MINUTES OF THE SENATE COMMITTEE ON COMMERCE AND LABOR Sixty-eighth Session June 7, 1995 The Senate Committee on Commerce and Labor was called to order by Chairman Randolph J. Townsend, at 8:00 a.m., on June 7, 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 Deanna Braunlin, Clark County Assembly District 4 Assemblyman Max Bennett, Clark County Assembly District 14 STAFF MEMBERS PRESENT: Scott Young, Senior Research Analyst Molly Dondero, Committee Secretary OTHERS PRESENT: Sandy Dunham, Academy of Hair Design Mary Manna, Executive Secretary, State Board of Cosmetology Fred Hillerby, Lobbyist, Nevada Veterinary Medical Association Dr. Jack O. Walther, DVM, Chairman, Legislative Committee, Nevada State Veterinary Association H. Theodore Trimmer, President, Nevada State Board of Veterinary Medical Examiners Reenie Whitney, Executive Secretary, Nevada State Board of Veterinary Medical Examiners Joe Guild, Lobbyist, Nevada Cattlemen's Association Gary Brown, Safety Consultation and Training Supervisor David Rinaldi, President, Rinaldi Environmental Consultants George Butler, Certified Industrial Hygienist, Certified Safety Professional David Going, Deputy Chief, Occupational Safety and Health Service, Division of Industrial Relations David D. Lee, Certified Safety Specialist, Certified Industrial Hygienist Jim Miller, Safety Officer, Washoe Medical Center Marie Saldo, Vice President Government Affairs, Sierra Health Services, Sierra Health and Life I.R. Ashleman, II, Lobbyist, Southern Nevada Home Builders Association Alice Molasky, Commissioner, Division of Insurance, Department of Business and Industry Bill Bradley, Lobbyist, Nevada Trial Lawyers Association Janice C. Pine, Saint Mary's Health Network Nancy Brown, Intern for Senator Dina Titus The hearing was opened with a discussion on Assembly Bill (A.B.) 531. ASSEMBLY BILL 531: Provides for regulation and licensure of hair designers. Assemblywoman Deanna Braunlin, Clark County Assembly District 4, introduced the bill and commented on an amendment which has been proposed to amend the dress code currently in statute. She stated she does not support such a change in the code. Sandy Dunham, Academy of Hair Design, discussed A.B. 531. She read Exhibit C. Mary Manna, Executive Secretary, State Board of Cosmetology, stated the board is in support of the bill. She explained a cosmetologist is trained in all areas of hair care, nail and skin care. She stated the hair designer only does hair. The hearing was closed on A.B. 531 and opened on Senate Bill (S.B.) 536. Senate Bill 536: Makes various changes concerning licensure and regulation of veterinarians. Fred Hillerby, Lobbyist, Nevada Veterinary Medical Association, discussed Exhibit D which is a copy of the bill containing changes requested. Dr. Jack O. Walther, DVM, Chairman, Legislative Committee, Nevada State Veterinary Association, discussed the changes listed in Exhibit D. He asked for deletion of sections 3, 4, 6, 8 and to amend line 21 on page 6. He stated the deleted sections are not necessary, and the board does not know why the sections were included in the bill. Dr. Walther explained the need for section 7. He discussed section 14. Senator Lowden asked if people will be able to give vaccinations to their own animals. Dr. Walther stated there are federally controlled vaccinations which people may not administer themselves. He stated all vaccines which are controlled must be administered by a veterinarian. He commented there are some vaccines which are not controlled such as the cattle and horse vaccines, distemper and the cat vaccines. These may be purchased and administered by an animal owner. Controlled vaccines are zoonotic disease vaccines. Dr. Walther asked to delete section 17, lines 26-28 because this section is covered in the act. Senator Shaffer expressed his concern for the fee on relicensing. He stated he feels $400 is high. H. Theodore Trimmer, President, Nevada State Board of Veterinary Medical Examiners, stated if a person is practicing in the state, that person must be licensed. If that person has allowed the license to expire, the person must have to pay a fee. He stated if the person is late filing for a license, then a penalty should be paid. Mr. Trimmer commented the amount is not to exceed $400. Reenie Whitney, Executive Secretary, Nevada State Board of Veterinary Medical Examiners, stated over 130 veterinarians fail to file for renewal. There is a great deal of expense in mailing out notices to the delinquent lisencees. She feels the fine is necessary and it is not the intention to fine someone who is only 5 days late. Senator Augustine pointed out on pages 8, 9, 10, and 11 there is a late fee and a delinquency penalty assessed to a late applicant. Ms. Whitney responded that the language is a drafting decision and she will be happy with a $50 fine. Dr. Walther stated he will be happy to drop the $400 requirement on line 46, page 10. Senator Townsend discussed section 41 and asked why the fine has been increased to $10,000. He asked how many $5,000 fines have been collected. Dr. Walther stated no $5,000 fines have been collected. Senator Townsend asked why $10,000 is needed. Dr. Walther explained the $10,000 is a threat. Mr. Hillerby pointed out all fines collected go to the General Fund. Ms. Whitney asked for exemption to the open meeting law for the board. She stated the board has requirements which exceed the requirements of the new open meeting law. She stated the open meeting law requires the board to duplicate the board's efforts