MINUTES OF THE SENATE COMMITTEE ON COMMERCE AND LABOR Sixty-eighth Session June 8, 1995 The Senate Committee on Commerce and Labor was called to order by Chairman Randolph J. Townsend, at 8:00 a.m., on Thursday, June 8, 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. STAFF MEMBERS PRESENT: Beverly Willis, Committee Secretary Scott Young, Senior Research Analyst OTHERS PRESENT: Joe Guild, Lobbyist, Nevada Mobile Home Park Owners Association Donald Morse, Investigator, Manufactured Housing Division, Department of Business and Industry Charlie Joerg, Lobbyist, Nevada Manufactured Housing Association Robert Crowell, Lobbyist, Farmers Insurance Company Pat Cashill, Lobbyist, Nevada Trial Lawyers Association Bob Feldman, President, Nevada General Insurance/Auto Insurance America Glenn Shippey, Actuary, Division of Insurance, Department of Business and Industry John Wiles, Advocate for Insurance Customers, Division of Insurance, Department of Business and Industry John Vergiels, Lobbyist, Auto Insurance America Rose McKinney-James, Director, Department of Business and Industry Marsha Berkbigler, Lobbyist, Nevada State Medical Association Marie Soldo, Chairman, Nevada Association of Health Maintenance Organizations Fred Hillerby, Lobbyist, Nevada Association of Health Maintenance Organizations Susan Miller, Government Affairs Assistant, Blue Cross Blue Shield of Nevada Sharon Weaver, Supervisor, Life and Health, Insurance Division, Department of Business and Industry The meeting was opened with the hearing on Senate Bill (S.B.) 361. SENATE BILL 361: Makes various changes relating to mobile home parks. Joe Guild, Lobbyist, Nevada Mobile Home Park Owners Association, referring to Exhibit C, thanked Senator Regan for his work on this legislation. However, Mr Guild went on to note he feels there are still problems to be resolved. Continuing, Mr. Guild proceeded with his concerns. A primary concern of both the committee and Mr. Guild, is the portion referring to charges made by the park to tenants for capital improvements. Helping with clarification, Donald Morse, Investigator, Manufactured Housing Division, Department of Business and Industry, came forward to testify. Mr. Morse noted proposed changes by owners/managers should be noted on records kept by a mobile home park owner. Senator Townsend noted a prime concern of the committee is that tenants in mobile home parks be given ample notice and opportunity to comment on proposed changes. At this time, Mr. Guild moved on to other concerns. Senator Townsend, clarifying for Mr. Guild, noted, "It places the burden on the resident, that even after a 60-day posted notice, they must request a meeting with the park owner. Under this provision, it would be more like what we all go through in a regulatory process; they would propose a regulatory, or policy change; it would be posted; there would be a meeting; there would be an opportunity for them to voice their concerns." Further discussion ensued between Senator Augustine, Senator Shaffer, Senator Regan, Senator Townsend and Mr. Guild. Mr. Guild reiterated his reservations. Senator Townsend advised Mr. Guild to provide suitable verbiage that all parties might find acceptable, then return with this legislation. At this time, the hearing was closed on S.B. 361, 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. First to testify were Charlie Joerg, Lobbyist, Nevada Manufactured Housing Association, and once again Mr. Morse. There followed considerable discussion regarding the pros and cons of this legislation with budgetary problems being a prime concern. Mr. Morse declared he is opposed to this legislation, especially since this legislation will, in fact, repeal educational requirements. Senator O'Connell and Mr. Morse continued reviewing educational requirements covered by this legislation. There was further dialogue concerning the necessity of this legislation. The hearing was closed on S.B. 461 and opened on S.B. 300. SENATE BILL 300: Makes various changes concerning insurance. Referring to Exhibit D, Senator Townsend gave a short review of this proposed legislation. Robert Crowell, Lobbyist, Farmers Insurance Company, was first to testify. Mr. Crowell also reviewed Exhibit D, noting a particular problem deals with rate filing. He went on to state this amendment (Exhibit D) will provide a solution to the problem of rate filing. Senator Townsend requested a history of rate filings to cover the last 5 years. Mr. Crowell continued with his review, presenting Exhibit E, new proposed language. Senator Townsend and Mr. Crowell continued their examination of Exhibit E. At this time, Pat Cashill, Lobbyist, Nevada Trial Lawyers Association, testified giving requested changes to this legislation. Bob Feldman, President, Nevada General Insurance/Auto Insurance America, entered the discussion. Glenn Shippey, Actuary, Division of Insurance, Department of Business and Industry, noted he has no