MINUTES OF THE

      SENATE COMMITTEE ON COMMERCE AND LABOR

 

      Sixty-seventh Session

      February 25, 1993

 

 

 

The Senate Committee on Commerce and Labor was called to order by Chairman Randolph J. Townsend, at 5:00 p.m., on Thursday, February 25, 1993, in Room 227 of the Legislative Building, Carson City, Nevada.  Exhibit A is the Meeting Agenda.  Exhibit B is the Attendance Roster.

 

 

COMMITTEE MEMBERS PRESENT:

 

Senator Randolph J. Townsend, Chairman

Senator Sue Lowden, Vice Chairman

Senator Ann O'Connell

Senator Mike McGinness

Senator Raymond C. Shaffer

Senator Leonard V. Nevin

Senator Lori L. Brown

 

 

STAFF MEMBERS PRESENT:

 

Linda Krajewski, Primary Secretary

Brian Davie, Senior Research Analyst

Frank Krajewski, Senior Research Analyst

Jan Needham, Senate Bill Drafting Advisor

 

 

OTHERS PRESENT:

 

Ray Bacon, Lobbyist, Nevada Manufacturers Association

Carol Jackson, Director, Department of Industrial Relations

Don E. Jayne, General Manager, Nevada State Industrial Insurance    System

Marty Bibb, Lobbyist, National Federation of Independent Business

Stan Smith, Boyd Group/President, Nevada Self-Insurers Association

Scott Young, General Counsel, Nevada State Industrial Insurance    System (SIIS)

George McNally, Lobbyist, Nevada Trial Lawyers Association

Jim Jeppson, Administrator, Division of Industrial Insurance    Regulation

Barbara Scarborough, Compensation and Benefits Specialist, Mirage   Resorts, Las Vegas

Bryan Nix, Senior Appeals Officer, Department of     Administration

 

 

 

 

This portion of the meeting was not recorded.  The discussion was reconstructed by Jan Needham, Senate Bill Drafting Advisor, Frank Krajewski, Legislative Counsel Bureau, Brian Davie, Legislative Counsel Bureau, and Linda Krajewski, Primary Secretary.

 

Senator Townsend opened the meeting at 5:00 p.m.  After discussion, the committee requested the following changes be made to Bill Draft Request (BDR) 53-1764:

 

BILL DRAFT REQUEST 53-1764:   Makes various changes to provisions governing industrial insurance.

 

Section 175:  Corrections need to be made to subsection 7 which requires an insurer to issue to an injured worker, not less than 6 working days before the end of the period specified in the form to request continued compenstion, a check for compensation.  Scott Young, General Counsel, State Industrial Insurance System (SIIS), will submit the corrections needed.  It was also agreed to add to subsection 9 a reference to the regulations adopted by the Division of Industrial Insurance Regulation governing vocational rehabilitation, and to delete subsection 10 which states that the insurer has the burden of proving that a temporary total disability no longer exists.

 

Section 176:  The committee agreed to delete paragraph (a) in subsection 11 which states that a person is not entitled to compensation if his permanent partial disability no longer exists and that the insurer has the burden of proving that the permanent partial disability no longer exists.

 

Section 178:  The committee also agreed to delete the language in subsection 1 which states that the insurer has the burden of proving that a temporary partial disability no longer exists.

 

Section 179:  The committee decided to make the definition of "surviving spouse" in subsection 12 consistent with Nevada Revised Statutes (NRS) 616.510, and to add the language from the SIIS business plan requiring the establishment of a guardianship for a dependent who is a minor or incompetent.

 

Section 183:  It was decided to change subsection 3 to require prosecutions by the attorney general, not a district attorney.

 

Section 184:  The committee agreed to allow the imposition of an administrative fine against a managed care organization.  They also agreed to delete the hearing that is required to be held by the administrator before the issuance of a notice of violation, and to authorize the administrator to issue a notice of violation, but to not require it.

 

Section 186:  The committee decided to amend subsection 4 to require any agency to furnish information to the attorney general.

 

After some discussion, it was also agreed to amend the provisions in chapter 617 to match the changes made in chapter 616.

 

 

The remainder of the meeting has been transcribed by the secretary as the tape is now functioning.

 

Ray Bacon, Lobbyist, Nevada Manufacturers Association, testified before the committee regarding section 208 of (BDR) 53-1764, which deals with revisions to the safety program provisions (Exhibit C). He discussed the provision and said it penalizes those who are having the accidents, and leaves alone those who are not.

