MINUTES OF THE SENATE COMMITTEE ON COMMERCE AND LABOR Sixty-eighth Session June 21, 1995 The Senate Committee on Commerce and Labor was called to order by Chairman Randolph J. Townsend, at 7:30 a.m., on Wednesday, June 21, 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: Fred Hillerby, Lobbyist, Nevada Optometric Association Douglas Devries, Optometrist, Nevada Optometric Association Jeffrey Austin, Optometrist, Nevada Optometric Association Marsha Berkbigler, Lobbyist, Nevada State Ophthalmology Society/Nevada State Medical Association Mitch Keany, M.D., Nevada State Medical Association Larry Struve, Chief, Office of Industrial Development and Planning, Department of Business and Industry Tom Harrison, Ph.D. Associate Professor, Department of Counseling and Educational Psychology, University of Nevada Reno, Nevada Counseling Association Paula Berkley, Lobbyist, State of Nevada Board of Psychological Examiners Joe Guild, Lobbyist, Nevada Mobile Home Park Owners Association Helen Foley, Lobbyist, 7-Eleven Franchise Owners Teresa Maloney, Vice Chairman, National Coalition of Associations of 7-Eleven Franchisees Scott Craigie, Lobbyist, International Franchise Association/PepsiCo Luther Mack, Owner/Operator, McDonalds, Reno/Sparks Kendall Edwards, Director of State Government Relations and Associate Counsel, International Franchise Association Bill Nolan, Market Manager, The Southland Corporation Robert Barengo, Lobbyist, International Franchise Association The meeting opened with the hearing on Assembly Bill (A.B.) 438. ASSEMBLY BILL 438: Prohibits optometrist from administering or prescribing therapeutic pharmaceutical agents without certificate issued by Nevada state board of optometry. Fred Hillerby, Lobbyist, Nevada Optometric Association, gave a brief overview of action taken in previous legislative sessions, when similar legislation was addressed by the Assembly. Mr. Hillerby noted understanding was finally reached with the agreement that include topical drugs and antibiotics; no controlled substances. Mr. Hillerby gave further explanation and presented Exhibit C. Mr. Hillerby introduced Douglas Devries, Optometrist, Nevada Optometric Association, who gave information on educational requirements for his optometry school. Mr. Devries noted optometry school is an intense 4-year curriculum with thorough training. Mr. Devries continued and referring to Exhibit C, gave various examples of treatment and medication now allowed. Jeffrey Austin, Optometrist, Nevada Optometric Association, testified, noting his background encompasses a great deal of experience in treating the eye with various medications, while employed in federal institutions. Senator Lowden and Mr. Austin established the fact that in a federal institution he is allowed to use various medications; however, is not allowed to use these same medications in private practice. Mr. Austin clarified educational requirements for Senator O'Connell. At this time, Marsha Berkbigler, Lobbyist, Nevada State Ophthalmology Society/Nevada State Medical Association, testified noting her opposition to this legislation. Ms. Berkbigler stated her organization's particular area of concern is oral antibiotics and topical steroids. Ms. Berkbigler noted it is her understanding that optometrists will be required, by law, to adhere to the same standard of care as ophthalmologists who perform eye care of similar types. Continuing, she stated this legislation does not cover this particular situation. Ms. Berkbigler, noted she has been advised all will have to abide by the same standard of care. She continued stating, "It is the opinion of the [Nevada] State Medical Association as well as the Nevada State Ophthalmology Society that the same standard of care includes 24-hour care, so if you are treating a patient with some kind of solution in their eye, or some kind of oral antibiotic, or any other kind of treatment that could cause a problem for them after hours, you need to be responsible for them... That's not in this legislation." Ms. Berkbigler proceeded, noting her organization feels that optometrists are not qualified to be primary care physicians. Ms. Berkbigler introduced Mitch Keany, M.D., Nevada State Medical Association, who gave his viewpoint and concern with allowing this legislation. Ms. Berkbigler continued with remarks pertaining to a possible amendment, stating, "We believe if this bill is going to pass, it should be amended to remove oral antibiotics, to remove topical steroids and insert some language on the standard of care." The hearing was closed on A.B. 438 and opened on Senate Bill (S.B.) 479. SENATE BILL 479: Makes various changes to provisions governing deceptive trade practices. Larry Struve, Chief, Office of Industrial Development and Planning, Department of Business and Industry, came forward to testify in support of S.B. 479. Mr. Struve presented Exhibit D, an amendment to S.B. 479, with an explanation. SENATOR O'CONNELL MOVED TO AMEND AND DO PASS SENATE BILL 479 WITH AMENDMENT NO. 1023. SENATOR AUGUSTINE SECONDED THE MOTION. THE MOTION CARRIED. (SENATORS LOWDEN, SHAFFER AND NEAL WERE ABSENT FOR THE VOTE.) * * * * * The hearing closed on S.B. 479 and opened on A.B. 497. ASSEMBLY BILL 497: Provides for licensure and regulation of professional counselors. First to testify, Tom Harrison, Ph.D. Associate Professor, Department of Counseling and Educational Psychology, University of Nevada Reno, Nevada Counseling Association, presented Exhibit E, giving an explanation. Paula Berkley, Lobbyist, State of Nevada Board of Psychological Examiners, came forward, noting with the presentation of Exhibit E, a new amendment for this legislation, her organization is no longer in opposition to the passage of A.B. 497. SENATOR REGAN MOVED TO AMEND AND DO PASS ASSEMBLY BILL 497 WITH THE NEW AMENDMENT. SENATOR AUGUSTINE SECONDED THE MOTION. THE MOTION CARRIED. (SENATORS LOWDEN, NEAL AND SHAFFER WERE ABSENT FOR THE VOTE.) * * * * * Senator Townsend noted to Mr. Harrison, "I want you to know the Governor has given me his word he would sign a new board bill under these conditions. They will be merged over the next 2 years. That's what I have asked him to do." The hearing closed on A.B. 497 and opened on S.B. 361, SENATE BILL 361: Makes various changes relating to mobile home parks. Joe Guild, Lobbyist, Nevada Mobile Home Park Owners Association, came forward, noting there were still differences that need to be addressed and he would return at such time these had been resolved. At this time, Senator Townsend returned to address A.B. 438. SENATOR O'CONNELL MOVED TO DO PASS ASSEMBLY BILL 438. SENATOR LOWDEN SECONDED THE MOTION. Further discussion took place between Senator Lowden and Mr. Austin with Senator Lowden asking for reassurance that optometrists were, in fact, adequately trained to carry out precepts of this legislation. Mr. Austin assured her this is so. Additional dialog took place by Senator Shaffer and Senator Neal, with both voicing concerns. THE MOTION CARRIED. (SENATORS NEAL, AUGUSTINE AND TOWNSEND VOTED NO.) * * * * * The hearing then opened on S.B. 459. SENATE BILL 459: Regulates operation of franchises. Helen Foley, Lobbyist, 7-Eleven Franchise Owners, presented Exhibit F, and Exhibit G, and gave an explanation. Senator O'Connell voiced concerns over some language presented in Exhibit F, expressing concerns over its constitutionality. Ms. Foley noted if language on good cause and good faith was unconstitutional, it certainly would not be considered. Senator Augustine raised questions on franchises other than 7-Eleven. Teresa Maloney, Vice Chairman, National Coalition of Associations of 7-Eleven Franchisees, responded to Senator Augustine and presented Exhibit H. Ms. Foley continued with her testimony, noting that many issues can be resolved, as long as there is good faith and fair dealing. Senator Lowden voiced concerns, noting several of her constituents who are 7-Eleven franchisees, called to oppose this legislation. Ms. Maloney continued with her justification. Senator Lowden and Senator O'Connell reiterated their concerns, so it was decided to continue with testimony from the opposition. Scott Craigie, Lobbyist, International Franchise Association/PepsiCo, introduced Luther Mack, Owner/Operator, McDonalds, Reno/Sparks, who gave testimony in opposition to this legislation. Mr. Mack noted he thinks this legislation might have an adverse affect on his ability to obtain extra stores and that Nevada does not need this legislation. Bill Nolan, Market Manager, The Southland Corporation, testified, noting in particular several issues, namely, spouse agreement, survivorship, franchisees being afraid to testify because of reprisal from the company, finally, termination because of poor housekeeping. Mr. Nolan addressed each of these issues. Detailed discussion ensued between Mr. Nolan, Senator Lowden and Senator Neal. Next to testify, Kendall Edwards, Director of State Government Relations and Associate Counsel, International Franchise Association, stated as in previous testimony, she is still in opposition to this legislation. Ms. Edwards noted consistency and quality control are important aspects that may be controlled by franchises. Mr. Nolan and Mr. Craigie concurred. Senator Regan and Mr. Nolan continued discussing the place an ombudsman would have in settling issues that might arise. Next to testify, Robert Barengo, Lobbyist, International Franchise Association, noted a uniform franchise act has been considered in the past. Mr. Barengo went on to note this type of legislation has not been adopted, since most of the problems seem to have disappeared. Referring to Exhibit F and Exhibit H, Mr. Barengo pointed out several items he feels can only cause problems. Mr. Craigie stated for the record, "There are two franchise owners from 7-Eleven to testify against the bill (S.B. 459). From Burger King two more franchise owners." Mr. Craigie continued he feels there are no problems that have been brought before the committee that warrant this legislation. There being no further business, the meeting was adjourned at 9:45. RESPECTFULLY SUBMITTED: Beverly Willis, Committee Secretary APPROVED BY: Senator Randolph J. Townsend, Chairman DATE: Senate Committee on Commerce and Labor June 21, 1995 Page