objections. John Wiles, Advocate for Insurance Customers, Division of Insurance, Department of Business and Industry, noted he approves of an educational portion of the proposed legislation. Senator Lowden and Senator Townsend continued dialogue concerning driver education for schools. Mr. Feldman noted discounts on insurance rates might encourage greater participation for drivers education. Senator Augustine and Mr. Wiles proceeded with possible discounts for various educational/precautionary situations. Mr. Feldman resumed his testimony, this time, touching on potential fraud situations regarding insurance. He presented Exhibit F and pointed out how this might constitute potential fraud. Next to testify, John Vergiels, Lobbyist, Auto Insurance America, added his comments. Mr. Crowell, Mr. Feldman, Mr. Cashill and Mr. Wiles continued deliberation on the proposed amendments, (Exhibit E and Exhibit F). Mr. Shippey noted his department would like time to review Exhibit F. Rose McKinney-James, Director, Department of Business and Industry, concurred more time was needed for review and clarification of various new amendments. Senator Townsend concurred and asked for the draft of a new amendment. The hearing was closed on S.B. 300. Senator Townsend called for a recess at 10:15 a.m. with the meeting to be reconvened at 11:00 a.m. Senator Townsend reconvened the meeting at 11:15 a.m. The meeting opened with the hearing on S.B. 538. SENATE BILL 538: Provides for cooperative purchasing and basic benefits in health insurance. Marsha Berkbigler, Lobbyist, Nevada State Medical Association, testified, presenting Exhibit G. Ms. Berkbigler noted Exhibit G is a portion of the overall health care reform package her organization has been working on for approximately 5 years. She went on to state Exhibit G is the insurance provisions portion. Ms. Berkbigler continued stating a primary concern of her organization is to assist in lowering health care costs for the state of Nevada. Ms. Berkbigler continued noting that, hopefully, a provision that will be adopted is the definition of a qualified employer, asserting that will be someone who has two employees, up to and including 25 employees. Ms. Berkbigler went on to declare there are some differences, basically section 29 of Exhibit G and S.B. 538, between her organization and Marie Soldo, Chairman, Nevada Association of Health Maintenance Organizations, however, she feels they can be worked out. At this time, Ms. Soldo testified regarding disclosure provisions as they pertain to her organization and how they may differ in S.B. 538. At this time, Fred Hillerby, Lobbyist, Nevada Association of Health Maintenance Organizations, and Susan Miller, Government Affairs Assistant, Blue Cross Blue Shield of Nevada, joined the discussion. Ms. Soldo noted as far as her organization is concerned, people have to know what the benefits are and how to use the systems. She went on to state it is to the benefit of the Health Maintenance Organization (HMO) for members to be fully aware of all benefits and hopefully, this will cut down on disputes. Sharon Weaver, Supervisor, Life and Health, Insurance Division, Department of Business and Industry, testified, giving differences between Assembly Bill (A.B.) 299 and S.B. 538. ASSEMBLY BILL 299: Regulates provision of health insurance for small enterprises. Senator Townsend noted A.B. 299 and S.B. 538 seem to have a great many similarities, so perhaps they could be examined together. Ms. Berkbigler proceeded, stating her organization is not interested in proprietary rights to a bill number, but interested in insurance reform. Senator Townsend asked for a comparison on S.B. 538 and A.B. 299. Senator Townsend inquired of Ms. Weaver if she could shed any light on differences. Ms. Weaver replied S.B. 538 calls for the creation of a voluntary purchasing group which might add an administrative overhead cost to the cost of health care. Ms. Weaver continued noting there is approximately 50 percent duplication between these two bills. Senator Townsend continued, with the recommendation that section 29 of Exhibit G, and section 29 of S.B. 538, be removed. There was further discussion between Senator Regan and Mr. Hillerby regarding the similarities between these two pieces of legislation. SENATOR REGAN MOVED TO AMEND AND DO PASS SENATE BILL 538 MINUS SECTION 29. SENATOR O'CONNELL SECONDED THE MOTION. THE MOTION CARRIED. (SENATOR NEAL WAS ABSENT FOR THE VOTE.) * * * * * Senator Townsend made the statement he is not sure whether he has a conflict of interest regarding this piece of legislation. He continued, stating if he finds this is the case, he will declare this fact at a later date. There being no further business, the meeting was adjourned at 12:25 p.m. RESPECTFULLY SUBMITTED: Beverly Willis, Committee Secretary APPROVED BY: Senator Randolph J. Townsend, Chairman DATE: Senate Committee on Commerce and Labor June 8, 1995 Page