MINUTES OF MEETING

      ASSEMBLY COMMITTEE ON LABOR AND MANAGEMENT

 

      Sixty-seventh Session

      June 17, 1993

 

 

 

The Assembly Committee on Labor and Management was called to order by Chairman Chris Giunchigliani at 4:15 p.m., in Room 321 of the Legislative Building, Carson City, Nevada.  Exhibit A is the Meeting Agenda, Exhibit B is the Attendance Roster.

 

 

COMMITTEE MEMBERS PRESENT:

 

      Ms. Chris Giunchigliani, Chairman

      Mr. Bernie Anderson, Vice Chairman

      Mr. Douglas A. Bache

      Mr. John C. Bonaventura

      Mr. John Carpenter (left early)

      Mr. Tom Collins, Jr.

      Mr. Peter G. Ernaut

      Mr. Lynn Hettrick

      Mrs. Erin Kenny

      Mr. John B. Regan

      Mr. Michael A. Schneider

 

 

COMMITTEE MEMBERS ABSENT:

 

      None

 

GUEST LEGISLATORS PRESENT:

 

      None 

 

STAFF MEMBERS PRESENT:

 

      Donald O. Williams, Principal Research Analyst

 

OTHERS PRESENT:

 

      Mr. Brian Nix, Senior Appeals Officer, Department of 

        Administration, Hearings Division.  

      Ms. Lynn Grandlund, Grandlund, Watson, Clark and      

        Associates.

      Mr. Warren Hardy, Nevada Restaurant Association.

      Mr. Frank MacDonald, State Labor Commissioner.

      Mr. Jim Jeppson, Division of Industrial Insurance Relations

        (DIIR).

      Mr. Tom Nelson, W.R. Gibbens, Inc.

 

Chairman Giunchigliani opened the work session on AB-286.

 

ASSEMBLY BILL 286 -     Requires certain persons who represent employer or employee before appeals officer in matter relating to workers' compensation to meet certain continuing legal education requirements.

 

Mr. Brian Nix, Senior Appeals Officer, Department of Administration, Hearings Division, testified.  Mr. Nix stated in light of the changes included in Section 178 of SB-316, "or employee" should be deleted on line 21 of AB-286.  He explained employees could no longer be represented at the appeals officer level by non-attorneys according to SB-316.

 

The Chair explained what SB-316 eliminated could be handled in a trailer bill or clarified in AB-286.

 

Mr. Collins noted when SB-316 was heard the committee had labeled third party administrators and licensed employer representatives as one of the same.  Mr. Nix explained third party administrators had different requirements with respect to being licensed.  He stated the Commissioner of Insurance could license individuals to appear and represent an employer even though they might not be a third party administrator.  Mr. Nix noted most employers were represented by either third party administrators or licensed representatives who had extensive experience in workers' compensation law.  Mr. Nix summarized AB-286 required anyone who appeared before an appeals officer to maintain continuing legal education credits of 10 hours per year.

 

After discussion between Mr. Nix and the committee it was decided to make the following amendments to the SB-316 trailer bill:

 

1)    Delete "Director" and insert "Director of the Department of Administration.

 

2)    The Trade Association formed solely for the purpose of representation before hearings and appeals.

 

The Chair noted AB-286 would not be indefinitely postponed until the amendments were inserted in the trailer bill.

 

Ms. Lynn Grandlund, Grandlund, Watson, Clark and Associates, testified.  Ms. Grandlund asked if licensed employer representatives were included.  The Chair noted the language would read as follows, "A licensed third party administrator or as licensed by the director to represent the employer at hearings of contested cases."

 

The Chair closed the hearing on AB-286 with no action at this time.

 

ASSEMBLY BILL 701 -     Prohibits employer from applying any tips or gratuities bestowed upon employee as credit toward payment of wages to any employee.

 

The Chair explained AB-701 addressed cases when an employee was on a job, got pulled off temporarily, and was assigned to do a supervisor's or another job.  The employers were making the employees split their tips to pay the wages of the temporarily assigned individual.

 

Mr. Warren Hardy, Nevada Restaurant Association, testified.  He explained the Nevada Restaurant Association's proposal specifically allowed a tip credit for employers.  He noted proposed amendment to subsection (c), line 8, "Apply any tips or gratuities bestowed upon an employee as a credit towards the payment of any wages of any other employee and removed of that employee."

 

The Chair asked Mr. MacDonald if AB-701 would conflict with the statute.

 

Mr. Frank MacDonald, State Labor Commissioner, testified.  He stated AB-701 would not conflict with the statute.