and increase costs. She quoted Nevada Revised Statutes (NRS) 638.1419 and NRS 638.1017 explaining the procedure for investigating a complaint to the board. Senator Neal commented the requests exempt all seven members of the board. Mr. Trimmer discussed the repealed sections on page 22. Senator Townsend asked why NRS 638.077 and NRS 638.131 are being repealed. He pointed out these sections are a responsibility to the public. Dr. Walther commented the sections are a very important part of the practice act and should be in the law. He did not know the sections were being repealed in this bill. Mr. Hillerby pointed out the sections, now, need to be replaced in the bill because the sections are no longer a repetition of the old language. Senator O'Connell stated page 7, section (g), lines 3-5 should be reinstated into the bill. Mr. Hillerby agreed. Senator Townsend commented there is a great deal of work to do on this bill. Joe Guild, Lobbyist, Nevada Cattlemen's Association, discussed section 13 of Exhibit D. He stated section 13 contains language which affects cattle and sheep ranchers because they do many of the things listed. He commented section 14, line 13-15 on page 5 of Exhibit D contains the exclusion related to treatment. He stated the language is deleted from statute and is replaced with the phrase "an owner who treats his own animals." He asked if "treating" is broad enough to cover the repealed language. He doubts it is. He stated the reference to "friends" is not clear, and an "employee" is excluded, but no mention is made of friends and neighbors. Senator Townsend suggested Mr. Guild discuss the information with Dr. Walther and come to a conclusion as to how to word the bill. The hearing was closed on S.B. 536 and was opened on A.B. 554. Assemblyman Max Bennett, Clark County Assembly District 14, discussed A.B. 554. Exhibit E was submitted. ASSEMBLY BILL 554: Prohibits use of certain titles relating to professions in industrial hygiene and safety without national certification. Assemblyman Bennett stated there was no opposition to the bill in the Assembly. Senator Lowden asked how this bill will affect companies who have their own safety person on staff. Mr. Bennett stated as long as the person does not use the titles listed in section 1 the employee may act as a safety officer. He stated there is no mandate that companies have safety officers, but if they do and use these titles, they must be certified. Senator Lowden expressed her concern that companies might be mandated to hire only certified people. Mr. Bennett stated he would fight such a regulation. Gary Brown, Safety Consultation and Training Supervisor, commented the bill is a first step in establishing accountability in the safety profession. He stated there are individuals who represent themselves as safety professionals and practitioners who do not comply with the law. David Rinaldi, President, Rinaldi Environmental Consultants, spoke in support of the bill. He stated the intent of the bill is consumer protection. He emphasized the intent is not to limit practice. He explained the bill is not intended to prevent a business from training their own safety manager for their business. He stated the bill is intended to prevent people from representing themselves as board certified if they are not. George Butler, Certified Industrial Hygienist, Certified Safety Professional, spoke on behalf of the bill. He explained the bill will protect the health of the public. David Going, Deputy Chief, Occupational Safety and Health Service, Division of Industrial Relations, spoke in support of the bill. He stated his agency is prepared to carry out its responsibility as dictated by the bill. David D. Lee, Certified Safety Specialist and Certified Industrial Hygienist, expressed his support for the bill. He commented if Nevada passes this bill, it will be the first state in the country to pass a law protecting both safety and industrial hygiene titles in the same legislation. Jim Miller, Safety Officer, Washoe Medical Center, stated his reasons for supporting the bill. He stated he understands Senator Lowden's concerns that there could be a requirement that people be certified to work for any business as a safety officer. He questioned if this will be a problem for businesses at a future time. He pointed out there are different certifications available for safety officers. He stated other certifications besides the ones listed in the bill need to be recognized. Mr. Rinaldi pointed out that the term "license" in paragraph (e), subparagraph 3, refers to business licenses. He stated it does not refer to professional licensure. Senator Regan asked if they carry insurance. Mr. Rinaldi stated he does not, but is in the process of obtaining insurance. He explained it is very difficult to find insurance for a safety specialist. Senator Lowden asked for an example of when a certified specialist is needed. Mr. Rinaldi explained it will be in any situation where experience and proof of competency is needed. He stated certified safety specialists and certified industrial hygienists do not have a professional registry. He explained industrial hygiene is the science of recognizing, evaluating, and controlling occupational health hazards. Mr. Going explained the consumer will be assured the specialist he hires will have a certain level of training in the profession. Mr. Miller stated there needs to be more definition of the profession in the bill. He expressed his concern that certification increases costs and regulations. Senator