. Fry agreed for the need for the training, but thought it would be better accomplished by using existing resources than to expand or create a brand new board.
Senator Townsend asked Mr. Fry if he had any suggestions on how that might be done. Mr. Fry replied, "The bureau of licensure certification has already indicated to us that they are planning on amending the regulations...to mandate operator training and certification."
Ms. Simons agreed with Mr. Fry's remarks, and mentioned that she has some serious concerns about S.B. 434. She suggested the bill be amended to include that a "regulatory agency that licenses facilities and administrators... be enhanced and mandated to set up stronger parameters for...certification of administrators." Ms. Simons added, "I would like to go on record as supporting the fastest vehicle to get the job done."
Ms. Simons mentioned the Clinton administration's health care plan and how that would affect the area of assisted living.
Senator Townsend suggested that those testifying on S.B. 434 meet and iron out their differences, so an amendment can be drafted to move forward on this legislation.
Senator Townsend closed discussion on S.B. 434 and announced a presentation by the Commission on Economic Development (CED). He stressed that the Senate Committee on Commerce and Labor wanted to offer their support of the CED's efforts in bringing businesses to Nevada.
Tim Carlson, Executive Director, Commission on Economic Development (CED), State of Nevada, addressed the committee. He submitted a letter written by Lieutenant Governor Sue Wagner to the Senate Committee on Commerce and Labor (Exhibit C).
Mr. Carlson discussed the 1991-92 Biennial Report from the CED (Exhibit D Original is in research library). In response to a question by Senator Townsend, he replied that the grant awards are about one third of the budget of the entities listed on page 6 (Exhibit D).
Senator Townsend asked what the CED would need in terms of their budget to compete with other states. Mr. Carlson responded that they would have to double it to accomplish that goal, and added, "I believe that the more money we put into marketing, the more money we put into sales, the more tax dollars we are going to generate." He explained that the CED is a sales organization, not a typical state department.
Mr. Carlson discussed some of the programs the CED has in place, or is planning to implement. He referred to a Legislative Presentation by the CED, specifically a map of advertising inquiries on page 9.(Exhibit E Original is in research library.)
Senator Lowden asked why another state would look at Nevada. Mr. Carlson mentioned the quality of life, and getting the product to market. Senator Lowden asked if some businesses were having trouble staying in business in Nevada. Mr. Carlson responded that Nevada is losing companies, and specified one company who cited the State Industrial Insurance System (SIIS) rates as a negative factor, as well as the property taxes here. The company representative also mentioned a lack of job training as a reason for not bringing a business to Nevada. Mr. Carlson said he explained to her the quick-start job training program.
There was general discussion on how to use legislative resources to assist in bringing businesses to Nevada, and keeping the businesses the state already has.
Lori Martin, Marketing, Commission on Economic Development, State of Nevada, addressed the committee, and discussed CED advertising projects. She presented a CED publication, Nevada Business Guide (Exhibit F Original is in research library).
There was general discussion on the marketing strategies currently being employed by the CED.
Cecilia Colling, Deputy Director, Commission on Economic Development, State of Nevada, introduced Tom Hartley, Chairman, Nevada Development Authority (NDA), Ken Lind, President, Economic Development Authority of Western Nevada (EDAWN), Kris Holt, Executive Director, Northern Nevada Development Authority (NNDA) and Shirley Walker, Executive Director, Churchill County Development Authority.
Senator Townsend asked Mr. Hartley what the top three problems that he hears about regarding people relocating to Nevada. Mr. Hartley responded, "I think...the SIIS problem has been coming up as the largest single item, lately, the traditional ones of wanting to understand the labor markets, another big one is the availability of labor and the right kinds of labor." He explained what the NDA is doing to address these areas.
Mr. Hartley referred to information on Ocean Spray (Exhibit G), a company relocating to Nevada.
Mr. Lind commented on the accessibility of government in Nevada, a fact which he said surprises people from California.
Senator Shaffer asked if companies have expressed concern about the water situation in Nevada. Mr. Hartley responded that has not been a problem for the past 2 years.
Senator Brown inquired about health care programs for the prospective companies. Mr. Hartley replied that most of the businesses would have such programs.
In response to a question by Senator Brown, Mr. Hartley explained the process the NDA goes through in regard to relocations.
Mr. Holt addressed the committee and explained his involvement with the NNDA. He reiterated the problem new companies face in relocating, specifically the high SIIS rates. Mr. Holt also cited the Environmental Protection Agency (EPA) regulations as a problem, because they have a 90-day turnaround time for permits, which he said is unacceptable for permits. Mr. Holt said high health care costs and lack of physicians are other concerns. He mentioned the education system and the labor force as positive factors.
Ms. Walker agreed with Mr. Holt's analysis of the problems new companies face in relocating. She said the marketing efforts of the rural areas focus on the quality of life feature.
There being no further business, the meeting was adjourned at 10:28 a.m.
RESPECTFULLY SUBMITTED:
Sheri Asay,
Committee Secretary
APPROVED BY:
Senator Randolph J. Townsend, Chairman
DATE:
??
Senate Committee on Commerce and Labor
May 19, 1993
Page 1