MINUTES OF THE
SENATE COMMITTEE ON COMMERCE AND LABOR
Sixty-seventh Session
March 18, 1993
The Senate Committee on Commerce and Labor was called to order by Chairman Randolph J. Townsend, at 9:15 a.m., on Thursday, March 18, 1993, in Room 119 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:
Beverly Willis, Committee Secretary
Sheri Asay, Committee Secretary
Brian Davie, Senior Research Analyst
Jan Needham, Senate Bill Drafting Advisor
Frank Krajewski, Senior Research Analyst
OTHERS PRESENT:
Scott Young, General Counsel, State Industrial Insurance System
Brian Harris, Legal Counsel, Governor's Office
Terri Rankin, Commissioner, Insurance Division
Don Jayne, General Manager, State Industrial Insurance System
George F. McNalley, Lobbyist, Nevada Trial Lawyers Association
Senator Townsend opened the meeting with the statement that the goal for the morning was to make changes on specific pages. These changes were presented by Jan Needham, Senate Bill Drafting Advisor as noted in Exhibit C Summary - BDR 53-1764 - (original in Research Library). The changes are as follows:
1, Page 5, section 6 - Definition for the organization of managed care.
2. Page 8, subsection 4 - Technical correction regarding the $400 deductible.
3. Page 20, section 35 - Deletion of language (requested by Insurance Commissioner).
4. Page 21, section 37 - Dates changed.
5. Page 39, section 73 - Changed amount of deductible to $400. Clarified it would be only the employer insured by the system who would be paying this deductible.
6. Page 40, section 74, subsection 3 - On managed care. Criteria established by the manager for the selection of an organization for managed care must not prohibit any organization from managed care from submitting a bid.
7. Page 42, section 75, paragraphs B & C - Must not exclude from participation any category of health care providers.
8. Page 44, 45, section 80 - Title changes - Hearing Officer changed to Appeals Officer.
9. Page 46 - section 83 - Regarding subsequent injury fund - Ms. Needham stated there were some minor technical changes in the language for this section. Scott Young, General Counsel, State Industrial Insurance System provided this information.
10. Page 48, section 87 - Calculations on average monthly wage.
11. Page 64, section 115 - Eligibility for vocational rehabilitation services. There was discussion between Senator Townsend, Brian Harris, Legal Counsel, Governor's Office and Ms. Needham regarding time frames on this change. Senator Townsend stated he was concerned that the language be very clear that the vocational rehabilitation time of 6 months commences on the date the program is started, not when a person would be considered or assessed. Ms. Needham suggested that the language "when he is placed in the program," should be added.
Senator Townsend stated:
We want to make sure the clock doesn't start ticking the second someone says well, what are you interested in. That's not the goal, I think, of the committee, or the Governor. It's when they say, okay it's been concluded and agreed to that you want to become trained at X and that's the time.....that 6 months starts at X.
Mr. Harris stated:
That's our intent, sir.
12. Page 124, section 194, subsection 2 - States injured employee or his dependents are not entitled to be paid or accrue any benefits for a Temporary Total Disability (TTD) for the first 5 days the injured employee is off work.
13. Page 127, section 195, subsection 6 - Percentage of claimant's average monthly wage is changed. This is for injuries sustained on or after effective date of this act.
14. Page 163, section 236 - Deals with written safety programs -The safety committee must include representatives of employees. Senator McGinness, Senator O'Connell, Senator Townsend and Mr. Harris held a short discussion on the goal of this proposed change. Mr. Harris stated that there would be a safety program for all employers, with a safety committee for those employers who have 25 or more employees.
15. Page 202, section 292 - Affects calculation of average wage benefits for those on Temporary Total Disability. Senator Nevin and Senator Brown requested clarification on this measure. Ms. Needham suggested further clarification to the language.
16. Page 202, section 293 - Requires the Governor to review laws governing industrial insurance passed this session; prepare a report concerning that review; submit that report to the next session of the legislature no later than the first Friday in March, 1995.
17. Page 203, section 294 - Extends expiration date of control by the Governor to July 1, 1997. Senator Townsend stated there has been discussion to implement mandatory retrospective rating for certain companies who seem to have excessive losses. Senator Townsend then asked Terri Rankin, Commissioner, Insurance Division, to set forth proposed language to comply with this section. Ms. Rankin stated it had been proposed to have these companies, at a certain loss ratio, go into a mandatory retro plan. There are questions on the most effective way to get them to do proper safety, to bring down their loss experience, or if they don't do this, at least pay costs they are causing the system to incur. Ms. Rankin noted a big objective was to get companies to put up front more of their costs, and hopefully, have an incentive to keep their losses down. Ms. Rankin stated she favored more flexible language in terms of allowing SIIS to adopt a plan. Mr. Young agreed that greater flexibility could allow each employer to be approached with the most appropriate type of incentive to correct any safety deficiencies.