 

Carol Jackson, Director, Department of Industrial Relations (DIR), said her department has no problem with the revisions, as long as section 6 is left in. Jan Needham, Senate Bill Drafting Advisor, said the revision, with a few minor changes, is workable.

 

Don Jayne, General Manager, State Industrial Insurance System (SIIS), addressed the committee. He stated that SIIS was overall in favor of the proposal, but that it required more definition on standards for performance and compliance. Mr. Jayne requested time to work on the language of the revision proposal.

 

Marty Bibb, Lobbyist, National Federation of Independent Business, testified, "I'd just simply like to go on record as volunteering to work with the crew you've assigned to look at that issue. We just think there just needs to be some provision concerning the small business perspective."

 

Senator Townsend mentioned the clean-up work that Senator O'Connell had done on pooling resources for temporary light duty employment (Exhibit D). He noted these methods have not yet been employed anywhere in the country.

 

Stan Smith, Boyd Group/President, Nevada Self-Insurers Association, testified from Las Vegas. He stated the self-insurers reviewed the rehabilitation regulations from the Division of Industrial Insurance Regulations (DIIR), and are concerned about the area of light duty versus modified duty. He presented the committee with a handout (Exhibit E). Mr. Smith discussed the changes that the self-insureds would like to see happen, and stressed the importance of the light duty portion of his proposal.

 

Scott Young responded to the self-insurers proposal and discussed temporary light duty.

 

There was further discussion of the proposal. Ms. Jackson talked about the proposed rehabilitation regulations and said the self-insurers' proposal has been addressed in the regulations.

 

Mr. Young responded to a question by Senator O'Connell regarding the language "demeaning or degrading" in reference to jobs offered to injured workers. He referred to a Nevada Supreme Court decision which dealt with that issue.

 

George McNally, Lobbyist, Nevada Trial Lawyers Association, testified regarding page 146, section 9, subsection b of BDR 53-1764. He suggested changes the consensus group had made regarding this section. Senator O'Connell asked for clarification. Mr. McNally explained the changes regarding temporary light duty employment.  There was further discussion on the issue.

 

Mr. Young elaborated on the temporary light duty issue. He said, "As long as the offer is reasonable, in terms of those three categories (pay rate, shift, hours of employment) my understanding is the injured worker could not refuse it." He said that because it is only a temporary situation, "...even if the job itself is somewhat menial, that they should be required to take it...and it's better than sitting at home and just drawing your comp (compensation)."

 

In response to a concern of Senator O'Connell, Mr. Young explained that if the section on page 2 of Exhibit E applied to permanent light duty employment, then the language used would be acceptable. If it applied to temporary light duty, the language would appear to give the worker an opportunity to reject a job offer.

 

Jim Jeppson, Administrator, Division of Industrial Insurance Regulation (DIIR), referred to the DIIR regulations in regard to the language "demeaning/degrading." Senator Nevin wanted to see the new language.  He said his concern was that the injured worker not "feel like he's being punished because he got injured on the job."

 

Mr. Young referred to a comment by Barbara Scarborough, Compensation and Benefits Specialist, Mirage Resorts, Las Vegas, who testified from Las Vegas regarding a statute that says "once you're capable of any gainful employment, then you're not entitled to temporary total disability (TTD)." He said he thought an injured worker who was ineligible for TTD would still be eligible for rehabilitation.  Mr. Young said the problem was in trying to make it easier for the employer to give the injured worker a temporary light duty job. He said as long as the job offer was reasonable in

 

 

terms of the location and hours, the worker should be required to take the job. Mr. Young further explained that at the end of the 6- or 8-week interim period, the worker would return to his/her normal job.

 

Senator Townsend clarified the committee's intention, that "we...are trying to...eliminate this 7-day lag, we're trying to get people back to work using reasonable conditions."

 

Bryan Nix, Senior Appeals Officer, Department of Administration, testified from Las Vegas regarding light duty employment. He stated, "For the legislative record, on this particular section I think this language was chosen specifically to give the employer power to terminate temporary total disability payments, by bringing the injured worker back to work, in some capacity, as soon as possible."

 

Senator Townsend thanked those who participated in the hearing. There being no further business, he adjourned the meeting at 6:25 p.m.

 

 

                  RESPECTFULLY SUBMITTED:

 

 

 

                                           

                  Linda L. Krajewski,

                  Committee Secretary

 

 

 

APPROVED BY:

 

 

 

 

                                     

Senator Randolph J. Townsend, Chairman

 

 

DATE:                                

??

 

 

 

 

 

 

 

Senate Committee on Commerce and Labor

February 25, 1993

Page 1