 

Mr. Hardy stated the current problem with the tipped employees was they were being asked to fulfill other job requirements, sometimes management positions which were not tipped positions.  The employees were asked to do this at their regular wage, which in most cases was minimum wage.  The tips pooled by his shift were used to pay the employee who was temporarily assigned to do the non-tipped job.  Mr. Hardy noted his support of AB-701.

 

      ASSEMBLYMAN KENNY MOVED TO AMEND AND DO PASS.

 

      ASSEMBLYMAN BONAVENTURA SECONDED THE MOTION.

 

      THE MOTION CARRIED UNANIMOUSLY.

 

      ASSEMBLYMAN ERNAUT WAS ABSENT AT THE TIME OF THE VOTE.

 

 

ASSEMBLY BILL 466 -     Establishes preferred employee program for rehabilitation of injured employees.

 

The Chair explained AB-466 focused more on small and medium sized employers who did not have the opportunity to formulate light duty positions.  In the vocational rehabilitation section of SB-316 up to six months was allowed of 250% for a wage subsidization for any size employer.  An incentive was also created for employers who chose to make the employee permanent after the training period, or if the employee got another position within 30 days using the same skills, the original training employer would receive an additional 50 percent.

 

Mr. Hettrick questioned if SIIS premiums and equipment was included in SB-316.  Chairman Giunchigliani noted just the actual wage was focused on.

 

Mr. Carpenter suggested comparing SB-316 and AB-466.

 

The Chair agreed and appointed a subcommittee of Mr. Schneider, Mr. Hettrick and Mr. Carpenter to review and compare SB-316 and AB-466.

 

 

ASSEMBLY BILL 702 -     Makes various changes relating to industrial insurance and safety.

 

The Chair noted AB-702 had previously been heard, but the amendments were not received yet.  There was a question as to when the claims examiner part should take place.  She noted an additional subsection (d) would be inserted after Section 3(c) as follows:  "An exemption from any testing requirement for the initial certification of claims examiners with at least three years of verifiable experience as a claims examiner in Nevada." 

 

Mr. Jim Jeppson, Division of Industrial Insurance Relations (DIIR), testified.  Mr. Jeppson responded claims examiners who had experience administering claims in Nevada could be exempted from the initial certification requirement if a test was required.  If there were any other criteria adopted pursuant to regulation the claims examiners were expected to meet all the requirements at a triennial renewal.

 

The Chair asked if there was any other prohibition on self-referral for businesses.  Mr. Jeppson noted he was not aware of any.

 

Mr. Tom Nelson, W.R. Gibbens, Inc., testified.  Mr. Nelson noted the three years experience for the certification of a claims examiner could be a problem.  He explained Nevada probably had many companies who hired claims examiners without three years experience initially.  Nevada did not have a large industry for this type of position.  He also questioned if the three years of experience could come from another state.  The Chair responded the experience had to be in Nevada. 

 

Mr. Anderson questioned Mr. Jeppson if AB-702 was passed would it be three years before all newly hired claims examiners had to meet the certification requirements.  Mr. Jeppson responded the regulations the department was required to adopt pursuant to AB-702 could result in an initial certification, such as any new claims examiners would require testing.

 

After some discussion Chairman Giunchigliani noted claims examiners hired after January, 1995 had to take a test.  Mr. Nelson stated he was in favor of AB-702 if claims examiners had until 1995 to become certified.

 

Ms. Kenny asked if the committee was interested in putting language in AB-702 to prohibit the people setting up the courses for claims examiners to have any financial interest in a Managed Care Organization (MCO) or the State Industrial Insurance System (SIIS).  She explained there could be a conflict of interest if this was not addressed.

 

      ASSEMBLYMAN ANDERSON MOVED TO AMEND AND DO-PASS AB-702.

 

      ASSEMBLYMAN KENNY SECONDED THE MOTION. 

 

      THE MOTION CARRIED WITH 10 VOTES.

 

      ASSEMBLYMAN CARPENTER WAS ABSENT AT THE TIME OF THE VOTE.

 

ASSEMBLY BILL 120 -     Limits authority of division of enforcement for industrial safety and health of department of industrial relations to adopt certain regulations relating to hazardous materials.

 

      ASSEMBLYMAN BACHE MOVED TO INDEFINITELY POSTPONE AB-120.

 

      ASSEMBLYMAN ERNAUT SECONDED THE MOTION.

 

      THE MOTION CARRIED WITH 10 VOTES.

 

      ASSEMBLYMAN CARPENTER WAS ABSENT AT THE TIME OF THE VOTE.