Senator Townsend asked Don Jayne, General Manager, State Industrial Insurance System, for the record:
One of the things the four of us tried to......well 225 hours last session, continued through the interim committee, was to focus on safety and the importance. And we do have a change in the safety in here that we think is important. Will you have the flexibility to focus your human if not financial resources, on the safety issue, or do you need greater flexibility to focus on that.
Don Jayne, General Manager, State Industrial Insurance System, stated he felt the language within the bill was suitable to be able to work with employers who have the most severe safety problems. Mr. Jayne did state, however, that he would like a period of perhaps a year for the control representatives to be able to work with employers to help establish effective safety plans.
Senator Townsend and Mr. Jayne reiterated that a prime goal was to see a substantial reduction in the number of accidents that occur and to make Nevada the safest place to work.
Senator Townsend commented that one area most everyone agreed about as far as an increase of savings would be to control medical costs. He stated that currently, dramatically reduced bids were coming in from medical providers. Senator Townsend went on to say it was hoped that because of savings proposed perhaps some changes could be made. The first change he would like to see would be the $400 deductible.
SENATOR O'CONNELL MOVED TO REDUCE THE $400 DEDUCTIBLE TO $200.
SENATOR NEVIN SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
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SENATOR NEVIN MOVED TO REMOVE THE PROVISION REGARDING DISCOUNT RATE TO MARKET RATE FOR PERSONS RATED FOR PERMANENT PARTIAL DISABILITY (PPD).
SENATOR SHAFFER SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
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Mr. Young and Mr. Harris discussed the merits of adopting the language from Oregon for section 288. It was felt that the Oregon statute wording was more suitable. In essence, this statute states that anyone with ongoing treatment could remain with their treating physician till, either they would request a change of physician, or they were declared stable.
SENATOR O'CONNELL MOVED THE OREGON LANGUAGE BE ACCEPTED FOR SECTION 288.
SENATOR McGINNESS SECONDED THE MOTION.
THE MOTION PASSED UNANIMOUSLY.
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Mr. Young then discussed language on subsection 2 of section 187. He stated that he and Mr. Larry Zimmerman, Consensus Group (not present) felt they would prefer the existing language relating to medical investigations, be left instead of a mandatory requirement that the insurer must always cover medical investigation costs. George McNalley, Lobbyist, Nevada Trial Lawyers Association, concurred with Mr. Young.
SENATOR BROWN MADE A MOTION TO GO BACK TO THE ORIGINAL LANGUAGE.
THE MOTION WAS SECONDED BY SENATOR NEVIN.
THE MOTION PASSED UNANIMOUSLY.
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Senator Shaffer expressed concern about the possibility of having committee members for the interim. He felt it might be wise to consider alternates, in addition to regular members, in case someone would not be available. Ms. Needham suggested there would be three alternates that would rotate. These to fill in for those not able to show up for any standing meetings.
Senator Nevin stated that he still had concerns that the police/fire heart-lung portion of this legislation was being left unaddressed. Senator Townsend noted there were problems in understanding implications of the current language. Mr. Harris stated it was his understanding that police and fireman benefits was not to be opened up to everybody, nor was it intended to decrease the benefits that are currently received by police and fireman. Senator O'Connell, Mr. Young and Ms. Rankin held a discussion in order to help clear up language regarding this issue. Ms. Rankin went on to say it was her understanding there was no intention to limit police/fire benefits. Senator Nevin reiterated he thought it should be made explicit in the bill to show the intent.
Mr. Harris stated:
We will go on the record that it is absolutely not our intention that the police and fire benefits are affected, Senator.
It was stated by Ms. Needham and Senator Townsend concurred that it was the intent of this committee as well.
Senator Nevin, Ms. Rankin and Senator Lowden then discussed the $200 deductible as it would apply to public servants; i.e., a policeman being shot in the line of duty, or a fireman being injured in a fire through no fault of his own. Another scenario was presented with the possibility of private security employees being injured in the line of duty. No determination was made on how to differentiate between the two entities.
Senator Brown asked for clarification of the language in the first line of section 19. After a discussion by Ms. Needham and Mr. Young, it was determined that her original understanding was correct.
Senator Townsend asked for a motion to introduce the bill to the senate tomorrow.
SENATOR NEVIN MADE A MOTION TO INTRODUCE THE BILL TO THE SENATE TOMORROW.
SENATOR McGINNESS SECONDED THE MOTION.
THE MOTION PASSED UNANIMOUSLY.
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Senator Shaffer and Senator Brown both stated they would be introducing amendments on the floor.
There being no further business, the meeting was adjourned at
10:30 a.m.
RESPECTFULLY SUBMITTED:
Beverly Willis,
Committee Secretary
APPROVED BY:
Senator Randolph J. Townsend, Chairman
DATE:
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Senate Committee on Commerce and Labor
March 18, 1993
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