MINUTES OF THE meeting
of the
ASSEMBLY Committee on Commerce and Labor
Seventy-Second Session
February 10, 2003
The Committee on Commerce and Laborwas called to order at 2:09 p.m., on Monday, February 10, 2003. Chairman David Goldwater 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. David Goldwater, Chairman
Ms. Barbara Buckley, Vice Chairman
Mr. Morse Arberry Jr.
Mr. Bob Beers
Mr. David Brown
Ms. Dawn Gibbons
Ms. Chris Giunchigliani
Mr. Josh Griffin
Mr. Lynn Hettrick
Mr. Ron Knecht
Ms. Sheila Leslie
Mr. John Oceguera
Mr. David Parks
Mr. Richard Perkins
COMMITTEE MEMBERS ABSENT:
None
GUEST LEGISLATORS PRESENT:
None
STAFF MEMBERS PRESENT:
Vance Hughey, Committee Policy Analyst
Wil Keane, Committee Counsel
Diane Thornton, Senior Research Analyst
Patricia Blackburn, Committee Secretary
OTHERS PRESENT:
Fred L. Hillerby, Legislative Advocate, Hillerby & Associates
Debra Scott, MS, RN, APN, Executive Director, Nevada State Board of Nursing
Danny Thompson, SEIU Local 1107, Las Vegas
Nick Matteis, Government Relations Assistant, K. Laxalt Consulting
Rick Combs, Deputy Fiscal Analyst, Legislative Counsel Bureau
Judy Stokey, Director of Public Policy, Nevada Power/Sierra Pacific
Michael R. Alastuey, Legislative Advocate, Nevada Association of Counties
Debra Jacobson, Director, Government and State Regulatory Affairs, Southwest Gas Corporation
David S. Noble, Assistant General Counsel, State of Nevada Public Utilities Commission
Chairman Goldwater called the meeting to order at 2:09 p.m. A quorum was present. Chairman Goldwater introduced the committee members and the staff.
Chairman Goldwater stated that all members had a copy of the Standing Committee Rules (Exhibit C). He explained that they were standard rules.
ASSEMBLYMAN HETTRICK MOVED THAT THE STANDING RULES BE ADOPTED.
ASSEMBLYMAN ARBERRY SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
Chairman Goldwater spoke about the goals of the Commerce and Labor Committee. He explained about the challenges of their job to find the balance between consumer protection and a vigorous environment for businesses to flourish in the state. Chairman Goldwater hoped that bills could be dealt with expeditiously.
Chairman Goldwater opened the hearing on A.B. 22.
Assembly Bill 22: Revises requirements for licensure of nurses. (BDR 54-240)
Chairman Goldwater asked that those persons advocating for A.B. 22 come forward to testify.
Fred L. Hillerby, Hillerby & Associates, represented the Nevada Board of Nursing and spoke in favor of A.B. 22. Mr. Hillerby explained that this bill was a "technical bill." He went on to explain the circumstances which led to the request for this action.
Mr. Hillerby went on to explain that in southern Nevada last year a circumstance arose where a new Licensed Practical Nursing school was graduating its first class and it was discovered that that class would not be able to sit for their licensing examination. Upon review of the statute, the need for clarification was found.
Mr. Hillerby explained that when a new school of nursing was started, it must seek approval from the State Board of Nursing. It must have had its curriculum approved in order to start operating and then it was required by this Board and all state boards of nursing in the United States to be accredited. Mr. Hillerby stated that Sections 2 through 5 appeared to be repetitive but they actually addressed different types of schools; that is, accredited schools of practical nursing, accredited schools of professional nursing, approved schools of practical nursing, and approved schools of professional nursing. A.B. 22 would allow a school in the process of obtaining accreditation to permit graduating students to sit for their licensing examinations.
Mr. Hillerby further stated that this bill would eliminate the ambiguity in the language of the current statute. Mr. Hillerby further noted that he hoped this Committee would approve this bill. He then asked if there were any questions but pointed out that Ms. Scott should be heard and then they both would be able to answer questions.
Debra Scott, MS, RN, APN, Executive Director of the Nevada State Board of Nursing, stated that Mr. Hillerby had already given the Committee the basic information about A.B. 22. A one-page synopsis of Ms. Scott's testimony (Exhibit D) was distributed. Ms. Scott went on to explain that the State Board of Nursing had the authority to approve schools of nursing based upon their accreditation by a nationally recognized organization that accredited schools of nursing. Ms. Scott felt this bill would help them meet the requirements so that future students would not be left out.