 

ASSEMBLY BILL 263 -     Makes various changes to industrial insurance.

 

     

      ASSEMBLYMAN BONAVENTURA MOVED TO INDEFINITELY POSTPONE AB-263.

 

      ASSEMBLYMAN BACHE SECONDED THE MOTION.

 

      THE MOTION CARRIED WITH 10 VOTES.

 

      ASSEMBLYMAN CARPENTER WAS ABSENT AT THE TIME OF THE VOTE.

 

ASSEMBLY BILL 264 -     Makes various changes to provisions governing procedures for reporting industrial injuries and filing claims for compensation.

 

      ASSEMBLYMAN BACHE MOVED TO INDEFINITELY POSTPONE AB-264.

 

      ASSEMBLYMAN BONAVENTURA SECONDED THE MOTION.

 

      THE MOTION CARRIED WITH 10 VOTES.

 

      ASSEMBLYMAN CARPENTER WAS ABSENT AT THE TIME OF THE VOTE.

 

ASSEMBLY BILL 265 -     Excludes certain items from definition of "accident benefits" for industrial insurance and authorizes employees to receive motor vehicles as accident benefits only under certain circumstances.

 

      ASSEMBLYMAN HETTRICK MOVED TO INDEFINITELY POSTPONE AB-265.

 

      ASSEMBLYMAN ANDERSON SECONDED THE MOTION.

 

      THE MOTION CARRIED WITH 10 VOTES.

 

      ASSEMBLYMAN CARPENTER WAS ABSENT AT THE TIME OF THE VOTE.

 

ASSEMBLY BILL 266 -     Establishes circumstances under which late manifesting injury or disease may be considered part of employee's original claim for worker's compensation.

 

      ASSEMBLYMAN ERNAUT MOVED TO INDEFINITELY POSTPONE AB-266.

 

      ASSEMBLYMAN BONAVENTURA SECONDED THE MOTION.

 

      THE MOTION CARRIED WITH 10 VOTES.

 

      ASSEMBLYMAN CARPENTER WAS ABSENT AT THE TIME OF THE VOTE.

 

ASSEMBLY BILL 267 -     Prohibits employee from receiving workers' compensation for disability resulting from subsequent injury or disease under certain circumstances.

 

      ASSEMBLYMAN KENNY MOVED TO INDEFINITELY POSTPONE AB-267.

 

      ASSEMBLYMAN HETTRICK SECONDED THE MOTION.

 

      THE MOTION CARRIED WITH 10 VOTES.

 

      ASSEMBLYMAN CARPENTER WAS ABSENT AT THE TIME OF THE VOTE.

 

ASSEMBLY BILL 269 -     Revises definition of average monthly wage for purposes of industrial insurance.

 

      ASSEMBLYMAN ANDERSON MOVED TO INDEFINITELY POSTPONE AB-269.

 

      ASSEMBLYMAN BACHE SECONDED THE MOTION.

 

      THE MOTION CARRIED WITH 10 VOTES.

 

      ASSEMBLYMAN CARPENTER WAS ABSENT AT THE TIME OF THE VOTE.

 

 

ASSEMBLY BILL 270 -     Places limitations on time during which certain claims for industrial insurance may be reopened.

 

      ASSEMBLYMAN ERNAUT MOVED TO INDEFINITELY POSTPONE AB-270.

 

      ASSEMBLYMAN BACHE SECONDED THE MOTION.

 

      THE MOTION CARRIED WITH 10 VOTES.

 

      ASSEMBLYMAN CARPENTER WAS ABSENT AT THE TIME OF THE VOTE.

 

ASSEMBLY BILL 271 -     Prohibits physician or chiropractor from referring injured employee that he is attending to certain health facilities or services.

 

      ASSEMBLYMAN BONAVENTURA MOVED TO INDEFINITELY POSTPONE AB-271.

 

      ASSEMBLYMAN HETTRICK SECONDED THE MOTION.

 

      THE MOTION CARRIED WITH 10 VOTES.

 

      ASSEMBLYMAN CARPENTER WAS ABSENT AT THE TIME OF THE VOTE.

 

ASSEMBLY BILL 272 -     Requires attorney general to establish fraud control unit for industrial insurance.

 

      ASSEMBLYMAN ANDERSON MOVED TO INDEFINITELY POSTPONE AB-272.

 

      ASSEMBLYMAN BACHE SECONDED THE MOTION.

 

      THE MOTION CARRIED WITH 10 VOTES.

 

      ASSEMBLYMAN CARPENTER WAS ABSENT AT THE TIME OF THE VOTE.

 

ASSEMBLY BILL 273 -     Makes various changes to provisions relating to industrial insurance.

 

      ASSEMBLYMAN BONAVENTURA MOVED TO INDEFINITELY POSTPONE AB-273.

 

      ASSEMBLYMAN BACHE SECONDED THE MOTION.

 

      THE MOTION CARRIED WITH 10 VOTES.

 

      ASSEMBLYMAN CARPENTER WAS ABSENT AT THE TIME OF THE VOTE.

 

ASSEMBLY BILL 274 -     Provides that certain goods and services are not vocational rehabilitation services and limits benefits that are available to injured employees who retire.

 

      ASSEMBLYMAN KENNY MOVED TO INDEFINITELY POSTPONE AB-274.

 

      ASSEMBLYMAN ERNAUT SECONDED THE MOTION.

 

      THE MOTION CARRIED WITH 10 VOTES.

 

      ASSEMBLYMAN CARPENTER WAS ABSENT AT THE TIME OF THE VOTE.

 

ASSEMBLY BILL 283 -     Revises statutory provision governing which issues may be appealed to manager of state industrial insurance system and authorizes manager's designee to hold hearings and issue administrative determinations.

 

      ASSEMBLYMAN BONAVENTURA MOVED TO INDEFINITELY POSTPONE AB-283.

 

      ASSEMBLYMAN COLLINS SECONDED THE MOTION.

 

      THE MOTION CARRIED WITH 10 VOTES.

 

      ASSEMBLYMAN CARPENTER WAS ABSENT AT THE TIME OF THE VOTE.

 

ASSEMBLY BILL 284 -     Permits employee or his dependents to commence civil action in negligence against certain persons after accepting compensation or benefits from industrial insurance.

 

      ASSEMBLYMAN HETTRICK MOVED TO INDEFINITELY POSTPONE AB-284.

 

      ASSEMBLYMAN ERNAUT SECONDED THE MOTION.

 

      THE MOTION CARRIED WITH 9 VOTES.

 

      ASSEMBLYMAN COLLINS VOTED NO.  ASSEMBLYMAN CARPENTER WAS ABSENT AT THE TIME OF THE VOTE.

 

ASSEMBLY BILL 302 -     Makes various changes relating to compensation to fireman or police officer for disability or death from disease of heart.

 

      ASSEMBLYMAN ERNAUT MOVED TO INDEFINITELY POSTPONE AB-302.

 

      ASSEMBLYMAN BACHE SECONDED THE MOTION.

 

      THE MOTION CARRIED WITH 10 VOTES.

 

      ASSEMBLYMAN CARPENTER WAS ABSENT AT THE TIME OF THE VOTE.

 

ASSEMBLY BILL 326 -     Permits cooperative agreement between public agencies or nonprofit medical facilities for purpose of obtaining industrial insurance.

 

      ASSEMBLYMAN BONAVENTURA MOVED TO INDEFINITELY POSTPONE AB-326.

 

      ASSEMBLYMAN KENNY SECONDED THE MOTION.

 

      THE MOTION CARRIED WITH 10 VOTES.

 

      ASSEMBLYMAN CARPENTER WAS ABSENT AT THE TIME OF THE VOTE.

 

ASSEMBLY BILL 351 -     Removes disqualification for unemployment compensation of certain educational employees for specified periods of unemployment.

 

      ASSEMBLYMAN HETTRICK MOVED TO INDEFINITELY POSTPONE AB-351.

 

      ASSEMBLYMAN KENNY SECONDED THE MOTION.

 

      THE MOTION CARRIED WITH 8 VOTES.

 

      ASSEMBLYMEN COLLINS AND BONAVENTURA VOTED NO.  ASSEMBLYMAN CARPENTER WAS ABSENT AT THE TIME OF THE VOTE.

 

ASSEMBLY BILL 292 -     Revises exemption from provisions concerning unemployment compensation for persons who deliver or distribute newspapers or shopping news.

 

      ASSEMBLYMAN ANDERSON MOVED TO INDEFINITELY POSTPONE AB-292.

 

      ASSEMBLYMAN HETTRICK SECONDED THE MOTION.

 

      THE MOTION CARRIED WITH 10 VOTES.

 

      ASSEMBLYMAN CARPENTER WAS ABSENT AT THE TIME OF THE VOTE.

 

 

There being no further business to come before committee, the meeting was adjourned at 5:15 P.M..

 

      RESPECTFULLY SUBMITTED:

 

 

                             

      JEANNE PEYTON

      Committee Secretary

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Assembly Committee on Labor and Management

June 17, 1993

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