MINUTES OF THE meeting
of the
ASSEMBLY Committee on Commerce and Labor
Seventy-First Session
March 23, 2001
The Committee on Commerce and Labor was called to order at 11:50 a.m., on Friday, March 23, 2001. Chairman Joseph Dini, Jr. presided in Room 4100 of the Legislative Building, Carson City, Nevada. Exhibit A is the Agenda. Exhibit B is the Guest List. All exhibits are available and on file at the Research Library of the Legislative Counsel Bureau.
COMMITTEE MEMBERS PRESENT:
Mr. Joseph Dini, Jr., Chairman
Ms. Barbara Buckley, Vice Chairwoman
Mrs. Dawn Gibbons
Ms. Chris Giunchigliani
Mr. David Goldwater
Mr. David Humke
Ms. Sheila Leslie
Mr. David Parks
COMMITTEE MEMBERS ABSENT:
Mr. Dennis Nolan
Mr. John Oceguera
COMMITTEE MEMBERS EXCUSED:
Mr. Morse Arberry Jr.
Mr. Bob Beers
Mr. Lynn Hettrick
Mr. Richard D. Perkins
STAFF MEMBERS PRESENT:
Vance Hughey, Committee Policy Analyst
Crystal McGee, Committee Policy Analyst
Darlene Nevin, Committee Secretary
Larry J. Tarno, D.O., Executive Director of the Nevada State Board of Osteopathic Medicine
Bob Kersey, Public Member, Nevada State Board of Osteopathic Medicine
Trey Delap, Administrative Assistant, Nevada State Board of Osteopathic Medicine
Robert Barengo, Legislative Advocate, Nevada State Board of Medical Examiners
Gary Milliken, Legislative Advocate, Nevada Contractors Network
Chairman Dini called the meeting to order at 11:50 a.m. A quorum was present. He presented two BDRs to the committee for introduction.
ASSEMBLYMAN GOLDWATER MOVED TO INTRODUCE BDR 40-561.
ASSEMBLYWOMAN GIUNCHIGLIANI SECONDED THE MOTION.
THE MOTION PASSED UNANIMOUSLY BY THOSE PRESENT.
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ASSEMBLYWOMAN GIUNCHIGLIANI MOVED TO INTRODUCE BDR 54‑1133
ASSEMBLYWOMAN BUCKLEY SECONDED THE MOTION.
THE MOTION PASSED UNANIMOUSLY BY THOSE PRESENT.
Chairman Dini appointed a subcommittee for A.B. 279 consisting of Assemblywoman Leslie, Assemblywoman Buckley and Assemblyman Hettrick.
Chairman Dini also brought to the committee’s attention the matter of A.B. 47, which was currently on the Chief Clerk’s desk pursuant to the request of Assemblyman John Carpenter. Mr. Carpenter asked that the committee request an amendment to A.B. 47 regarding notification by an insurer.
ASSEMBLYWOMAN GIUNCHIGLIANI moved that the requested amendment be drafted.
ASSEMBLYMAN HUMKE SECONDED THE MOTION.
THE MOTION PASSED UNANIMOUSLY BY THOSE PRESENT.
Crystal McGee, Senior Research Analyst, Legislative Counsel Bureau, clarified the motion for the record. She stated the proposed amendment would add a provision to A.B. 47 that provided that the insurer must notify an employer before canceling his policy of industrial insurance.
Assemblywoman Giunchigliani informed the committee that when she and Assemblyman Goldwater and the committee accepted their amendments on A.B. 44 there was an error in one of the sections. She asked Chairman Dini to go ahead and put it on the desk, and the other amendment would come forward at a later time for discussion purposes. Chairman Dini acknowledged that was the correct procedure.
Chairman Dini announced A.B. 309 would not be heard as it had been withdrawn by the agency.
Assembly Bill 309: Repeals provisions that require commissioner of insurance to assign actuary to review establishment of certain rates of assessment. (BDR 53-555)
Chairman Dini opened the hearing on A.B. 290.
Assembly Bill 290: Revises provisions relating to osteopathic medicine. (BDR 54-570)
Larry J. Tarno, D.O., Executive Director of the Nevada State Board of Osteopathic Medicine, informed the committee NRS 633, under which osteopathic practitioners currently operated, was written in 1977. There had been no change in fee structures since then. He was most concerned that A.B. 290 would change NRS 633 in a way that would allow the board to raise its fee structure. He declared it would be “critical” in terms of the operation of the board.
Mr. Tarno related that A.B. 290 addressed two other areas of NRS 633. He referred to “Information and Background on Assembly Bill 290”, (Exhibit C), which he submitted to the committee on behalf of the Nevada State Board of Osteopathic Medicine. He pointed out that the “Executive Summary” on page 1 listed the three changes to NRS 633 proposed by A.B. 290:
Chairman Dini sought clarification on the requirements as addressed by Section 6 of A.B. 290. Mr. Tarno wondered if “or” should be included in the language following “American Osteopathic Association” in Section 6, line 16. He informed the committee a graduate of a school of osteopathic medicine prior to 1995 was required to complete a hospital internship or one year of postgraduate training. Anyone who graduated from a school of osteopathic medicine after 1995 was required to complete three years of postgraduate medical education. He was not sure the language clearly stated those requirements.
Chairman Dini questioned lines 12 through 14: “has completed: (1) A hospital internship; or (2) One year of postgraduate training.” He asked if “or” belonged in the language. Mr. Tarno replied it did. Chairman Dini questioned paragraph (b), line 17, and asked if “or” needed to be included.