Neal commented that any large organization needs a safety person on staff. Mr. Miller agreed but stipulated it does not have to be only one certification as is specified in the bill. There are many different certifications available. Senator O'Connell asked if the identifications in the bill are in the statutes. Mr. Miller stated there is no definition of what an industrial hygienist is in the bill. Mr. Rinaldi stated there is no definition in the law. The bill refers to the national organizations. He stated the national organizations are the American Board of Industrial Hygiene and the Board of Certified Safety Professionals. Nevada will be accepting the national certifications and their definitions of who is qualified to be certified by passage of this bill. Senator O'Connell suggested they must have the national language so that it may be codified into the state statutes. Exhibit F was presented to the committee. Senator Townsend commented national standards have been used in statute many times. He stated there is an attorney general's opinion on definition which says the state is not creating an unconstitutional delegation of authority by using definitions. Mr. Rinaldi pointed out the bill does not protect practice. He stated: There are many industrial hygienists out there who have a tremendous amount of experience and who are very qualified, they just do not have the national certification. That is fine, if they choose not to do that for whatever reason. All this bill is doing is saying that no matter what you are, who you are, you cannot call yourself one if you are not. Mr. Bennett explained A.B. 554 is a title protection bill. He explained people, who have been through certification, want this title protection. Senator Townsend pointed out the committee will be around to make certain this bill will not be used as a full licensure bill in the future. The hearing was closed on A.B. 554 and a work session was opened on S.B. 491. SENATE BILL 491: Authorizes inclusion of provision for mandatory binding arbitration in certain contracts of insurance. Marie Saldo, Vice President Government Affairs, Sierra Health Services, Sierra Health and Life, presented Exhibit G. Exhibit H was given to the committee for information. (Original is on file in the research library.) I.R. Ashleman, II, Lobbyist, Southern Nevada Home Builders Association, requested an amendment which will allow purchases for subcontractors. He stated current contracts contain arbitration provisions. He stated there is legislative intent that there are contracts of adhesion when the requirement for arbitration is used in this context. Alice Molasky, Commissioner, Division of Insurance, Department of Business and Industry, explained the division worked out language in the amendments which alleviated concerns the division had with this bill. She expressed she had concerns whether all the insurers and organizations would be issuing only policies or contracts which have the arbitration provision without offering a choice to the purchasers of the contracts. She stated she was assured this was not the case. Bill Bradley, Lobbyist, Nevada Trial Lawyers Association, expressed his concern that people will be deprived of their right to jury trial. He stated he thinks the adequate solution to the problem is to require the enrollment card to have the choice of the member as to whether they wish to submit to binding arbitration or not. He stated he feels the bill allows contracts of adhesion and disagrees with that portion of the bill. Janice C. Pine, Saint Mary's Health Network, stated Saint Mary's Health First and the Nevada Association of Health Management Organizations endorses S.B. 491 with the amendments, with the understanding the provisions of the bill are voluntary. The work session was closed on S.B. 491 and opened on S.B. 503. SENATE BILL 503: Authorizes program of optional pricing for electricity derived from removable energy resources. Nancy Brown, Intern for Senator Dina Titus, submitted Exhibit I and Exhibit J for the record. SENATOR O'CONNELL MOVED TO DO PASS S.B. 503. SENATOR REGAN SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. ***** The work session was closed on S.B. 503 and was opened of A.B. 531 for a vote. SENATOR O'CONNELL MOVED TO DO PASS A.B. 531. SENATOR REGAN SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. ***** The work session was closed on A.B. 531 and opened on A.B. 554 for a vote. Senator O'Connell asked if the qualifications requested in A.B. 554 need to be placed into the law. Senator Townsend stated the national organizations set the standards. He stated the standards are not placed into law, only the reference to the standards set by the national organizations. Senator Townsend stated the assurances were given by the organization and he will hold them to their promises. Senator Augustine asked if the amendment was agreed to by all parties. Senator Townsend stated Exhibit E was introduced in the Assembly, but Mr. Bennett indicated the amendment was turned down. Senator Lowden expressed her concern that city and county governments might mandate that safety professionals be licensed and the prices for those services will increase. SENATOR REGAN MOVED TO DO PASS A.B. 554. SENATOR O'CONNELL SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. ***** The work session was closed at 10:15 a.m. RESPECTFULLY SUBMITTED: Molly Dondero, Committee Secretary APPROVED BY: Senator Randolph J. Townsend, Chairman DATE: Senate Committee on Commerce and Labor June 7, 1995 Page