MINUTES OF THE
SENATE COMMITTEE ON COMMERCE AND LABOR
Sixty-seventh Session
June 28, 1993
The Senate Committee on Commerce and Labor was called to order by Chairman Randolph J. Townsend, at 9:00 a.m., on Monday, June 28, 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:
Assemblyman Lynn Hettrick, Assembly District 39
STAFF MEMBERS PRESENT:
Denise Pinnock, Committee Secretary
Brian Davie, Senior Research Analyst
Frank Krajewski, Senior Research Analyst
OTHERS PRESENT:
Jim Leitch, Real Estate Broker, Leitch & Associates
R.W. Donovan, D.D.S., Ph.D., Hippocratic Preservation Society, Inc.
Joel Glover, D.D.S., President, Board of Dental Examiners, State of Nevada
Rita Hambleton, Lobbyist, American Association of Retired Persons
John Gibbons, Investigator, Real Estate Division, Department of Commerce, State of Nevada
Sam McMullen, Lobbyist, Credit Reporting Agencies of Nevada
Mary Santina, Lobbyist, Nevada Retail Association
Ken Scruggs, Governmental Relations, Household International, Inc.
L. Scott Walshaw, Commissioner, Division of Financial Institutions, Department of Commerce
Scott Craigie, Chief of Staff, Governor's Office, State of Nevada
Terry Rankin, Commissioner of Insurance, Department of Insurance, State of Nevada
Chairman Townsend called the meeting to order and asked Senator Shaffer to proceed with the presentation on dental board regulations. Senator Shaffer introduced Jim Leitch, Real Estate Broker, Leitch & Associates. Mr. Leitch explained his brother-in-law, Sang Gunggavakin, is a practicing dentist who was schooled in Thailand, had practiced there for 8 years and in California for 11 years, but could not even apply for a license in Nevada. The reason is that the school he attended is not accredited by the American Dental Association (ADA).
J.W. Donovan, D.D.S., Ph.D., Hippocratic Preservation Society, Inc., gave his credentials and explained he has worked in managed care systems for over 30 years. He claimed there are not enough dentists in Nevada, so making it difficult to become licensed here, even though the dentist is qualified, makes no sense. He stated he thought managed care organizations (MCOs) are the way of the future.
Senator Shaffer asked how that would effect the rural counties. Dr. Donovan said the only way rural counties would be able to get care, soon, would be through MCOs.
Senator Lowden wondered if any other states had "relaxed the rules." Dr. Donovan said there were several states which had instituted reciprocity.
Joel Glover, D.D.S., President, Board of Dental Examiners, State of Nevada, stated the ADA's lobbyist in Washington, D.C., reported the administration showed no interest in talking about dentistry during the health care reform talks. Dr. Glover said 37 of 50 states have some sort of legislative window for reciprocity examinations. Only 24 states actually use reciprocity. He expressed the opinion that Nevada experiences very few problems with dentistry because of the quality of the Board of Dental Examiners and their stringent requirements for licensure. Dr. Glover stated the reason the Board of Dental Examiners does not recognize foreign schools is that they have seen them as poorly qualified and deficient in their training. The current program in Nevada requires a foreign trained dentist to go to an accredited school for a minimum of 2 years to obtain their doctorate of dental science (D.D.S.) degree. Dr. Glover expressed the fear that in those states using the foreign trained examination, the people taking the test numerous times before passing were merely learning how to take that test.
Senator Nevin asked whether Nevada is short of dentists. Dr. Glover said Nevada is flooded with dentists. Dr. Donovan argued that a new dentist has at least 20 to 30 opportunities for practice when he graduates.
Senator Townsend interjected a request that Senator Nevin hear further arguments in subcommittee. Senator Townsend opened the hearing on Senate Bill (S.B.) 545.
SENATE BILL 545: Provides duties and responsibilities of financial planners.
Rita Hambleton, Lobbyist, American Association of Retired Persons, stated the amendment looked exactly as her organization had planned.
SENATOR BROWN MOVED TO AMEND AND DO PASS S.B. 545.
SENATOR LOWDEN SECONDED THE MOTION.
