MINUTES OF THE

      SENATE COMMITTEE ON COMMERCE AND LABOR

 

      Sixty-seventh Session

      June 22, 1993

 

 

 

The Senate Committee on Commerce and Labor was called to order by Chairman Randolph J. Townsend, at 9:30 a.m., on Tuesday, June 22, 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:

 

Beverly Willis, Committee Secretary

Brian Davie, Senior Research Analyst

 

OTHERS PRESENT:

 

Jonathan Andrews, Chief Deputy Attorney General

Jeannine Stroth, Secretary-Treasurer, Nevada Restaurant Association

Rita Hambelton, American Association of Retired Persons (AARP)

Denny Weddle, Lobbyist, Nevada Restaurant Association

Samuel McMullen, Lobbyist, Regional Emergency Medical Services    Authority for Washoe County (REMSA)

David Rice, District Health Officer, Washoe County

Fred Hillerby, Lobbyist, Blue Cross/Blue Shield, Hospital Health       Plan

Marie Soldo, Lobbyist, Sierra Health Services

Michael Griffin, Deputy Commissioner of Insurance

Charlie Joerg, Lobbyist, Nevada Manufactured Housing Association

Joan Clements, Administrator, Manufactured Housing Division,       Department of Commerce

Helen Foley, Lobbyist, Nevada Nurses Association

Timothy Terry, Senior Deputy Attorney General

Marsha Berkbigler, Lobbyist, Nevada Osteopathic Medical Association     and Nevada State Medical Association

James Jeppson, Administrator, Department of Industrial Relations,       Division of Industrial Insurance Regulation

Scott Young, Legal Counsel, State Industrial Insurance System   (SIIS)

Stephanie Tyler, Lobbyist, Nevada State Chiropractic Association

Larry Zimmerman, Lobbyist, Consensus Group

 

Senator Townsend opened the meeting with testimony from Jonathan Andrews, Chief Deputy Attorney General, on Senate Bill (S.B.) 545.

 

SENATE BILL 545:  Provides duties and liabilities of financial planners.

 

At this time, Mr. Andrews presented Exhibit C, language for an amendment for S.B. 545.  Next to testify for this bill was Rita Hambelton, American Association of Retired Persons (AARP), who testified she supports the bill as amended.

 

At this time, Senator Townsend opened the hearing on S.B. 549.

 

SENATE BILL 549:  Provides credit for tips against minimum wage.

 

Denny Weddle, Lobbyist, Nevada Restaurant Association and Jeannine Stroth, Secretary-Treasurer, Nevada Restaurant Association, testified in support of S.B. 549.  Ms. Stroth presented Exhibit D, "Don't Leave Nevada Restaurants In The Red."  Ms. Stroth gave an explanation of this information.

 

At this time, there was a short discussion between Ms. Stroth, Mr. Weddle and Senator O'Connell on the reasons for this bill.

 

Bonnie James, Lobbyist, Las Vegas Chamber of Commerce, speaking from the audience, noted her support for S.B. 549.

 

Further testimony was entered from the National Federation of Independent Business, by letter (Exhibit E) in support of S.B. 549. 

Before opening the hearing on S.B. 555, Senator Townsend read correspondence dated June 21, 1993, to Senator O'Connell and himself regarding some proposed legislation:

 

      There is an emergency need to have the following legislation.  Please propose the following.  Thank you for your untiring support of our community.

 

      To be added to NRS 644 under section titled "Prohibitive Practices and Penalties.  Proposed language to be added,  all new wording. 

 

      It is unlawful to practice cosmetology unless you are suitably clothed as defined by the board.

 

Senator Townsend closed the hearing on S.B. 549 and opened the hearing on S.B. 555.

 

SENATE BILL 555:  Provides that nonprofit corporations that provide ambulance services pursuant to prepaid contracts are exempt from regulation by commissioner of insurance under certain circumstances.

 

 

Samuel McMullen, Lobbyist, Regional Emergency Medical Services    Authority for Washoe County (REMSA), came forward to testify on S.B. 555.  Mr. McMullen introduced David Rice, District Health Officer, Washoe County.  Mr. McMullen gave a history and explanation of S.B. 555.  Mr. McMullen presented Exhibit F, an agenda from a meeting of the District Board of Health.

 

Senator Townsend inquired about the rate system for REMSA.  Mr. Rice gave an answer and explanation of the rates.     Senator Townsend asked Mr. Rice for a copy of the members of the audit committee that administers REMSA.  Senator Townsend also requested information on how this committee is chosen, who they represent and the actual names of the individuals.

 

Mr. McMullen stated for the record:

 

      I expected there to be insurance commissioner testimony against this, because of concern over these same mechanisms.  Before this bill was introduced, she (the commissioner) did say that it was technically adequate, the way it was drafted.  She absolutely did not agree with it.  She did review the language. 

 

Mr. McMullen noted, answering a question by Senator Townsend, there are more than 2,000 members and from the first year to the second there had been a 60 percent increase in the number of subscribers.  

Senator McGinness asked how memberships are obtained.  Mr. Rice stated it is a voluntary membership.  Mr. Rice gave an explanation of how the concept of REMSA came into being and went on to state if  this bill is not passed this process would be stopped as of June 30, 1993 and the support of the committee is really needed.  Senator McGinness wanted to know if there is an age limit, to which the answer was no, the program is open to anyone within the franchise area.   

 

Fred Hillerby, Lobbyist, Blue Cross/Blue Shield, Hospital Health Plan gave his support to S.B. 555.  He did have questions, however, on how REMSA services would billed. 

 

Marie Soldo, Lobbyist, Sierra Health Services, testified offering alternative ways of setting up the REMSA service.  Mr. Hillerby, Mr. Rice and Ms. Soldo discussed various ways this could be handled.

Mr. Rice presented Exhibit G, the Organizational Performance and Operational Criteria for the Regional Emergency Medical Services Authority.  Mr.  McMullen and Mr. Rice gave an explanation of Exhibit G. 

 

Michael Griffin, Deputy Commissioner of Insurance, testified stating he feels this legislation would fall under the jurisdiction of the insurance division.  There was further discussion between Senator Townsend, Mr. Rice, Mr. McMullen, and Mr. Hillerby on how several differences in S.B. 555 can best be addressed.

 

Senator Townsend closed the hearing on S.B. 555 and opened the hearing on Assembly Bill (A.B.) 485.

 

ASSEMBLY BILL 485:      Makes various changes regarding manufactured homes, mobile homes and similar structures.

 

Charlie Joerg, Lobbyist, Nevada Manufactured Housing Association and Joan clements, Administrator, Manufactured Housing Division, Department of Commerce, were next to testify.  Mr. Joerg stated this bill had originated within the industry and has the support of the division as well.  Mr. Joerg noted a change made by Amendment No. 1010, which he introduced.  Ms. Clements testified next, stating that she did support A.B. 485.  She introduced  Exhibit  H, her statement of support.  

 

      SENATOR BROWN MOVED TO AMEND AND DO PASS A.B. 485 WITH AMENDMENT NO. 1010.

 

      SENATOR O'C0NNELL SECONDED THE MOTION.

 

      THE MOTION CARRIED UNANIMOUSLY.

 

      * * * * *

 

Senator Townsend closed the hearing on A.B. 485 and opened the hearing on the trailer bill for S.B. 316.

 

Senator Townsend then spoke briefly regarding the process on the trailer bill for S.B. 316.  He then presented Exhibit I, a List of Items Approved for Consideration in the Bill.  At this time,

Senator Townsend asked for testimony.

 

Helen Foley, Lobbyist, Nevada Nurses Association, was next to testify.  Ms. Foley presented Exhibit J, an amendment to S.B. 316.  Ms. Foley went on to explain this exhibit.  At this time, Timothy Terry, Senior Deputy Attorney General, came forward with more explanation.  There was further discussion between Senator Lowden, Senator Shaffer, and Ms. Foley regarding this legislation.

 

Marsha Berkbigler, Lobbyist, Nevada Osteopathic Medical Association and Nevada State Medical Association, gave further insight into this amendment.

 

Next to testify was James Jeppson, Administrator, Department of Industrial Relations, Division of Industrial Insurance Regulation.  Mr. Jeppson noted one of the items to be addressed was language that would allocate funds for the fraud unit at the Attorney General's Office; 90 percent to the State Industrial System (SIIS) and 10 percent to the group of self-insured employers.  Mr. Jeppson went on to explain how these funds would be allocated and presented Exhibit K, recommended language to implement the fraud unit. 

 

Scott Young, Legal Counsel, State Industrial Insurance System (SIIS) testified next.  Mr. Young stated for the record:

 

      Mr. Jayne had some discussions with the Attorney General's Office and also some of the self-insured about this provision and was willing to go with this kind of a proportionate division.  I think, however, we probably should go on record as saying that we would like that to be subject to review in the next session, because it may turn out the self-insured will, in fact, access the fraud unit more than this.  So as long as we can at least have some provision that allows us to come back and remind the committee this was kind of an agreement to do it as a start up to get it off the ground, but we want to be able to revisit it and perhaps look at a more appropriate division based on the actual use.

 

Stephanie Tyler, Lobbyist, Nevada State Chiropractic Association, came forward to testify regarding agreements between various members of health care providers going into common agreement with regard to dealing with managed care operators (MCO).  Ms. Berkbigler concurred with Ms. Tyler. 

 

Mr. Jeppson came forward to testify further on a definition on the term "excessive losses."  He went on to state he does not have the criteria on how this definition was reached and is uncomfortable about giving a definition at this time.  Senator Townsend stated it is important that the statement "excessive losses" is fully understood.  There was further discussion regarding a proper definition of the term "excessive losses."

 

Larry Zimmerman, Lobbyist, Consensus Group, testified at this time, presenting Exhibit L, Technical Amendments to S.B. 316.  Mr. Zimmerman went on to explain this exhibit.  Senator Brown and Mr. Zimmerman discussed wording changes. 

 

At this time, Senator Townsend reopened testimony on S.B. 555.  Mr. McMullen presented Exhibit M, changes made and went on to explain these changes.  Mr. McMullen stated there had been an agreement on language.  Senator Townsend proceeded to read the changes.  Mr. Griffin gave further explanation of these changes.  He also suggested that on any agreement there should be printed wording to indicate this is not an insurance contract or an insurance product.

 

Mr. McMullen stated for the record:

 

      We will be immediately  amending our franchise agreement to comply with this term; that all membership agreements would have that kind of indication on the front and a complete explanation of what the rights are.

 

      SENATOR SHAFFER MOVED TO AMEND AND DO PASS S.B. 555.

 

      SENATOR LOWDEN SECONDED THE MOTION.

 

      THE MOTION CARRIED.  (SENATOR O'CONNELL WAS ABSENT FOR THE VOTE.)

 

      * * * * *

 

There being no further business, the meeting was adjourned at   

10:45 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

June 22, 1993

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