MINUTES OF THE
SENATE COMMITTEE ON COMMERCE AND LABOR
Sixty-seventh Session
April 7, 1993
The Senate Committee on Commerce and Labor was called to order by Chairman Randolph J. Townsend, at 8:00 a.m., on Wednesday, April 7, 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:
Denise Pinnock, Committee Secretary
Brian Davie, Senior Research Analyst
OTHERS PRESENT:
Jim Jeppson, Administrator, Division of Industrial Insurance Regulation, State of Nevada
Scott Young, General Counsel, Nevada State Industrial Insurance System (SIIS)
Jack Jeffrey, Lobbyist, Southern Nevada Building and Construction Trades Council
James Nelson, District Manager, Gibbons Company
Jim Shelley, Senior Research Analyst, State of Nevada Employment Security Department
Judy Matteucci, Director, Department of Administration, State of Nevada
Chairman Townsend opened the meeting. The first order of business was Senate Bill (S.B.) 204.
S.B. 204: Revises provisions governing enforcement of claims for wages, commissions or other demands of person financially unable to employ counsel.
As there was no one present to testify on S.B. 204, the committee discussed indefinitely postponing the bill.
SENATOR SHAFFER MOVED TO INDEFINITELY POSTPONE S.B. 204.
SENATOR O'CONNELL SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
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Senator Townsend opened the hearing on S.B. 205.
S.B. 205: Repeals certain restrictions upon information which division of industrial insurance regulation of department of industrial relations may obtain from industrial insurers.
Jim Jeppson, Administrator, Division of Industrial Insurance Regulation (DIIR), State of Nevada, submitted written testimony (Exhibit C), explaining why the department wanted statutory authority to do immediate, on-site audits.
Scott Young, General Counsel, Nevada State Industrial Insurance System (SIIS), stated his agency had no problem with DIIR doing the audits. The only problem, he said, would be in the case of a large audit, when the DIIR came to them and said they wanted the information in 10 days. Mr. Young stated it might be difficult to manage claims, and at the same time pull a substantial number of files. He said it would be all right if the system could be allowed a reasonable amount of time to provide such information.
Jack Jeffrey, Lobbyist, Southern Nevada Building and Construction Trades Council, stated his organization's support of the bill.
Senator Townsend asked about the scope of audits over which the DIIR would have immediate access. Mr. Jeppson stated the vast majority would be injured workers, followed by medical providers, and a small number of employer complaints.
Mr. Jeppson said he could only recall one time they had had a problem with a third party administrator.
Senator Townsend reminded Mr. Jeppson that the committee's policy had never been to change state law because of one or two problems. He suggested talking to the third party administrator with which the department had had problems.
Senator Brown asked if there was a remedy for a company which felt they were being harassed by the DIIR. Mr. Jeppson said they could file a complaint with the director of DIIR, or with the Governor's Office.
Senator Townsend closed the hearing on S.B. 205, and opened the hearing on S.B. 208.
S.B. 208: Revises provisions for determining status as independent contractor for purposes of unemployment compensation.
James Nelson, District Manager, Gibbons Company, submitted a state-by-state breakdown listing of the different criteria used in determining independent contractor status (Exhibit D).
Jim Shelley, Senior Research Analyst, State of Nevada Employment Security Department, testified in favor of the bill, and explained the intent.
Senator Townsend stated that Ande Engelman, Nevada Press Association, had telephoned him that morning to tell him she could not be present at the hearing, and had reservations about S.B. 208.
Mr. Jeffrey testified in favor of the bill, and stated he would like to see the concept expanded out into the SIIS area.
Senator Townsend asked Mr. Jeffrey to speak with Ms. Engleman regarding her concerns.
Mr. Young said they had had numerous instances where, in the construction industry, a company would attempt to send individual workers in, treat them as subcontractors, and force them to take out their own policy.
Senator Townsend decided to send the bill to subcommittee, and closed the hearing on S.B. 208. He opened the hearing on S.B. 210.
S.B. 210: Clarifies which entity certain contractors are to furnish proof of industrial insurance.
Judy Matteucci, Director, Department of Administration, State of Nevada, explained the intent of the bill.
SENATOR O'CONNELL MOVED TO DO PASS S.B. 210.
SENATOR LOWDEN SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
* * * * *
SENATOR O'CONNELL MOVED TO INDEFINITELY POSTPONE S.B. 205.
SENATOR NEVIN SECONDED THE MOTION.
Senator Brown said:
Sometimes if the law gives a group the right to require all this information only 30 days in advance, if they did want to take advantage of it, and start getting rid of information, or undermine an audit, that could happen. I can see a real purpose for why this was brought up ... The element of surprise can be very important if there is fraud going on, or mismanagement. I have a problem with just getting rid of this.
Senator Shaffer asked if there was not a chance the issue would be looked at again before the session was over. Senator Townsend stated Senator Brown had a good point, but hated to pass state law because of a problem with one company. He said the long-term policy would have to be reviewed.
THE MOTION CARRIED. (SENATOR BROWN VOTED NO.)
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As there was no further business, the meeting was adjourned at 9:15 a.m.
RESPECTFULLY SUBMITTED:
Denise Pinnock,
Committee Secretary
APPROVED BY:
Senator Randolph J. Townsend, Chairman
DATE:
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Senate Committee on Commerce and Labor
April 7, 1993
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