MINUTES OF THE
SENATE COMMITTEE ON COMMERCE AND LABOR
Sixty-seventh Session
June 26, 1993
The Senate Committee on Commerce and Labor was called to order by Chairman Randolph J. Townsend, at 2:00 p.m., on Saturday, June 26, 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:
Michael Pitlock, Public Service Commission (PSC)
Steve Schorr, Director, Nevada State Cable Television Association and Director of Government Affairs, Prime Cable of Las Vegas
Mac King, President, Nevada Bell
Diane Ursick, President, Central Telephone of Nevada
Fred Schmidt, State Consumer Advocate, Attorney General's Office
Janice Gunderson, Communication Workers of America
John Sande, Lobbyist, Nevada Bankers Association
David Olsen, Vice President, General Counsel, City National Bank
Scott Walshaw, Commissioner, Financial Institutions
Terry Rankin, Commissioner, Department of Insurance
Jim Wadhams, Lobbyist, Nevada Association of Life Underwriters, and Nevada Independent Insurance Agents
Fred Hillerby, Lobbyist, Professional Insurance Agents of Nevada & California
Ana Aebi, Lobbyist, American Council of Life Insurance
Charlie Joerg, Lobbyist, Nevada Manufactured Housing
Joan Clements, Administrator, Nevada Manufactured Housing Division
Senator Townsend opened the meeting by announcing there would be no action on Senate Bill (S.B) 523.
SENATE BILL 523: Makes various changes relating to homeopathic physicians.
The hearing on Assembly Bill (A.B.) 773 was next to be addressed.
ASSEMBLY BILL 773: Revises provisions governing telecommunication services offered by community antenna television companies.
First to testify was Michael Pitlock, Public Service Commission (PSC). Mr. Pitlock stated he wanted to defer to representatives of the cable television industry for testimony.
Steve Schorr, Director, Nevada State Cable Television Association and Director of Government Affairs, Prime Cable of Las Vegas introduced himself to the committee. Mr. Schorr stated he is in favor of A.B. 773, because he believes it is legislation that promotes telecommunications within Nevada for the benefit of the consumer. Mr. Schorr went on to state further reasons for his support.
Next to testify was Mac King, President, Nevada Bell, who concurred with Mr. Schorr in his support of A.B. 773.
Diane Ursick, President, Central Telephone of Nevada, stated the amendments submitted provide the means for the issues to be analyzed in a manner which gives time and attention for any issues to be analyzed properly. Ms. Ursick stated Central Telephone of Nevada supports A.B. 773.
Fred Schmidt, State Consumer Advocate, Attorney General's Office, next to testify, stated he supports A.B. 773. Mr. Schmidt stated a system is needed to protect the customer and insure that services are maintained so all customers have a basic dial tone to their residence.
Mr. Pitlock testified the PSC concurred with the previous speakers and supports A.B. 773.
Senator Townsend, Mr. Schmidt and Mr. Pitlock discussed the problems associated with monitoring this legislation. Mr. Schmidt noted he used consultants as opposed to a permanent staff. Mr. Pitlock stated he felt the PSC is staffed adequately.
Janice Gunderson, Communication Workers of America, testified her
organization supports this legislation. Ms. Gunderson stated
before A.B.773 was revised there had been concerns, but as it is at present, she could support this bill.
SENATOR NEVIN MOVED TO DO PASS A.B. 773.
SENATOR LOWDEN SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
* * * * *
Senator Townsend stated for the record:
Our firm does represent one of the telecommunication companies.
Senator Townsend closed the hearing on A.B. 773 and opened the hearing on A.B. 756.
ASSEMBLY BILL 756: Authorizes licensure of banks by commissioner of financial institutions to sell annuities.
First to testify on A.B. 756 was John Sande, Lobbyist, Nevada Bankers Association, who introduced David Olsen, Vice President, General Counsel, City National Bank. Mr. Sande presented
Exhibit C, a statement with the intent and purpose of A.B. 756. Mr. Sande noted others in attendance who support A.B. 756. He then gave an explanation of this legislation and noted reasons his organization is in favor. Answering Senator Lowden's query whether other states allow banks to sell annuities, Mr. Sande noted several other states where this is allowed. Mr. Sande did state, however, there is litigation in process. Mr. Sande and Mr. Olsen gave further explanation on this legislation. Senator Lowden, Senator O'Connell, Senator McGinness, Mr. Sande, and Mr. Olsen had a detailed discussion on A.B. 756.
Next to testify was Scott Walshaw, Commissioner, Financial Institutions. Mr. Walshaw limited his comments to how this legislation would be implemented, if passed. Senator Brown
and Mr. Walshaw held a further discussion regarding this issue.
At this time, Terry Rankin, Commissioner, Department of Insurance, came forward to testify. Ms. Rankin stated she feels there are two decisions to be addressed. The first is a policy decision whether the State of Nevada is going to deem annuities as insurance or as a financial product. The second is a consumer issue on licensure. Senator Nevin inquired what information on these concerns had been given to the assembly. Ms. Rankin replied she had explained she feels regulation should be handled through an insurance medium. Their rebuttal was, this is a financial product, therefore, it should go to financial institutions.
Jim Wadhams, Lobbyist, Nevada Association of Life Underwriters, and Nevada Independent Insurance Agents, testified he has concerns regarding A.B. 756. He presented Exhibit D, a number of statements in opposition to this legislation. Mr. Wadhams stated he feels the question that needs to have most focus is the fact it is big business issue versus the small independent business. Mr. Wadhams went on to give an explanation of his concerns.
Fred Hillerby, Lobbyist, Professional Insurance Agents of Nevada & California, stated he concurred with the concerns expressed by Mr. Wadhams. Mr. Hillerby pointed out several regulations pertaining to his concern regarding A.B. 756.
Ana Aebi, Lobbyist, American Council of Life Insurance, testified as well, that her organization has concerns regarding this legislation. Ms. Aebi stated she feels consumer protection is a primary concern and went on to give an explanation.
Senator Townsend stated, since according to previous testimony, California allows insurance to be sold by financial institutions, he wanted to know if these people are licensed by the financial institution regulatory arm or by the insurance regulatory arm. Mr. Wadhams replied he does not know for sure, however, he feels the licensing is done by insurance regulation.
Senator Townsend closed the hearing on A.B. 756 and opened the hearing on A.B. 483.
ASSEMBLY BILL 483: Makes various changes concerning mobile and manufactured homes.
Next to testify was Charlie Joerg, Lobbyist, Nevada Manufactured Housing, and Joan Clements, Administrator, Nevada Manufactured Housing Division. Mr. Joerg stated this bill is an industry bill supported by the homeowners as well as the administrator. Ms. Clements noted this law clarifies state law, avoiding conflict with federal law.
SENATOR LOWDEN MOVED TO DO PASS A.B. 483.
SENATOR O'CONNELL SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
* * * * *
Senator Townsend asked Ms. Rankin for additional testimony
regarding A.B. 756, insofar as licensing procedures in California are handled. Ms. Rankin stated she still has questions regarding this. Senator McGinness, Mr. Sande and Senator Townsend had further discussion.
Senator Townsend stated, because of time constraints, the remainder of bills on the agenda would be heard on Monday, June 28, 1993, at 9:00 a.m. The meeting adjourned at 3:30 p.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 26, 1993
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