Ms. Scott explained that, up until the past year, the two accrediting bodies that accredited nursing schools in Nevada had done a back accreditation, but they no longer did so. A.B. 22 would eliminate the possibility of students being caught in a "catch-22." By changing the definition in the regulation, graduating students would be able to sit for their examinations. Students would graduate from an accredited school of nursing even if that school were still in the process of accreditation. A.B. 22 would eliminate any unnecessary regulatory barriers and would increase the number of nurses able to be licensed and bring good and competent health care from qualified people who were coming into the profession of nursing.
Chairman Goldwater asked if the Committee had any questions.
Assemblywoman Giunchigliani asked Ms. Scott if the Board established the nursing curriculum offered at the University and Community College System (UCCSN); Ms. Scott stated that each school of nursing underwent the approval and accreditation process. Ms. Giunchigliani asked if the Nevada State Board of Nursing would, in turn, certify those particular schools. Ms. Scott affirmed they would.
Ms. Giunchigliani inquired if Certified Nursing Assistants (CNAs) were included in this process. Ms. Scott explained the Board of Nursing approved CNA programs by surveying the curriculum, which was standard, and then by reaffirming program approval every two years. Ms. Giunchigliani asked if the instructors at those programs had to be licensed by the Board to be CNA instructors. Ms. Scott stated that the instructors did have to be licensed nurses and they also needed to have a certification as CNA instructors.
Ms. Giunchigliani further asked if there was a prohibition to licensing a nurse who had been convicted of a felony in the past, even if the felony were not connected with nursing. Ms. Scott stated that a felony conviction would be grounds for possible denial of licensure, but if one had a felony conviction that fell under certain criteria, the Board would then look at each case individually and a decision would be made based on whether the person had shown remediation or rehabilitation.
Chairman Goldwater asked Ms. Scott if there was a maximum time period in which the accreditation process was to be completed. Ms. Scott acknowledged that there were time limits. Chairman Goldwater stated time limits would be necessary to avoid perpetually being in the process of obtaining accreditation. Ms. Scott agreed.
Assemblywoman Leslie asked Ms. Scott if there was a backlog of nursing schools that attempted to receive accreditation. Ms. Scott said there was no backlog; however, there were six schools fully approved and accredited. Also, there was one college under provisional approval that was in the midst of accreditation. One of the requirements of being fully accredited was to have graduated one class of nursing students and that was the reason there would be time limits. The process could take two to three years.
Ms. Leslie asked if this bill would apply to many people and Ms. Scott stated it would not.
Chairman Goldwater asked if there were any more questions of Mr. Hillerby or Ms. Scott and there were none.
Danny Thompson, representing the State of Nevada AFL-CIO, read a letter (Exhibit E) from Jerri Strasser, SEIU Local 1107, into the record. The letter stated the SEIU Nurse Alliance had reviewed A.B. 22 and they were in support of the bill. The letter went on to state they were aware of delays in the accreditation of nursing programs at Career College of Southern Nevada (CCSN) and that the delay had created problems for nurses who had gone through the program and were awaiting licensure. The letter further stated that A.B. 22 would ensure that nurses who had completed training would be allowed to fill much-needed nursing positions without jeopardizing the established standards for nursing in Nevada. A.B. 22 further would ensure that nurses affected by delays in accreditation would be treated fairly.
Mr. Thompson apologized for Ms. Strasser's absence; she was currently making a presentation to the Assembly Health and Human Services Committee meeting.
Chairman Goldwater asked if there were any questions and there were none.
Chairman Goldwater explained the change of meeting time for the Commerce and Labor Committee. He explained that in the past meetings had run very late, which was the reason he asked for a time change. Chairman Goldwater went on to explain that one member, Ms. Leslie, also served on the Health and Human Services Committee, but that she had generously agreed to serve on both Committees at the same time and allowed the Commerce and Labor Committee to call upon her when absolutely necessary.
Nick Matteis, Government Relations Assistant, K. Laxalt Consulting, representing Nevada Nurses Association, testified that the nurses had worked with the Nevada State Board of Nursing on this issue and the Association supported this legislation.
Chairman Goldwater asked if there were any questions and there were none.
Chairman Goldwater then inquired if anyone else wished to speak in support of A.B. 22. No one did. Chairman Goldwater then asked if anyone wished to speak in opposition to A.B. 22. No one did. Chairman Goldwater closed the hearing on A.B. 22.
Assembly Bill 32: Revises provisions governing payment and collection of certain taxes, fees and assessments relating to purchase of natural gas or energy, capacity or ancillary services under certain circumstances. (BDR 58-626)
Chairman Goldwater opened the hearing on A.B. 32. This was a bill requested by the Legislative Committee For Local Government, Taxes, and Finance, chaired by Assemblyman David Parks during the interim.
Mr. Parks explained this bill was approved at the request of the advisory committee to the Legislative Committee. This advisory committee had consisted of eleven members, who included the Executive Director of the Department of Taxation and ten other members appointed by groups that represented local governments and various geographic areas of Nevada. During the 2001-2002 interim, the advisory committee formed a working group to address concerns raised by local governments. Their concerns regarded the ability of local governments to continue collecting franchise fees from customers of out-of-state providers of natural gas and electrical services. Mr. Parks explained that all public utilities in Nevada were required to collect franchise fees from their customers and to remit those payments to the local governments that imposed the fees. Based on the concerns raised by the advisory committee, the Legislative Committee had approved a bill draft request that required customers of an out-of-state seller of natural gas services to pay the same taxes and fees that a customer would have been required to pay if the customer had continued to purchase the natural gas from a public utility in Nevada. The Committee had also voted to require the customer of a provider of electrical service that produced electrical energy, and that was not owned by an electrical utility for which a Certificate of Public Convenience and Necessity had been approved, to pay the same taxes and fees the customer would have been required to pay had the customer continued to purchase energy from an electrical utility for which a Certificate of Public Convenience and Necessity had been approved.
Assemblyman Parks explained he had been notified that A.B. 32 as it was drafted did not address the advisory committee's concerns with respect to out-of-state providers of natural gas. Section 1 of the bill required public utilities that elected to be regulated under an alternative plan of regulation, pursuant to Nevada Revised Statutes 704.997, to collect franchise fees and any other taxes from their customers. Although Mr. Parks had not been informed that this provision was unnecessary, he had been told that there were no public utilities that had elected to be regulated under an alternative plan of regulation.
Mr. Parks said it appeared that, in order to address the concerns of the advisory committee, the bill would need to be amended to require customers of providers of discretionary natural gas service to pay any franchise fees and taxes that customers of public utilities were required to pay. Mr. Parks further explained that providers of discretionary natural gas services were companies that provided gas service to industrial and large commercial customers of natural gas. They used the local public utility's lines and transmitted the gas from the interstate pipeline to the customer.
Assemblyman Parks requested that the Commerce and Labor Committee allow the Legislative Counsel Bureau's Fiscal Analysis Division staff to work with the Committee and other interested parties to design an appropriate amendment to ensure the advisory committee's intent was carried out. The requested amendment would require customers of providers of discretionary natural gas service to pay franchise fees and taxes in the same manner as customers of natural gas public utilities.
Chairman Goldwater asked if there were any questions. Assemblyman Hettrick asked if the taxes currently being charged were a percentage or a flat fee. Mr. Parks responded that it was a percentage fee of 5 percent.
Rick Combs, Deputy Fiscal Analyst, Legislative Counsel Bureau, also responded to the question from Mr. Hettrick and stated that the tax was based on a percentage of revenue. The amount was different from county to county and local government to local government. Mr. Combs stated his belief that the advisory committee was mostly concerned with the franchise fees.
Mr. Hettrick asked if it was the same for electricity. Mr. Combs stated he believed that was true. Mr. Hettrick reiterated his understanding that the price would be the same within the state of Nevada. Mr. Combs agreed.
Chairman Goldwater asked if there were any further questions.
Assemblyman Knecht was recognized and stated he did not have a question but wished to make a disclosure and declaration. Chairman Goldwater told Mr. Knecht to proceed with his disclosure. Mr. Knecht explained to the committee that for the past sixteen or seventeen months he had been employed as an economist at the Public Utilities Commission. Because this bill would affect the practices of the Commission, he felt his employment should be disclosed. He stated he was on full-time leave from the Commission but he would be returning to that position in June. He further stated that he believed this bill would not in any way affect him more than any other public employee. He also believed he could participate fully in the deliberations and voting without it affecting his employment. Finally, he expressed that A.B. 32 would not have any conflict of interest or appearance of conflict of interest that would prevent him from voting on this measure with anything except the public interest in mind. He explained he would be participating in this matter and would vote on the bill.
Chairman Goldwater noted Assemblyman Knecht's disclosure.
Chairman Goldwater asked Mr. Parks about amendments that had been proposed and wondered if any amendments Mr. Parks might have seen had appeared to be unfriendly. Mr. Parks explained that there were several friendly amendments that had been proposed and would like some input on those amendments to see if they adequately satisfied the need.
Chairman Goldwater asked if there was anyone else who wished to speak in support of A.B. 32.
Judy Stokey, Director of Public Policy, Nevada Power/Sierra Pacific, expressed her support of A.B. 32 and explained her company had been involved in the advisory committee meetings. She noted that quite a few people had come together and that some discussion about possible amendments had been done. She stated she had concerns about three items. She felt clarification was needed to state that the entity collecting the taxes and fees must remit the taxes and fees to the appropriate government agency. She further stated the need for auditing and investigation rights to the government entity that was collecting those fees and taxes. She also wished to provide remedies for noncompliance. Ms. Stokey recommended that all parties get together outside the Committee and come forward with some amendments that could be agreed upon.
Michael R. Alastuey, Legislative Advocate for Nevada Association of Counties, next testified that he was a part of the advisory committee that Assemblyman Parks spoke about. His group was currently analyzing the amendments that had been proposed. He stated his support that each alternative seller should keep uniform detailed accounts of all business transacted in the state. He felt working in partnership with the Public Utilities Commission would assure accountability for these out-of-state suppliers. He stated the only goal of the Nevada Association of Counties was to make sure there was an avoidance of competitive disadvantage for any in-state public utilities. He said that any taxes and fees should be applied fairly and collected in an expeditious fashion. He suggested the various proponents continue working as a team to develop the amendments.
Debra Jacobson, Director, Government and State Regulatory Affairs for Southwest Gas Corporation, stated that the alternative plan of regulation was one that Southwest Gas had never opted into. Their large customers were the ones already buying their own gas. At that point they were not subject to the franchise fees, since Southwest Gas paid the franchise fees on the revenues. Those customers did not pay the natural gas sales price to Southwest Gas; they paid whomever they purchased their gas from. These fees were not currently being collected. She stated Southwest Gas was in favor of this bill and agreed in concept. She expressed the willingness of Southwest Gas to work together with the other proponents of A.B. 32.
David S. Noble, Assistant General Counsel, Public Utilities Commission, stated he had only become aware of A.B. 32 last week and they had some proposed amendments dealing with auditing and penalty provisions, but after discussions just prior to this meeting, they would like to have the opportunity to talk more with all involved parties to try to streamline the amendments.
Chairman Goldwater asked if there were any questions and there were none. He remanded the group to work on this bill through Diane Thornton, Senior Research Analyst. He said as soon as approval could be reached, the bill should be brought back for a work session before this Committee. Chairman Goldwater would wait to hear from Assemblyman Parks.
There being no further witnesses who wished to speak about A.B. 32, the hearing was closed on the bill.
Chairman Goldwater asked if anyone would be interested in seeing a bill pass out of this Committee and Assemblyman Beers was recognized.
ASSEMBLYMAN BEERS MADE A MOTION THAT A.B. 22 BE SENT TO THE FLOOR WITH A DO PASS RECOMMENDATION.
ASSEMBLYMAN KNECHT SECONDED THE MOTION
THE MOTION PASSED UNANIMOUSLY.
Chairman Goldwater explained that Vance Hughey, Principal Research Analyst, Legislative Counsel Bureau, had prepared a Committee briefing (Exhibit F). He noted that it was very informative on the many issues that this Committee might cover. Chairman Goldwater explained that this brief had been prepared in lieu of a full presentation from staff because of the Committee's collective veteran status.
Additionally, Chairman Goldwater noted there might be a number of bills that would be introduced that might not merit a full hearing. He explained it was the Chair's prerogative not to hear every single bill unless it had merit or members of this Committee requested its hearing. Chairman Goldwater reminded the members that if they wished a bill heard they should contact the Chair.
There being no further business, Chairman Goldwater adjourned the meeting at 2:39 p.m.
RESPECTFULLY SUBMITTED:
Patricia Blackburn,
Committee Secretary
APPROVED BY:
Assemblyman David Goldwater, Chairman
DATE: