MINUTES OF THE
SENATE COMMITTEE ON COMMERCE AND LABOR
Sixty-seventh Session
June 5, 1993
The Senate Committee on Commerce and Labor was called to order by Chairman Randolph J. Townsend, at 9:30 a.m., on Saturday, June 5, 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
Linda Krajewski, Primary Secretary
Brian Davie, Senior Research Analyst
Frank Krajewski, Senior Research Analyst
OTHERS PRESENT:
Scott Young, General Counsel, Nevada State Industrial Insurance System
Scott Craigie, Chief of Staff, Governor's Office, State of Nevada
Jack Jeffrey, Lobbyist, Southern Nevada Building and Construction Trades Council
Dan Thompson, Lobbyist, American Federation of Labor-Congress of Industrial Organizations
Chairman Townsend called the meeting to order and opened the hearing on Senate Bill (S.B.) 510.
SENATE BILL 510: Establishes preferred employee program for rehabilitation of injured employees.
Senator O'Connell distributed documents which explain the bill and the requested amendments (Exhibit C). She went through S.B. 510, section by section, summarizing the bill.
Senator Nevin asked what was the amount of the average state monthly wage. Scott Young, General Counsel, Nevada State Industrial Insurance System, said the figure will be $1930 after July 1, 1993.
Senator Lowden wondered whether self-insurers will participate in the program. Senator O'Connell stated the self-insurers had not been considered because they have their own program.
Senator O'Connell spoke of a similar program in place in Oregon.
Senator McGinness asked for the definition of preferred employee. Brian Davie, Senior Research Analyst, said section 5 defines a preferred employee.
Scott Craigie, Chief of Staff, Governor's Office, State of Nevada, suggested that under section 9 medical benefits should be retained by persons who are injured but do not take advantage of the re-employment program. He stated he would like the opportunity to take a better look at the bill, but that at first glance the program looked like an excellent plan.
Mr. Young agreed that keeping the medical benefits would be the way to go.
Jack Jeffrey, Lobbyist, Southern Nevada Building and Construction Trades Council, said he thought the intent of the legislation was good. He stated his concerns over several sections of the bill. Mr. Jeffrey asked if the ideal is for the employee to go back to the original employer. Senator O'Connell said that, hopefully, the employer will take back the injured worker and find another job for him. The bill would also provide an alternative for that employee.
Senator O'Connell explained that, if the bill passed, when an injured worker is released from the doctor the system has the criteria for what the worker can do. The system also has, from various employers, descriptions of jobs which would match the abilities of the worker. The system becomes a clearinghouse.
Senator Lowden explained how the self-insurers operate their re-employment program.
Senator Shaffer asked how the union employees would be handled. Mr. Young said that was an issue that arises now and is addressed in the regulations. He stated he thought union affiliation should not be grounds for denial.
Senator Lowden said the issue had not been a problem, in her experience, for self-insurers.
Mr. Jeffrey explained most union workers would be forced to forfeit their union affiliation if they worked a non-union job, even temporarily. He said the main problem he saw was the "suitable employment" language. Mr. Jeffrey wondered where the program became mandatory.
There followed general discussion of "suitable employment." Mr. Young stated the definition is something the worker has the appropriate entry level skills for, and that he is physically able to perform. It also has to be at a given salary level.
Senator O'Connell said:
The important thing to remember is that it is a voluntary program. You don't have to get in it as an injured worker. You can be just like they are now. But we heard over and over again, 'Just release us from the program, we want to go back to work. Give us some alternatives.' This is the alternative for those people. It is up to the injured worker; you do not have to get into this program. If you do get into this program, and you're going to know this beforehand, these are the parameters of the program. The injured worker has to make some decisions at that point. Does he want to sit home and do what he would normally do, or does he want to be in a work force somewhere? Don't lose sight of the fact that it's a voluntary thing to get into.
Mr. Jeffrey stated section 8 could be a penalty to the employee as well as the employer. Mr. Davie explained the provision was included to limit the employer from continuing to receive the benefits for an employee who was in a different program. Mr. Young agreed with Mr. Jeffrey that the section did not make clear that it was intended to keep an employer from abusing the program.
Dan Thompson, Lobbyist, American Federation of Labor-Congress of Industrial Organizations, said he was not against the concept of the program, but was concerned with making the employee pay for it. He stated it was not a good precedent to set.
Senator O'Connell explained the program in Oregon had been set up with the unions. She stated the unions there felt there was enough additional benefit for the employee to merit giving it a chance.
Mr. Jeffrey said Oregon was different in many ways from Nevada, including a disability program for off-the-job injuries which is paid for by the employees.
Senator Townsend stated the committee was out of time for the day, but would take up the bill again the following Monday. He also said the committee could be hearing the remainder of the bills at any time. The meeting was adjourned at 10:30 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
June 5, 1993
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