THE MOTION CARRIED. (SENATORS O'CONNELL AND NEVIN WERE ABSENT FOR THE VOTE.)
* * * * *
Senator Townsend closed the hearing on S.B. 545 and opened the hearing on Assembly Bill (A.B.) 750.
ASSEMBLY BILL 750: Provides for registration of intermediary of exchange of real property which is tax free pursuant to Internal Revenue Code and prohibits certain acts by intermediary.
Assemblyman Lynn Hettrick, Assembly District 39, spoke of the need for the bill and explained the Internal Revenue Code.
Senator Townsend asked if this is in statute anywhere else. Mr. Hettrick stated Nevada would be breaking new ground.
John Gibbons, Investigator, Real Estate Division, Department of Commerce, State of Nevada, offered to answer any questions the committee had.
SENATOR NEVIN MOVED TO DO PASS A.B. 750.
SENATOR McGINNESS SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
* * * * *
Senator Townsend closed the hearing on A.B. 750 and opened the hearing on A.B. 358.
ASSEMBLY BILL 358: Regulates reporting of consumer credit.
Sam McMullen, Lobbyist, Credit Reporting Agencies of Nevada, submitted copies of the changes he is suggesting (Exhibit C). He explained they are specific points his organization and other interested parties had developed.
Mary Santina, Lobbyist, Nevada Retail Association, gave details of credit reporting.
Senator Townsend expressed the opinion that a copy should go to the consumer each time his credit file is accessed. Mr. McMullen objected, saying the cost of doing business would double for the reporting agency. Mr. McMullen outlined the consumer's rights in dealing with disputed information on his credit report.
Ken Scruggs, Governmental Relations, Household International, Inc., said credit reporting is currently governed by the Fair Credit Reporting Act. He stated the act is old and needs to be reformed, but there are three bills in Washington, D.C., at this time dealing with the subject. Mr. Scruggs suggested waiting to see what happens with the federal law before the state legislature changes Nevada statute.
Senator Townsend closed the hearing on A.B. 358 and opened the hearing on A.B. 629.
ASSEMBLY BILL 629: Makes various changes relating to regulation of installment loans.
L. Scott Walshaw, Commissioner, Division of Financial Institutions, Department of Commerce, submitted a written summary of A.B. 629 (Exhibit D).
Mr. Scruggs stated his organization's support of the bill.
Senator Townsend closed the hearing on A.B. 629 and invited Scott Craigie, Chief of Staff, Governor's Office, State of Nevada, to speak. Mr. Craigie reported on the progress of the Governor's Office with the technical amendments to the industrial insurance bill.
Senator Townsend opened the hearing on A.B. 756.
ASSEMBLY BILL 756: Authorizes licensure of banks by commissioner of financial institutions to sell annuities.
Senator Townsend asked whether the license issued to banks to sell annuities would be the same as those issued to insurance agents. Terry Rankin, Commissioner of Insurance, Department of Insurance, State of Nevada, said it is the same license.
Senator Townsend asked whether Ms. Rankin would license the individual and the bank or just the individual if this remained in her jurisdiction. Ms. Rankin explained if the bank were to receive commissions from the sales they would both need to be licensed. Mr. Walshaw agreed with that assessment.
Senator Townsend closed the hearing on A.B. 756 and opened the hearing on A.B. 333.
ASSEMBLY BILL 333: Revises restriction on appointment of certain corporations organized in other states to act as fiduciaries in this state.
Mr. Walshaw explained he had originally introduced the bill on the assembly side. Harvey Whittemore, Lobbyist, had amended the bill in the interest of his clients. Mr. Walshaw stated the bill drafters had determined his request was not needed because statute addressed the matter, so Mr. Walshaw's part was amended out and Mr. Whittemore's amended into the bill.
Senator Townsend closed the hearing on A.B. 333.
SENATOR LOWDEN MOVED TO DO PASS A.B. 629.
SENATOR O'CONNELL SECONDED THE MOTION.
THE MOTION CARRIED. (SENATORS NEVIN AND BROWN WERE ABSENT FOR THE VOTE.)
* * * * *
As there was no further business, the meeting was adjourned at 10:40 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 28, 1993
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