Crystal McGee, Legislative Counsel Bureau Policy Analyst, clarified A.B. 290 stated the practitioner of osteopathic medicine had to meet the criteria of Section 6, subsection 4(a), 4(b) or 4(c). Within 4(a), the practitioner would have to complete either the internship or the postgraduate training. She asked Mr. Tarno if that was his intent. Mr. Tarno replied that it was.
Chairman Dini asked Mr. Tarno if the Governor had been made aware of the fees associated with A.B. 290. Mr. Tarno replied he had. Chairman Dini asked if the Governor would sign A.B. 290. Mr. Tarno responded he could not speak for the Governor. Chairman Dini explained to Mr. Tarno they had been given specific instructions not to send him a bill with a fee increase unless everyone in the industry agreed to it.
Mr. Tarno directed the committee’s attention to a letter he had provided them, (Exhibit D), from Saul Schreiber, D.O., President of the Nevada Osteopathic Medical Association, which conveyed his support of A.B. 290. Mr. Tarno communicated the increase in fees would bring the fee structure to the same level as that for medical doctors in Nevada and would also make it proportionate to the fee structures in neighboring states. He reiterated the current fee structure was established in 1977, at which time the board oversaw approximately 40 doctors compared to over 300 currently. He maintained the costs to the board had risen accordingly.
Bob Kersey, Public Member, Nevada State Board of Osteopathic Medicine, informed the committee he had been a member of the board since he was appointed by then Governor Bryan. He divulged he had seen the board “scrimp and save” over the years and that he had not seen any waste. He supported bringing the fee structure “up to standard.”
Trey Delap, Administrative Assistant, Nevada State Board of Osteopathic Medicine, informed the committee they would be meeting with Buzz Harris, Boards and Commissions, of the Governor’s Office, later in the day. According to Mr. Delap, Mr. Harris indicated the Governor would support the modification to the fee structure because it was 24 years old and because it would bring the fee structure to the same level as that of medical doctors.
Assemblyman Goldwater asked how A.B. 290 would modify the complaint procedure and why such modification was being sought.
Mr. Delap explained the current procedures would require the board to determine if the complaint required an investigation. Those board members involved would not be able to vote should the complaint result in a hearing. Complaints would go to the Attorney General’s Office for investigation. Mr. Delap reported a large turnover rate in the Attorney General’s Office in Southern Nevada that resulted in delays. He informed the committee that the medical board in Nevada conducted their own investigations with minor assistance from the Attorney General’s Office. A.B. 290 would allow the Nevada State Board of Osteopathic Medicine to investigate its own complaints thus reducing the length of the process. He added the increase in the fee structure would help pay for the investigations.
Chairman Dini asked if the Attorney General would have to prosecute. Mr. Delap replied the complaint would be forwarded to the Attorney General’s Office to draft a formal complaint to be presented at the hearing.
Assemblyman Goldwater observed the procedure seemed to be focused on one person or member of the board.
Mr. Tarno explained a board member involved in the investigation would not be able to vote during the hearing. According to the law as written in 1977, the board would decide whether the complaint merited further investigation. Then the entire board would be aware of the complaint.
Mr. Goldwater provided his concern was whether or not the complainant would be afforded due process under A.B. 290. Mr. Tarno replied he/she would be afforded due process.
Robert Barengo, Legislative Advocate representing the Nevada State Board of Medical Examiners, informed the committee A.B. 290 brought the Osteopathic Board’s chapter “more in line with” the Medical Examiners Board with respect to education and complaint procedures. He also claimed A.B. 290 provided better due process because only one board member would be reviewing the complaints, whereas, under current law, all board members would hear the complaint and decide whether or not the complaint should continue. There was no internal due process afforded.
Chairman Dini asked Mr. Barengo what else was contained in A.B. 290. Mr. Barengo clarified the main provisions of A.B. 290 were as already presented — the education, fees and complaints procedures. He added the statute was basically being “modernized.”
Chairman Dini closed the hearing on A.B. 290 and opened the hearing on A.B. 347.
Assembly Bill 347: Clarifies authority of captive insurer to provide industrial insurance and authorizes participation in Nevada insurance guaranty association. (BDR 53-999)
Assemblyman David Parks, representing District 41, Clark County, informed the committee A.B. 347 was a bill that had been requested. He introduced Gary Milliken to the committee.
Gary Milliken, Legislative Advocate, Nevada Contractors Network, informed the committee that the Nevada Contractors Network formed a captive insurance company, licensed by the state, during the past interim. However, the Insurance Division informed them they could not sell workers’ compensation. A.B. 347 would enable them to do so.
Mr. Milliken expressed concerns about the language in A.B. 347 with regard to guaranty funds. He informed the committee he would like A.B. 347 to be placed on a work session and added that Jim Wadhams would also like to work on A.B. 347.
Assemblywoman Buckley asked for the definition of a captive insurer. Assemblyman Parks responded captive insurance was an insurance wherein “a parent corporation created an insurance program strictly for its own particular company and use.”
Ms. Buckley asked what differentiated a captive insurer from a self-insurer. Mr. Milliken explained that a self-insurer financed the coverage himself. A captive insurer would be subject to the insurance company rules and there would not be a guaranty fund. He explained all insurance companies were in guaranty funds and that finding one was a problem for captive insurers. A.B. 347 provided for a guaranty fund.
Chairman Dini asked if there were any questions. He said A.B. 347 would be assigned to a work session and Ms. McGee and Mr. Wadhams could work on the language.
Chairman Dini closed the hearing on A.B. 347 and adjourned the meeting at 12:16 p.m.
RESPECTFULLY SUBMITTED:
Darlene Nevin
Committee Secretary
APPROVED BY:
Assemblyman Joe Dini, Jr., Chairman
DATE: