MINUTES OF THE SENATE COMMITTEE ON COMMERCE AND LABOR Sixty-eighth Session June 2, 1995 The Senate Committee on Commerce and Labor was called to order by Chairman Randolph J. Townsend, at 8:00 a.m., on Friday, June 2, 1995, in Room 227 of the Legislative Building, Carson City, Nevada. Exhibit A is the Agenda. Exhibit B is the Attendance Roster. COMMITTEE MEMBERS PRESENT: Senator Randolph J. Townsend, Chairman Senator Ann O'Connell, Vice Chairman Senator Sue Lowden Senator Kathy M. Augustine Senator Raymond C. Shaffer Senator John B. (Jack) Regan Senator Joseph M. Neal, Jr. GUEST LEGISLATORS PRESENT Assemblywoman Barbara Buckley STAFF MEMBERS PRESENT: Beverly Willis, Committee Secretary Scott Young, Senior Research Analyst OTHERS PRESENT: Charlie Joerg, Lobbyist, Nevada Manufactured Housing Association Gub Mix, Executive Director, Nevada Manufactured Housing Association Larry Matheis, Lobbyist, Executive Director, Nevada State Medical Association Thomas Brady, M.D., Nevada State Medical Association Rita Hambleton, State Legislative Committee, American Association of Retired Persons Tony Ramey, Lobbyist, Consultant, Greater Reno/Sparks Chamber of Commerce James Wadhams, Lobbyist, Nevada Association of Health Underwriters Sharen Weaver, Supervisor Life and Health, Division of Insurance Marie, Soldo, Chairman, Nevada Association of Health Maintenance Organizations Bob Ostrovsky, Lobbyist, Nevada Resort Association Steven Miller, Concerned Citizen Ross Whitacre, Assistant Chief of Benefits, Department of Employment, Training and Rehabilitation, Employment Security Division, Steven Tackes, Lobbyist, MCI Telecommunications Galen Denio, Commissioner, Public Service Commission of Nevada (PSC) Fred Schmidt, Consumer Advocate, Office of Advocate for Customers of Public Utilities, Office of the Attorney General Ron Swirczek, Administrator, Division of Industrial Relations (DIR) Rene Diamond, Administrator, Manufactured Housing Division Pat Coward, Lobbyist, Nevada Association of Realtors Joan Kruse, Deputy Administrator, Real Estate Division, Department of Business and Industry Mary Marsh Linde, Deputy Attorney General, Office of the Attorney General Patsy Redmond, Executive Vice President, Nevada Association of Realtors The meeting was called to order with Senate Bill (S.B.) 494. SENATE BILL 494: Repeals requirements for initial and continuing education for certain persons licensed by manufactured housing division of department of business and industry. First to testify, Charlie Joerg, Lobbyist, Nevada Manufactured Housing Association, who introduced Gub Mix, Executive Director, Nevada Manufactured Housing Association. Mr. Mix noted he supports this legislation and gave his reasons. SENATOR NEAL MOVED TO DO PASS S.B. 494. SENATOR LOWDEN SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. * * * * * The hearing closed on S.B. 494 and opened on S.B. 538. SENATE BILL 538: Provides for cooperative purchasing and basic benefits in health insurance. Larry Matheis, Executive Director, Nevada State Medical Association, and Thomas Brady, M.D., Nevada State Medical Association, came forward to testify. Mr. Matheis presented Exhibit C, Exhibit D and Exhibit E. He proceeded with his testimony, noting this legislation addresses the issue of the numbers of working, uninsured people. Mr. Matheis noted, specifically, S.B. 538 considers how employers can be made more aware of this problem and also to educate consumers on how they can make better choices. Senator Townsend joined the conversation, noting, "......We've been attempting to get to people who work, that's the jurisdiction of this committee.......How do you get them covered at the cheapest possible cost." Mr. Matheis continued, noting this legislation will focus on reasons why some, although working, are not insured, i.e., the employer cannot afford the cost, or they may have a condition that makes them medically uninsurable. Senator Neal and Mr. Matheis proceeded to address this legislation. Senator Neal, Dr. Brady and Mr. Matheis continued with a detailed discussion regarding the merits of this legislation. Dr. Brady stated he feels this legislation is a giant positive step for Nevada's working uninsured. Rita Hambleton, State Legislative Committee, American Association of Retired Persons, noted her group supports this legislation. Next to testify, Tony Ramey, Lobbyist, Consultant, Greater Reno/Sparks Chamber of Commerce, spoke supporting S.B. 538. Mr. Ramey noted his organization particularly approves, since this legislation is not a mandate. Next to testify was James Wadhams, Lobbyist, Nevada Association of Health Underwriters. Mr. Wadhams noted his organization approves the concept of this legislation. He stated he does not approve a committee deciding basic benefits and considers that action a mandate. Sharen Weaver, Supervisor Life and Health, Division of Insurance, stated the Division of Insurance is opposed to S.B. 538. Ms. Weaver then gave her reasons. Marie, Soldo, Chairman, Nevada Association of Health Maintenance Organizations, endorsed the insurance philosophy of this legislation. The hearing was closed on S.B. 538 and opened on A.B. 284. ASSEMBLY BILL 284: Prohibits employer from requiring employee to share tips or gratuities with certain other employees. Assemblywoman Barbara Buckley, came forward to endorse this legislation. Ms. Buckley presented Exhibit F and gave background on the inception of this legislation. Senator Lowden and Ms. Buckley debated the pros and cons of this legislation. Bob Ostrovsky, Lobbyist, Nevada Resort Association, testified, giving more background on A.B. 284. Steven Miller, Concerned Citizen, endorsed this legislation. Mr. Miller noted, "Tips are used as an incentive to provide prompt, courteous service. [He] feels it is unfair for an employer to force employees who work for tips to share with other employees, especially if it is to make up for low wages paid to other employees." The hearing was closed on A.B. 284 and opened on A.B. 448. ASSEMBLY BILL 448: Requires that federal individual income tax be deducted and withheld from unemployment compensation benefits upon request of recipient of benefits. Ross Whitacre, Assistant Chief of Benefits, Department of Employment, Training and Rehabilitation, Employment Security Division, gave a brief explanation of this legislation. The hearing was closed on A.B. 448 and opened on A.B. 603 ASSEMBLY BILL 603: Authorizes public service commission of Nevada to collect assessment from public utilities which provide telecommunication services. Steven Tackes, Lobbyist, MCI Telecommunications, came forward to testify. Mr. Tackes went on to note he represents the telephone industry, including Alltel Nevada, American Telephone & Telegraph, Central Telephone Company, Contel, Filer Mutual, Lincoln County Telephone, McCaw Communications, Reno Cellular, Carson City Cellular, Moapa Valley, Nevada Bell, PTI Communications, Rio Virgin Telephone, MCI Rural Telephone, Sprint Cellular and Sprint Long Distance. Mr. Tackes noted Galen Denio, Commissioner, Public Service Commission of Nevada (PSC), and Fred Schmidt, Consumer Advocate, of Advocate for Customers of Public Utilities, Office of the Attorney General, were testifying in support of A.B. 603. Mr. Tackes, in answer to questions posed by Senator Neal, explained this legislation will enable phone service to be made more readily available and more affordable in remote or difficult areas. At this time Mr. Schmidt joined the discussion. Further discussion ensued, with the point being made that funds for an assessment would eventually result in a charge to the customer. Mr. Schmidt went on to note this would be a very small charge. At this time Mr. Schmidt made a statement for the record. "We didn't put it in the bill, but all the parties agreed that the competitive bidding mechanism for choosing the administrator would not be a low cost bid type mechanism and I wanted that clear on the record." At this time, Senator Townsend presented Exhibit G an amendment for A.B. 603. The hearing was closed on A.B. 603 and opened on A.B. 61. ASSEMBLY BILL 61: Revises administrative penalties for violations of provisions governing industrial injuries, occupational diseases and control of asbestos. Senator Townsend referred to Exhibit H, noting several concerns. Ron Swirczek, Administrator, Division of Industrial Relations (DIR), furnished an explanation. Senator Townsend continued with several more concerns referring to Exhibit H, in particular pertaining to time limits allowed in this amendment (Exhibit H). Senator Townsend went on with concerns over fines and penalties. Mr. Swirczek, referring to page 17, number 3, of Exhibit H, continued with an explanation. Further review took place by Mr. Swirczek and Senator Townsend concerning Exhibit H. The hearing was closed on A.B. 61 and opened on S.B. 494. SENATE BILL 494: Repeals requirements for initial and continuing education for certain persons licensed by manufactured housing division of department of business and industry. Rene Diamond, Administrator, Manufactured Housing Division, was first to testify. Ms. Diamond presented her written testimony, (Exhibit I). Ms. Diamond noted approval of continuing educational requirements for those licensed by the manufactured housing division. She went on to note some redundancy does exist in the educational requirements; however, Ms. Diamond hopes to correct this. Ms. Diamond clarified for Senator Neal, noting this legislation repeals the law that requires 6 hours of education for initial licensing and 6 hours each year afterward for renewals. Senator Townsend noted, perhaps this legislation needs review by all concerned. At this time, the hearing on S.B. 494 was closed and the hearing on S.B. 403 was opened. SENATE BILL 403: Revises duties of certain persons who are acting in capacity of agent to parties to real estate transactions. Pat Coward, Lobbyist, Nevada Association of Realtors; Joan Kruse, Deputy Administrator, Real Estate Division, Department of Business and Industry; Mary Marsh Linde, Deputy Attorney General, Office of the Attorney General and Patsy Redmond, Executive Vice President, Nevada Association of Realtors, came forward to testify in favor of this legislation. Ms. Redmond and Ms. Linde gave explanations of changes. Exhibit J and Exhibit K were presented to the committee; however, there was no testimony. There being no further business, the meeting was adjourned at 10:55 a.m. RESPECTFULLY SUBMITTED: Beverly Willis, Committee Secretary APPROVED BY: Senator Randolph J. Townsend, Chairman DATE: Senate Committee on Commerce and Labor June 2, 1995 Page