MINUTES OF THE
SENATE COMMITTEE ON COMMERCE AND LABOR
Sixty-seventh Session
June 8, 1993
The Senate Committee on Commerce and Labor was called to order by Chairman Randolph J. Townsend, at 8:00 a.m., on Tuesday, June 8, 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:
Patsy Redmond, Lobbyist, Nevada Association of Realtors
Barbara Holland, President, Holland Realty and Management Company
Darrel Clark, Staff Counsel, Nevada Association of Realtors
Bob Nielsen, Lobbyist, Builders Association of Northern Nevada
Mark Brown, Lobbyist, Nevada State Apartment Association
Joan Buchanan, Division Coordinator, Real Estate Division, Department of Commerce, State of Nevada
Eleissa Lavelle, Attorney, Crockett & Myers
Dennis McGarvey, Manager, Spanish Trail
Jack Close, President, Nevada Physical Therapy Association
Tyrone McSorley, Lobbyist, Nevada Physical Therapy Association
April Townley, Deputy Administrator, Medicaid Office, Nevada State Welfare Division
Larry Matheis, Lobbyist, Nevada State Medical Association
Joan Smith Lapham, R.N., Executive Director, Carson Ambulatory Surgery Center Inc.
Terri Potts, Lobbyist, Nevada Physicians Caucus
Michael Gerber, M.D., Nevada Homeopathic Medical Association
Fuller Royal, M.D., President, Nevada State Board of Homeopathic Medical Examiners
Bill Prezant, Lobbyist, FHP, Inc., and The Doctor's Company
Bob Barengo, Lobbyist, Humana Insurance of Nevada, Inc.
Mike Griffin, Deputy Commissioner of Insurance, Department of Insurance, State of Nevada
L. Scott Walshaw, Commissioner, Division of Financial Institutions, Department of Commerce, State of Nevada
David Reese, Attorney, Nevada State Contractors Board
Greg Salsby, Deputy Attorney General, Attorney General's Office
Chairman Townsend called the meeting to order and introduced Bill Draft Request (BDR) 54-1444.
BILL DRAFT REQUEST 54-1444: Makes various changes regarding dispensing opticians.
SENATOR LOWDEN MOVED FOR COMMITTEE INTRODUCTION OF BDR 54-1444.
SENATOR O'CONNELL SECONDED THE MOTION.
THE MOTION CARRIED. (SENATORS SHAFFER, NEVIN AND McGINNESS WERE ABSENT FOR THE VOTE.)
* * * * *
Senator Townsend opened the hearing on Senate Bill (S.B.) 438.
SENATE BILL 438: Provides that, for purposes of provisions regulating real estate brokers, "real estate broker" includes certain managers of property.
Patsy Redmond, Lobbyist, Nevada Association of Realtors, stated her organization is proposing Amendment No. 739, which would take the place of the original bill. She introduced Barbara Holland, President, Holland Realty and Management Company. Ms. Holland spoke of the need for licensure of property managers. She submitted a document called Common Interest Realty Associations (Exhibit C).
Senator Lowden asked what recourse there is for cases of abuse. Ms. Holland said that, generally, what happens is the homeowner will contact a member of the real estate industry and ask for help. If the problem cannot be worked out one on one, the case ends up in district court.
Darrel Clark, Staff Counsel, Nevada Association of Realtors, explained the amendment, section by section.
Senator Nevin wondered whether the reason the statute would not be effective until January 1, 1997, is to give property managers time to study and test. Mr. Clark stated that is the reason.
Bob Nielsen, Lobbyist, Builders Association of Northern Nevada, was next to speak on S.B. 438. He submitted proposed language to be added to Amendment No. 739 (Exhibit D).
Senator Townsend asked Ms. Redmond if her organization agrees to Mr. Nielsen's amendment. She said they do agree.
Ms. Redmond submitted information on the license law of property managers (Exhibit E).
Mark Brown, Lobbyist, Nevada State Apartment Association, testified in favor of the bill and Amendment No. 739.
Joan Buchanan, Division Coordinator, Real Estate Division, Department of Commerce, State of Nevada, introduced Greg Salsby, Deputy Attorney General, Attorney General's Office, who stated his office sees a problem with section 2, subsection 4(b) of the amendment. The Attorney General's Office feels that, from an enforcement standpoint, the language is unconstitutionally vague.
Senator Townsend asked that he and Ms. Buchanan meet with the sponsors of the bill to clarify that area.
Ms. Buchanan submitted a fiscal note (Exhibit F) from the Real Estate Division, which details the increase in audit responsibility.
Eleissa Lavelle, Attorney, Crockett & Myers, submitted Exhibit G, Policy Statement of the Community Associations Institute. She testified against passage of the bill on the grounds that community association management has nothing to do with traditional real estate brokering. Ms. Lavelle stated the skills and training are not the same.
Dennis McGarvey, Manager, Spanish Trail, testified against the bill. He suggested that the only people the bill would help are real estate brokers who could charge associations fees to "go underneath their banner."
Senator Townsend asked that Ms. Lavelle and Mr. McGarvey meet with the other interested parties and said that Senator Shaffer would check, in about an hour, on their progress toward reaching an agreement.
Senator Townsend closed the hearing on S.B. 438 and opened the hearing on S.B. 488.
SENATE BILL 488: Clarifies circumstances when compensation by physical therapist for referral of patient is ground for disciplinary action.
Jack Close, President, Nevada Physical Therapy Association, submitted written testimony (Exhibit H) supporting S.B. 488.
Tyrone McSorley, Lobbyist, Nevada Physical Therapy Association, also submitted written testimony (Exhibit I) supporting the bill.
April Townley, Deputy Administrator, Medicaid Office, Nevada State Welfare Division, submitted written testimony (Exhibit J) supporting the concept of the bill, and a suggested amendment (Exhibit K) allowing for an exclusion for Medicaid recipients.
Larry Matheis, Lobbyist, Nevada State Medical Association, submitted written testimony (Exhibit L) from his organization which says they can support the bill, but they do not necessarily think self-referral is inappropriate.
Senator Townsend asked whether the bill, as written, will supersede any service contract currently in place. Mr. Matheis answered affirmatively.
Senator Lowden wondered whether taking away the choice of the patient is such a good idea.
Mr. Matheis speculated that dealing, nationally, with issues like possible conflicts of interest is easier than dealing with the harder health care issues.
Senator Townsend asked if Mr. Matheis is aware of any disciplinary action taken. Mr. Matheis stated the only action he knows of was initiated by insurance companies.
Senator Brown questioned how a patient was to tell the difference between a provider taking advantage of self-referral and a provider availing a convenient service. Mr. Matheis stated utilization review should be keeping track of appropriate vs. inappropriate utilization.
Joan Smith Lapham, R.N., Executive Director, Carson Ambulatory Surgery Center Inc., submitted written testimony (Exhibit M) urging the committee to exempt ambulatory surgery centers from any prohibitions on physician self-referral.
Terri Potts, Lobbyist, Nevada Physicians Caucus, expressed concern that physicians are being "painted as unethical." She asked that the Nevada Physicians Caucus be allowed to submit an amendment that would put utilization review controls into the bill.
Senator Townsend closed the hearing on S.B. 488 and opened the hearing on S.B. 523.
SENATE BILL 523: Makes various changes relating to homeopathic physicians.
Michael Gerber, M.D., Nevada Homeopathic Medical Association, testified in favor of the bill.
Fuller Royal, M.D., President, Nevada State Board of Homeopathic Medical Examiners, also spoke in favor of the bill. He said the board needed the bill "to conduct the business at hand with regard to grievances, complaints that are filed with the board, etc." Dr. Royal went through the bill in detail.
Mr. Matheis submitted proposed amendments from the Nevada State Medical Association (Exhibit N).
Senator Townsend asked if the homeopathic representatives had seen Exhibit N. Mr. Matheis stated they had not seen the exhibit.
Bill Prezant, Lobbyist, FHP, Inc., and The Doctor's Company, stated his clients have concerns about the impact of the bill on the Medical/Legal Screening Panel. Senator Townsend asked whether Mr. Prezant would object to the creation of a screening panel for homeopathic physicians. Mr. Prezant stated he represents a client who is only concerned about the impact on the Medical/Legal Screening Panel.
Bob Barengo, Lobbyist, Humana Insurance of Nevada, Inc., suggested that all mandates be taken away.
Senator Townsend closed the hearing on S.B. 523 and opened the hearing on S.B. 524.
SENATE BILL 524: Makes various changes regarding licensure or other authorization to practice certain professions and occupations.
Senator Townsend read a conflict notice regarding Assembly Bill 236.
ASSEMBLY BILL 236: Allows private investigators licensing board to issue citations and impose fines for unlicensed activity that requires licensure.
Senator Townsend stated they would deal with the conflict later.
Mike Griffin, Deputy Commissioner of Insurance, Department of Insurance, State of Nevada, stated he supports the bill, in concept. He asked to be allowed to submit a fiscal note.
L. Scott Walshaw, Commissioner, Division of Financial Institutions, Department of Commerce, State of Nevada, stated he also supports the bill in concept. He said the problem he has with the bill is that when mortgage companies come in from out-of-state, they are not always aware that they may need a license. When they are hit with a cease and desist order they immediately apply for a license, qualify, and are issued a license. The bill would not allow the Department of Commerce to issue a license for up to 1 year if they had evidence the company was conducting business without a license. He suggested changing "may" to "shall." Mr. Walshaw did not see any fiscal impact for his department.
David Reese, Attorney, Nevada State Contractors Board, said the board encourages those who come in to apply for a license to disclose whether or not they have contracted in Nevada without a license in the past.
Senator Townsend assured the witnesses their concerns would be addressed before the bill was processed.
As there was no further business, the meeting was adjourned at 10:50 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
June 8, 1993
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